According to the UnivDatos, rising urbanization and expanding middle-class population, growing youth demographic with evolving lifestyles, increasing disposable income and affinity for café culture, rising demand for premium and specialty coffee experiences, and expanding presence in Tier II and Tier III cities drive the India Coffee Retail Chains market. As per their “India Coffee Retail Chains Market” report, the Indian market was valued at USD ~615 million in 2024, growing at a CAGR of about 8.20% during the forecast period from 2025 - 2033 to reach USD million by 2033.

Currently, the Indian coffee market has witnessed various changes in the past few decades in terms of consumers’ preferences and an increasing trend in coffee culture, as well as the availability of quality coffee beans in India. Approximately three-fourths of India’s coffee production consists of Arabica and Robusta beans, as per the Ministry of Commerce & Industry, in January 2025, which is helping the domestic retail chain outlets to grow rapidly, along with the emergence of café culture. The prospect for the coffee retailing business in India is expected to grow shortly, attributed to the entry of global and domestic players. The following article offers you a closer look at the market, its dynamics, and new opportunities.

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India’s Growing Coffee Market

Today, India has made a long journey from coffee production to the advancements of information technology. What started more than three hundred years ago with Baba Budan, who brought the seeds of coffee to Karnataka, has reached the status of the seventh-largest producer in the world. The production of coffee in India as of Marketing Year 2024, from October to September, is 6.2 million 60-kilogram bags, which is 3.5% of Global Production, as per the U.S. Department of Agriculture.

As per the Ministry of Commerce & Industry, in January 2025, India’s coffee is primarily grown in the ecologically rich Western and Eastern Ghats, areas famous for their biodiversity. Karnataka leads in production, contributing 248,020 MT in 2022-23, followed by Kerala and Tamil Nadu. 

Key Coffee-Producing Regions

As per the Indian Trade Portal

·        Karnataka: This is the largest producer of coffee in the country, accounting for about 70% of the country’s production.

·        Kerala: The second largest producer of Coffee contributed nearly 23% of total Indian coffee production.

·        Tamil Nadu: The third-largest producer, where India’s 6% of the coffee. Particularly famous for its plantation industry, especially the coffee plantation, which plays a major role in coffee production.

Coffee in India can be enjoyed domestically as well as consumed as an export product. The country exports coffee to Italy, Belgium, Russia, and several other markets. The need for fine beans of Indian coffee is on the rise, which is raising the domestic retail market to benefit coffee brands and sellers.

The Rise of Coffee Retail Chains in India

The café culture is still booming in India, and the trends are quite promising for further progression. As a result of increased disposable earnings, changes in the consumption patterns, and a shift from tea to coffee, the uptake of coffee has improved over the years. Depending on the year, domestic coffee had been consumed as follows: in the year 2012, it was 84,000 tonnes, while in 2023 it was 91,000 tonnes, as per the Ministry of Commerce & Industry, in January 2025.

Some of the most popular coffee outlets are those that operate on an international level, while some are from India as well. Market leaders include Starbucks, Cafe Coffee Day, and Barista, among others; many more have emerged in the market targeting to penetrate the market.

Coffee Exports: A Key Growth Area

The global coffee exporting company from India has risen, with the increment to USD 1.29 billion for the Financial year 2023-24 from USD 0.67 billion in 2020-21, as per the Ministry of Commerce & Industry in January 2025. This has been driven by the rising demand for Arabica and Robusta quality beans in the international market. There is also a greater opportunity for the expansion of the export of value-added products like roasted and instant coffee.

With reference to the above-mentioned issues, the Coffee Board of India has previously taken steps to increase yield, diversifying coffee’s geographical locations of production, and sustainability in coffee farming. These efforts are aimed at ensuring that India becomes one of the major players in the supply of coffee, as well as enhancing the local coffee retail market by ensuring that quality coffee beans are supplied more consistently.

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India’s Coffee Retail Market Poised for Growth

The retail coffee market has great potential in India due to the increasing coffee per capita consumption in India, the growing trend of café-goers, and expanding coffee quality demand. Since the market has domestic and international players in the country, India may well be on its way to becoming one of the world’s largest retail coffee markets. Therefore, while opening shop after shop of coffee, stakeholders have to ensure investment in innovation, sustainability, and the ability to remain different from the other shops. Coffee-producing companies, as well as retail chains, have a favorable outlook, which puts India among the potential growth and investment areas in the given industry.

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