India Coffee Cafe Market, By Ownership (Chained Outlets and Standalone Outlets), By Services (In-Dine and Take Away), By Product Offering (Coffee, Tea, Other Beverages, Snacks, and Others (Cookies, Confectionery, Pastries, Cake etc.), By Chained Cafés (Domestic Vs. International Brands), By Region, By Company, Forecast & Opportunities 2019-2029F

The India Coffee Cafe Market was estimated at around USD340.12 Million in 2023 and is growing at a CAGR of 13.21% during the forecast period.

India Coffee Cafe Market Scope

India Coffee Cafe market is defined as a part of food and beverage industry that involves operation of cafes with the prime focus towards serving coffee-based beverages, along with certain snack items and other beverage offerings. This market includes diverse types of cafes, such as standalone cafes which can be local cafes and chain cafes to cater to the diverse range of consumers, including millennials, working professionals, students, and tourists.

India Coffee Cafe Market Overview

India coffee cafe market has seen significant growth in recent years, driven by changing consumer preferences, urbanization, and a growing middle class with disposable income. Coffee was once considered to be a niche beverage in India. However, it has gained popularity among the younger generation, and has become a significant part of urban lifestyle and culture.

With the growing demand for special coffee, artisanal brews, and unique coffee experiences, consumers are increasingly seeking high-quality coffee, a wide variety of brewing methods, and a comfortable ambiance in coffee cafes, leading to increased innovation in menu offerings, brewing techniques, and store designs.

Coffee shops? They're all the rage, but how popular they are really depends on where you are in India. Big cities? Packed with cafes, thanks to students and folks working hard! Plus, down south – think Bengaluru, Chennai, and Hyderabad – they're serious about their coffee. I mean, they're known for having some of the best beans in the country. Speaking of beans, did you know India is a major player in the coffee game? We're the sixth largest producer and fifth largest exporter in the world. And in the Asia-Pacific region, we're number three! Production went from about 299,300 million tons (MT) in 2019-2020 to around 342,000 million tons (MT) in 2020-21, according to a study. But here's the kickerwe export about 70% of what we make, leaving only around 30% for us to enjoy at home!

With consumers becoming more aware of the health benefits of coffee, such as better focus, faster metabolism, and antioxidants, there has been an increase in demand for coffee as a healthier beverage option. Coffee cafes are also perceived as offering a more upscale and healthy option than traditional tea stalls or other beverage outlets, ultimately boosting the market growth over the anticipated period.

India Coffee Cafe Market Drivers

The coffee cafe culture is gaining popularity among millennials who seek unique experiences and are willing to spend on high-quality coffee and a comfortable cafe ambiance. As more people move to urban areas for work and leisure, coffee cafes have become popular places for socializing, networking, and relaxation. These drivers are expected to continue fueling the growth of the India coffee cafe market.

It seems like Indian consumers are really getting into coffee! Thanks to all the buzz around coffee trends and the growing number of specialty coffee cafes, people are learning more about different coffee types, brewing methods, and flavors, which is fueling the coffee café industry. They're craving high-quality specialty coffees that offer something special, so more and more cafes are popping up to satisfy that desire. Plus, the arrival of big international chains like Starbucks, Costa Coffee, and Dunkin' Donuts has brought a consistent level of quality, atmosphere, and the whole coffee culture experience to India. You can see the rising demand in the increasing number of coffee café spots all over the country. For example, in 2023, there were 1,384 Café Coffee Day outlets alone! Maharashtra has the most, with 259 locations – that's about 19% of all their stores in India. This all means more coffee shops in major cities, giving consumers tons of choices and really boosting the coffee café market.

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India Coffee Cafe Market Trends

These days, it's all about creating a special vibe! Cafe owners are really paying attention to interior design, decor, music, and even where you sit. They want to make sure you feel comfy, relaxed, and totally welcome. That whole cafe experience is a big deal now, especially when everyone's trying to win over customers. Coffee chains and those cool independent cafes are really taking advantage of cities growing and people's lifestyles changing, serving up awesome, specialized coffees to tons of folks. All this is making coffee cafes pop up everywhere, even in smaller cities, which means a huge chance for the market to grow.

