India Coffee Market Research Report 2023

India Coffee Market Synopsis

India’s Coffee Market is Expected to Grow at a Significant Growth Rate, and the Forecast Period is 2023-2030, Considering the Base Year as 2022.

The India Coffee market is well-known for its cultivation of both Arabica and Robusta coffee beans, primarily concentrated in the southern states of Karnataka, Kerala, and Tamil Nadu. This success can be attributed to the country's diverse geography and favorable climate, creating ideal conditions for coffee production on a global scale.

• The consumption of coffee within India has been steadily increasing, fueled by a growing coffee culture among urban populations, the proliferation of coffee chains and cafes, and a rising preference for specialty coffee.
• In contrast to the historical dominance of tea, coffee has gained popularity, particularly among the younger generation, resulting in a surge in demand for premium, high-quality coffee and the emergence of numerous specialty coffee roasters and cafes.
• India's coffee industry heavily relies on international exports due to the sought-after distinct flavor profiles of Indian coffee. With a strong presence in Europe, the United States, and the Middle East, India plays a pivotal role in the global coffee market, actively supported by the government's initiatives in financial assistance, infrastructure development, and research and development. Despite challenges, the dynamic coffee market significantly contributes to India's agricultural and economic advancement.

Top Key Players:

"Tata Coffee Limited (India), Coffee Day Global Limited (Cafe Coffee Day) (India), Tata Starbucks Pvt. Ltd. (USA), Nestle India Limited (Switzerland), Hindustan Unilever Limited (Bru Coffee) (United Kingdom), Coca-Cola India (Georgia Coffee) (USA), Leo Coffee (India), Narasu's Coffee Company (India), Cothas Coffee (India), AVT Coffee (India), Fresh & Honest Coffee (India), CCL Products India Limited (India), Continental Coffee Limited (India), Araku Coffee (India), Kodaikanal Hilltop Coffee (India), Devans Coffee (India), Kaapi Royale Coffee (India), SLN Coffee (India), Coffee Lab India (India), Seven Beans Coffee Company (India), Flying Squirrel Coffee (India), Blue Tokai Coffee Roasters (India), The Indian Bean (India), The Coffee Co. India (India), Black Baza Coffee Co. (India) and Other Major Players"

India Coffee Market Trend Analysis

Export-Oriented Approach Promoting India's Coffee on a Global Scale

• The India Coffee market's global success is driven by an export-oriented approach. The distinct flavor profiles of Indian coffee beans have created significant demand in international markets, establishing a strong presence in Europe, the United States, and the Middle East.
• The focus on exports has led Indian coffee producers to prioritize high-quality standards and innovative processing techniques. This emphasis on quality has earned Indian coffee a reputation for excellence, enhancing its competitiveness on the global stage.
• The export-oriented strategy has also exposed Indian coffee farmers and exporters to international trends and preferences. This exposure has enabled the India Coffee market to diversify its offerings and adapt to the dynamic demands of the global coffee industry, ensuring continued growth and recognition on a global scale.

Rising Popularity of Specialty Coffee Worldwide

• The rising popularity of specialty coffee worldwide is a significant opportunity for the Indian coffee market. With its diverse coffee-growing regions and unique flavor profiles, India can position itself as a producer of premium specialty coffee to cater to the growing demand.
• To seize this opportunity, Indian coffee growers can focus on sustainable and ethical cultivation practices, ensuring traceability and quality assurance. Investing in innovative processing techniques can accentuate the distinctive characteristics of the coffee, appealing to discerning consumers seeking a unique coffee experience.
• By establishing direct trade relationships with specialty coffee buyers and roasters, India can build a reputation for providing high-quality specialty coffee both domestically and internationally, fostering a thriving specialty coffee scene within the country.

Coffee consumption in India has remained relatively stable over the period from 2018/2019 to 2022/2023, with slight fluctuations. The consumption started at 1250 thousand 60-kilogram bags in 2018/2019, declined to 1170 thousand bags in 2019/2020, but then rebounded to 1180 thousand bags in 2020/2021. Subsequently, it showed a further increase, reaching 1230 thousand bags in 2021/2022, and continued to grow in 2022/2023, reaching 1235 thousand bags. This consistent trend in coffee consumption showcases the enduring popularity of coffee in the Indian market and reflects the country's sustained interest in coffee culture.

India Coffee Market Segment Analysis:

India’s Coffee Market is segmented into Form, Speciality Coffee, Flavors, Distribution Channel, and End-Users. By Source, the Arabica segment is Anticipated to Dominate the Market Over the Forecast Period.

