Report

India Coffee Cafe market is expected to be driven in the forecast period 2025-2029, owing to changing consumer preferences, expansion of international coffee chains, and innovation and diversification of menu offerings in coffee cafes.
India Coffee Cafe Market Scope
India Coffee Cafe market is defined as a part of food and beverage industry that involves operation of cafes with the prime focus towards serving coffee-based beverages, along with certain snack items and other beverage offerings. This market includes diverse types of cafes, such as standalone cafes which can be local cafes and chain cafes to cater to the diverse range of consumers, including millennials, working professionals, students, and tourists.
India Coffee Cafe Market Overview
India coffee cafe market has seen significant growth in recent years, driven by changing consumer preferences, urbanization, and a growing middle class with disposable income. Coffee was once considered to be a niche beverage in India. However, it has gained popularity among the younger generation, and has become a significant part of urban lifestyle and culture.
With the growing demand for special coffee, artisanal brews, and unique coffee experiences, consumers are increasingly seeking high-quality coffee, a wide variety of brewing methods, and a comfortable ambiance in coffee cafes, leading to increased innovation in menu offerings, brewing techniques, and store designs.
The demand for coffee cafes varies across different regions in India. In terms of cities, metropolitan cities have a higher number of coffee cafe outlets, with the growing demand from students and working-class groups. In addition, the south region includes cities like Bengaluru, Chennai, and Hyderabad, which have a strong coffee culture and are known for offering coffee beans in the nation.. India is the sixth-largest producer and fifth-largest exporter of coffee globally. Furthermore, within Asia-Pacific, India is considered as the third-largest producer and exporter of coffee. According to a study, there was around 299,300 million tons (MT) of coffee production in 2019-2020, that reached to around 342,000 million tons (MT) in 2020-21. However, the country's coffee exports are about 70% of its production and its domestic consumption is around 30%.
With consumers becoming more aware of the health benefits of coffee, such as better focus, faster metabolism, and antioxidants, there has been an increase in demand for coffee as a healthier beverage option. Coffee cafes are also perceived as offering a more upscale and healthy option than traditional tea stalls or other beverage outlets, ultimately boosting the market growth over the anticipated period.
India Coffee Cafe Market Drivers
The coffee cafe culture is gaining popularity among millennials who seek unique experiences and are willing to spend on high-quality coffee and a comfortable cafe ambiance. As more people move to urban areas for work and leisure, coffee cafes have become popular places for socializing, networking, and relaxation. These drivers are expected to continue fueling the growth of the India coffee cafe market.
Additionally, due to exposure to coffee trends and the availability of specialty coffee cafes, Indian consumers are becoming more aware of the different types of coffee available including brewing techniques and flavors, driving the coffee caf� industry. This has created a demand for high-quality specialty coffees that offer unique taste experiences, leading to the growth of coffee cafes that cater to these preferences. Additionally, the expansion of international coffee chains such as Starbucks, Costa Coffee, and Dunkin' Donuts have entered the Indian market, bringing with them standardized quality, ambiance, and a coffee culture experience. Furthermore, the rising number of coffee caf� outlets in India is also showcasing the rising demand for coffee caf� market. For instance, as of 2023, there are 1,384 Caf� Coffee Day outlets across India. Maharashtra has the most Cafe Coffee Day locations, with 259 stores, accounting for approximately 19% of all Cafe Coffee Day locations in India. This has led to the proliferation of coffee cafes in major cities, creating more options for consumers and driving the growth of the coffee cafe market in India.
India Coffee Cafe Market Trends
Since the increasing focus on creating a unique ambiance and experience for customers, cafe interiors, decor, music, and seating arrangements are now carefully designed to offer a comfortable, relaxed, and welcoming environment for customers. The overall ambiance and experience of cafes are becoming significant factors for attracting and keeping customers engaged in the competitive coffee cafe market. Coffee chains and independent cafes are availing advantages of the expanding urbanization and changing lifestyles in these cities, by offering specialized coffees to a large consumer base. This trend is driving the growth of coffee cafes in non-metro cities and opening new opportunities for market expansion.
