India Packaged Coffee & Cafe Chain Market Outlook, 2027-28

India Packaged Coffee & Café Chain Market | The coffee market is to surpass INR 34400 Crore by the forecast period, registering a CAGR of more than 18%.

Featured Companies

  • 1. Carnation Hospitality Private Limited
  • 2. Coffee Day Enterprises Limited
  • 3. Devyani International Limited
  • 4. Hindustan Unilever Limited
  • 5. Jubilant FoodWorks Limited
  • 6. Nestle India Limited
  • More...

India is the world's sixth-largest producer of coffee. In actuality, India is the fifth-largest coffee exporter in the world, and over 75 percent of the country's coffee production is sent abroad. India has experienced an unheard-of rise in the number of coffee drinkers over the past 20 years. India's coffee market is expanding as a result of rising disposable income, exposure to the outside world, media and digital penetration, urbanisation, and lifestyle modifications. These modifications have improved coffee culture and are fuelling the market's expansion for coffee. Rising earnings, expanding institutional demand, altering eating habits, health advantages, greater coffee cultivation in India, etc. are some of the factors influencing the demand for coffee in India.

According to the report, "India Packaged Coffee & Café Chain Market Outlook, 2027-28" published by Bonafide Research, the coffee market is to surpass INR 34400 Crore by the forecast period, registering a CAGR of more than 18%. The major challenge for India's coffee market is that the nation has traditionally been a tea-drinking nation and still doesn't have the appeal for coffee in the commons. As models evolve, brands must move beyond product innovation and connect with consumers to create a habit of it. There should be brand resonance for a larger segment of consumers. The new generation is more inclined towards coffee than tea as a preference for a morning beverage.

On the other hand, reasons pushing customers toward healthy options include the rising obesity rate, bad eating patterns among children and adults, busy lifestyles, and busy work schedules. One of the functional beverages with established health advantages is coffee. As consumers who are calorie-conscious and those who have diabetes look for alternatives to sugar in their drinks, a variety of coffees are being launched to the market to cater to a wide spectrum of consumers. This enhances their demand for drinks with added antioxidants. Young consumers' strong desire for coffee, combined with a robust coffee culture, is what drives the Indian market.
The fact that coffee in India was traditionally consumed outside of the home sparked the nation's café culture and gave rise to well-known service businesses like CCD, Starbucks, etc. The passion for coffee has prompted well-known national and international businesses to introduce a wide variety of coffees. A wide variety of coffees are now being offered in many retail establishments. In contrast to consumers in other countries, Indians prefer to drink coffee while relaxing in cafés, engaging in social interactions with friends, etc.

Coffee's geographic penetration, leaving South India aside, is mostly limited to urban people in tier I and tier II cities. This suggests that penetration is a significant barrier. In India, where 70% of people reside in rural areas, coffee is a taste that must be developed. To help them stand out in these marketplaces, firms that sell packaged goods are attempting to enter with CPGs like sachets. India's rural areas are gradually evolving in various ways. Consumers aren't afraid to experiment with new things, whether it's online banking or shopping. The market would experience exponential increase in the nation's overall coffee consumption if brands collaborate with rural India.

In this area, the coffee shop is always seen as the final meeting point for cuisine and culture. The cafe has evolved over time into a significant forum for the exchange of ideas thanks to its revolutionary and sage vitality. Books were replaced by Wi-Fi, and today's coffee shops are packed with young people working diligently on laptops or stylish monitors. Due to the assistance of internationally recognised Indian coffee shops that set handcrafted cups on the table, including Blue Tokai and Araku Coffee, consumers' understanding of coffee is significantly stronger in this region. More cafes and brands are available in metro areas. Despite the lack of access, there is a consumer base in tier 2 and tier 3 cities. Online ordering are being used by brands to supply cold brew sachets, micro cans, or coffee beans. The market for coffee in India is expanding as a result of this aspect.

