Introduction

India’s coffee industry is undergoing a vibrant transformation, fueled by rising disposable incomes, evolving consumer preferences, and a shift toward premium, café-style experiences. What was once a regionally confined beverage has expanded its footprint nationwide, supported by increasing urbanization, a youthful population, and exposure to global coffee culture. The market now spans packaged retail formats, instant mixes, artisanal blends, and full-service cafés—catering to a broad spectrum of consumers.

Valued at approximately USD 1.42 billion in 2024, the Indian coffee market is expected to reach USD 2.16 billion by 2030, growing at a CAGR of 7.3%. Growth is being driven by rising demand for convenience, an expanding base of specialty roasters, and deeper penetration of café outlets. Consumers are increasingly leaning toward premium flavors, health-forward alternatives, and digital-first subscription models—redefining how coffee is consumed and experienced across the country.

Market Dynamics

The Indian coffee market is evolving swiftly, influenced by a confluence of economic, demographic, and cultural forces. A growing middle class, rapid urbanization, and the popularity of café culture among younger consumers are reshaping demand. Organized retail is expanding, specialty cafés are proliferating, and the market is seeing increased availability of premium and ready-to-drink coffee options. Simultaneously, innovations in processing, roasting, and flavor profiles are capturing consumer interest and driving adoption.

Domestic consumption has seen steady growth, increasing from 1.28 lakh metric tonnes in 2010–11 to 1.62 lakh metric tonnes in 2021–22, per the Ministry of Commerce and Industry. This reflects a growing appetite for coffee across India’s urban centers and beyond its southern roots. On the global front, India’s exports surged to nearly 400,000 tonnes in FY23, generating over USD 1.12 billion in revenue, according to the India Brand Equity Foundation—solidifying its status as the sixth-largest coffee producer and a critical supplier of Arabica and Robusta beans worldwide.

Significant market opportunities lie in specialty and artisanal brands, growing demand for cold brews and ready-to-drink options, and increasing interest in ethically sourced coffee. Producers and roasters are leveraging digital platforms and e-commerce to reach tech-savvy consumers, while direct-to-consumer subscription models are enabling personalized, curated experiences. Premiumization, single-origin selections, and gourmet blends are also helping brands build deeper consumer engagement and loyalty.

Emerging trends are further reshaping the landscape—from functional and flavored coffees to innovative brewing formats like pour-over and cold brew. Consumers are increasingly prioritizing sustainability and traceability, with eco-conscious packaging and certifications such as organic and fair trade becoming influential factors in purchase decisions. Technology is playing a pivotal role, with smart coffee machines, app-based subscriptions, and online ordering enhancing convenience and customization.

Segment Highlights and Performance Overview

By Source Type:
Robusta dominates India’s coffee production landscape, accounting for over 70% of total output. Its resistance to climatic stress and pests, coupled with higher caffeine content and lower cultivation costs, make it the preferred variety for both domestic producers and global buyers—especially for use in instant coffee and blended products.

By Product Type:
Instant coffee leads the product segment, holding around 45% market share. Its widespread adoption stems from rising demand for convenience, affordability, and quick preparation, particularly among younger consumers and working professionals. Established brands like Nescafé and Bru have built strong distribution networks across urban and rural India, solidifying the segment’s reach and relevance.

By Packing Type:
In packaging type, stand-up pouches and flexible bags are the most favored formats, valued for their lightweight, cost-effective, and resealable design. These options enhance product shelf life and are widely used for both instant and roasted coffee variants, appealing to both mass-market and premium consumers.

By End-Use:
Household consumption remains the dominant end-use category, as coffee becomes a staple in everyday routines. With greater access to premium labels and user-friendly formats like pods and instant sachets, Indian families are incorporating coffee more consistently into their daily lives.

By Distribution Channel:
Supermarkets and hypermarkets command the largest share of distribution, contributing around 30% to overall market sales. Their strength lies in offering extensive brand assortments, strategic in-store promotions, and the convenience of consolidated shopping experiences—making them the go-to channel for a broad range of consumers.

Geographical Insights:

Coffee production remains concentrated in the southern belt, led by Karnataka, which contributes around 70% of the national output. Districts like Kodagu, Chikkamagaluru, and Hassan form the heart of India’s coffee-growing region, benefiting from ideal climate conditions and strong institutional support. Kerala and Tamil Nadu continue to be key contributors, while regions like Andhra Pradesh, Odisha, and parts of the North-East are gradually developing their presence. Karnataka’s mature infrastructure, skilled labor base, and established processing facilities position it as the cornerstone of India’s coffee production and export ecosystem.

Competition Landscape:

India’s coffee market is characterized by intense competition among established domestic brands, global giants, and an emerging community of artisanal roasters. Players are differentiating themselves through product innovation, premium offerings, and robust supply chains that span retail, digital, and specialty café formats.

Major companies covered in this report include Tata Coffee Limited, CCL Products (India) Ltd., SLN Coffee Pvt. Ltd., Coffee Day Enterprises Ltd., Allanasons Pvt. Ltd., Bayar’s Coffee, Hatti Kaapi, Narasu’s Coffee Company, Leo Coffee, and Seven Beans Coffee Company.

Recent Developments

• In October 2024, Tata Consumer Products introduced Tata Coffee Grand Cold Coffee, a ready-to-drink line available in Swiss Caramel, French Vanilla, and Belgian Chocolate flavors. Priced at ₹70 for a 180 ml can, the launch targets on-the-go urban consumers and intensifies competition in the premium cold coffee segment.
• On July 29, 2025, SLN Coffee unveiled Levista, its flagship instant coffee brand, in Tamil Nadu and Karnataka. With 27 SKUs spanning Classic, Premium, and Strong variants, the launch expands consumer choice in the instant segment. It strengthens SLN’s presence in South India, a region known for its high coffee consumption.

Segmentation:

By Source Type:

• Arabica
• Robusta
• Liberica & Excelsa

By Product Type:

• Whole Bean Coffee
• Ground Coffee
• Instant Coffee
• Ready-to-Drink (RTD) Coffee
• Pods & Capsules

By Packing Type:

• Folding cartons
• Glass
• Stand-up pouches & Flexible bags
• Others

By End-Use:

• Household Consumption
• Foodservice / HoReCa (Hotels, Restaurants, Cafés)
• Institutional / Office

By Distribution Channel:

• Supermarkets & Hypermarkets
• Convenience Stores
• Cafés & Coffee Chains
• E-commerce / Online Platforms
• Vending Machines

Companies included in the report:

• Tata Coffee Limited
• CCL Products (India) Ltd. 
• SLN COFFEE PVT. LTD.
• Coffee Day Enterprises Ltd.
• Allanasons Pvt. Ltd.
• Bayar’s Coffee
• Hatti Kaapi
• Narasu’s Coffee Company
• Leo Coffee
• Seven Beans Coffee Company