Brewing Business

The aroma of coffee beans is spreading across the nation. In India the coffee drinking culture is gaining fast popularity. Though tea is still the most popular brew in India, increasing coffee drinking habit among Indians can give the consumption of tea a healthy competition. Espresso, Lattes and Cappuccinos are fast gaining mindshare and market share in this nation of tea drinkers. Here we explores the growth of coffee market and coffee shops in India, and also throws light on what they can portend for the foodservice industry of India as a whole.

The domestic consumption of coffee in India is showing a steady increase. To cater to the growing demand for the beverage, coffee café outlets are mushrooming in the Indian metros. The spread of globalisation, the rising disposable incomes, and a greater awareness among the upwardly mobile young generation of Indians pertaining to the food & beverage, have all contributed to the growth of the coffee café culture, especially in the metros. And now the popularity of coffee is spreading to the tier I and tier II cities of north, west and east India too.

The factors causing this growth is urbanisation, growth in disposable incomes, media exposure and a need for a hangout place; a right ambience for the conversations to happen. Before a decade-and-a-half ago, coffee drinking was a habit only in some select areas of south India, and was far from being a pan Indian phenomenon. But now coffee has graduated from a traditional beverage, which was savoured primarily in the south Indian homes, and is fast on its way to develop a national presence. It is now consumed in several forms and in the growing number of retail outlets across the landscape of India.

In India, coffee is grown predominantly in the southern region, with Karnataka accounting for 70 percent of the total production of coffee in India. Kerala comprises 22 percent of the nation's coffee produce, with Tamil Nadu catering to 7 percent.