The traditionally tea-loving Indian market is witnessing a remarkable shift towards coffee, with projections showing growth to £2.1 to 2.6 billion by 2028, growing at 15-20 per cent annually. As per a report by Redseer Strategy Consultants, this transformation reflects changing urban lifestyles and evolving consumer preferences. Redseer Strategy Consultants is India’s premier strategy consultancy. Here are all of the other important details that you would need to know about the Redseer report on India’s coffee market.
India’s Coffee Market Projected To Reach £2.6 Billion By 2028
The market is divided into three distinct tiers, each serving different consumer needs. The mass market, serving drinks under ₹100, currently dominates with a 50 per cent market share but is expected to decrease to 30 or 35 per cent by 2028.
Its growth is projected at a modest 8 to 10 per cent annually. This segment primarily serves budget-conscious consumers through local vendors and unbranded outlets. The mid-range segment, priced between ₹100 to 200, currently represents just 4 per cent of the market.
However, it’s projected to reach 8 to 10 per cent by 2028. Its growth is projected at an impressive 35-40 per cent annually. This segment represents a significant opportunity for speciality coffee at accessible prices. This will also bridge the gap between basic offerings and premium experiences.
Consumer Trends As Well As Business Opportunities
The premium segment, with prices above ₹200, currently holds 46 per cent market share and is expected to reach 55 to 60 per cent by 2028, growing at 20 to 25 per cent annually. This tier focuses on artisanal brewing and premium experiences for discerning consumers.
Modern Indian coffee drinkers are increasingly sophisticated in their tastes. This shows a growing interest in speciality brews like Americanos and Cappuccinos. They value convenience through portable options and are increasingly health-conscious in their choices.
The appreciation for artisanal preparation methods continues to rise among urban consumers. Companies aiming to succeed in this market need to focus on maintaining consistent quality through proper sourcing and brewing.
Creating engaging customer experiences and developing innovative service models are crucial, as are securing prime locations and establishing efficient supply chains. However, businesses face several challenges in this growing market.
Managing complex supply chains, securing competitive locations, maintaining quality standards, and meeting diverse taste preferences all present significant hurdles.
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