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Published 14:09 IST, June 5th 2024

India sips 1 million 60-kg coffee bags in 2023-2024: What's driving the coffee culture?

India's coffee production reached over 393 thousand MT in 2023, driven largely by Karnataka, with Robusta beans dominating the sector.

Reported by: Priyanshi Mishra
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Coffee culture of India
Coffee culture of India | Image: Republic Business

India’s all-new cafe culture: Over the past decade, India's coffee culture has undergone an evolution, transforming from a simple beverage choice to a dynamic lifestyle trend. This shift is evident not only in consumer preferences but also in the country's coffee production. In the fiscal year 2023, coffee production in India surged to over 393 thousand metric tonnes (MT), largely propelled by Karnataka, the leading coffee-producing state. 

Moving beyond the traditional strong and milky filter coffee, Indian consumers are increasingly exploring high-quality beans, diverse brewing methods, and the unique flavours of different roasts.

Between 2016 and 2024, coffee drinking in India has been on the rise. According to a report by A Minhas titled 'India's Coffee Consumption and Production Surge,' the amount of coffee consumed in India increased steadily during this time. 

By the year 2023-2024, India had consumed over one million 60-kg bags of coffee, which was more than the previous year. On a global scale, coffee consumption during the same period exceeded 167 million 60-kg bags. The European Union and the United States were the top consumers globally, leading the pack in coffee consumption.

The Indian coffee sector is predominantly composed of Robusta beans, though Arabica beans also play an important role. In the 2022–2023 season, Arabica production was notable, with over one million 60-kilogramme bags produced.

Continental coffee's market entry

On the retail front, Tata Consumer Products has shown steady growth in India's coffee market through its subsidiary, Tata Coffee. This growth has been boosted by Tata Coffee’s partnership with Starbucks, which is rapidly expanding its retail footprint across India. 

Concurrently, Continental Coffee Limited, the world's largest private coffee label, has entered the business-to-consumer segment, further intensifying competition and growth in the Indian coffee market.

Nivedita Gokhale, the founder of Tap A Tee, shared, "Some cafes are incorporating co-working spaces, hosting live music events, or offering board game nights to cater to specific customer desires. Highlighting Indian coffee origins, like Coorg or Araku Valley, is a growing trend. Roasting in-house and showcasing the distinct flavours of these regions allows customers to connect with the local coffee story."

What appeals to urban professionals and students?

The coffee revolution in India is fuelled by a variety of interlinked factors, reshaping consumer preferences and elevating coffee's status in the daily lives of many Indians. A notable driver is the growing health consciousness among Indian consumers. Coffee is increasingly recognised for its perceived health benefits. 

Rich in antioxidants, coffee is believed to help combat inflammation and protect against certain diseases. Moreover, its potential to enhance cognitive function by improving focus, alertness, and mood makes it an attractive choice for health-conscious individuals. These benefits are especially appealing to urban professionals and students seeking a healthier alternative to sugary beverages.

From chains to craft

The proliferation of cafe chains and independent roasters has played an important role in transforming India’s coffee culture. Prominent international brands like Starbucks, along with homegrown chains such as Café Coffee Day, have made high-quality coffee more accessible. These cafes offer a variety of experiences, from quick grab-and-go options to cosy, relaxing environments where patrons can unwind or work.

This accessibility has demystified specialty coffee, making it a part of everyday life for many. Independent roasters and specialty cafes have introduced Indian consumers to artisanal brewing methods and high-quality beans. Methods like pour-over, French press, and cold brew are becoming more common, providing a diverse range of flavour profiles and experiences. These establishments often source their beans from specific regions, stressing single-origin and ethically sourced coffee. This focus on quality and sustainability resonates with an increasingly informed consumer base that values the story behind their cup of coffee.

Coffee: More than a drink

The cultural shift towards viewing coffee as a lifestyle choice rather than just a beverage has also contributed to its rising popularity. Cafes have become social hubs where people gather not only to drink coffee but also to socialise, work, and attend events. The ambiance and experience offered by these cafes attract a wide demographic, from young professionals and students to older generations looking for a modern yet comfortable setting. The role of technology and social media cannot be underestimated in driving coffee’s popularity. 

Platforms like Instagram and Facebook are flooded with aesthetically pleasing images of coffee, cafes, and brewing methods. This visual appeal and the sharing of coffee-related experiences create a buzz and influence consumer behavior. Social media also provides a platform for cafes and brands to engage with their audience, promote new offerings, and educate consumers about different aspects of coffee culture.

India’s rapid economic growth and urbanisation have also contributed to the coffee boom. As disposable incomes rise, consumers are more willing to spend on premium experiences, including high-quality coffee. Urban centres, in particular, have seen a surge in specialty cafes catering to the tastes of a burgeoning middle class and young professionals who are eager to explore new trends and lifestyles. 

