Coffee Consumption Habits in India
India, like many other Asian countries, is traditionally a tea-drinking nation. It has a massive population that has, for ages, preferred tea to other beverages. But even with its over a billion people, India hasn’t been able to avoid the influence of the West.
Coffee, a wildly popular beverage in the US and Europe is slowly making its way through the Indian population. Like many other countries in Asia, this change in preference is being spearheaded by young people between the ages of 20 and 40.
These are people who have grown up in a time when Hollywood has had a huge influence on the global population. Hollywood created the notion that coffee was a ‘cool’ way to socialize and make new friends.
So the big question is, what are the coffee consumption habits in India today?
Origin of coffee in India
The earliest recorded evidence of coffee in India can be traced back to the 17th century. An Indian Sufi saint known as Babu Budan went to Mecca and came back with coffee seeds, which he planted in the southern region of India in the state of Karnataka.
Karnataka is the largest producer of coffee in India. Over 70% of the total coffee India produces comes from Karnataka, followed, at a distance, by Kerala, which accounts for roughly 23% of the total coffee output.
Despite being introduced in India centuries ago, it wasn’t until the British occupied the country that coffee consumption started to take off. And even then, it wasn’t as popular as coffee.
India is the second largest producer of tea in the world, and approximately 80% of that is consumed locally.
Coffee production in India
India is the sixth-largest producer of coffee in the world. According to Statista, India produced over 393,000 metric tons of coffee in the year 2023. This is the highest it has ever been in history.
Two established varieties of coffee grown in India are Arabica and Robusta, with Robusta taking the lead as the most common one. Unlike tea, India exports most of its coffee. In 2022, it exported over 80% of its coffee to countries like Germany and Italy.
Coffee drinking as a lifestyle
The growing number of coffee consumers in India can be linked to several factors, like the booming tech sector. This means more disposable income in the hands of younger people that can be spent on coffee in cafes.
Increased coffee consumption can also be attributed to the launch of several coffee chains like Third Wave Coffee, which launched in 2021 during the Covid-19 pandemic. These chains create ambient cafes where young adults like to spend time and socialize.
Popular coffee types in India
About two to three decades ago, when coffee was not nearly as popular as it is today, instant coffee was the most common type of coffee in India. Instant coffee in sachets is inexpensive compared to other types, mostly because it’s also low-quality coffee.
As more people have embraced coffee consumption, there has been a steady increase in the types of coffee available in the Indian market. The rise of coffee chains like Third Wave Coffee has led to the increased adoption of specialty coffee.
Some of the most popular types of coffee servings in India include Americano, Latte, Cappuccino, Macchiato, and Cafe Mocha.
The role of coffee machines in increased coffee consumption
It is no secret that those doing well financially in society often migrate to urban areas. This is true in many countries around the world, and India is no exception. Most people living in urban areas have disposable income and can afford to buy coffee machines.
Since large coffee chains like Starbucks, Costa Coffee, Cafe Coffee Day, and Breberrys Cafe launched in India, coffee intake has been surging. People are now more informed about the various kinds of coffee they can have and the benefits they can get from them.
Consequently, a lot of people have been getting coffee machines so they can prepare their favorite coffee from home in an instant. Coffee machines go hand in hand with coffee capsules.
Companies like Espresso India have introduced coffee capsules with various fruity flavors, which broadens the spectrum of coffee flavors that people can enjoy. The more machines people buy, the more coffee they drink, and the bigger the coffee market becomes.
Conclusion
Coffee intake in India is not showing signs of slowing down. If anything, the rate at which more people consume coffee is only going to go up. Younger people born in the past two decades have come to find an already established coffee market.
They are able to choose from a wide array of coffee options, which wasn’t possible two decades ago. However, the older generations are stuck in their ways and most of them still prefer tea to coffee.
We are going to witness a reduction in the amount of coffee India exports to other countries due to an increase in the rate of consumption locally.
Considering that importing green coffee for processing is costly, coffee processors are going to turn to local coffee from farmers to produce various coffee products.
Even with the growth of the coffee market, it will still be a while before coffee gets as widely adopted as tea. However, the growth opens doors for investment opportunities by private label businesses and other investors.