• Arabica coffee is anticipated to dominate the Indian coffee market due to its superior taste and milder flavor compared to Robusta. The rising demand for premium and specialty coffee experiences has led to a higher preference for Arabica beans among consumers and specialty coffee roasters.
• Certain coffee-growing regions in India, such as Karnataka and Kerala, offer ideal conditions for cultivating Arabica coffee, including suitable altitude, temperature, and soil characteristics. This geographical advantage contributes to the prevalence of Arabica in the market.
• While Robusta still has its place, especially in instant coffee and commercial blends, Arabica's popularity in the specialty coffee market solidifies its position as the leading segment in the Indian coffee industry. As consumer preferences continue to lean towards diverse and refined coffee options, Arabica coffee is expected to drive growth and success in the Indian market.

Country Analysis of the India Coffee Market

• Karnataka is the state in India that is dominating the Indian coffee market. Karnataka, the largest coffee producer in India, dominates the Indian coffee market with a substantial share of the country's coffee production. The hilly regions of Chikmagalur, Coorg (Kodagu), and Hassan in Karnataka provide ideal conditions for coffee cultivation, making it a prominent coffee-growing region.
• The state's coffee plantations produce both Arabica and Robusta varieties, catering to diverse consumer preferences. Arabica thrives in higher altitudes, while Robusta flourishes in lower elevations. This diverse range of coffee beans from Karnataka contributes to the variety and quality of Indian coffee available in the market.
• Karnataka’s role as a leading coffee producer not only shapes the Indian coffee industry but also enhances India's standing in the global coffee market. Its dominant position in coffee production highlights the significance of Karnataka's contribution to the country's coffee sector and its reputation as a significant coffee-growing region worldwide.

COVID-19 Impact Analysis on the India Coffee Market

• The Indian Coffee market faced significant impacts from the COVID-19 pandemic. Supply chain disruptions led to delays in coffee shipments and distribution, while lockdown measures caused a decrease in domestic consumption as coffee outlets faced closures or limited operations.
• Internationally, coffee exports declined due to economic challenges and reduced consumer spending in coffee-importing countries. The decrease in travel and tourism also affected coffee consumption in cafes and hotels abroad. The market's uncertainty led to price volatility, affecting both coffee producers and buyers in India.
• Coffee farmers in India encountered challenges such as labor shortages and difficulty in accessing essential inputs like fertilizers and pesticides. The pandemic demanded resilience and adaptation from all stakeholders in the Indian Coffee industry.

Top Key Players Covered in The India Coffee Market

• Tata Coffee Limited (India)
• Coffee Day Global Limited (Cafe Coffee Day) (India)
• Tata Starbucks Pvt. Ltd. (USA)
• Nestle India Limited (Switzerland)
• Hindustan Unilever Limited (Bru Coffee) (United Kingdom)
• Coca-Cola India (Georgia Coffee) (USA)
• Leo Coffee (India)
• Naras u’s Coffee Company (India)
• Cothas Coffee (India)
• AVT Coffee (India)
• Fresh & Honest Coffee (India)
• CCL Products India Limited (India)
• Continental Coffee Limited (India)
• Araku Coffee (India)
• Kodaikanal Hilltop Coffee (India)
• Devans Coffee (India)
• Kaapi Royale Coffee (India)
• SLN Coffee (India)
• Coffee Lab India (India)
• Seven Beans Coffee Company (India)
• Flying Squirrel Coffee (India)
• Blue Tokai Coffee Roasters (India)
• The Indian Bean (India)
• The Coffee Co. India (India)
• Black Baza Coffee Co. (India) and Other Major Players

Key Industry Developments in the Indian Coffee Market

In June 2023, Barista Coffee Company is extending its retail presence by opening its inaugural café in Ahmedabad. Barista Coffee Company, a well-known name in India's café industry, is excited to announce the grand opening of its first café in Ahmedabad. This momentous occasion marks the establishment of Barista's 365th store, cementing its position as a major player in the country's thriving coffee culture. Situated in the heart of Ahmedabad, the newly launched Barista café offers a unique experience for coffee enthusiasts.

In May 2022, Amazon introduced an exclusive collection of premium caffeine products in collaboration with the Coffee Board of India. This exciting partnership aims to offer a diverse range of high-quality coffee items to customers, showcasing the rich and unique flavors of Indian coffee. In a significant move to support India's coffee industry and promote the 'vocal for local' vision, Amazon has teamed up with the Coffee Board of India, an entity under the Ministry of Commerce and Industry. Amazon's online marketplace will offer premium coffees sourced from India's top coffee-producing regions, including Chikmagalur and Coorg in Karnataka, through its partnership with the Coffee Board of India.