As the trend towards personalization in the India coffee cafe industry grows, more cafes are supplying customizable options to cater to individual preferences. Customers can choose their preferred coffee, brewing methods, milk options, sweeteners, and flavorings, allowing them to tailor their coffee to their exact liking. This trend of customization and personalization adds a level of uniqueness and exclusivity to the coffee cafe experience, attracting consumers who seek personalized offerings. These trends are shaping the India coffee cafe market for the forecasted period.

However, in-store internet ordering (purchase online, pick up in-store) is expanding in order to enhance consumer experience and convenience penetration. The Indian market for coffee shops has also been impacted by digital revolution. Mobile payments, online payments, loyalty programmes, and personalized promotions are growing in popularity trends in the coffee cafe market because they provide customers with a simple and convenient way to buy and enjoy their coffee., thereby significantly increasing the market demand.

India Coffee Cafe Market Challenges

The increasing intense competition in the coffee cafe market in India, with numerous national and international players vying for customer base, has resulted in competitive pricing, aggressive marketing methods, and issues in building consumer loyalty.

Other challenges to market expansion include operating costs, particularly excessive real estate rents in top locations in the major cities, and the challenge of creating distinct taste and flavors for coffee. Indeed, the country's rural areas are slowly evolving in many ways. Although India is progressively becoming a coffee nation, coffee manufacturers are required to interact with rural areas, which has hindered the market expansion.

India Coffee Cafe Market Recent Development

• In 2022, “Tim Hortons”, Canada’s coffee, and baked goods brand, opened two outlets in Delhi and Gurgaon.
• In 2021, Bengaluru-based “SLAY Coffee” brand launched India’s digital grab and go coffee bar to democratize great coffee experiences.
• In 2021, Indian coffee roaster and boutique shop “Third Wave Coffee”, has unveiled its new flagship coffee shop in Delhi. This business, which has locations in the Indian cities of Bangalore, Pune, and Delhi, has opened its 21st store in the Greater Kailash in India.

India Coffee Cafe Market Opportunities

While coffee stays the core offering, coffee cafes in India have a diversified menu in order to cater the differentiated consumer preferences. This includes snacks, baked goods, sandwiches, and other food items. As a result, this is a crucial factor contributing to the expansion of opportunities for the coffee café in the Indian market during the forecast period.

Moreover, In the India coffee café market, specialty coffee shops and cafes are relatively new developments that are rapidly gaining popularity among customers.

Market Segmentation

The India coffee cafe market is segmented based on ownership, services, product offering, Chained Cafés, region, and competitional landscape

Company Profiles

Coffee Day Enterprises Limited, Tata Starbucks Private Limited, Barista Coffee Company Limited, Costa Limited, Brew Berries Hospitality Private Limited, The Coffee Bean & Tea Leaf Restaurant and Cafe (CBTL), Indian Coffee House (ICH), Muhavra Enterprises Private Limited (Blue Tokai), are among the major market players in the global platform that lead the market growth of the India Coffee Cafe market.

Report Scope

In this report, the India Coffee Cafe market has been segmented into the following categories, in addition to the industry trends which have also been detailed below

• India Coffee Cafe Market, By Ownership
• Chained Outlets
• Standalone Outlets
• India Coffee Cafe Market, By Services
• In-Dine
• Take Away
• India Coffee Cafe Market, By Product Offering
• Coffee
• Tea
• Other Beverages
• Snacks
• Others (Cookies, Confectionery, Pastries, Cake, etc.)
• India Coffee Cafe Market, By Chained Cafés
• Domestic
• International Brands
• India Coffee Cafe Market, By Region
• South
• North
• West
• East