India Ready To Drink Coffee Market to Grow with a CAGR of 3.8% through 2030
The
India RTD coffee market is driven by urbanization, evolving consumer
preferences, café culture, health trends, and expanding retail networks,
offering convenience and premium experiences to a dynamic, younger demographic.
According to
TechSci Research report, “India Ready To Drink Coffee Market – By Region, Competition
Forecast & Opportunities, 2030F”, India
Ready To Drink Coffee Market was valued at USD 8.47 Billion in 2024 and is
expected to reach USD 10.60 Billion by 2030 with a CAGR of 3.8% during the
forecast period. The India ready-to-drink (RTD) coffee
market is undergoing rapid transformation, fuelled by the convergence of
evolving consumer preferences and structural shifts within the beverage
industry. This segment is benefiting from the increasing adoption of coffee as
a mainstream beverage, moving beyond traditional tea consumption patterns.
Young, urban consumers are at the forefront of this shift, with RTD coffee
emerging as a preferred choice due to its convenience, variety, and
aspirational appeal. Rising urbanization and the growth of the millennial and
Gen Z populations have been pivotal in driving demand. These demographics
prioritize convenience and are influenced by Western culture, where coffee
plays a prominent social and lifestyle role. Additionally, India’s growing café
culture has introduced consumers to diverse coffee styles, making them more
receptive to RTD formats. The expansion of organized retail and e-commerce
platforms has further contributed by improving product accessibility across
urban and semi-urban regions.
However,
the market is not without its challenges. One key obstacle is the perception of
RTD coffee as a premium product, limiting its appeal to middle- and
upper-income consumers. High pricing, relative to traditional beverages like
tea or home-brewed coffee, restricts penetration among price-sensitive
segments. Another issue lies in the limited regional reach, with rural markets
remaining largely untapped due to weak distribution networks and a lack of
consumer awareness. Health concerns around sugar content, artificial additives,
and preservatives in some RTD coffee products also pose challenges. As
consumers grow increasingly health-conscious, brands must address these issues
to maintain trust and relevance. The regulatory environment, which mandates
clear labelling and transparency, further adds pressure on manufacturers to
balance flavour, health benefits, and cost-effectiveness. Despite
these challenges, the RTD coffee market in India holds immense potential.
Strategic investments in product innovation, affordable pricing strategies, and
sustainable practices can address existing barriers and unlock new
opportunities. As competition intensifies, brands that focus on regional
customization, functional benefits, and eco-friendly packaging are likely to
gain an edge.
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"India Ready To Drink Coffee Market.”
The India Ready
To Drink Coffee market is segmented into product type, packaging, sales
channel.
Based on the product
type, black coffee is emerging as the fastest-growing segment in the India RTD
coffee market, spurred by increasing health awareness and a shift toward
minimalism in food and beverage choices. As consumers become more
health-conscious, the demand for low-calorie and sugar-free beverages has risen
significantly, positioning black coffee as an appealing option. It is
particularly favored by fitness enthusiasts and individuals seeking functional
benefits, such as improved focus and energy, without added calories or artificial
ingredients. The rising popularity of intermittent fasting and other wellness
trends has further boosted the growth of black coffee. Its compatibility with
such diets, owing to its zero-calorie nature and metabolism-boosting
properties, has made it a staple among health-conscious consumers. Moreover,
black coffee's strong, unadulterated flavor is gaining traction among coffee
purists who appreciate its authentic taste and quality. The segment has seen a
surge in premium offerings, with brands emphasizing the use of high-quality
beans, single-origin sourcing, and artisanal brewing techniques. These
attributes attract a niche but growing audience willing to pay a premium for a
superior coffee experience.
Based
on the sales channel, online segment is the fastest growing, online retailers
have facilitated greater accessibility to premium and niche coffee products,
allowing consumers to explore a wide variety of options. The rise of
health-conscious and fitness-oriented consumers in this region has also driven
demand for black coffee and low-calorie RTD variants. Increasing disposable
incomes and a growing middle-class population in smaller cities and towns
across North India are further fuelling the market. With brands actively
targeting these untapped areas through marketing campaigns and expanded
distribution networks, the region’s growth trajectory is poised to accelerate.
Geographically, North
India is emerging as the fastest-growing region in the RTD coffee market,
spurred by changing consumer preferences and increasing exposure to coffee
culture. Traditionally a tea-dominated market, North India has witnessed a
shift in beverage preferences, particularly among urban and semi-urban
populations. Cities such as Delhi, Gurgaon, Noida, and Chandigarh are leading
this transformation, driven by the growing influence of Western culture, rapid
urbanization, and a burgeoning café culture. The popularity of coffee chains
like Starbucks and Costa Coffee in the region has introduced many consumers to
various coffee styles, creating a fertile ground for RTD coffee adoption. North
India’s harsh summers make iced and chilled RTD coffee products particularly
appealing, as they provide a refreshing alternative to hot beverages.
Major companies
operating in India Ready To Drink Coffee market are:
- Nestle SA
- Starbucks
Corporation
- Gujarat
Co-Operative Milk Marketing Federation (Amul)
- Sleepy Owl
Coffee Private Limited
- Dairy Farmers of America, Inc.
- Ajinomoto Co.
Inc.
- Lotte
Corporation
- Monster Energy
India Private Limited
- Arla Foods amba
- Asahi Group
Holdings Ltd.
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“In
recent years sustainability is becoming a central focus in the RTD coffee
market, as consumers increasingly prioritize environmentally and socially
responsible products. Indian consumers, especially urban millennials, are
aligning their purchasing decisions with brands that demonstrate a commitment
to sustainability and ethical practices. This trend is driving demand for
eco-friendly packaging, such as recyclable bottles, aluminum cans, and
biodegradable cartons. Some brands are even exploring reusable packaging
options to minimize environmental impact. Beyond packaging, the focus on sustainable
production practices, such as reducing water usage and energy consumption
during manufacturing, is gaining importance. Ethical sourcing of coffee beans
is another critical aspect. Consumers are becoming more aware of issues such as
fair trade, labor conditions, and the environmental impact of coffee farming.
Brands that highlight their use of ethically sourced, single-origin, or organic
coffee beans can appeal to this socially conscious demographic. Certifications
such as Fair Trade, Rainforest Alliance, and UTZ further enhance credibility
and trust among consumers”, said Mr. Karan Chechi, Research Director of TechSci
Research, a research-based management consulting firm.
India Ready
To Drink Coffee Market, By Product Type (Iced Coffee, Coffee Latte, Black
Coffee), By Packaging (Bottles, Cans, Carton), By Sales Channel
(Supermarkets/Hypermarkets, Convenience Stores, Online), By Region,
Competition, Forecast & Opportunities, 2020-2030F”,
has evaluated the future growth potential of India Ready To Drink Coffee market
and provides statistics & information on market size, structure and future
market growth. The report intends to provide cutting-edge market intelligence
and help decision makers take sound investment decisions. Besides, the report
also identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in the India Ready
To Drink Coffee market.
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