India Coffee Market Assessment, By Type [Arabica, Robusta, Others], By Form [Instant, Ground, Whole Grain, Others], By Distribution Channel [Supermarkets/Hypermarkets, Grocery Stores, Specialty Stores, Online, Others], By End-use [Residential, Commercial, Institutional], By Region, Opportunities and Forecast, FY2019-FY2033F

India coffee market is projected to witness a CAGR of 7.56% during the forecast period FY2026-FY2033, growing from USD 1.05 billion in FY2025 to USD 1.88 billion in FY2033. Several key factors drive the growth of India coffee market, primarily rising disposable incomes, a preference for western lifestyles, the increasing popularity of specialty coffee and the expansion of coffee shop culture.

One of the most notable trends in reshaping the industry is the premiumization of coffee consumption. The emergence of third-wave coffee culture has introduced Indian consumers to specialty coffee experiences, with brands like Blue Tokai and Third Wave Coffee leading the charge. Starbucks India, through its partnership with Tata, has successfully positioned itself in this premium segment, operating about 400 stores across the country.

Robusta versus. Arabica: Which Coffee Rules the Indian Market?

India is one of the world’s top coffee producers, and when it comes to which type dominates, Robusta takes the lead. Around 70% of India’s coffee production is Robusta, while Arabica makes up the remaining 30%. Robusta is the preferred choice for many Indian farmers because it yields more, resists pests better, and thrives in a wider range of climates, making it a reliable and profitable crop.

India produces about 360,000 metric tons of coffee every year, with 250,000 metric tons being Robusta and 110,000 metric tons Arabica. Robusta’s stronger flavor and higher caffeine content make it the top choice for instant coffee and blended products, which are highly popular in India and worldwide. A great example of this demand is seen in the growing exports of Indian Robusta to Italy, Germany, and Russia, where it’s widely used in espresso blends. With Robusta dominating both production and exports, India continues to strengthen its position in the global coffee market. As demand for high-quality coffee grows, India's coffee industry is set to thrive even further. Most of this coffee comes from three major states: Karnataka, Kerala, and Tamil Nadu, which together account for more than 90% of India’s total coffee production. According to Coffee Board, India, Karnataka is the coffee capital of India, producing 230,000 metric tons annually followed by Kerala contributing over 70,000 metric tons, with Robusta being the dominant variety due to its tropical climate, which supports its growth. Tamil Nadu, though smaller in production, is known for its premium Arabica coffee, producing around 18,000–20,000 metric tons each year.

Global Demand for Indian Coffee Helps Fuel Market Growth

India's coffee industry shows an interesting development. While India has mainly been known for exporting coffee, the growing international demand for Indian coffee beans is now also helping to improve the local market. This connection between global trade and domestic growth is creating positive changes across the industry. As Indian coffee gains more recognition worldwide, it's also raising standards at home. Local specialty coffee companies like Blue Tokai and Third Wave Coffee are now offering high-quality Indian coffee varieties, using the same strict quality measures developed for exports.

India is currently the seventh-largest coffee producer in the world, contributing significantly to the global coffee. Among its top importers are Italy, Germany, Russia, Belgium, and Turkey. For the last three years, multiple factors like fluctuating international coffee prices, supply chain inefficiencies, and unpredictable climate conditions affected the export market, however the latest data predicts a fortunate outcome for the coffee industry with reports from quarter of 2025 (January-March) showing total export of 98,377 metric tons with the value of USD 519 million.

Domestic Coffee Consumption on the Rise

While India has long been a tea-drinking nation, domestic coffee consumption has been growing steadily with 7-10% annual increase in coffee consumption, fueled by urbanization, rising disposable incomes, and the expansion of global coffee chains.

The popularity of premium and specialty coffee is increasing, particularly among younger consumers who seek high-quality brews. Home brewing methods like South Indian filter coffee and artisanal drip coffee have also contributed to shifting consumer preferences. However, despite this surge, per capita coffee consumption in India remains low compared to global standards, presenting a significant opportunity for further market penetration. To capitalize on this trend, domestic brands and café chains must focus on product diversification, experiential marketing, and expanding their presence in Tier 2 and Tier 3 cities. For instance, coffee consumption in India increased from 91,000 metric tons in Coffee Year 2023 (1^st October to 30^th September of following year) and is estimated at 90,000-95,000 metric ton in Coffee year 2024.

