For a long time, tea has been the hot beverage of choice in India. But in recent years, coffee has made inroads, particularly with young people. The coffee culture in India is still emerging, but it’s already had a surprising amount of success.
In this post, I’ll look at the following topics the current state of the coffee market in India, reasons for coffee’s growing popularity, challenges that the coffee industry faces in India, and the potential for further growth in the Indian coffee market!
The Indian coffee market has been growing steadily for the past few years. In fact, between 2013 and 2018, the market grew at a compound annual growth rate (CAGR) of 11.2%. This growth is driven by several factors, including an increase in disposable income, a growing awareness of the health benefits of coffee, and a rise in the number of working women.
What’s more, the Indian coffee market is expected to continue to grow at a CAGR of 10.6% between 2018 and 2023. This growth will be fueled by an increasing number of young people entering the workforce and an increasing preference for premiumization.
The success of coffee in India is surprising because it’s such a relatively new phenomenon. Coffee culture only began to take off in India in the early 2000s when cafés started popping up in major cities like Mumbai and Delhi. These cafés were frequented mainly by young people and quickly became popular hangouts.
Since the café, culture has continued to grow and evolve. Today, there are many different cafés serving everything from traditional Indian filter coffee to cold brews and frappes. And as Indians become increasingly accustomed to drinking coffee outside the home, sales of instant coffee and ready-to-drink coffees are also on the rise.
There are several reasons why coffee is becoming increasingly popular in India. Let’s have a detailed look at each!
As India’s economy continues to grow, more and more people are joining the middle class. This growing middle class has disposable income that they didn’t have before, and they’re using it to purchase items like coffee that were once considered luxury items.
Coffee has long been known to have health benefits, but this is only recently become widely known in India. As more and more Indians become aware of the health benefits of coffee, they’re increasingly choosing to drink it instead of other beverages like tea.
In recent years, there’s been a rise in the number of working women in India. These women are often time-strapped and looking for a convenient way to get their caffeine fix. Instant coffee and ready-to-drink coffees are becoming popular choices for these women.
As Indians become more affluent, they’re increasingly seeking out higher-quality coffee. This trend is driven by a growing awareness of the different types of coffee available and a desire to try new things.
There seems to be a proliferation of new cafés in India in recent years. These cafés often serve premium coffees and attract young, urban dwellers looking for a stylish place to hang out.
As the Indians become exposed to coffee culture, they’re becoming more accustomed to drinking coffee outside the home. This has led to increased sales of instant coffees and ready-to-drink coffees.
All these reasons, put together, are fueling the growth of coffee in India and making it one of the most promising markets for coffee companies. In India, coffee, with its premium image, is seen as a luxury good worth splurging on.
The coffee industry in India faces several challenges. Let’s discuss each in detail:
One of the biggest challenges facing the coffee industry in India is infrastructure. The country doesn’t have a vital coffee plantation infrastructure, making it difficult to source high-quality beans. In addition, the lack of storage facilities and processing plants means that Indian coffee often has a shorter shelf life than coffee from other origins.
Another challenge facing the coffee industry in India is distribution. Because the country is so large and diverse, it can be challenging to reach all potential customers. In addition, many rural areas are inaccessible by road, making it even more challenging to distribute coffee to these regions.
Coffee is a labor-intensive crop, and the labor cost in India is relatively high. In addition, the lack of infrastructure means that coffee often has to be transported long distances, which adds to the cost.
As you can see, there are many challenges facing the coffee industry in India. However, despite these challenges, the industry is expected to continue to grow in the years to come. Thanks to an increasing number of health-conscious consumers and a growing middle class, Indian coffee is here to stay.
The potential for further growth of retail coffee in India is substantial. Because of an increasing number of health-conscious consumers and a growing middle class, Indian coffee is here to stay. In addition, the rise of working women and the growth of café culture are contributing to coffee’s popularity in India.
Not only this, the infrastructure challenges the coffee industry faces are expected to improve in the years to come. The government is investing in initiatives to improve the infrastructure. This is expected to make it easier for companies to source high-quality beans and transport coffee to all parts of the country.
So, all in all, the potential for further growth of retail coffee in India is strong. Thanks to the favorable factors mentioned above, the coffee industry is expected to continue to grow in the years to come.
With its strong potential for growth, the coffee industry in India is an exciting one to watch. So, if you’re looking for a new market to enter, be sure to keep an eye on this rapidly-growing industry.
The Indian coffee market is still emerging, but it has already achieved great success. This success is driven by an increase in disposable income, a growing awareness of the health benefits of coffee, and a rise in working women. The future looks bright for coffee in India as young people enter the workforce and preferences shift towards premiumization.