As the trend towards personalization in the India coffee cafe industry grows, more cafes are supplying customizable options to cater to individual preferences. Customers can choose their preferred coffee, brewing methods, milk options, sweeteners, and flavorings, allowing them to tailor their coffee to their exact liking. This trend of customization and personalization adds a level of uniqueness and exclusivity to the coffee cafe experience, attracting consumers who seek personalized offerings. These trends are shaping the India coffee cafe market for the forecasted period.
However, in-store internet ordering (purchase online, pick up in-store) is expanding in order to enhance consumer experience and convenience penetration. The Indian market for coffee shops has also been impacted by digital revolution. Mobile payments, online payments, loyalty programmes, and personalized promotions are growing in popularity trends in the coffee cafe market because they provide customers with a simple and convenient way to buy and enjoy their coffee., thereby significantly increasing the market demand.
India Coffee Cafe Market Challenges
The increasing intense competition in the coffee cafe market in India, with numerous national and international players vying for customer base, has resulted in competitive pricing, aggressive marketing methods, and issues in building consumer loyalty. Established brands like Starbucks, Caf� Coffee Day, and Costa Coffee have a strong presence in the market, making it challenging for new or smaller players to compete. These are the main factors that are expected to hinder the growth of the India coffee cafe market.
Other challenges to market expansion include operating costs, particularly excessive real estate rents in top locations in the major cities, and the challenge of creating distinct taste and flavors for coffee. Indeed, the country's rural areas are slowly evolving in many ways. Although India is progressively becoming a coffee nation, coffee manufacturers are required to interact with rural areas, which has hindered the market expansion.
India Coffee Cafe Market Opportunities
While coffee stays the core offering, coffee cafes in India have a diversified menu in order to cater the differentiated consumer preferences. This includes snacks, baked goods, sandwiches, and other food items. As a result, this is a crucial factor contributing to the expansion of opportunities for the coffee caf� in the Indian market during the forecast period.
Moreover, In the India coffee caf� market, specialty coffee shops and cafes are relatively new developments that are rapidly gaining popularity among customers. Due to the growing popularity of specialty coffee shops in India, customers are now more interested in businesses that sell social experiences than just coffee or baked products. In response to expanding their market presence, key market players of coffee cafes are expanding their menus to provide a larger range of day parts.
Market Segmentation
The India coffee cafe market is segmented based on ownership, services, product offering, Chained Caf�s, region, and competitional landscape. Based on ownership, the market is further fragmented into chained outlets and standalone outlets. Based on services, the market is segmented into in-dine and take away. Based on product offering, the market is further segmented into coffee, tea, other beverages, snacks, and others (cookies, confectionery, pastries, cake etc.). Based on chained caf�s, the market is segmented into domestic vs international brands. The market analysis also studies the regional segmentation among, South, North, West and East.
Company Profiles
Coffee Day Enterprises Limited, Tata Starbucks Private Limited, Barista Coffee Company Limited, Costa Limited, Jubilant Food works Ltd (Dunkin Donuts), McDonald's India Private Limited, Brew Berries Hospitality Private Limited, The Coffee Bean & Tea Leaf Restaurant and Cafe (CBTL), Indian Coffee House (ICH), Muhavra Enterprises Private Limited (Blue Tokai), are among the major market players in the global platform that lead the market growth of the India Coffee Cafe market.
Report Scope:
In this report, the India Coffee Cafe market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:
� India Coffee Cafe Market, By Ownership:
o Chained Outlets
o Standalone Outlets
� India Coffee Cafe Market, By Services:
o In-Dine
o Take Away
� India Coffee Cafe Market, By Product Offering
o Coffee
o Tea
o Other Beverages
o Snacks
o Others (Cookies, Confectionery, Pastries, Cake, etc.)
� India Coffee Cafe Market, By Chained Caf�s
o Domestic
o International Brands
� India Coffee Cafe Market, By Region:
o South
o North
o West
o East
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the India Coffee Cafe market.
Available Customizations:
With the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:
Company Information
� Detailed analysis and profiling of additional market players (up to five).