"The rising popularity of coffee in India is driven by a combination of health awareness, the expansion of cafe culture, a focus on quality and artisanal methods, cultural shifts, the influence of social media, and broader economic trends. These factors, together, create a robust ecosystem that continues to fuel the growth of coffee culture in the country," Sahaj Chopra, Co-founder, Fat Tiger.

Brewing beyond basics

Advanced brewing methods are also a key aspect of market differentiation. Many cafes now feature pour-over stations, syphon brewers, and cold brew taps, catering to coffee connoisseurs who seek to explore the nuanced flavours that different brewing techniques can bring out. These methods provide a more personalised and interactive coffee experience, allowing customers to see the preparation process and understand the impact of brewing techniques on taste. By offering such sophisticated coffee experiences, cafes are able to stand out in a crowded market and attract discerning customers who value quality and innovation.

Brands create a welcoming ambiance with knowledgeable baristas who guide customers through different brews and help them discover their preferred flavors. Stressing ethically sourced, single-origin beans, specialty coffee brands set a higher standard for coffee quality. This focus on sustainability and ethical sourcing resonates with a growing segment of consumers who are conscious of the origins of their food and drink. 

Furthermore,  Specialty brands often host events and workshops, which boosts a sense of community among coffee enthusiasts. These events provide opportunities for customers to learn more about coffee, share their passion, and connect with like-minded individuals, thereby building a loyal and engaged customer base.

Adapting to demand

To meet the growing demand for high-quality coffee, Indian farmers are increasingly focusing on cultivating premium Arabica beans and specialty varieties. This shift involves adopting stricter quality control measures and selective picking techniques to ensure only the ripest coffee cherries are harvested. 

Farmers are also experimenting with innovative fermentation techniques to enhance flavour profiles, resulting in a more refined product. Environmentally conscious farming practices are gaining prominence as well, with many farmers employing shade-grown and organic methods. These practices not only produce a superior coffee bean but also cater to the increasing consumer demand for sustainable and ethically sourced coffee, say experts.

 

International coffee chains have introduced a wider range of coffee styles, such as lattes, cappuccinos, and cold brews, these chains have expanded the palate of Indian consumers. The presence of these chains has set a new standard for coffee shops in India, encouraging local cafes to elevate their offerings and ambience.

As per the data released by the Coffee Board, in the fiscal year 2023-2024, India's coffee production saw increases across several key states and districts. Karnataka, the leading coffee-producing state, reported a total production of 266,885 MT, up from 248,020 MT the previous year. 

Within Karnataka, Chikkamagaluru contributed 93,050 MT, Kodagu 130,285 MT, and Hassan 43,550 MT. Kerala's Wayanad district maintained its strong output with 61,050 metric tonnes of Robusta, contributing to a state total of 72,825 MT. 

Tamil Nadu's production remained stable with a slight decrease to 18,435 MT, with contributions from the Pulneys, Nilgiris, Shevroys, and Anamalais regions. Non-traditional areas like Andhra Pradesh and Orissa also increased their production to 15,880 MT, with Andhra Pradesh alone producing 15,380 MT. 

The North Eastern Region contributed a modest 175 MT. Overall, India’s coffee production for 2023–2024 reached a total of 374,200 MT, an increase from the 352,000 MT produced in 2022–2023.

Traditional tea: Affected by coffee culture?

Despite the rise of coffee culture, traditional tea-drinking habits in India remain strong. Tea, particularly chai, holds deep cultural significance and is frequently enjoyed throughout the day. 

The growth of coffee consumption is not necessarily displacing tea but rather complementing it. Many Indians enjoy both beverages, with coffee often serving as a morning energiser while tea provides a comforting experience throughout the day.
 

“While the growth of coffee culture has introduced a new dimension to Indian beverage consumption, it has also created a more diverse landscape where both coffee and tea coexist. Many Indians may still start their day with a cup of tea, but coffee is becoming the beverage of choice for social outings and work breaks. This coexistence has led to a richer, more varied beverage culture in India, where consumers enjoy the best of both worlds,” shared Ayush Bathwal, Co-founder, Third Wave Coffee. 

Among younger demographics, there is a notable trend towards cold-brew coffee, which offers a smooth and less acidic taste, perfectly suited for India's warm climate. Young consumers are also showing a keen interest in innovative flavour combinations, incorporating local spices or unique syrups. 

How is coffee's boom impacting local economy?

The increased demand is boosting the income of coffee farmers and creating jobs across various sectors, including baristas, roasters, and marketing professionals. This growth supports the local economy and encourages further investment in the coffee industry.

Updated 18:00 IST, June 13th 2024