India Specialty Coffee Market to Grow with a CAGR of 13.75% through 2031F

The India Specialty Coffee Market is driven by factors such as rising consumer preference for premium coffee, expanding café culture, growth of e-commerce and ready-to-drink options.

According to TechSci Research report, “India Specialty Coffee Market – By Region, Forecast & Opportunities, 2031F”, the India Specialty Coffee Market was valued at USD 3.01 Billion in 2025 and is expected to reach USD 6.52 Billion by 2031 with a CAGR of 13.75% during the forecast period. The India specialty coffee market is experiencing significant growth, driven by an evolving consumer base that increasingly values quality, taste, and origin. Specialty coffee, typically sourced from high-quality Arabica beans, offers distinctive flavor profiles, aroma, and freshness that set it apart from conventional coffee. Consumers are becoming more discerning, seeking beverages that provide not only a caffeine boost but also a premium sensory experience. Awareness about coffee origins, cultivation methods, and ethical sourcing has grown substantially, influenced by global coffee culture, social media, and travel exposure. This increased sophistication in consumer preferences has encouraged domestic and international players to focus on product innovation, quality differentiation, and branding initiatives, which are critical to capturing attention in a competitive market.

Café culture has emerged as a crucial factor propelling the specialty coffee market in India. Urban consumers are increasingly viewing cafés not just as places to drink coffee but as social, professional, and lifestyle destinations. The proliferation of both international chains and local artisanal coffee shops has made specialty coffee more visible and accessible, shaping consumer habits and creating aspirational value around premium coffee experiences. Cafés play a pivotal role in educating consumers about brewing techniques, bean origins, and flavor nuances, fostering curiosity and engagement.

The convenience-oriented consumption trend is further strengthening the specialty coffee market through e-commerce and ready-to-drink (RTD) options. Online platforms have broadened access to premium coffee, allowing consumers in both metropolitan and smaller cities to explore freshly roasted beans, single-origin blends, and specialty beverages. Subscription models and curated coffee kits provide an experiential and personalized approach, enabling consumers to engage with the coffee journey from sourcing to brewing. RTD beverages, including cold brews and functional blends, cater to busy lifestyles, offering portability without compromising quality.

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The India Specialty Coffee Market is segmented into age group, distribution channel and region.

Based on age group, Retail segment was the dominating segment. This includes consumption at home through packaged beans, ground coffee, instant coffee, and ready-to-drink products purchased from supermarkets, grocery stores, and e-commerce platforms. Retail dominates because of increasing home brewing trends, growing awareness of single-origin and premium coffee, and the convenience of purchasing specialty coffee for personal use. Consumers are investing in grinders, brewing equipment, and subscription services, enabling them to enjoy café-quality coffee at home.

Based on region, South region is the fastest-growing segment. This growth is driven by the region’s strong coffee cultivation heritage, increasing urbanization, expanding café culture, and rising disposable incomes in cities like Bangalore, Chennai, and Hyderabad. Consumers in the South are more exposed to premium and single-origin coffee varieties, along with modern brewing methods and ready-to-drink options. The combination of traditional coffee appreciation and a growing interest in specialty and artisanal products accelerates market adoption. While the West region is also growing steadily, the South’s established coffee culture and strong production base make it the fastest-growing region for specialty coffee consumption.

Major companies operating in India Specialty Coffee Market are:

• Starbucks Coffee Company
• F. Gaviña & Sons, Inc.
• Barista Coffee Company Limited
• Coffee Day Enterprises Ltd.
• Kurasu
• Eight O’Clock Coffee Company
• Keurig Green Mountain Inc.
• Costa Coffee
• The J.M. Smucker Company
• Inspire Brands

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“The India specialty coffee market is driven by rising consumer preference for premium, high-quality coffee, the expansion of café culture, growth of e-commerce and ready-to-drink options, and increasing focus on sustainability and ethical sourcing. Key trends include the rise of home brewing, health-oriented and functional coffee products, subscription-based models, and enhanced traceability and eco-friendly practices, reflecting evolving consumer lifestyles, convenience, and wellness priorities.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

“India Specialty Coffee Market By Age Group (18-24 Years, 25-39 Years, 40-59 Years, Above 60), By Distribution Channel (Retail, Away From Home), By Region, Competition, Forecast & Opportunities, 2021-2031F”, has evaluated the future growth potential of India Specialty 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 Specialty Coffee Market.

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