From Bean to Brew: How Global Giants, Homegrown Brands Are Stirring India’s Coffee Revolution

As India's coffee culture brews a deeper connection with its people, global giants like Starbucks, Tim Hortons, and homegrown brands like Third Wave Coffee are playing pivotal roles in reshaping how Indians experience coffee. On this World Coffee Day, here is a look at the rise of India’s specialty coffee scene and the expansion of café culture beyond metro cities, which is changing coffee consumption habits across the country.

Newly Developed Passion For Coffee 
"The Indian consumers are increasingly developing a passion for coffee. This includes first time drinkers acquiring the taste of coffee while coffee aficionados enhancing their experiences  with unique flavours, specialty brews and bespoke beverages. Resurgence in consumption at coffee shops has also sparked a renewed interest driven by shared moments and occasions where coffee becomes an essential ritual," commented Vinay Nair, vice president, Costa Coffee, India, and emerging markets.

Rise of Café Culture
India has long been a tea-drinking nation, but the past decade has seen coffee making steady inroads, thanks to the growing café culture introduced by global brands like Starbucks and Tim Hortons. These brands have not only brought in premium coffee blends but have also elevated the overall café experience, making it a place for work, socialising, and relaxation.

Adrit Mishra, COO of TATA Starbucks, emphasises how the company has played a crucial role in expanding India’s coffee culture, saying, “As part of our expansion in India, we are committed to enhancing our presence in Tier-2 and Tier-3 cities. Recently, we opened our first stores in Prayagraj and Bilaspur, furthering our commitment to bringing the signature Starbucks experience across India.”

Mishra continues, “This year, we’ve introduced a menu that celebrates India’s coffee heritage with signature beverages like the Malabar Coconut Cream Latte and Tamarind Red Peroo Shikanji Cold Brew. We are proud of the role we’ve played in shaping India’s coffee culture and are committed to meeting the evolving preferences of the growing middle class.”

Similarly, Tim Hortons India CEO Tarun Jain points out the growing interest in artisanal brewing methods and unique store experiences that are driving the demand for specialty coffee among millennials and Gen Z. “The demand for specialty coffee is growing significantly among millennials and Gen Z, who are not just coffee drinkers but experience seekers. These generations are drawn to authenticity, personalization, and quality. At Tim Hortons, we emphasise crafting a unique coffee experience, from sourcing the finest beans to offering brewing techniques that enhance the flavour profile of our beverages,” Jain explains.

Homegrown brands like Third Wave Coffee are also making waves by focusing on ethically sourced beans and promoting India’s coffee-growing heritage. Rajat Luthra, CEO of Third Wave Coffee, notes, “A key trend in the Indian coffee market is the rising demand for specialty coffee among millennials and Gen Z consumers. For them, coffee is not just a morning pick-me-up; they are seeking spaces that offer unique ambience, conducive to both work and socialising, while also offering premium brews.”

Coffee Culture On the Rise, Led By Millennials And Gen Z
Akshay Jatia, Executive Director of Westlife Foodworld, notes the rapid growth of coffee culture in India, driven by Millennials and Gen Z. "The Gen Z today needs a good cup of coffee that matches their on-the-go lifestyle," he shares. According to Euromonitor, 69 per cent of Indian millennials see coffee as a companion during conversations, while 50 per cent prefer it when meeting friends or clients. To stay relevant, brands must continuously innovate menus, enhance store experiences, and engage digitally. McCafé, for instance, sources premium beans from Chikamagaluru, offering artisanal brews that cater to evolving tastes, while maintaining affordability. The expansion of café offerings is also building a coffee-at-home culture across India,” comments Jatia.

He further adds, “We have also been nimble in adapting our menu to cater to evolving consumer preferences. While remaining true to our core coffee expertise, we have strategically expanded our McCafe offerings. With an increasing focus on unique flavours, innovative brewing methods, and sustainable sourcing, this shift is catering to the evolving preferences of modern coffee drinkers.”

Expansion Beyond Metros In Tier 2 And Tier 3 
While Starbucks, Tim Hortons, and Third Wave Coffee initially gained traction in major cities like Delhi, Mumbai, and Bangalore, they are now expanding into Tier-2 and Tier-3 cities, where the demand for high-quality coffee experiences is growing rapidly.

Adrit Mishra of TATA Starbucks highlights the brand's deeper penetration into these markets: “Across the lengths and breadths of the country—from Jammu to Mussoorie and Manali to Tirupati—we are bringing the Starbucks experience to new locations. To enhance accessibility, we’ve introduced newer store formats, including 24-hour drive-thrus, metro stores, and pet-friendly locations.”

On the D2C front, brands are focusing on offering premium coffee to consumers who prefer brewing their own coffee at home. Tim Hortons India CEO Tarun Jain explains, “With the rise of the Direct-to-Consumer (D2C) model, we’ve introduced curated offerings that reflect local tastes while maintaining the authenticity of the Tim Hortons experience. Our expansion into Tier-2 and Tier-3 cities also contributes to building a coffee-at-home culture in India, where consumers are increasingly developing a passion for coffee.”

Similarly, Rajat Luthra of Third Wave Coffee adds, “Our expansion into newer markets only further fuels the growth of the coffee-at-home culture. Consumers appreciate the ability to recreate a café experience in their own kitchens, and we have enabled this through products like our Easy coffee bags and specialty brewing equipment, easily accessible through websites and platforms like Amazon.”

Data on India's Coffee Market Growth
India’s coffee industry is growing at a rapid pace. According to market research, the coffee market in India was valued at $1.38 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 11.2% from 2023 to 2028. This growth is driven by the increasing café culture, rising disposable incomes, and the growing demand for specialty coffee. Global chains like Starbucks and Tim Hortons, along with homegrown brands like Third Wave, are capitalising on this trend by expanding their presence and introducing innovative products tailored to Indian tastes.

As coffee continues to gain popularity across India, the future of the industry looks promising. Brands are increasingly focusing on creating experiences that combine quality, sustainability, and accessibility. As Tarun Jain of Tim Hortons sums up, “For millennials and Gen Z, it’s not just about drinking coffee—it’s about the entire journey from bean to cup.”