Convenience has long been one of the biggest drivers of growth in the coffee industry. The explosive popularity of single-serve coffee capsules, notably Nespresso and K-Cups, in the early 2000s signifies this.
Specialty coffee, hallmarked by its emphasis on craft and skill, once shunned capsules, instead choosing to focus on hand-brewed pour overs and dialled-in espresso. But as consumer preferences shifted towards convenience and quality, roasters saw an opportunity to tap into the lucrative capsule market – set to be valued at US $14.2 billion by 2033.
In the mid-2010s, the number of specialty coffee roasters offering capsules proliferated. As demand for convenience and quality increased, the format of single-serve coffees diversified, allowing consumers to drink high-quality coffee quickly with minimal equipment needed.
Single-serve drip and steeped coffee bags emerged as a happy medium for coffee drinkers who prioritised quality, also offering speed and ease of use. Today, packaging innovation for single-serve coffee continues to evolve – offering more precision and flexibility.
I spoke to Mark Zhou, founder of MTPak Coffee, Matt Lewin, Director of Sales at ONA Coffee, and Lucy Ward, Head of Operations and Sourcing at ST. ALi Coffee, to learn more.
You may also like our article on the future for filter coffee.
The steady rise of single-serve specialty coffee
Single-serve coffee is exactly what it sounds like: a single portion of pre-ground coffee in convenient packaging. This format initially grew in popularity in the 1970s as consumers looked for quicker, hassle-free ways to brew fresh coffee without complex or expensive equipment.
The single-serve coffee market continued to expand with the introduction of steeped coffee bags in the 1980s and the rise of pods and capsules in the late 1990s and early 2000s.
Coffee bags are similar to tea bags, whereby ground coffee is packaged in a paper or food-grade plastic bag. Consumers simply steep the bag in hot water for a few minutes, eliminating the need for grinders, scales, or machines.
“It removes the mental effort of dialling in coffee, controlling grind size, or measuring portions; it’s already pre-weighed and optimised for brewing,” says Matt Lewin, the 2019 Australian Barista Champion and Director of Sales at ONA Coffee in Australia.
Beyond steeped bags, coffee capsules and pods remain a popular single-serve format. These allow consumers to brew espresso-style drinks at home using a capsule machine brewer that requires no skills and can prepare coffee in seconds.
Convenience has traditionally driven the growth of the single-serve coffee market; however, as specialty coffee consumption has increased, quality has played a more important role. According to the most recent 2024 National Coffee Data Trends report, 45% of US adults had specialty coffee in the past day – up 80% since 2011 and surpassing past-day traditional coffee consumption (44%) for the first time.
With more people drinking specialty coffee, consumer expectations of quality for single-serve options jumped significantly.
“Coffee consumers have long demanded convenience, as seen by the explosive growth of the capsules market over the last two decades,” says Mark Zhou, founder of sustainable packaging company MTPak Coffee. “But more recently, there has been an expectation that convenience doesn’t have to compromise quality; specialty coffee consumers want both.
“This demand expanded the single-serve coffee market beyond capsules, offering steeped and drip bags containing pre-ground high-quality coffee that can be brewed virtually anywhere.”
Why did pour over style drip bags become so popular?
Pour overs are a staple of specialty coffee, showcasing baristas’ skills and offering unique flavour experiences. To emulate this brewing technique while still catering to the need for convenience, specialty coffee roasters started to offer pour over-style single-serve bags in the mid 2010s.
This format features pre-dosed and ground coffee in a paper bag with fold-out handles. Consumers simply unfold the tabs, hang the bag over the rim of the cup, and pour hot water over the grounds. Initially popular in the early 1990s in Japan, international consumer interest grew during the early 2020s.
“When travel resumed after Covid-19, the idea of reverting to instant coffee on the road wasn’t appealing; people still wanted a freshly brewed cup, no matter where they were,” says Lucy Ward, Head of Operations and Sourcing at ST. ALi Coffee in Australia. “Since then, demand has not only sustained but grown, particularly as the hospitality and tourism industries recognise the value of these products.”