Additionally, in a country where tea is the most popular beverage, female coffee entrepreneurs are brewing a scent of change. The women who run India's "bean business," which has been fuelled by the country's coffee craze, have travelled in unique ways to learn about the variety of local coffee. Indian coffee drinkers no longer view coffee as a bittersweet beverage that helps you wake up in the morning. The demand for coffee in the Indian market is being driven by these elements.
When the Coffee Board of India's Indian Coffee House started serving filter coffee on its menu in the 1940s, it quickly gained popularity and became the preferred beverage among many Indians. Following the first one in Jabalpur, there are already 400 Indian Coffee House franchises spread out across the nation. At the beginning of the twenty-first century, key players in the coffeehouse industry were Café Coffee Day, Barista, Costa Coffee, and Starbucks. A highly fragmented retail market is the result of the continued emergence of independent and regional outlets, mostly in urban centres.

Contrarily, Cafe Coffee Day appeared to rule the retail coffeehouse business, as evidenced by its expanding sales in recent years and national brand recognition. With café locations in more than 200 Indian cities, the business now runs in six nations. India is one of the marketplaces for coffee chains that is expanding the quickest, and Indian consumers have embraced the global coffee culture.

India is one of the countries in the world with the lowest per capita consumption of coffee, with estimates ranging from 90 to 100 grams, which is extremely low. However, during the past ten years, India's coffee culture has been gradually evolving. Historically, about a third of all coffee was eaten in Southern India, but thanks to an expanding Indian palate, a wave of urbanisation in various areas of the country, and the establishment of specialty coffee cafés, coffee is now consumed throughout the country. However, with more than 70% of the country’s total consumption, southern India continues to be the main centre for coffee consumption.
Currently, coffee is grown in three states in India: Karnataka, Kerala, and Tamil Nadu. These three states make up the country's traditional coffee-growing regions and produce 90–95 percent of all the coffee consumed there. Then, on the country's eastern coast, there are the newly developed areas in the non-traditional regions of Andhra Pradesh and Orissa, and in the north-eastern states of Assam, Manipur, Meghalaya, Mizoram, Tripura, Nagaland, and Arunachal Pradesh.

Coffee that is ready to drink is now sold in a variety of traditional channels, including supermarkets, hypermarkets, specialty shops, etc. Supermarkets and hypermarkets are favoured in the countries among the many accessible outlets because they offer a variety of coffee from various firms and cater to consumer tastes, which are expected to spur market expansion in the future. Particularly in emerging nations where these stores are being established in significant numbers, the rise in demographic spending and the ease and convenience associated with supermarket purchases are likely to create a strong path for RTD coffee manufacturers to join. In such a cutthroat climate, physical stores like Café Coffee Day are anticipated to maintain their place.

Recent Development
• In February 2020, Silk (Danone) launched two plant-based ready-to-drink latte varieties such as its Espresso and Mocha flavours, combining almond and oat milk with coffee. The coffee is from UTZ-certified sources, meaning it is sustainably farmed. These RTD coffee beverages are Non-GMO Project Verified and free of dairy, carrageenan, cholesterol, and artificial colours and flavours. On August 1, 2010, this entry was published.
• Rage Coffee was launched by Bharat Sethi in 2018, a New Delhi-based FMCG coffee company. Rage Coffee is a plant-based-vitamins-enriched D2C coffee brand that has so far expanded its offline network from 5 to 20 distributors and 4 CFAs, covering 600+ offline touch-points across India. The brand has recently expanded its product offering with the launch of cold brew bags and ground coffee.
• With a vision to deliver premium coffee anytime anywhere, two friends, Samayesh Khanna and Rahul Jain, launched Beanly in 2018 as they brought to the market a unique three-step process they call "Tear, Anchor, Brew". Currently, it is present in Bengaluru, Gurugram, and Delhi, and will soon open doors in Mumbai and Kolkata. The coffee brand sells 30,000 to 50,000 coffee packs a month.
• Launched in 2017 by Aditi Somani, Kolkata-based Country Bean is a popular D2C coffee brand known to offer premium flavoured coffee powders. Packed with aroma and flavour, Country Bean offers pure vegetarian fine coffee powder without any additives. The brand recently launched Coffee Spreads by Country Bean, available in two flavours – Hazelnut Latte and Dalgona.
• Tim Hortons, a coffee brand established in 1964 in Canada, will enter India as part of an exclusive agreement with AG Café, a joint venture entity owned by Apparel Group, a global fashion and lifestyle retail conglomerate, and Gateway Partners, an emerging markets’ alternative investment manager. In February 2020, Danone brand Stock cold coffee brew launched cold brew RTD coffee.