Government Measures to Support Market Growth

Government policies play a crucial role in shaping the Indian coffee industry. The Coffee Board of India has been instrumental in promoting coffee cultivation, research, and export growth. Recent initiatives include subsidies for farmers, financial support for infrastructure development, and marketing incentives for global branding.

A prime example of this success is Araku Valley, where nearly 150,000 tribal families in collaboration with the Coffee Board and the Integrated Tribal Development Agency (ITDA) have increased coffee production by 20%.

However, industry experts believe that more policy-level interventions are needed, including lower taxation on coffee exports, investment in technology for processing, and the promotion of Indian coffee at international trade fairs. Strengthening collaborations between the government, private sector, and farmer cooperatives will be key to ensuring the long-term sustainability of the coffee industry.

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Future Market Scenario (FY2026 – FY2033F)

• Coffee market will continue to grow due to strong demand from foreign consumers and steady increase in number of Coffee drinkers in India.
• The market will grow strongly based on continued expansion from exports and subsidies for supporting individual farmers.
• The demand for Coffee will continue to expand further with the growth of café chains and institutional sales.

Report Scope

“India Coffee Market Assessment, Opportunities and Forecast, FY2019-FY2033F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of India coffee market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between FY2026 and FY2033. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.

Report Attribute	Details
Base Year of the Analysis	FY2025
Historical Period	FY2019-FY2024
Forecast Period	FY2026-FY2033
Projected Growth Rate	CAGR of 7.56% between FY2026 and FY2033
Revenue Forecast in FY2033	USD 1.88 billion
Segments Covered	Type, Form, Distribution Channel, End-use
Regions Covered	North, South, East, West and Central
Key Companies Profile	Tata Coffee Limited, Hindustan Unilever Limited, Nestlé India Ltd. (Nescafe), Coffee Day Enterprises Ltd. (Cafe Coffee Day), Tata Starbucks Private Ltd., S.L.N. Coffee Pvt. Ltd. (Levista), Muhavra Enterprises Private Limited (Blue Tokai), Koinonia Coffee Pvt. Ltd, CCL Products (India) Limited., ITC Ltd. (Sunbean), Seven Beans Coffee Company Pvt Ltd.
Customization Scope	15% free report customization with purchase
Pricing and Purchase Options	Avail the customized purchase options to fulfil your precise research needs
Delivery Format	PDF and Excel through email (subject to the license purchased)

In the report, India coffee market has been segmented into the following categories: 

• By Type
  • Arabica
  • Robusta
  • Others
• By Form
  • Instant Coffee
  • Ground Coffee
  • Whole Grain
  • Others
• By Distribution Channel
  • Supermarkets/Hypermarkets
  • Grocery Stores
  • Specialty Stores
  • Online
  • Others
• By End-use
  • Residential
  • Commercial
  • Institutional
• By Region
  • North
  • South
  • East
  • West and Central

Key Players Landscape and Outlook

India’s coffee market is undergoing a quiet transformation. Long dominated by tea, the country is now embracing coffee culture at a steady pace which is driven by urbanization, rising disposable incomes, and the influence of global trends.

International players are also making their mark. Starbucks, through its partnership with Tata, has established a strong foothold with nearly 400 stores, while Tim Hortons has entered the market with an aggressive expansion strategy. These global brands are not just competing with each other but also with homegrown chains such as Barista and Café Coffee Day, which are adapting to stay relevant.

Key Players Operating in India Coffee Market are:

• Tata Coffee Limited
• Hindustan Unilever Limited
• Nestlé India Ltd. (Nescafe)
• Coffee Day Enterprises Ltd. (Cafe Coffee Day)
• Tata Starbucks Private Ltd.,
• L.N. Coffee Pvt. Ltd. (Levista)
• Muhavra Enterprises Private Limited (Blue Tokai)
• Koinonia Coffee Pvt. Ltd
• CCL Products (India) Limited.
• ITC Ltd. (Sunbean)
• Seven Beans Coffee Company Pvt Ltd

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