Report Description

Forecast Period

2025-2029

Market Size (2023)

USD340.12 Million

CAGR (2024-2029)

13.21%

Fastest Growing Segment

International Brands

Largest Market

South India


The India Coffee Cafe Market was estimated at around USD340.12 Million in 2023 and is growing at a CAGR of 13.21% during the forecast period.

India Coffee Cafe Market Scope

India Coffee Cafe market is defined as a part of food and beverage industry that involves operation of cafes with the prime focus towards serving coffee-based beverages, along with certain snack items and other beverage offerings. This market includes diverse types of cafes, such as standalone cafes which can be local cafes and chain cafes to cater to the diverse range of consumers, including millennials, working professionals, students, and tourists.

India Coffee Cafe Market Overview

India coffee cafe market has seen significant growth in recent years, driven by changing consumer preferences, urbanization, and a growing middle class with disposable income. Coffee was once considered to be a niche beverage in India. However, it has gained popularity among the younger generation, and has become a significant part of urban lifestyle and culture.

With the growing demand for special coffee, artisanal brews, and unique coffee experiences, consumers are increasingly seeking high-quality coffee, a wide variety of brewing methods, and a comfortable ambiance in coffee cafes, leading to increased innovation in menu offerings, brewing techniques, and store designs.

The demand for coffee cafes varies across different regions in India. In terms of cities, metropolitan cities have a higher number of coffee cafe outlets, with the growing demand from students and working-class groups. In addition, the south region includes cities like Bengaluru, Chennai, and Hyderabad, which have a strong coffee culture and are known for offering coffee beans in the nation.. India is the sixth-largest producer and fifth-largest exporter of coffee globally. Furthermore, within Asia-Pacific, India is considered as the third-largest producer and exporter of coffee. According to a study, there was around 299,300 million tons (MT) of coffee production in 2019-2020, that reached to around 342,000 million tons (MT) in 2020-21. However, the country’s coffee exports are about 70% of its production and its domestic consumption is around 30%.

With consumers becoming more aware of the health benefits of coffee, such as better focus, faster metabolism, and antioxidants, there has been an increase in demand for coffee as a healthier beverage option. Coffee cafes are also perceived as offering a more upscale and healthy option than traditional tea stalls or other beverage outlets, ultimately boosting the market growth over the anticipated period.

India Coffee Cafe Market Drivers

The coffee cafe culture is gaining popularity among millennials who seek unique experiences and are willing to spend on high-quality coffee and a comfortable cafe ambiance. As more people move to urban areas for work and leisure, coffee cafes have become popular places for socializing, networking, and relaxation. These drivers are expected to continue fueling the growth of the India coffee cafe market.

Additionally, due to exposure to coffee trends and the availability of specialty coffee cafes, Indian consumers are becoming more aware of the different types of coffee available including brewing techniques and flavors, driving the coffee café industry. This has created a demand for high-quality specialty coffees that offer unique taste experiences, leading to the growth of coffee cafes that cater to these preferences. Additionally, the expansion of international coffee chains such as Starbucks, Costa Coffee, and Dunkin' Donuts have entered the Indian market, bringing with them standardized quality, ambiance, and a coffee culture experience. Furthermore, the rising number of coffee café outlets in India is also showcasing the rising demand for coffee café market. For instance, as of 2023, there are 1,384 Café Coffee Day outlets across India. Maharashtra has the most Cafe Coffee Day locations, with 259 stores, accounting for approximately 19% of all Cafe Coffee Day locations in India. This has led to the proliferation of coffee cafes in major cities, creating more options for consumers and driving the growth of the coffee cafe market in India.