COVID-19 Impacts:
The COVID-19 pandemic has increased pressure on the coffee industry, which is already threatened by changes in the price of coffee on the global market, low productivity levels, the consequences of climate change, and harm from pests and illnesses around the world. Governments have also implemented policies like social isolation and lockdowns, which have had a significant influence on cafés, micro-rasterise, restaurants, and other out-of-home businesses. These policies have also had a significant impact on the market. Retailers, roasters, and customers are currently being forced to adjust to this new reality as a result of the shift toward online purchase for consumption at home. Due to the shutdown of hotels and cafés during the COVID period, internal coffee consumption surged significantly all over the world. 70% of the GDP was made up of home consumption prior to COVID. This number has increased to about 90% during the COVID crisis.

Key Product Types
• Packaged Coffee
• Coffee Shops & Cafe

“India Packaged Coffee & Cafe Chain Market Outlook, 2027-28” discusses the following aspects of packaged coffee and coffee shops & cafe market in India:
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The report gives an in-depth understanding of coffee in India:
- Global Coffee Market Outlook
- Global Coffee Market Size & Forecast (Value & Volume)
- Europe Coffee Market Size & Forecast (Volume)
- Asia & Oceania Coffee Market Size & Forecast (Volume)
- North America Coffee Market Size & Forecast (Volume)
- South America Coffee Market Size & Forecast (Volume)
- Africa Coffee Market Size & Forecast (Volume)
- Central America & Mexico Coffee Market Size & Forecast (Volume)
- Global Coffee Market Segmental Analysis: By Region, By Country
- Global Coffee Market Production
- India Coffee Market Outlook
- India Coffee Market Size & Forecast (Value)
- India Coffee Market Segmental Analysis: By Category
- India Packaged Coffee Market Size & Forecast (Value)
- India Instant Coffee Market Size & Forecast (Value)
- India Filter (Roast & Ground) Coffee Market Size & Forecast (Value)
- India Ready-To-Drink Coffee Market Size & Forecast (Value)
- India Coffee Market Segmental Analysis: By Company (Instant Coffee), By Type, By Sales Channel
- India Coffee Shops and Cafe Market Size & Forecast (Value)
- India Coffee Shops and Cafe Market Segmental Analysis: By Company
- India Coffee Market Production
- Product, Price and Variant Analysis
-The key vendors in this market space
- Competitive Landscape & Strategic Recommendations

This report can be useful to Industry consultants, manufacturers and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

Report Methodology
The information contained in this report is based upon both primary and secondary research. Primary research included interviews with various channel partners of induction cooktop and electric cooker in India. Secondary research included an exhaustive search of relevant publications like company annual reports, financial reports and proprietary databases.

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Research Analyst

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Arun Kalwani

Companies Mentioned

  • Carnation Hospitality Private Limited
  • Coffee Day Enterprises Limited
  • Devyani International Limited
  • Hindustan Unilever Limited
  • Jubilant FoodWorks Limited
  • Nestle India Limited
  • Pan India Food Solutions Private Limited
  • TATA Coffee Limited
  • Tata Starbucks Private Limited

