India Coffee Market By Product Type (Whole Bean, Ground Coffee, Roasted Coffee, Instant Coffee, Others), By Distribution Channel (Supermarkets/Hypermarkets, Departmental Stores, Online, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F

June 2025 | 82 pages | ID: I489AF97DE67EN
TechSci Research

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Market Overview

India’s Coffee Market was valued at USD 1.91 billion in 2024 and is projected to reach USD 2.42 billion by 2030, growing at a CAGR of 4.02% during the forecast period. This growth is being driven by rising urbanization, the evolving preferences of younger consumers, and the emergence of a strong caf? culture in metropolitan regions. Although India has long been a tea-drinking nation, the coffee market is gaining traction, particularly in the southern states and among urban youth across cities like Bengaluru, Mumbai, Delhi, and Hyderabad. The spread of premium coffee chains such as Starbucks and Caf? Coffee Day, combined with a surge in demand for specialty brews and artisanal products, has expanded consumption beyond traditional filter coffee. Digital platforms, home brewing trends, and the increasing popularity of ready-to-drink formats are also reshaping consumer access and experience. This evolving landscape, supported by India’s strong position as a coffee producer, is contributing to a more diverse and vibrant domestic coffee market.

Key Market Drivers

Growing Urbanization and Changing Lifestyles

The rapid pace of urbanization and evolving consumer habits are major contributors to the growth of India’s coffee market. In 2024, India’s urban population reached 461 million, increasing at a rate of 2.3% annually, and is expected to generate 75% of national income by 2031. As younger demographics migrate to cities, coffee is becoming more than a beverage—it is associated with modernity, productivity, and lifestyle aspiration. The growth of caf? culture in urban centers, particularly among millennials and professionals, has increased the demand for espresso-based beverages, cold brews, and specialty drinks. This shift reflects not only changing taste preferences but also the role of coffee in socializing, work environments, and daily routines. Ready-to-drink offerings and caf? chains have made coffee more accessible, while increased exposure to global coffee trends has influenced local consumption. These factors are collectively driving a cultural shift, boosting both household consumption and out-of-home coffee sales.

Key Market Challenges

Low Per Capita Consumption Compared to Global Standards

Despite being a major coffee producer, India’s per capita coffee consumption remains relatively low compared to global benchmarks. Consumption is heavily concentrated in the southern states—Karnataka, Kerala, Tamil Nadu, and Andhra Pradesh—where filter coffee is culturally ingrained. In contrast, northern and eastern regions continue to favor tea, limiting the nationwide appeal of coffee. Deep-rooted habits, limited awareness of coffee varieties, and restricted retail presence in tier 2 and 3 cities hinder market expansion. Many consumers also view coffee as an occasional indulgence rather than a daily necessity, impacting repeat purchase rates. Without broader cultural adoption and improved market penetration in less-developed areas, scaling consumption remains a challenge. Expanding educational outreach, diversifying product availability, and enhancing affordability will be essential to address these regional and cultural barriers and support sustained market growth.

Key Market Trends

Rising Demand for Specialty and Artisanal Coffee

The demand for specialty and artisanal coffee is rapidly increasing, especially among urban millennials and Gen Z consumers who value quality, origin, and ethical sourcing. Indian brands such as Blue Tokai, Third Wave Coffee Roasters, and Araku Coffee are pioneering this trend by offering single-origin beans, traceable sourcing, and freshly roasted products tailored to discerning palates. These companies often emphasize sustainability, fair trade, and direct relationships with growers, resonating with environmentally and socially conscious consumers. The growing popularity of home brewing—facilitated by equipment like pour-over kits, French presses, and espresso machines—has further fueled interest in craft coffee. Experiential offerings such as brewing workshops and coffee tastings are deepening consumer engagement and appreciation for coffee as an artisanal product. This premiumization trend is transforming coffee into a lifestyle experience, fostering a niche but growing segment within the broader market that is poised for continued innovation and expansion.

