India Coffee Retail Chain Market Worth USD 855.0 Million By 2025

March 2018 | Report Format: Electronic (PDF)

The India coffee retail chain market is expected to reach USD 855.0 million by 2025, according to a new report by Grand View Research, Inc. Coffee has become a lifestyle element that urban citizens must have. In the last five years, the shift of Indian consumers from being saving oriented to be more consumption-oriented have favored the market to witness healthy growth.

Moreover, the growing popularity of spending time at café houses and coffee consumption amid the young population in urban India has resulted in further growth of coffee chains in the market. Increasing disposable income has taken away the mental barrier of individuals on spending and eating out. Thus, higher spending on a cup of coffee has outpaced the deterrent of increasing cost amid coffee chains.

The success of retail coffee chains such as the Starbucks Corporation and Luigi Lavazza S.p.A., among others is attributed to the indigenization in its menu as well ambiance. This, differentiation approach of prominent players towards the Indian consumer has played a key role in the growth of shaping consumption while prioritizing their choices. For instance, Starbucks offers India spice majesty blend, Indian chai latte, and chatpata paratha warp, among others that add to the Indian serve. The note of such cultural aspect to the menu, particularly, the food has helped the increased spending on coffee outlets. Moreover, the standard menu such as muffin, and sandwiches, among others have been popular among young and corporate consumers; thereby fueling the growth of international coffee chains in the Indian market.

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Further key findings from the study suggest:

  • The southern region dominated the India retail coffee chain market in 2016 and is projected to reach over USD 253.8 million by 2025, growing at a CAGR of 21.04% from 2017 to 2025

  • The CCD and Starbucks have significant advantages over other players in the market, especially in the franchise area. The Indian retail coffee chain is highly concentrated at the top and fragmented at the bottom

  • The sophisticated brewing technique by the key player has potentially attracted the customer, thereby help increase customer footfall in these coffee outlets

  • The Western region is anticipated to witness higher CAGR owing to growing corporate culture in the cities of Maharashtra which has paved the meeting culture in an increasing café outlet.

  • The dine in type segment accounted for the largest market share in 2016. It is valued projected to grow at a CAGR of 23.00% over the forecast period.

Grand View Research has segmented the India Coffee Retail Chain market on the basis of service type and region:

India Coffee Retail Chain Service Type Outlook (Revenue, USD Million, 2014 – 2024)

  • Dine In

  • Take Away

India Coffee Retail Chain Service Type Outlook (Revenue, USD Million, 2014 – 2024)

  • North India

  • South India

  • West India

  • East India

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