Coffee Market in India

Key stats & facts of coffee market in India:

1. Consumption and Demand:

• India is one of the fastest-growing coffee markets in the world, with a rising demand for both domestic consumption and export.
• Coffee consumption in India has been steadily increasing over the years, driven by factors such as changing lifestyles, urbanization, and a growing café culture.
• While traditionally a tea-drinking nation, coffee consumption is gaining popularity, particularly among the younger population and urban dwellers.

2. Production and Export:

• India produces both Arabica and Robusta coffee beans, with Arabica being the more dominant variety.
• Farmers mainly concentrate coffee cultivation in the southern states of Karnataka, Kerala, Tamil Nadu, and Andhra Pradesh in India.
• India exports its coffee to various countries, including the United States, Italy, Germany, Belgium, Russia, and Japan.

3. Specialty Coffee:

• The specialty coffee segment is growing in India, with an increasing focus on high-quality beans and unique flavor profiles.
• Coffee producers carefully cultivate, process, and roast specialty beans to highlight their distinctive characteristics.
• Indian specialty coffees, such as Monsooned Malabar and unique single-origin offerings, are gaining recognition in the global specialty coffee market.

4. Café Culture and Chains:

• The café culture in India has witnessed significant growth, with the emergence of numerous coffee shop chains and independent cafés.
• International coffee chains such as Starbucks, Costa Coffee, and Café Coffee Day have a strong presence in major Indian cities.
• These coffee shop chains offer a variety of coffee-based beverages, creating a vibrant café scene and contributing to the overall growth of the coffee market.

5. Government Initiatives and Regulation:

• The Indian government, through the Coffee Board of India, provides support to coffee growers, promotes research and development, and ensures quality control in the coffee industry.
• Encouragers promote various certifications and quality standards, such as the Indian Organic Coffee Certification and Rainforest Alliance certification, to maintain sustainability and promote ethical practices in coffee cultivation.

Indian Coffee at Global Market:

1. Production Volume: India is a significant coffee producer on the global stage. The country annually produces around 5-6 million 60-kilogram bags of coffee beans (300,000 to 360,000 metric tons).
2. Export Volume: India exports a substantial portion of its coffee production to various countries. In the year 2021-22, India was the 5th largest exporter of coffee in the world with a share of about 6% of global coffee exports. Indian coffee exports have increased from 19.7 thousand tonnes during 1960-61 to 416 thousand tonnes in 2021-22
3. Market Share: India holds a significant market share in the global coffee market. It consistently ranks among the top coffee-producing countries in the world, typically occupying the fifth or sixth position in terms of total production.
4. Arabica & Robusta: Arabica beans constitute the majority of the country’s coffee production, accounting for approximately 70-80% of the total output. Robusta beans make up the remaining share.
5. Export Destinations: Indian coffee is exported to various countries across the world. Major export destinations include the United States, Italy, Germany, Belgium, Russia, Japan, and several other European, North American, and Asian markets.

Summary:

It’s important to note that the coffee market is dynamic and subject to changes in consumption patterns, market trends, and industry developments. For the most up-to-date and detailed information on the current state of the coffee market in India, it is advisable to refer to recent reports from reputable industry sources or consult market research studies specific to the Indian coffee industry.