Coffee Market in India

Indian coffee history dates back to the 17th century when an Indian pilgrim smuggled coffee beans into the country from Yemen.

Since the first cultivation of coffee in the Chandragiri hills of Karnataka, the coffee market in India has grown placing the country as the sixth largest coffee producer worldwide.

Indian coffee is one of the best coffees in the world and often labeled as a premium coffee in international markets.

While India is a large producer of coffee, the beverage is not considered native in the country. Regardless, the country’s coffee market is growing steadily as a result of the youth choosing the upcoming coffee shops as a socializing place.

In the past decade, consumption of coffee has increased steadily by at least 1 kg per year and is currently at 49kgs in 2023.

The volume of coffee consumed annually in India is expected to continue increasing in the next five years and reach 62kgs in 2028.

As of 2023, the revenue of coffee in India is approximately 480 million dollars and is expected to continue growing in the next few years.

The tables below show an overview of what the coffee market in India looks like and potential for future growth.

Revenue of Coffee in India and future projections (2018-2028)

Year

Coffee Revenue in USD dollars

Instant Coffee

Roast Coffee

Total Revenue

2018

140,000,000

200,000,000

340,000,000

2019

150,000,000

210,000,000

360,000,000

2020

150,000,000

210,000,000

360,000,000

2021

170,000,000

230,000,000

390,000,000

2022

180,000,000

240,000,000

430,000,000

2023

210,000,000

270,000,000

480,000,000

2024

230,000,000

290,000,000

520,000,000

2025

250,000,000

320,000,000

570,000,000

2026

280,000,000

350,000,000

620,000,000

2027

300,000,000

380,000,000

680,000,000

2028

330,000,000

410,000,000

740,000,000

Coffee revenue change in India and future projections (2018-2028)

Year

Coffee Revenue Change in Percentage (%)

Instant Coffee

Roast Coffee

Total Revenue Change

2018

2019

7.1%

5%

5.9%

2020

0%

0%

0%

2021

13.3%

9.5%

8.3%

2022

5.9%

4.3%

10.3%

2023

16.7%

12.5%

11.6%

2024

9.5%

7.4%

8.3%

2025

8.7%

10.3%

9.6%

2026

12%

9.4%

8.8%

2027

7.1%

8.6%

9.7%

2028

10%

7.9%

8.8%

Average annual revenue per capita of coffee in India and future projections (2018-2028)

Year

Coffee Revenue Per-Capita in USD dollars

Instant Coffee

Roast Coffee

Total Revenue per capita

2018

0.10

0.15

0.25

2019

0.11

0.15

0.26

2020

0.11

0.16

0.26

2021

0.12

0.16

0.28

2022

0.13

0.17

0.3

2023

0.15

0.19

0.34

2024

0.16

0.2

0.36

2025

0.17

0.22

0.39

2026

0.19

0.24

0.43

2027

0.21

0.26

0.46

2028

0.22

0.27

0.5

Average annual total volume of coffee consumed in India and future projections (2018-2028)

Year

Volume in Kilograms (kg)

Instant Coffee

Roast Coffee

Total Volume

2018

14.47kg

26.55kg

41.02kg

2019

14.68kg

26.96kg

41.64kg

2020

14.51kg

26.72kg

41.22kg

2021

15.81kg

28.02kg

43.83kg

2022

17.20kg

29.32kg

46.52kg

2023

18.60kg

30.73kg

49.33kg

2024

19.34kg

31.15kg

51.49kg

2025

20.62kg

33.62kg

54.24kg

2026

21.85kg

35.1kg

56.95kg

2027

23.1kg

36.59kg

59.69kg

2028

24.35kg

38.1kg

62.45kg

Average annual volume change of coffee consumed in India and future projections (2018-2028)

Year

Volume change in Percentage (%)

Instant Coffee

Roast Coffee

Percentage (%) volume change

2018

2019

1.5%

1.5%

1.5%

2020

-1.2%

-0.9%

-1%

2021

9%

4.9%

6.3%

2022

8.8%

4.6%

6.1%

2023

8.1%

4.8%

6%

2024

4%

4.6%

4.4%

2025

6.6%

4.6%

5.3%

2026

6.0%

4.4%

5%

2027

5.7%

4.2%

4.8%

2028

5.4%

4.1%

4.6%

Average annual price of coffee per unit in India and future projections (2018-2028)

Year

Price in US$

Instant Coffee

Roast Coffee

Total price

2018

9.58

7.46

8.20

2019

10.00

7.79

8.57

2020

10.30

8.04

8.84

2021

10.47

8.18

9.01

2022

10.63

8.32

9.17

2023

11.18

8.74

9.66

2024

11.87

9.13

10.08

2025

12.15

9.50

10.51

2026

12.63

9.88

10.94

2027

13.14

10.28

11.38

2028

13.64

10.67

11.82

Leading destination for Indian coffee exports (in Indian rupees)

Country

Export value in Indian rupees

Italy

12.16 billion

Germany

7.36 billion

Belgium

5.90 billion

Russia

5.04 billion

Jordan

4.38 billion

Turkey

2.67 billion

United States

2.18 billion

Poland

1.99 billion

Libya

1.73 billion

Tunisia

1.68 billion

Top 3 exporting destinations of Indian coffee

Country

Percentage share of India’s coffee exports

Export value in US$

Italy

18.6%

125 million

Belgium

12.7%

85.3 million

Germany

11.3%

75.9 million

Top 3 Indian coffee exports by type

Country

Percentage share of India’s coffee exports

Robusta

42%

Arabica

22%

Instant coffee

31%

Main importing sources of India’s coffee

Country

Percentage share of India’s coffee exports

Export value in US$

Indonesia

36.8%

31.3 million

Vietnam

26.5%

22.5 million

Uganda

18.5%

15.7 million

Top 3 Coffee producers in Indian

Country

Percentage share of India’s coffee production

Volume of coffee produced in Metric tonnes

Karnataka

71%

2.33 lakh

Kerala

21%

67,700

Tamil Nadu

5%

17,875

You’ll Also Love

Leave a Reply

Your email address will not be published. Required fields are marked *