This category is dominated by Keurig in the U.S. According to the firm, it has machines in over 38 million households and sold $4.3 billion in U.S. coffee last year.
Nestlé's Nespresso has done better globally in a $100 billion retail coffee market. It's expanding its U.S. market share.
Nespresso pods have always been rare in the US. Keurig is mostly absent beyond North America. That makes the U.S. a highly unusual market.
Nestlé wouldn't tell CNBC its Nespresso household penetration, but JPMorgan estimates $1.5 billion in U.S. sales last year.
It's far from the brand's country roots. As Nestlé introduced it in the early 1990s, Nespresso's U.S. company became profitable after seven years.
The brand struggled to reach U.S. consumers until 2014, when it introduced the Vertuo machine. It makes full-size coffees and the brand's espresso.
A decade after Keurig revolutionized the U.S., Nespresso has grown. The company's domestic coffee sales increased over $3 billion between 2009 and 2013.
Nespresso may gain while Keurig loses. Barry of Euromonitor said the brand may be targeting a different market than Keurig and is “not really trying to dethrone Keurig