Liquid foams occur whether intentionally or unintentionally across different industrial sectors. The detection of foam and characterization of liquid content currently requires complex measurement methods such as electrical conductivity measurements. This paper presents a novel method for foam detection and characterization of its liquid fraction based on a capacitive level sensor. A correlation between the sensor output signal and defined liquid fractions of dry to wet foam indicated a high accuracy of this sensor technique. Regarding the sensor operation in different liquid solutions, a minimum screw-in depth is presented. The sensor allows minimal invasive inline measurements in equipment regardless of the wall material and of extreme process conditions, e.g., explosion hazard areas.