Tata Consumer Products has maintained a strong market presence since its entry in the Indian market. How would you assess the company's current market share in India, and what strategies are in place to strengthen your position amidst rising competition?
Tata Consumer’s branded coffee business in India has been on a strong growth trajectory - growing at an annualised growth rate of 31 per cent over the last three years and recording a three-fold expansion in size in four years, albeit on a small base. We have progressively strengthened our product portfolio to cater to multiple consumption occasions and regional preferences. Like for example, we expanded our coffee portfolio with filter coffee decoction in a convenient format with unique blends in three region-specific flavours. We also recently launched a ready to drink cold brew coffee variant to cater to the cold coffee enthusiasts. We have accelerated the pace of innovation, with differentiated blends and impactful marketing campaigns.
In India, the coffee market is experiencing significant growth, fuelled by evolving consumer preferences. Characterised by relatively low penetration and per capita consumption, this market presents significant opportunities for growth. At Tata Consumer Products, we are capitalising on this opportunity through a 360-degree approach. Our retail range spans a wide variety of coffee offerings - instant, premium freeze dried, filter coffee decoction, cold brew and single origin roast and ground coffee. In the café space, Tata Consumer’s partnership with Starbucks brings a premium coffee experience to consumers. Additionally, Tata My Bistro vending machines provide convenient access to quality coffee in workplaces and in the Hotel, Restaurant, and Café/Catering (Horeca) segment.
With growing interest in specialty and premium coffee, what are Tata Consumer Products’ expansion plans to tap into this evolving consumer demand, both domestically and internationally?
Premiumisation is a growing trend with consumers now more willing to spend on premium offerings and value added experiences. Tata Coffee Sonnets is a premium range of single origin roast and ground coffee from Tata Coffee’s own gardens. It is available as a D2C brand in India and also through our newly incubated Vending business which caters to coffee enthusiasts in their place of work or in the Horeca segment.
We recently launched Sonnets ‘Easy Pour’ coffee to bridge the gap between the desire for a gourmet coffee experience and the need for convenience. Tata Coffee Gold is our premium instant coffee offering in the freeze dried segment in India. We have entered the cold brew category with the launch of Tata Coffee Gold- Cold Brew coffee. This premium offering is a unique blend of cold brew offered in three variants.
As India's coffee culture shifts with a new generation of coffee lovers, how is Tata Consumer Products planning to cater to the preferences of these neo-consumers who seek unique experiences and higher quality blends?
There is a global trend of coffee consumption rising steadily, both at home and in out-of-home settings, such as coffee shops, cafes, and restaurants. The growing popularity of coffee shops has, in turn, stimulated an increase in at-home coffee consumption, with consumers seeking to recreate the café experience in their homes. This trend has led to an expansion in the varieties, blends, formulations, and formats available to coffee enthusiasts, as brands innovate to cater to evolving tastes and preferences. In India, the coffee market is experiencing a similar trajectory of growth, driven by changing consumer preferences and a growing interest in premium coffee experiences.
While India is traditionally a tea-drinking nation, coffee is gaining ground, particularly among younger consumers and urban populations. With relatively low market penetration and low per capita consumption compared to other coffee-drinking countries, India presents substantial opportunities for growth and development in the coffee sector. The potential for expansion, combined with increasing demand for diverse and high-quality coffee products, positions India as a key emerging market in the global coffee landscape.
The upsurge in coffee culture is being driven by a younger demographic who seek unique, premium experiences. Additionally, continuous product innovation, such as the introduction of flavoured varieties, specialty blends, and innovative formulations, plays a key role in attracting new consumers and retaining their long-term loyalty. Our diverse portfolio ensures that we meet the needs of coffee lovers across different contexts and preferences.