Key Market Players
  • Araku
  • Bloom Coffee Roasters
  • Blue Tokai
  • Bru
  • Caf? Coffee Day
  • Continental AG
  • Country Bean Coffee
  • Davidoff
  • KC Roasters
  • Nescafe
Report Scope:

In this report, the India Coffee Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:
  • India Coffee Market, By Product Type:
    • Whole Bean
    • Ground Coffee
    • Roasted Coffee
    • Instant Coffee
    • Others
  • India Coffee Market, By Distribution Channel:
    • Supermarkets/Hypermarkets
    • Departmental Stores
    • Online
    • Others
  • India Coffee Market, By Region:
    • North
    • South
    • East
    • West
Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India Coffee Market.

Available Customizations:

India Coffee Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information
  • Detailed analysis and profiling of additional market players (up to five).
1. INTRODUCTION

1.1. Product Overview
1.2. Key Highlights of the Report
1.3. Market Coverage
1.4. Market Segments Covered
1.5. Research Tenure Considered

2. RESEARCH METHODOLOGY

2.1. Methodology Landscape
2.2. Objective of the Study
2.3. Baseline Methodology
2.4. Formulation of the Scope
2.5. Assumptions and Limitations
2.6. Sources of Research
2.7. Approach for the Market Study
2.8. Methodology Followed for Calculation of Market Size & Market Shares
2.9. Forecasting Methodology

3. EXECUTIVE SUMMARY

3.1. Overview of the Market
3.2. Overview of Key Market Segmentations
3.3. Overview of Key Market Players
3.4. Overview of Key Regions
3.5. Overview of Market Drivers, Challenges, and Trends

4. VOICE OF CUSTOMER

4.1. Brand Awareness
4.2. Factor Influencing Purchase Decision

5. INDIA COFFEE MARKET OUTLOOK

5.1. Market Size & Forecast
  5.1.1. By Value
5.2. Market Share & Forecast
  5.2.1. By Product Type (Whole Bean, Ground Coffee, Roasted Coffee, Instant Coffee, Others)
  5.2.2. By Distribution Channel (Supermarkets/Hypermarkets, Departmental Stores, Online, Others)
  5.2.3. By Region
  5.2.4. By Company (2024)
5.3. Market Map

6. INDIA WHOLE BEAN COFFEE MARKET OUTLOOK

6.1. Market Size & Forecast
  6.1.1. By Value
6.2. Market Share & Forecast
  6.2.1. By Distribution Channel

7. INDIA GROUND COFFEE MARKET OUTLOOK

7.1. Market Size & Forecast
  7.1.1. By Value
7.2. Market Share & Forecast
  7.2.1. By Distribution Channel

8. INDIA ROASTED COFFEE MARKET OUTLOOK

8.1. Market Size & Forecast
  8.1.1. By Value
8.2. Market Share & Forecast
  8.2.1. By Distribution Channel

9. INDIA INSTANT COFFEE MARKET OUTLOOK

9.1. Market Size & Forecast
  9.1.1. By Value
9.2. Market Share & Forecast
  9.2.1. By Distribution Channel

10. MARKET DYNAMICS

10.1. Drivers
10.2. Challenges

11. MARKET TRENDS & DEVELOPMENTS

11.1. Merger & Acquisition (If Any)
11.2. Product Launches (If Any)
11.3. Recent Developments

12. PORTERS FIVE FORCES ANALYSIS

12.1. Competition in the Industry
12.2. Potential of New Entrants
12.3. Power of Suppliers
12.4. Power of Customers
12.5. Threat of Substitute Products

13. INDIA ECONOMIC PROFILE

14. COMPETITIVE LANDSCAPE

14.1. Company Profiles
  14.1.1. Araku
    14.1.1.1. Business Overview
    14.1.1.2. Company Snapshot
    14.1.1.3. Products & Services
    14.1.1.4. Financials (As Per Availability)
    14.1.1.5. Key Market Focus & Geographical Presence
    14.1.1.6. Recent Developments
    14.1.1.7. Key Management Personnel
  14.1.2. Bloom Coffee Roasters
  14.1.3. Blue Tokai
  14.1.4. Bru
  14.1.5. Caf? Coffe Day
  14.1.6. Continental AG
  14.1.7. Country Bean Coffee
  14.1.8. Davidoff
  14.1.9. KC Roasters
  14.1.10. Nescafe

15. STRATEGIC RECOMMENDATIONS

16. ABOUT US & DISCLAIMER


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