The direct-to-consumer (D2C) coffee market in India is experiencing significant growth, driven by the rising demand for specialty coffee and experiential offerings. The market is projected to grow at a compound annual growth rate (CAGR) of 9.87 per cent, reaching an estimated USD 1.2 billion by 2032. Factors fueling this growth include an increasing interest in gourmet and artisanal coffee, with Indian consumers seeking high-quality, sustainable options. Here is what the industry insiders say, on International Coffee Day.
South India's Filter Coffee Tradition Meets Modern Convenience
“The journey of coffee in India has two parts. In the South, filter coffee has been cherished for generations, with brands like Bru and Nescafe bringing instant coffee into homes over 50 years ago. Café Coffee Day and Barista introduced coffee culture to tea-dominant regions, popularising coffee through cafes and office machines. Today, specialty coffee chains like Starbucks, Blue Tokai, and new-age brands like Sleepy Owl offer café-style experiences at home. Despite these changes, filter coffee remains a staple in the South. With our Easy Filter Coffee, we provide a convenient way to enjoy authentic South Indian coffee without the brewing hassle,” says GD Prasad, Founder of VS Mani & Co.
Coffee Market Soars with Evolving Tastes and Innovations
Globally, coffee consumption is on the rise, both at home and out of home, with coffee shops boosting in-home consumption. “In India, the coffee market is growing rapidly, driven by evolving consumer preferences and a younger demographic. Despite low penetration and per capita consumption, there are significant growth opportunities. Product innovations like flavoured varieties, specialty blends, and unique formulations are attracting and retaining consumers. Tata Consumer Products offers a comprehensive range for coffee enthusiasts, including instant, premium freeze-dried, filter coffee decoction, and cold brew, catering to various consumption preferences,” explains a spokesperson from Tata Consumer Products.
Redefining India's Coffee Culture for the Modern Consumer
“At Beanly, we believe coffee should be convenient, high-quality, and accessible. As India’s coffee culture evolves, consumers are moving away from mass-produced options, seeking fresh and flavorful brews that fit into their busy lives. That’s why we created Beanly—to offer ready-to-brew, premium coffee solutions without the hassle of long queues or complicated names,” says Samayesh Khanna, Co-Founder of Beanly.
“Our mission is to revolutionise how Indians experience coffee, making it easy and enjoyable. With India’s coffee-producing regions gaining global recognition, we aim to elevate Indian coffee on the world stage while ensuring ethical sourcing and supporting farmers. At Beanly, we’re not just brewing coffee; we’re shaping the future of India’s coffee journey,” Khanna adds.
India’s Coffee Culture Thriving Everyday
“India’s coffee culture is rapidly evolving, fueled by urbanisation and a growing preference for artisanal brews, especially among millennials. As India's largest private coffee producer, Kelachandra Coffee, with its 15 estates across 6,300 acres, is deeply rooted in this transformation. The brand is poised to elevate Indian coffee globally through vertical integration and retail expansion, offering immersive experiences that highlight India’s rich coffee heritage,” shares Neleema Rana Georg, Head of Coffee Works and Technology at Kelachandra Coffee.
“The rise of direct-to-consumer (D2C) brands showcases the demand for specialty coffee, with domestic consumption up by 30% since 2018. Kelachandra’s participation in international events like ‘World of Coffee’ further underscores India’s increasing coffee exports. Sustainability remains a priority, with 55% of Kelachandra’s workforce comprising women, empowering local economies and championing eco-friendly practices,” Georg emphasises.
Sam Roberts, Founder of 6oz Coffee, highlights how the D2C model has revolutionised India's coffee market, driven by innovative brands like Blue Tokai, Sleepy Owl, and Third Wave Coffee. Consumers now crave fresh, specialty coffee delivered straight to their doorsteps, allowing brands to cut out the middleman and maintain quality control while fostering a direct connection between growers and buyers. Ecommerce and social media have propelled this transformation, with engaging marketing strategies educating consumers about coffee origins and brewing methods. As Indian consumers become increasingly discerning, the D2C market will thrive, offering not just coffee but unique experiences and narratives that resonate with a new generation of coffee enthusiasts.
Crafting Up India’s Top Coffee Destinations
In 2013, AMA began as a cosy bakehouse where coffee was mostly milk-based, enjoyed with desserts. “Over the past decade, coffee culture has evolved, with patrons seeking more nuanced flavours. Responding to this shift, we now source green beans from the Himalayas and roast them in-house, catering to those who appreciate diverse coffee notes. We're even introducing specialty pour-overs. In January 2024, AMA was honoured as the world’s No. 3 independent coffee shop, a testament to the online support from guests who value our commitment to quality,” remarks Tenzin Thardoe, Founder of AMA.
