JDE Peet's sees coffee capsule boost

coffee capsules

Coffee and tea giant JDE Peet's (Douwe Egberts) wants to significantly increase the production of aluminium coffee capsules in the coming months. Partly as a result of the corona crisis, demand for such capsules is rising sharply. Competitor Nestlé (Nespresso) also announced a production increase earlier.


Boost by corona

JDE Peet's will invest a total of 110 million euros in additional production capacity. The new production lines will be installed in the existing factory in Andrézieux, France. Aluminium coffee capsules have been made there since 2016. The investments should increase capacity by 60% over the next year and a half.

The so-called 'single serve coffee market' currently represents a value of 17 billion euros. Of this, JDE Peet's owns some 13%. It is expected that this market will increase further in the coming years to 23 billion euros in 2024.

The demand for individual coffee capsules has been given an extra boost by the corona crisis and the many homeworkers. In July, major competitor Nestlé also announced a sharp increase in the production of Nespresso capsules. The Swiss company set aside 170 million dollars (144 million euros) for this purpose, writes Business AM.  Nespresso is currently the market leader in the single serve segment.