Coffee capsules: the story of a global success

If you know us, you know that we have always been tied to the tradition of artisanal espresso coffee. We continue to produce the three coffee blends from 1898, when Cavalier Manaresi started the history of our roasting company.

Yet, thanks to the vision of Dr. De Nozza, who in the late '80s managed to revive and relaunch the company, we have always chosen to look to the future. Already at a time when the capsule market was still in its infancy, our roasting company started producing its own compatible capsules, made with the support of a local capsule supplier and filled with our best blend.

Initially, we offered packs of 20 capsules, a format designed for those who wanted to stock up, but which placed us at a higher shelf price compared to competitors, often focused on the 10-capsule format. Today, we have aligned with this standard, presenting our new 10-pack, more practical and competitive, without giving up the quality that distinguishes us.

The new culture of coffee capsules

Coffee capsules have transformed the way millions of people prepare coffee at home and in the office. Coffee capsules offer speed, consistency, and a "bar-like" experience in seconds. Even in Italy, albeit with some resistance, the convenience of coffee capsules has won over many.

Where do coffee capsules come from and who invented them?

We at Il Caffe Manaresi offer Nespresso-compatible capsules^{® 1}. The idea that gave rise to the Nespresso system came from an ingenious observation made by Éric Favre, a young Nestlé engineer who in 1975 became interested in espresso coffee during a trip to Italy. In short, our Italy is always at the center when it comes to coffee. And in our Italy, we are central in espresso production, both geographically, being in the heart of Tuscany, and organoleptically, offering balanced coffee blends that find the right middle ground between the mild coffee of Northern Italy and the strong coffee of the South.

Anyway, returning to the story of coffee capsules, Éric Favre, once back in Switzerland, designed a system that sealed ground coffee in a capsule to maintain its freshness and reproduce at home the extraction and crema typical of espresso. The system was patented in the following years, and the Nespresso brand was launched as a business unit of Nestlé.

The concept of portioning did not remain exclusive to Nestlé; over the years, alternative or compatible platforms have developed, responding to different format and taste needs.

How do coffee capsules work and how are they made?

The capsule contains ground coffee and is sealed. The machine pierces it, hot water at high pressure passes through the capsule, extracting aromas and crema in a controlled way.
Our capsules are compatible with the Nespresso Original Line, the first technology developed.

It works similarly to traditional espresso machines:

• The machine pierces the capsule.
• Hot water is pushed at high pressure (up to about 19 bar).
• You get coffee with crema, body, and intensity similar to that of a bar.

Capsules contain on average 5/5.5 g of coffee and are mainly intended for espresso and ristretto (typical Italian formats).

How much coffee does a capsule contain?

The content varies depending on the line and format. For example, Nespresso-compatible capsules contain about 5.5 g, although the package indicates a default weight of 5 g.

How are coffee capsules made?

The capsule body is made of aluminum, plastic, or bioplastic. The capsule then has a sealing foil made of aluminum or other biodegradable material.

Our experience with biodegradable capsules

We at Il Caffè Manaresi have experimented with fully biodegradable capsules of different types, but with results that were not satisfactory.

The biodegradable foil tends to open too much during piercing, letting water pass too quickly. Meanwhile, the bioplastic body offered excessive resistance and elasticity to the piercing pin, causing issues both with coffee density and machine maintenance.

For this reason, we returned to plastic capsules with aluminum sealing foil.

Coffee capsules and the environment: objective issues

The single-serving capsule simplifies consumption but attracts much criticism on the environmental front. The problem is not only the material itself but the "single-use" nature of packaging with high distribution rates.

As mentioned, alternatives exist to single-use aluminum and plastic capsules: compostable capsules, which often involve compromises on aroma protection, shelf life, and machine compatibility.

Initial spread and business model

Nespresso, born in the '70s–'80s as a solution for business clients and offices, later targeted the domestic consumer with a "device + consumable" strategy: sell the machines (sometimes at an incentive price) and generate recurring revenue with the capsules. This model scaled well because it creates loyalty — the machine often "ties" the consumer to a capsule format (or compatibles) — and allows significant margins on the portioned product.

The first markets to adopt the format massively were countries with high espresso affinity and medium-high purchasing power; retail/online expansion and Nespresso boutiques then accelerated global diffusion.

Thanks to this business policy, the Nespresso Original Line soon became the standard for coffee capsules almost everywhere.

Diffusion in Italy: coffee culture and capsules

Italy is an interesting case: a country with a strong espresso culture, bar tradition, and coffee rituals. Nevertheless, capsules have captured a significant share of the domestic market thanks to:

• convenience and speed (perfect for those with hectic schedules);
• perceived quality and variety of blends/intensities offered;
• machine design and "premium" positioning that fits well with a culture that appreciates quality products.

Consumption data show that Italy is among the European countries with high per capita coffee consumption — around 5–6 kg/year per person according to industry sources — and the capsule and pod market has grown with domestic habits and machine diffusion. However, capsule penetration overlaps, without replacing, traditional bar consumption: Italians continue to visit bars, while capsules are mainly chosen for home, office, or as a second option.

The role of marketing and advertising

The success of Nespresso is primarily brand building. The company deserves recognition for excellent work in building the business idea we described and in extremely effective marketing campaigns.

The coffee capsule is promoted with:

• premium positioning and storytelling;
• retail strategies (boutiques, shop-in-shop), e-commerce, and clubs (loyalty programs);
• communication with big names and testimonials (celebrity campaigns that reinforced aspirational positioning);
• packaging and machine design as lifestyle objects rather than simple appliances.

Market data: size and trends

The global capsule and pod market is significant and growing. Recent market estimates place their global market value in the tens of billions of dollars, with expected growth in the coming years (CAGR around 6–7% according to industry research). These figures indicate strong demand for the single-serve format, both for the domestic channel and out-of-home.

The future of capsules

Coffee capsules have created a new segment that combines technology, design, marketing, and convenience. Nespresso, born from Éric Favre's intuition, was the main driver of the "capsule + machine" concept and shaped the market through the brand, boutiques, and a recurring revenue model.

For those who still wrinkle their nose at coffee encased in plastic or aluminum, skepticism is understandable. However, times change, and the "capsule" deserves credit for making espresso accessible in countries where it would have otherwise been difficult to spread. And in an increasingly fast-paced society, it remains a practical solution that continues to support the social aspect that has always accompanied the coffee ritual.

1. Nespresso® is a registered trademark of Société des Produits Nestlé S.A. Il Caffè Manaresi is not affiliated with or sponsored by Société des Produits Nestlé S.A.