India Coffee Shops / Cafés Market Set To Cross US$ 1 Billion by 2017

Thursday 18 April 2013, Amsterdam

Changing lifestyles, improving disposable incomes, increasing influence of western countries, easy accessibility and younger population are fueling the demand for coffee shops in every corner of the country.

India has always been a tea drinking country until V. G. Siddhartha, Founder Chairman Café Coffee Day saw a dream to sell espressos in a filter coffee country. With around 1200 Café Coffee Day or CCD outlets in the country and continuously improving standard of living with mounting disposable income, Indians have well adapted the western coffee culture. The consumption of coffee, which was earlier perceived to be a luxury drink, has improved a lot over time. India was already the sixth largest producer of coffee in the world until recently it also acclaimed the title of second largest market of coffee retailers in Asia-Pacific region. Coffee shops / cafés have turned out to be hangout points for the youngsters, with majority of the population of India between to 18-25.

According to recently published report ‘India Coffee Shops / Café Market Forecast & Opportunities, 2017’, the coffee shops / café market in India is expected to grow threefold in the next five years to become a whooping Rs. 5600 Crore (US$ 1 Billion) market by 2017. The major share of coffee shops and café market in India is captured by Café Coffee Day followed by Barista Lavazza and Costa Coffee. The global giant Starbucks has already tied up with Tata Global Beverages to open up stores in the country starting mid 2012 to target the premium segment customers. With growing number of private equity investors such as New Silk Route Advisors, Standard Chartered PE, Kohlberg Kravis Roberts (KKR) eyeing the coffee houses, the market for coffee shops / cafés is all set to grow immensely.

“The popularity of these café’s is continuously increasing with added food menus on cards along with beverages. Delhi, Mumbai and Bangalore are still the highest revenue generating cities for coffee shops / café’s in India where average bill amount has recorded an annual growth rate of more than 20% y-o-y. The consumer demographic of India are considered one of the major driving factors for this industry which ensures that everyone entering the fray is making huge margins provided their product positioning is based on robust marketing intelligence” said Mr. Karan Chechi, Research Director of a research based global management consulting firm.

‘India Coffee Shops / Cafés Market Forecast & Opportunities, 2017’ has evaluated the future growth potential of India’s coffee shops / café’s market and provides statistics and information on market structure, consumer behavior trends. The report includes coffee café’s market projections and demand forecasting. The report is intended to provide cutting-edge market intelligence and help decision makers to take sound investment evaluation. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities available in coffee shops market in India.