India Coffee Market Research Report: By Coffee Type Outlook (Arabica, Robusta, Others), By Coffee Product Outlook (Whole Bean, Ground, Instant, Pods Capsules), By Coffee Category Outlook (Organic, Regular), By Coffee Roast Type Outlook (Light Roast, Medium Roast, Medium-Dark Roast), By Coffee Price Range Outlook (Economy/Mass, Premium), By Coffee End User Outlook (Residential/Retail, Commercial/HoReCa), By Coffee Caffeine Presence Outlook (Decaffeinated, Standard), By Coffee Distribution Channel Outlook (Store-Based, Non-Store-Based), By S

India Coffee Market Overview

India Coffee Market Size was estimated at 19.67 (USD Billion) in 2023. The India Coffee Market Industry is expected to grow from 20.17(USD Billion) in 2024 to 30.0 (USD Billion) by 2035. The India Coffee Market CAGR (growth rate) is expected to be around 3.673% during the forecast period (2025 - 2035).

Key India Coffee Market Trends Highlighted

Several substantial trends are currently being observed in the Indian coffee market, which are indicative of evolving consumer preferences and market dynamics. The increasing consumption of coffee, particularly among the urban population, is a significant factor, as newer generations are increasingly favoring coffee over traditional beverages such as tea. The proliferation of café culture in cities like Bengaluru, Mumbai, and Delhi has encouraged a transition to specialty coffee, which is distinguished by its distinctive flavors and artisanal brewing methods. This has resulted in the promotion of high-quality beans from regions such as Coorg and Chikmagalur. An additional significant market driver is the growing prevalence of sustainable practices among coffee producers, with an emphasis on organic cultivation and certifications that appeal to health-conscious consumers. Furthermore, the market is ripe with opportunities for both established companies and new entrants, as the demand for innovative coffee products, such as chilled beverages and ready-to-drink options, is on the rise. The increasing popularity of online purchasing has also revolutionized the way consumers purchase coffee, as a significant number of individuals are now utilizing e-commerce platforms that offer a diverse selection of brands and flavors. India is one of the world's largest coffee producers, which presents an opportunity to expand export markets. Investments in the enhancement of bean quality and processing methods can increase competitiveness in international markets. The potential for development has been further bolstered by the recent increase in health awareness, which has spurred interest in the health benefits of coffee. Concurrently, the popularity of educational seminars and local coffee festivals is increasing, enabling consumers to engage more thoroughly with the coffee culture and comprehend the diversity of Indian coffee. In general, these trends reflect a dynamic and constantly changing market environment for coffee in India.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

India Coffee Market Drivers

Increasing Coffee Consumption Among Urban Population

The urban population in India is increasingly adopting coffee as a daily beverage, shifting from traditional tea consumption. This trend is driven by the growth of coffee shops and cafes, which have surged by approximately 15% annually over the past few years, as reported by the Indian Coffee Board. The introduction of international coffee chains has also played a significant role in shaping urban coffee culture. Furthermore, the changing lifestyle of younger consumers, who are leaning towards premium and specialty coffee options, contributes to higher consumption rates.The urban segment, particularly Millennials and Gen Z, is reported to be driving the growth, with close to 30% preferring coffee over tea on a daily basis. Additionally, the National Coffee Policy, which aims to increase coffee production and consumption, is expected to further boost growth in the India Coffee Market Industry, driven by an anticipated rise in both organic and specialty coffee demand.

Government Support and Agricultural Policies

The Indian government's initiatives to support coffee cultivation and export contribute significantly to the growth of the India Coffee Market Industry. Programs aimed at improving cultivation practices and providing financial assistance have resulted in increased productivity among farmers. For instance, the Coffee Board of India has implemented various schemes, such as the 'Integrated Coffee Development Project,' which has facilitated agronomic advancements and increased coffee output in regions like Karnataka and Kerala, accounting for approximately 90% of India's coffee production.Furthermore, policies to promote coffee exports, particularly in the context of the growing global demand for Indian coffee, are projected to maintain a steady growth trajectory for the market.

Rise of Specialty Coffee and Third Wave Coffee Movement

The popularity of specialty coffee has surged in India, propelled by the broader global 'Third Wave Coffee' movement that focuses on high-quality, artisanal coffee. An estimated 20% of coffee consumers in urban areas prefer specialty coffee over generic brands, reflecting a growing sophistication in consumer preferences. Local roasters and cafés have emerged, offering unique blends and brewing methods that appeal to discerning coffee drinkers. This trend is further supported by the youth's desire for unique culinary experiences.Organizations such as the Specialty Coffee Association of India are also promoting education and awareness regarding specialty coffee production and consumption, which is likely to enhance the India Coffee Market Industry's growth.

