The indian coffee retail market has been buzzing over the last 12 months with two key players starbucks and cafe coffee day on expansion drive the market size of retail coffee in india is estimated at rs 1700 crore plus and expected to grow at a fast pace of over 20% in the recent times. India still exports almost 80 percent of the beans it produces, but local consumption is on the rise café chains have also introduced consumers to coffees from around the world beans from south and central america as well as east africa are finding their way into the indian market as coffee drinkers start to crave more variety. Branded coffee market in india traditionally, the coffee consumption in india has been largely concentrated in the southern region which also contributes ~90% of the total domestic production the availability of fresh coffee, at an affordable price, is the major driver for the high levels of domestic consumption in southern india.
Café coffee day is the biggest player in the coffee shops and café market in india, followed by barista lavazza and costa coffee there are a few other players in the market, which include javagreen, coffee n u, coffee bean & tea leaf, gloria jeans, and the chocolate room etc.
India retail coffee chains market was valued at usd 1286 million in 2016 and is expected to grow further over the forecast period increasing global exposure, western culture and penetration of established coffee brands are anticipated to be the key trend driving growth of india retail coffee chain market.
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The coffee industry of india is the sixth largest producer of coffee in the world, accounting for over four percent of world coffee production, with the bulk of all production taking place in its southern states. Coffee is grown in three regions of india with karnataka, kerala and tamil nadu forming the traditional coffee growing region, followed by the new areas developed in the non-traditional areas of andhra pradesh and orissa in the eastern coast of the country and with a third region comprising the states of assam, manipur, meghalaya, mizoram, tripura, nagaland and arunachal pradesh of northeastern india, popularly known as “seven sister states of india.