Evolving Café Culture: A Hub for Connection
“India's café culture is beautifully evolving from student hangouts to vibrant spaces for everyone to connect, unwind, or brainstorm ideas. The rise of coffee beyond its traditional roots reflects a global trend, and at Poetry, we offer a delightful mix of healthy food and artisanal coffees at accessible prices. Cafés are increasingly relevant as social and workspaces, fostering entrepreneurship and nurturing the next wave of start-ups. With this year’s thriving coffee harvest, thanks to improved farming practices, we are excited to share our rich heritage with the world,” says Ruchyeta Bhatia, Founder of Poetry by Love and Cheesecake.
A Cultural Shift: The Emergence of Coffee as a Lifestyle
“We’re witnessing a seismic shift from traditional tea-drinking to a thriving café culture in India, driven by Millennials and Gen Z who prioritise unique experiences and quality. The rise of Direct-to-Consumer coffee brands is reshaping how consumers enjoy specialty coffee, and at Something's Brewing, we empower homebrewers with the tools and knowledge to craft café-quality coffee. Sustainability is also at our core, as we focus on ethical sourcing and fair pricing for local farmers, aiming to cultivate a culture of specialty coffee appreciation grounded in sustainability,” states Abhinav Mathur, Founder & CEO of Something's Brewing.
The Transition from Tea to Coffee: A Cultural Evolution
Chef Mohnish Kothare from Mazi Coffee Bar and Kitchen highlights, “The transition from traditional tea to coffee in urban India highlights a cultural evolution in beverage consumption. Coffee now symbolises modernity and sophistication, driven by millennials and Gen Z who crave curated experiences over mere drinks. At Mazi, we cater to this demand with single-origin beans and innovative brewing techniques, positioning our café as a 'third space' for socialising.”
Ivan Ravi Pinto, Operations Manager at Olive Bar & Kitchen Goa, adds, “The internet has blurred geographical boundaries, enabling millennials to adopt café culture influenced by global trends. Traditional roadside chai has evolved into elaborate coffee experiences at stylish cafés. For the younger generation, coffee represents a free-spirited lifestyle, replacing humble tea with chic meetings over coffee and croissants.”
A New Era of Coffee: Lifestyle and Quality
Ashish Bharvirkar, Founder of 729 Grams Coffee, emphasises the lifestyle aspect of coffee: “Coffee is more than a beverage; it’s a lifestyle akin to high-end wines, focusing on flavour profiles and barista craftsmanship. At 729 Grams, we educate customers about brewing techniques that unveil complex flavours. Our whiskey-fermented coffee, aged in barrels, exemplifies this detail-oriented approach. We source rare auction lot coffees that challenge perceptions, reflecting the growing demand for unique coffee experiences.”
Chirag Oswal, Founder of Grey Soul Coffee Roasters, underscores the importance of education: “At Grey Soul, we prioritise customer education, guiding them through coffee’s diverse flavour profiles. Our cafes encourage meaningful interactions between customers and baristas, fostering a deeper appreciation for coffee. We leverage social media to demystify coffee, highlighting its cultural significance and inspiring traditional audiences to embrace coffee daily.”
The Future of Coffee in India: A Culinary Ingredient
Ravi Saxena, Co-Founder and CEO of Wonderchef, notes, “India’s coffee culture has expanded beyond instant coffee and chains. Millennials and Gen Z, influenced by social media, now favour artisanal experiences. As Wonderchef empowers consumers to recreate café-quality coffee at home, we see a shift in hospitality; instead of offering tea, hosts now ask about coffee preferences. Our diverse coffee machines and blends cater to this evolving demand.”
Chetan Gangan, Michelin-Star Bartender & Co-Founder of YAAR Coffee & Cocktail Bar, adds, “Coffee transcends its role as a morning drink, becoming a versatile ingredient in various culinary applications. From desserts to savoury dishes, coffee adds depth and flavour. Globally, coffee holds cultural significance—from Italian espresso bars to Ethiopian ceremonies—while in India, it’s gaining traction. Restaurants are increasingly incorporating coffee into their menus, reshaping perceptions and driving consumption.”
Sandeep Nagaiah, Co-Founder of Paper & Pie, concludes, “Urban India's café culture has transformed, fueled by the 'work from café' trend. Cafés are now collaborative spaces that blend comfort, creativity, and social aesthetics. At Paper & Pie, we create an environment for community engagement and connection, reflecting a new era in India’s café culture that goes beyond mere coffee.”
With the burgeoning D2C coffee market and a cultural shift towards artisanal brews, India’s coffee scene is poised for an exciting transformation, embracing both tradition and innovation as it brews its way into the future.