India Coffee Market Segment Insights:

Coffee Market Coffee Type Outlook Insights

 

The India Coffee Market is experiencing a noteworthy trajectory, specifically within the Coffee Type Outlook segment, which is influenced by various trends and preferences among consumers. The segment can be classified into three significant categories: Arabica, Robusta, and Others, each holding unique characteristics and a distinct impact on the overall coffee industry dynamics. Arabica coffee, known for its mild flavor and aromatic qualities, enjoys popularity among specialty coffee drinkers. The growing demand for premium quality coffee is driving this segment's growth, as more consumers seek unique flavors and blends, aligning with global trends towards artisanal and sustainably sourced products.Meanwhile, Robusta coffee, which is recognized for its strong flavor and higher caffeine content, is favored by many coffee drinkers who prefer a robust and energizing brew. The affordability and resilience of Robusta plants contribute to their predominant position in various regions of India, making them an essential component of the local coffee economy. The "Others" category encapsulates a diverse range of coffee types, including blends and specialty coffees, which cater to niche markets and evolving consumer preferences. The segmentation of the India Coffee Market highlights the evolving landscape, with shifting consumer behaviors driven by factors such as rising disposable incomes, urbanization, and the increasing popularity of coffee culture across the nation.Significant challenges such as climate change and competition from other beverages pressure growers to adapt and innovate, potentially influencing pricing and availability. Furthermore, opportunities arise through the expansion of e-commerce platforms and specialty coffee shops, fostering deeper engagement with a broader customer base and leading to enhanced experiences tailored to individual preferences. Overall, the Coffee Type Outlook segment plays a crucial role in shaping the India Coffee Market, as it reflects consumer trends, industry challenges, and growth opportunities within the coffee landscape in India.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Coffee Market Coffee Product Outlook Insights

The Coffee Product Outlook within the India Coffee Market reveals a diverse and evolving landscape shaped by various consumer preferences and trends. The segment includes Whole Bean, Ground, Instant, Pods, and Capsules, with each having unique appeal among consumers. Whole Bean coffee has gained popularity for its fresh taste and aroma, contributing to the growing home brewing trend. Ground coffee remains a staple for its convenience, appealing to busy lifestyles, while Instant coffee continues to be favored for its quick preparation, especially among young professionals and students.Pods and Capsules are increasingly significant due to their ease of use and wide range of flavors, catering to the rise in single-serve coffee makers. The India Coffee Market segmentation illustrates the rising demand for specialty coffees and premium products, driven by increasing urbanization and changing lifestyle preferences. The market growth is additionally supported by a growing café culture, particularly in metropolitan areas. However, challenges such as fluctuating coffee prices and quality concerns persist. Overall, this segment offers substantial opportunities for innovation and expansion, with brands exploring sustainable practices and unique flavor experiences to attract coffee enthusiasts across the country.

Coffee Market Coffee Category Outlook Insights

The India Coffee Market has been gaining substantial momentum, particularly in the Coffee Category Outlook segment, where consumers are increasingly leaning towards diverse offerings such as Organic and Regular coffee. With a notable shift in consumer preferences towards health-conscious choices, the Organic segment holds a significant position, attracting environmentally conscious buyers who seek sustainably sourced products. This demand is propelled by a growing awareness of the benefits of organic farming and the adverse effects of chemical use on health and the environment.Additionally, the Regular coffee category remains a staple for many, appealing to traditional coffee drinkers and offering a wide range of flavor profiles that cater to everyday consumption patterns. The overall coffee market is witnessing significant growth driven by urbanization, changing lifestyles, and the proliferation of cafés across India, which are enhancing the coffee culture significantly. Factors like increasing disposable incomes and coffee's status as a lifestyle choice further contribute to the market dynamics, opening up opportunities for both premium and budget-friendly options.The diversity in the India Coffee Market segmentation allows for unique positioning strategies tailored to distinct consumer segments, thereby enabling market players to capture a broader audience efficiently.