The main appeal is that drip bags offer a quick way to brew high-quality coffee with minimal equipment. As the coffee is pre-dosed and the bags can fit on most cups, consumers only need hot water and a kettle.
Matt says ONA’s decision to launch drip bags, including the Reserve Filter Drip Bags featuring a rotating range of single origin coffees, stemmed from two key trends: the growing consumption of filter coffee and increased demand for convenience and accessibility.
“These are people who enjoy single origin coffee and express interest in flavour clarity, origin, farm-level detail, processing methods, and terroir expression,” he explains. “These bags are designed for function and for people who want zero restrictions on when and where they can enjoy great coffee. You’re pouring water over the coffee, controlling the flow rate, and creating something with intention.
“More specialty roasters are getting involved in drip bags, and we wouldn’t see this kind of supply if there wasn’t a strong demand,” he adds. “Immersion brewing (like a teabag) tends to give more body, but that doesn’t mean it necessarily extracts more complexity. Drip brewing allows for a more detailed and refined extraction, offering a different, often more structured expression of flavour.”
The single-serve coffee market continues to evolve
Despite the significant expansion of the single-serve coffee market in recent years, there’s still plenty of room for further innovation. Roasters are now rethinking drip bag design to create a more elevated brewing experience.
“Drip single-serve bags allow consumers to prepare coffee similar to a pour over, but the design can be limiting,” Mark tells me. “The smaller surface area can make it difficult to pour water over the ground coffee precisely.
“To improve consistency and precision, MTPak Coffee launched UFO single-serve coffee bags. The revolutionary disc-shaped stand rests on top of the cup, increasing the surface area and allowing for more precise pouring.”
Ultimately, improved precision when pouring results in better flavour expression and clarity, supporting the demand for quality coffee in convenient formats. The larger surface area also means consumers can prepare their coffee similar to a pour over, enhancing the brewing experience while still catering to the need for simplicity and ease of use.
Packaging innovation is also helping to preserve freshness – an essential factor when brewing with pre-ground coffee.
“Drip bags act like time capsules, preserving the coffee in a format that just requires hot water,” Matt tells me. “Some of the best drip bags we’ve tested have been excellent even 12 months later, proving just how well this format can retain quality.
“Consumers can buy individual doses of coffees, brew them however they want, and experience a wide range of flavours,” he adds. “While we roast our drip bags specifically for filter-style brewing, there’s flexibility in how people use them; some drink them black, others might add milk.”
Sustainability and quality continue to be a key focus
As demand for single-serve coffee options continues to grow, sustainability remains crucial to innovation in the market.
“MTPak Coffee’s UFO bags are fully customisable with digital printing and made from sustainable materials, catering to consumers’ preferences for a personalised coffee experience and eco-friendly materials,” Mark says.
Roasters are also exploring biodegradable and compostable materials for their drip bags as an eco-friendly alternative to coffee capsules.
“Sustainable packaging advancements will be key, with more compostable options on the horizon,” Lucy says. “However, the real challenge is ensuring that any packaging innovations maintain coffee freshness over time.
“We’re likely to see better-quality, specialty single-serve options becoming more widely available in grocery stores, making premium coffee even more accessible to everyday consumers,” she adds, noting that ST. ALi’s drip bags are gaining momentum in the rapidly evolving Asian market.
“Beyond quality, drip bags are incredibly convenient,” she adds. “They’re mess-free, easy to use, and typically cost less than AU $3 per cup, making them an affordable way to enjoy specialty coffee anywhere.”
Convenience and quality are no longer mutually exclusive in the single-serve coffee market. Consumers expect both, and roasters need to cater to ever-changing preferences.
As the popularity of pour over-style drip bags continues to grow, we’ll undoubtedly see roasters find new ways to push the boundaries of packaging design and materials to elevate the brewing experience while still catering to the demand for convenience.
Enjoyed this? Then read our article on why customers won’t wait forever for a pour over.
Photo credits: MTPak Coffee, ONA Coffee
Perfect Daily Grind
Please note: MTPak Coffee is a sponsor of Perfect Daily Grind.
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