In Focus
RESEARCH | Staff Reporter, Singapore

Research and Markets reveals insights about India's packaged coffee & cafe chain market

The packaged coffee market is expected to grow between 10-15% CAGR over next five years.

Research and Markets has announced the addition of the "India Packaged Coffee & Cafe Chain Market Overview" report to their offering.

The report gives an in-depth analysis of coffee industry in India. Coffee as a segment has steadily gained share of total consumer spending on beverages over the last many years. Coffee serves as the first rung on the ladder for young consumers in India, while it reflect growing demand among consumers looking for convenient, decent-quality coffee at home and in the workplace. Opportunities for coffee to gain more popularity among new consumers, as well as reclaim those exiting the category, lies in continued modernism, both in terms of developing new flavours and improving quality.

The convenience, versatility of flavour & format, and branded experience provided by instant coffee enable it to be positioned as a premium hot drink option, particularly for new coffee drinkers in predominantly lower income tea drinking markets. The easy preparation of instant coffee, as well as its aptitude to be tailored to local taste preferences has made it the 'coffee of choice' in most markets in India. Instant coffee has propelled brands like Nestle, HUL and Tata Coffee in its category. However filter coffee is also expanding its presence among Indian consumers. The market for filter coffee is predominant in southern India where the competition from local/regional player is significant.

The RTD market for coffee based beverages is likely to grow, although it is currently at a very nascent stage. However, it is benefited from a range of new product launches towards the end of the review period. These products are mainly consumed by young and middle-aged demographics and tend to be consumed in the mornings as an energy booster. The channel which contributes most to the sales of packaged coffee is traditional retail channels, whereas modern retail is currently at moderate stage.

The growth of cafe chains over the last decade also boosted the visibility and per capita consumption of coffee among Indian consumers. Cafe Coffee Day, Barista and Tata Starbucks are some of the leading players in cafe market. Coffee consumption is higher among southern part of the country. However other regions are expected to increase in term of consumption during forecast period. Robusta coffee production is much higher than Arabica in India, which is anticipated to increase in the future years.

For more information about this report visit

Photo credit: Wikimedia Commons

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