Coffee Market Coffee Roast Type Outlook Insights

The Coffee Roast Type Outlook segment of the India Coffee Market has gained considerable traction due to the growing coffee culture in the country, which aligns with the increasing preferences towards different roast types among consumers. Light Roast is favored for its bright flavor profile and higher acidity, attracting health-conscious consumers seeking caffeine-rich options. Meanwhile, Medium Roast holds a significant share as it balances taste and aroma, making it widely popular among the mainstream population. Medium-Dark Roast appeals to those who enjoy rich, bold flavors, adding depth to their coffee experience.Overall, each roast type plays a pivotal role in shaping the Coffee Market dynamics, reflecting the evolving tastes and lifestyle changes of Indian consumers. The India Coffee Market revenue benefits from the diversity in roast preferences, showing resilience and growth potential in various demographics. Market trends indicate a shift towards specialty coffee, boosting interest in artisanal and blended options, which are also influenced by regional flavors. Challenges such as fluctuating coffee bean prices and competition from instant coffee brands present hurdles, but they also present opportunities for innovation in products and marketing strategies.

Coffee Market Coffee Price Range Outlook Insights

 

The India Coffee Market has demonstrated notable growth in the Coffee Price Range Outlook segment, which encompasses various pricing tiers, including the Economy/Mass and Premium categories. The Economy/Mass segment serves a broad consumer base, primarily driven by the demand for affordable coffee options that resonate with the value-conscious Indian consumer. With a rise in urbanization and changing lifestyles, coffee consumption has ramped up, making this segment a focal point within the India Coffee Market revenue stream. Conversely, the Premium segment caters to a niche market that appreciates higher quality, specialty coffee products, often sourced from specific regions renowned for unique flavor profiles.This segment has gained traction among urban professionals and millennials who seek enhanced coffee experiences. The segmentation of the India Coffee Market reveals intriguing dynamics; while the Economy/Mass segment provides volume, the Premium segment offers higher margins, thus presenting distinct opportunities. Consumer preferences are evolving, favoring not only price sensitivity in the Economy category but also an increased willingness to pay for quality in the Premium segment, contributing to the overall market growth. Additionally, marketing trends highlighting sustainability and ethically sourced beans are shaping both segments, encouraging wider acceptance among a diverse range of consumers across India.

Coffee Market Coffee End User Outlook Insights

The Coffee End User Outlook segment in the India Coffee Market exhibits significant diversity, reflecting the evolving tastes and preferences of consumers across various settings. The market is divided into two key areas: Residential/Retail and Commercial/HoReCa, each contributing uniquely to the overall industry dynamics. The Residential/Retail sector thrives on the increasing demand for premium coffee varieties as more consumers opt for high-quality brews at home, aided by the rise of specialty coffee brands and the growing popularity of coffee retail outlets. On the other hand, the Commercial/HoReCa segment encompasses cafés, restaurants, and hotels, which are pivotal in driving coffee consumption due to their influence on consumer experiences. This segment plays a crucial role in shaping trends within the coffee culture in India as establishments focus on providing unique coffee experiences to attract customers. The rise of urbanization, changing lifestyles, and the influence of Western coffee culture further enhance the prospects for growth in both sectors. Emphasizing quality and sustainability has become essential, aligning with the increasing awareness of consumers regarding sourcing practices. Consequently, the India Coffee Market segmentation reflects a vibrant landscape poised for expansion, supported by evolving consumer behaviors and market trends.

Coffee Market Coffee Caffeine Presence Outlook Insights

The Coffee Caffeine Presence Outlook within the India Coffee Market reflects a category that has witnessed a growing interest among consumers, particularly in urban areas. With a steady increase in coffee consumption, factors such as lifestyle changes and rising disposable income have contributed to changing preferences, leading to a notable demand for distinct coffee types. The market segmentation into decaffeinated and standard varieties caters to a diverse audience, with many consumers seeking decaffeinated options for their health benefits or preferred taste, while standard coffee continues to be favored for its traditional caffeine content.Decaffeinated coffee, though a smaller segment, holds significant importance, appealing to health-conscious individuals who want to limit caffeine intake while still enjoying the flavor. Standard coffee, on the other hand, dominates the market due to its association with energy and alertness, making it a staple in many households across India. The growing urbanization and the coffee culture in metropolitan areas further bolster these segments, enhancing the overall India Coffee Market statistics and potential for future growth.

