Coffee market in India - statistics & facts
India’s coffee culture offers a delightful journey, from sipping filter coffee to exploring artisanal blends. Coffee is one of the most popular hot beverages in the country alongside tea. Although Indians have been cultivating coffee for hundreds of years, the first beans of coffee were planted by Baba Budan (a saint) way back in the 1600s on the Baba Budan Giri hills in Chikmagalur district in Karnataka. Later in 1840, the first coffee farm was established in and around Baba Budan Giri. However, commercial coffee production thrived during the rule of the British government in India around the mid-19th century.
The most produced varieties of coffee are Arabica and Robusta. However, of the two, Robusta coffee has gained prominence in the domestic market. This is because Robusta offers higher yield and profitability to the farmers, while being resistant to diseases and having a stronger flavor profile. Bru Coffee and Black Baza Coffee are some of the popular Robusta coffee brands in India.
The dawn of the 21st century saw establishments like Café Coffee Day, Barista, Costa Coffee, and Starbucks among other major players enter the coffeehouse market. Independent and regional outlets continue to emerge mainly in urban centers, resulting in a highly fragmented retail market. Tata Starbucks seemed to dominate the retail coffeehouse market with increasing revenues in recent years and a brand presence across the country. Today, the franchise operates café outlets in more than 70 cities, with expansion in tier-2 and 3 cities in India.
Diverse coffee growing region and variety
The distinct climate, soil, and geography of India contribute to the diverse coffee-producing region. India ranked seventh in the production of coffee, globally. The country’s southern states contribute to most of the coffee production, with Karnataka being the largest producer, accounting for three-fourths of production. Nonetheless, much of the coffee produced within the country is exported.The most produced varieties of coffee are Arabica and Robusta. However, of the two, Robusta coffee has gained prominence in the domestic market. This is because Robusta offers higher yield and profitability to the farmers, while being resistant to diseases and having a stronger flavor profile. Bru Coffee and Black Baza Coffee are some of the popular Robusta coffee brands in India.
Café culture trends
The country is one of the fastest-growing markets for coffee chains, and Indian consumers have embraced the international coffee culture. After a café from the 1940s, the Indian Coffee House run by the Coffee Board of India, started serving filter coffee on its menu, the beverage has gained popularity and become a favorite among many Indians. The Indian Coffee House has around 400 chains across the country, following the first one in Jabalpur.The dawn of the 21st century saw establishments like Café Coffee Day, Barista, Costa Coffee, and Starbucks among other major players enter the coffeehouse market. Independent and regional outlets continue to emerge mainly in urban centers, resulting in a highly fragmented retail market. Tata Starbucks seemed to dominate the retail coffeehouse market with increasing revenues in recent years and a brand presence across the country. Today, the franchise operates café outlets in more than 70 cities, with expansion in tier-2 and 3 cities in India.
