India's Coffee Culture Steams Ahead: A Tale of Espresso Dominance
As the world celebrate's National Espresso Day, it is time to take a flavourful journey into India's burgeoning coffee culture. In 2022, India embraced the rich aroma and bold taste of coffee with gusto, consuming a staggering 1.21 million 60-kilogram bags of coffee.
Fast forward to the financial year 2022-2023, and the country elevated its coffee consumption to an impressive 1,235 thousand bags, signifying a notable increase in just a year. The love for this caffeinated elixir is expected to grow exponentially, with forecasts predicting that by 2027, coffee consumption in India will more than double.
India's Annual Coffee Sip: A Steaming 120,000 Tons
India, known for its diverse culinary landscape, has embraced coffee as a daily ritual. Annually, the country savours around 120,000 tons of coffee, offering a diverse palette of flavours to its coffee enthusiasts. However, when one breaks down the numbers, it is interesting to note that on an individual level, Indians consume approximately 30 cups of coffee per year. This pales in comparison to the global average of 200 cups, showcasing immense growth potential for the coffee market in the country.
Ravi Bhamidipaty, Chairman of Ahmedabad based brand Roastea says that coffee is having a major moment in India. “In the last 50 years, our coffee consumption has grown steadily by 2 percent each year. Since the year 2000, that growth has skyrocketed to an impressive 5 percent annually. We are now consuming a whopping 120,000 tons of coffee every year.”
Bhamidipaty adds that Espresso is one of the most favoured variants of coffee. “As more people discover the world of espressos, from the macchiato to the americano, this coffee culture is set to grow even more. In the evolving landscape of B2B2C and D2C segments, covering cafes and corporate vending solutions, Roastea is making noteworthy strides and currently holds the third position. The market's swift nature makes it intricate to pinpoint precise figures. Nonetheless, Roastea's substantial growth in these specific sectors reflects its increasing influence and positive trajectory in catering to diverse consumer preferences within the vibrant coffee culture of India.”
Commenting on the trend, Vamsi Mareddy, co-founder of Paper & Pie Bengaluru says, “The coffee consumption trend in India has undergone a shift over the years. Traditionally centered around filter coffee, the market has diversified with the emergence of espresso-based beverages.
This variety has broadened the appeal across all age groups, thus significantly expanding the customer base. This positive trend, which is set to rise further, not only meets diverse consumer preferences but also fosters the growth of numerous unique cafes and businesses that align with evolving market demands for coffee.”
Mareddy further adds, “In our brand’s journey, we have witnessed a significant growth in coffee over the months. Across our two outlets, we average around 400 coffee-based beverage sales daily. 80 per cent of these are attributed to cappuccinos, lattes, and mochas, which are all crafted with espresso as the base ingredient.”
Espresso Takes Centre Stage: The Preferred Brew
In this caffeinated narrative, espresso emerges as the hero. As one of the most favoured variants of coffee, espresso has become synonymous with energy and sophistication. Espresso-based beverages, including Cappuccino, Latte, and Americano, have become the go-to choices for millions, establishing themselves as the lifeline of cafes across the nation. Impressively, espresso-based variants contribute a significant 30 per cent to the overall coffee consumption market in India.
Chef Parth Gupta, Founder, Bloom Cafe and Cakery in New Delhi says that Espresso is not just a beverage, it is the cornerstone of countless favourites like Cappuccino, Latte, and Americano. “What is fascinating is the evolving trend within this espresso landscape. While Cappuccino remains the default choice for hot coffee enthusiasts, the increasing awareness and appreciation for other espresso beverages like Latte, Mocha, and Flat Whites are noteworthy. Although alternative brewing methods like pour-overs and AeroPress are gaining traction, the lion's share still belongs to espresso-based drinks,” says Gupta.
“From my observations, I estimate that espresso-based beverages command an impressive 80-85 per cent share, reaffirming their dominance in the Indian market. This stronghold signifies not just a preference for coffee but a cultural affinity toward the art of espresso crafting and its myriad delightful variations,” he adds.
Bharat Singhal, Co-founder Bili Hu Coffee says that until 2070 India will be the youngest economy in the world and it looks like there is an entire market that is yet to be discovered in urban cities.
“The growth in coffee consumption is imperative and given how aspirational coffee has been, it only makes sense that it grows multi bounds in the coming years. Espresso based beverages like cappuccino & lattes are super popular, among nuanced audiences and the masses, alike. Classics like cappuccino, latte & americano will continue to stay, flavoured lattes and experimental concoctions come and go with trends, again fueled by what is online on social media.”
Singhal adds, “In menus at coffee shops around the country, we see blends of unconventional flavours like popcorn syrups to really cool alternative milks that are being used to make coffee more accessible, appealing and inclusive. The idea is to play with coffees and create personalised, customised beverages that one can call their own.”
Brewing Success: The Coffee Segment's Economic Impact
The coffee segment's economic significance cannot be overstated. Reports reveal that the coffee industry in India amounts to a substantial USD 808 million, with a projected annual growth rate of 8.9 per cent CAGR from 2020 to 2025. This robust growth underscores the increasing demand for high-quality coffee experiences and innovative brews in the country.
Sahil Arya, Co-founder and Director at Fat Tiger says that the budding café culture in India has also contributed significantly to the escalating preference of espresso-based drinks.
“The Indian consumers enjoy plenty of choices as they go for different coffee brands and variants including specialty cafés and chain outlets. The diversified market environment has greatly accounted for the general increase in popularity of coffee in India. Generally speaking, rising coffee consumption, as well as the preference for espresso beverages in India indicate that the country’s coffee culture is on the rise. The opportunities exist, and there are plenty for both local and global brands to find a strong niche in the Indian coffee market that is growing every day,” Arya adds.
A Global Sip: India in the World Coffee League
While India's coffee consumption is on a commendable rise, it is essential to place it in the context of the global coffee landscape. In 2022-2023, global coffee consumption exceeded a staggering 167 million 60-kilogram bags. Notably, the European Union and the United States were at the forefront, accounting for the highest volumes globally.
Kavita Narayanan, Co Founder of Trelish says that social media has given great exposure to coffee to the youth of the country. “Not just in the urban areas but even rurban markets are becoming more aware about different types of coffee. Espressos are quick to brew & have a creamy texture, but you can enjoy them mainly in a cafe setup since it requires specific equipment and know-how. Going forward, we see people starting to experiment with coffees more in their personal spaces.”
On National Espresso Day, as we revel in the aromatic allure of coffee, it is evident that India is not just a consumer but an emerging player in the international coffee arena. With its unique coffee traditions, growing market, and an evolving taste palate, India is poised to become a significant influencer in the global coffee community.