Coffee Market Coffee Distribution Channel Outlook Insights

 

The Coffee Distribution Channel Outlook within the India Coffee Market focuses on the avenues through which coffee reaches consumers, primarily categorized into Store-Based and Non-Store-Based channels. Store-Based channels, which include supermarkets, specialty coffee shops, and convenience stores, retain significant prominence due to the increasing trend of coffee consumption in urban areas. These outlets provide consumers with immediate access to a variety of coffee products, contributing substantially to the India Coffee Market revenue. In contrast, Non-Store-Based channels, such as e-commerce platforms, are gaining traction as digital adoption rises among consumers.This segment offers convenience and a wider selection, appealing to the younger demographic that prefers online shopping. The market segmentation indicates a shift in consumer preferences towards both purchasing channels, underscoring the importance of flexibility in distribution strategies. The growth of specialty coffee culture in India further enhances opportunities for both channels as consumers increasingly seek quality and unique flavors. As these distribution modes evolve, challenges such as competition among retailers and logistics in remote areas continue to hinder growth.However, the expanding coffee culture in India presents an array of opportunities for market players to innovate their distribution strategies, aligning with changing consumer behaviors and preferences.

Coffee Market Store-Based Insights

The Store-Based segment of the India Coffee Market is vital for reaching the large consumer base in a diverse region. Supermarkets and Hypermarkets serve as key distribution channels, providing consumers with convenience and a vast selection of brands and formats. These retail formats cater to diverse consumer preferences, making it easier for buyers to access premium and artisanal coffee products. Alongside, Distributors/B2B Suppliers play a crucial role in supplying coffee to cafes and restaurants, facilitating a robust ecosystem that supports business growth.Specialty Stores focus on niche products, creating an intimate shopping experience that appeals to coffee aficionados, while Convenience Stores and Grocery Stores ensure that coffee is accessible for everyday consumption, thereby driving impulse purchases. The increasing trend towards online shopping is also impacting this segment, as traditional retailers adopt omnichannel strategies to enhance customer engagement. Overall, the dynamic landscape of the Store-Based segment is shaped by changing consumer preferences, lifestyle trends, and an expanding coffee culture in India, reflecting significant opportunities for growth in the coming years.

Coffee Market Non-Store-Based Insights

The Non-Store-Based segment of the India Coffee Market encompasses channels such as E-Commerce and Brand Websites, showcasing a significant shift in consumer purchasing behavior towards online platforms. With the rise of digitalization, consumers have increasingly turned to these channels for their coffee purchases, benefiting from the convenience, variety, and competitive pricing that online retail offers. E-Commerce plays a critical role as it facilitates access to a wide range of coffee options, including specialty brews and regional varieties, which may not be available in traditional stores.Additionally, Brand Websites enable companies to establish a direct link with consumers, enhancing brand loyalty through exclusive offerings and personalized experiences. This segment's growth is driven by the expanding internet penetration and mobile usage across India, coupled with a growing trend in home brewing and specialty coffee consumption among consumers. As urbanization continues and disposable incomes rise, the Non-Store-Based segment is well-positioned to dominate the landscape, catering to an increasingly discerning coffee clientele looking for quality and convenience.The India Coffee Market revenue is being shaped significantly by these channels, marking a noteworthy change in market dynamics and consumer engagement strategies.

India Coffee Market Key Players and Competitive Insights:

The India Coffee Market has witnessed a significant transformation in recent years, with the emergence of both domestic and international players competing for market share. The growing consumer demand for high-quality coffee, coupled with an increase in coffee culture, has encouraged new entrants to explore this lucrative sector. The competitive landscape includes established brands, artisanal coffee shops, and premium coffee retailers, all vying for customer attention. As consumers become more discerning in their choices, companies are differentiating themselves through unique offerings, marketing strategies, and customer engagement initiatives. This landscape fosters innovation and adaptability, where businesses must remain agile in responding to shifting consumer preferences and evolving market trends.Peet's Coffee has firmly established itself in the India Coffee Market through its emphasis on specialty coffee. The brand's strengths lie in its commitment to sourcing high-quality beans and its coffee roasting expertise. Peet's Coffee focuses on providing an artisanal experience, appealing to coffee aficionados who prioritize taste and quality. The company has also successfully leveraged brand storytelling and consumer engagement through marketing initiatives, enhancing its appeal among Indian consumers. With a strategic presence in various urban centers, Peet's Coffee combines its reputation for excellence with an understanding of local preferences, thereby positioning itself as a desirable choice for those seeking premium coffee experiences in India.Sankalp Coffee operates within the India Coffee Market with a focus on delivering robust flavors and innovative products tailored to local tastes. The company's portfolio includes a diverse range of coffee blends, instant coffee options, and premium offerings that cater to different consumer preferences. Sankalp Coffee has strategically enhanced its market presence by establishing partnerships with local retailers and cafes, thereby broadening its reach. The strength of Sankalp Coffee lies in its adaptability to regional market demands and its commitment to quality in every cup. In recent years, the company has pursued opportunities for mergers and acquisitions, allowing it to increase its production capabilities and expand its distribution network. This strategic growth approach helps Sankalp Coffee maintain a competitive edge in a rapidly evolving market landscape, solidifying its position among coffee lovers in India.