Table of Contents

  • Table of Content
  • 1. Executive Summary
  • 2. Market Structure
  • 2.1. Market Considerate
  • 2.2. Assumptions
  • 2.3. Limitations
  • 2.4. Abbreviations
  • 2.5. Sources
  • 2.6. Definitions
  • 2.7. India Macro Economic Indicators
  • 2.8. Demographics Insight
  • 3. Research Methodology
  • 3.1. Secondary Research
  • 3.2. Primary Data Collection
  • 3.3. Market Formation & Validation
  • 3.4. Report Writing, Quality Check & Delivery
  • 4. Global Coffee Market Outlook
  • 4.1. Market Size
  • 4.1.1. By Value
  • 4.1.2. By Volume
  • 4.1.3. Europe Coffee Market Outlook
  • 4.1.4. Asia & Oceania Coffee Market Outlook
  • 4.1.5. North America Coffee Market Outlook
  • 4.1.6. South America Coffee Market Outlook
  • 4.1.7. Africa Coffee Market Outlook
  • 4.1.8. Central America & Mexico Coffee Market Outlook
  • 4.2. Market Share
  • 4.2.1. By Region
  • 4.2.2. By Country
  • 4.3. Production
  • 5. India Coffee Market Outlook
  • 5.1. Market Size By Value
  • 5.2. Market Share By Category
  • 5.3. India Packaged Coffee Market Outlook
  • 5.3.1. Market Size By Value
  • 5.3.2. Instant Coffee Market Outlook
  • 5.3.3. Filter (Roast & Ground) Coffee Market Outlook
  • 5.3.4. Ready to Drink Coffee Market Outlook
  • 5.4. Market Share
  • 5.4.1. By Company
  • 5.4.2. By Type
  • 5.4.3. By Sales Channel
  • 5.5. India Coffee Shops & Café Market Outlook
  • 5.5.1. Market Size By Value
  • 5.6. Coffee Consumption in India
  • 5.7. Coffee Consumption By Region
  • 5.8. Coffee Production in India
  • 5.9. Coffee Production By Coffee Bean Type
  • 5.10. Product, Price & Variant Analysis
  • 6. Pest Analysis
  • 7. Channel Partner Analysis
  • 8. Policy & Regulatory Framework
  • 9. Raw Material Analysis
  • 10. Pricing Analysis
  • 11. Manufacturing Process
  • 12. Market Penetration
  • 13. Trade Dynamics
  • 13.1. Import
  • 13.2. Export
  • 14. Market Dynamics
  • 14.1. Drivers
  • 14.2. Challenges
  • 15. Market Trends
  • 15.1. Increasing Superiority of Coffee Shops and Baristas
  • 15.2. Chilled Addiction among Young Consumers Drives the Popularity of Cold Brew Coffee
  • 15.3. The Indulgence Trend Drives the Preference for Premium Coffee
  • 15.4. Coffee has turned out to be a Trendy Beverage for the Young Consumers
  • 15.5. Focus on Innovation of Food & Localize Menu
  • 16. Competitive Landscape
  • 16.1. Porter's Five Forces
  • 16.2. Company Profile
  • 16.2.1. Carnation Hospitality Private Limited
  • Company Snapshot
  • Company Overview
  • Financial Highlights
  • Geographic Insights
  • Business Segment & Performance
  • Product Portfolio
  • Key Executives
  • Strategic Moves & Developments
  • 16.2.2. Coffee Day Enterprise Limited (Cafe Coffee Day)
  • 16.2.3. Devyani International Limited (Costa Coffee)
  • 16.2.4. Hindustan Unilever Limited
  • 16.2.5. Jubilant FoodWorks Limited (Dunkin Donuts)
  • 16.2.6. Nestle India Limited
  • 16.2.7. Pan India Food Solutions Pvt. Ltd. (The Coffee Beans &Tea Leaf)
  • 16.2.8. TATA Coffee Limited
  • 16.2.9. Tata Starbucks Private Limited
  • 17. Strategic Recommendations
  • 18. Disclaimer

