Rising coffee consumption trends in India 2025 - Market size and Growth forecast
Introduction: India’s Coffee Revolution
India has long been recognized as a tea-drinking nation. But
in recent years, coffee has surged in popularity, especially among urban youth
and professionals. From traditional filter coffee to premium single-origin
beans, the Indian coffee market in 2025 is experiencing robust growth,
fueled by lifestyle shifts, café culture, and e-commerce according to the Coffee Board of India.
Types of Coffee in India
The diversity of coffee choices in India reflects changing
tastes:
- South
Indian Filter Coffee – A cultural favorite made with finely ground
beans, chicory, and milk.
- Instant
Coffee – The most accessible option, still dominating many households.
- Espresso-Based
Drinks – Lattes, cappuccinos, and americanos thriving in urban cafés.
- Cold
Brews & Ready-to-Drink (RTD) – Popular among younger, on-the-go
consumers.
- Premium
Single-Origin Coffee – Beans from Coorg, Chikmagalur, and Wayanad are
marketed as artisanal specialties.
Coffee Production in India: Top States
India is the sixth-largest coffee producer in the world.
Production is concentrated in the southern states:
- Karnataka
– ~70% of India’s coffee output (Coorg, Chikmagalur, Hassan).
- Kerala
– ~20% (Wayanad and Idukki regions).
- Tamil
Nadu – ~6–8% (Nilgiris, Shevaroy Hills).
- Other
contributors include Andhra Pradesh, Odisha, and the Northeast.
India is also a major exporter, sending nearly 70%
of its coffee to Europe, Russia, and the Middle East. However, domestic
demand is growing rapidly.
Growth of Coffee Houses in India
The café culture in India has expanded far beyond metros:
- Tier
1 Cities (Bengaluru, Delhi, Mumbai, Hyderabad): Home to Café Coffee
Day, Starbucks, Blue Tokai, Third Wave, and Barista.
- Tier
2 Cities (Pune, Indore, Coimbatore, Jaipur): Specialty cafés and
micro-roasters are emerging to meet rising demand.
Coffee shops are no longer just about beverages—they are social
and work hubs for India’s young, urban professionals.
Coffee in Supermarkets & Retail
The retail coffee market in India is also witnessing a
transformation:
- Supermarkets
& Hypermarkets now stock instant, specialty, and international
coffee brands.
- E-commerce
& Subscription Models deliver premium coffee to homes nationwide.
- Ready-to-Drink
Coffee Market is growing at a CAGR of 7.14% (2025–2030), making
it a fast-expanding segment.
Factors Driving Coffee Consumption in India
- Urbanization
& Modern Lifestyles – Coffee as a productivity booster and social
drink.
- Café
Culture & Social Spaces – Cafés as workplaces and hangout spots.
- Global
Influence – Social media, international exposure, and travel shape
preferences.
- Premiumization
– Rising demand for artisanal, organic, and single-origin coffee.
- Digital
& E-commerce Access – Coffee now reaches Tier 2 and Tier 3 cities.
- Government
Initiatives – Coffee Board programs to boost production and exports.
Coffee Market Size & Growth Forecast
The India coffee market is expanding at a healthy
pace. Multiple reports highlight its future potential:
- Market
size expected to grow at 8–10% CAGR (2025–2030).
- Coffee
consumption in India rising at 5–6% annually, higher than the
global average (~2%).
- The RTD
coffee market projected to reach USD 123.46 million by 2030.
This indicates a strong shift toward at-home consumption,
premium coffee, and café culture expansion.
Conclusion: The Future of Coffee in India
Once known primarily as a tea nation, India is fast
embracing coffee as both a daily ritual and a lifestyle choice. With production
rooted in the south, booming café culture in Tier 1 and Tier 2 cities, and
supermarket/e-commerce access, coffee consumption in India is set to rise
significantly.
By 2030, the Indian coffee industry will not just supply
beans to the world—it will brew a strong domestic market that reflects India’s
changing lifestyle and evolving tastes.