Key Companies in the India Coffee Market Include:

• Peet's Coffee


• Sankalp Coffee


• Tata Coffee


• Barista


• South Indian Coffee


• Ronnies Coffee


• Bru Coffee


• Starbucks Coffee


• Nestle India


• Leo Coffee


• Nescafe


• Coffee Day Enterprises


• Wild Garden Coffee


• Lawrie's Coffee


• Cafe Coffee Day

India Coffee Market Industry Developments

The India Coffee Market has seen a range of significant developments recently. Peet's Coffee continues to enhance its brand presence with plans for expansion, leveraging the growing coffee culture in urban areas. Tata Coffee and Bru Coffee are also expanding their product lines to cater to an increasingly diverse consumer palate. In terms of market dynamics, Coffee Day Enterprises has been actively restructuring its operations to strengthen its foothold after facing challenges in financing. Notably, in February 2023, Starbucks India announced a strategic partnership with local suppliers to enhance sustainability practices. This aligns with the growing consumer preference for ethically sourced products in India. Meanwhile, Nestlé India reported robust growth due to the rising demand for instant coffee, particularly Nescafé, signifying a shift towards convenience in consumer habits. Major happenings in the last couple of years include the increase in coffee consumption in India, with an annual growth rate that surpassed 10%, as reported in early 2022, indicating a thriving market landscape. These developments are shaping the outlook of the coffee industry in India, showcasing opportunities for innovation and expansion amid changing consumer preferences.

India Coffee Market Segmentation Insights

Coffee Market Coffee Type Outlook

• Arabica


• Robusta


• Others

Coffee Market Coffee Product Outlook

• Whole Bean


• Ground


• Instant


• Pods Capsules

Coffee Market Coffee Category Outlook

• Organic


• Regular

Coffee Market Coffee Roast Type Outlook

• Light Roast


• Medium Roast


• Medium-Dark Roast

Coffee Market Coffee Price Range Outlook

• Economy/Mass


• Premium

Coffee Market Coffee End User Outlook

• Residential/Retail


• Commercial/HoReCa

Coffee Market Coffee Caffeine Presence Outlook

• Decaffeinated


• Standard

Coffee Market Coffee Distribution Channel Outlook

• Store-Based


• Non-Store-Based

Coffee Market Store-BasedOutlook

• Supermarkets Hypermarkets


• Distributors/B2B Suppliers


• Specialty Stores


• Convenience Stores Grocery Stores

Coffee Market Non-Store-BasedOutlook

• E-Commerce


• Brand Websites

 

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	19.67(USD Billion)
MARKET SIZE 2024	20.17(USD Billion)
MARKET SIZE 2035	30.0(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	3.673% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Peet's Coffee, Sankalp Coffee, Tata Coffee, Barista, South Indian Coffee, Ronnies Coffee, Bru Coffee, Starbucks Coffee, Nestle India, Leo Coffee, Nescafe, Coffee Day Enterprises, Wild Garden Coffee, Lawrie's Coffee, Cafe Coffee Day
SEGMENTS COVERED	Coffee Type Outlook, Coffee Product Outlook, Coffee Category Outlook, Coffee Roast Type Outlook, Coffee Price Range Outlook, Coffee End User Outlook, Coffee Caffeine Presence Outlook, Coffee Distribution Channel Outlook, Store-Based, Non-Store-Based
KEY MARKET OPPORTUNITIES	Specialty coffee growth potential, Rising demand for instant coffee, Sustainable coffee practices adoption, Expansion of coffee café chains, E-commerce coffee retailing surge
KEY MARKET DYNAMICS	increasing disposable income, rising coffee culture, growth of specialty coffee, e-commerce expansion, health-conscious consumers
COUNTRIES COVERED	India