What’s happening with Coffee Capsules in New Zealand

What’s happening with Coffee Capsules in New Zealand

September 20, 2017

The coffee capsule market in New Zealand is growing rapidly. Technology is getting better and price is coming down. In this blog, we talk about what this means for you and your Nespresso® machine.

In a growing market

In New Zealand, we’ve got right into coffee capsules. They’ve helped us switch from instant to fresh coffee. They’ve allowed us to bring our love of café style coffees into our home and workplace. They are convenient and they save us money.

Capsules, particularly the Nespresso® shape, will be around for a while. The reason why is simple. Fast growing markets are attractive to business (2016, $29.47b USD globally. In 2021 that’ll be $41.5b).

Expect capsules to get better

There is a lot of investment going into coffee capsules compatible with your Nespresso® machine. The consistent performance of the new next-generation capsules helps you extract even better tasting coffee. It’s the reason why we upgraded our capsules in May.

When we do tastings at the Matakana Market, one of the first questions people ask is “will these capsules work in my Nespresso® machine?”. That question is now pretty much redundant. Well established brands, like us, who use major capsule suppliers now offer compatible capsule technology that is on a par with Nespresso®.

And prices to keep coming down

In the past, consumer expectations around the price for good capsules has been pegged at the Nespresso® price. The technology improvements will see that price expectation drop significantly. The question is “to where?”

The price that brands charge you for your Nespresso® compatible coffee capsules must change from “Nespresso® less a bit” to “cost plus a reasonable price for delivery”. We started Coffee Capsules 2U to try and help make this change happen. We knew it was a good thing to do for New Zealand. We’ve worked closely with our Australian partners to deliver the latest technology capsule at the best possible price.

So, what does this mean for me?

Your Nespresso® machine is safe on the kitchen counter. It’s good for a while yet. Sit back and enjoy consistently good coffee, from the latest technology capsules, at prices that will keep getting better.

It’s important that you choose an established brand offering the latest capsule technology. A brand that is based here and committed to doing good for you and New Zealand. We talk about this in our next blog “10 questions to ask your capsule supplier”.

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