List of Table

Table 1: India Tier-wise Classification Of Cities
Table 2: India Region-wise Classification Of Cities
Table 3: Europe Coffee Market Size By Value 2016-17 to 2027-28F (in INR Crore)
Table 4: Asia & Oceania Coffee Market Size By Value 2016-17 to 2027-28F (in INR Crore)
Table 5: North America Coffee Market Size By Value 2016-17 to 2027-28F (in INR Crore)
Table 6: South America Coffee Market Size By Value 2016-17 to 2027-28F (in INR Crore)
Table 7: Africa Coffee Market Size By Value 2016-17 to 2027-28F (in INR Crore)
Table 8: Central America & Mexico Coffee Market Size By Value 2016-17 to 2027-28F (in INR Crore)
Table 9: Global Coffee Market Share By Region (2016-17, 2021-22 & 2027-28)
Table 10: Global Coffee Market Share By Country (2016-17, 2021-22 & 2027-28)
Table 11: Instant Coffee Market Size By Value 2016-17 to 2027-28F (in INR Crore)
Table 12: Filter (Roast & Ground) Coffee Market Size By Value 2016-17 to 2027-28F (in INR Crore)
Table 13: Ready to Drink Coffee Market Size By Value 2016-17 to 2027-28F (in INR Crore)
Table 14: India Packaged Coffee Market Share By Company (2016-17, 2021-22 & 2027-28)
Table 15: Total Coffee Consumption 2016-17 to 2027-28F (in Million Bags)
Table 16: India Coffee Consumption By Region (2016-17, 2021-22 & 2027-28)
Table 17: Total Coffee Production 2016-17 to 2027-28F (In Thousand Metric Ton)
Table 18: India Coffee Production By Coffee Bean Type (2016-17, 2021-22 & 2027-28)
Table 19: HS Code for Packaged Coffee and Cafe Chain Products in India 2021
Table 20: Import Duty Structure for HS Code XXXX in India 2021
Table 21: Import of HS Code XXXX in India - Value & Volume 2016-17 to 2021-22
Table 22: Import of HS Code XXXX in India - By Country By Value & Volume Share 2021-22
Table 23: Export of HS Code XXXX in India - Value & Volume 2016-17 to 2021-22
Table 24: Export of HS Code XXXX in India - By Country By Value & Volume Share 2021-22

List of Figures

Figure 1: India Population 2017-2021(In Crore)
Figure 2: India Population Age Structure (EST. 2019)
Figure 3: India Urban VS Rural (Crore)
Figure 4: Global Coffee Market Size By Value 2016-17 to 2027-28F (in INR Crore)
Figure 5: Global Coffee Market Size By Volume 2016-17 to 2027-28F (in Million Bags)
Figure 6: Global Coffee Production 2016-17 to 2027-28F (Million Bags)
Figure 7: India Coffee Market Size By Value 2016-17 to 2027-28F (in INR Crore)
Figure 8: India Coffee Market Share By Category (2016-17, 2021-22 & 2027-28F)
Figure 9: India Packaged Coffee Market Size By Value (2016-17, 2021-22 & 2027-28F) (in INR Crore)
Figure 10: India Packaged Coffee Market Share By Type (2016-17, 2021-22 & 2027-28F)
Figure 11: India Packaged Coffee Market Share By Sales Channel (2016-17, 2021-22 & 2027-28F)
Figure 12: India Packaged Coffee and Cafe Chain Market Size By Value (2016-17, 2021-22 & 2027-28F) (in INR Crore)
Figure 13: Porter's Five Forces of India Packaged Coffee and Cafe Chain Market

Feed Phosphate Market Research FAQs

Nescafe is definitely one of the most FAQbrands of coffee in India. It was launched in 1938 in Switzerland and has been popular across various countries. Nescafe is one of the most loved and oldest coffee brands in India.

Karnataka is the largest producer accounting for about 70% of the total coffee production in India. Kerala is the second-largest producer of coffee but lags far behind, accounting only for about 23% of the total production. Tamil Nadu is the third-largest producer, where India's 6% of the coffee is produced.

Indian coffee is said to be the finest coffee grown in the shade rather than direct sunlight anywhere in the world. There are about 250,000 coffee growers in the country; 98% of them are small growers.

India Packaged Coffee & Café Chain Market is projected to grow with more than 18% CAGR for 2022-2028.

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India Packaged Coffee & Cafe Chain Market Outlook, 2027-28

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