India Coffee Market, By Region, Competition, Forecast & Opportunities, 2020-2030F

The India Coffee Market was valued at USD 1.91 Billion in 2024, and is expected to reach USD 2.42 Billion by 2030, rising at a CAGR of 4.02%. This growth is being driven by rising urbanization, the evolving preferences of younger consumers, and the emergence of a strong café 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 Café 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 café 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 café 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
Café 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