Hope you and your loved ones have a prosperous and happy new year!
The team and I took a short break last week, and we are back with an exciting line up of podcasts and newsletters.
This week, I am going to write about the rise and rise of coffee as a beverage!
Over the holidays, I met a close friend at Dyu Art Cafe in Bengaluru and he casually remarked, “Coffee is the new wine.” It felt like a passing comment at first, but the more I thought about it, the more it struck a chord.
The more I thought about it, the more I started seeing the parallels.
Coffee has become an expression of personal taste. Just as wine lovers debate terroir, vintage, and tasting notes, coffee enthusiasts are equally passionate about origins, roast profiles, flavour complexities and different brewing techniques.
In a country renowned for its chai, what intrigues me is how artisanal coffee has carved such a niche for itself.
In this blog, we’ll explore-
- How India got its coffee
- India’s coffee consumption
- The growing demand for specialty/artisanal coffee
- Coffee tourism in India
Let’s dive in
How India got its coffee
As legend has it, the journey of coffee in India began in the 17th century when Baba Budan, a Sufi saint, smuggled 7 coffee beans in his beard from Mecca into Chikmagaluru.
That’s how coffee first came to India. These coffee seeds were then planted in the picturesque hills of Chikmagalur, Karnataka, giving rise to India’s first coffee crop. Since then, Chikmagluru has been at the centre of coffee production in India.
Today, India stands as the 7th largest coffee producer in the world, contributing over 3.74 lakh metric tons annually—approximately 3.5% of global coffee production.
Consumption, too, has increased.
With the increasing demand and consumption of coffee, the Indian coffee market revenue is expected to grow at a CAGR of 11.19% in the next 5 years.
The Indian retail coffee market, valued at USD 570.3 million in 2022, is projected to grow by 13% to reach over $640 million by 2025.
So, where is coffee being produced in India?
The distinct climate and soil requirements of coffee mean production is concentrated in just three states: Karnataka leads with a 70% share, followed by Kerala at 23%, and Tamil Nadu at 5%. Multiple varieties of coffee are produced in the estates in these 3 states.
What’s interesting is that the Indian government has granted Geographical Identification (GI) tags to some of these unique coffee varieties.
What is driving the coffee craze in India?
My generation witnessed the rise of Cafe Coffee Day (CCD), the brand that brought coffee culture to India. It was the first wave of the coffee culture in India, then came Starbucks in 2011, marking the second wave.
At the core of the “third-wave” coffee movement in India is specialty coffee made with high-quality beans, unique flavours, and a touch of exclusivity.
Today, coffee consumption is driven by a younger and more experimental consumer with evolving taste preferences and exposure to international trends and brands.
Most of us today want more than the standard barista experience – we are looking for a full experience, ethically sourced beans, better brewing techniques or just better-tasting coffee!
The growing demand for ‘Specialty Coffee’
The biggest trend has been the growth of specialty coffee, which is made from beans of higher quality than regular coffee beans.
Just a few years ago, there were only a handful of specialty coffee producers, and now there are almost 100!
Beyond high-quality beans, speciality coffee brands are introducing innovative flavours and adding an element of exclusivity. For instance, Roastery Coffee House became the first Indian brand to trademark ‘Cranberry Coffee’.
Similarly, Genetics Coffee Co.’s Jack Sparrow Coffee offers rum-barrel-aged beans, infusing them with complex notes of spice and sweetness. Sold in small batches, it maintains the theme of exclusivity.
Another interesting trend I have observed is the surge in homegrown artisanal brands in a market once dominated by international chains.
Whether it’s Blue Tokai’s farm-to-cup model, Third Wave’s precision roasting, Sleepy Owl’s ready-to-drink convenience, or Subko’s bold flavour experiments, each one is driving the coffee industry forward while grabbing the attention of coffee lovers across the country.
How Indian coffee brands are redefining the coffee space
1. Acing their marketing – Be it using social media, building communities, or using content to expand their brand messaging. These brands are not shying away from smart marketing. For example, Sleepy Owl, known for its vibrant packaging and engaging digital campaigns, has struck a chord with urban millennials and Gen Z with their silent ads.
2. Experiential coffee stores – Experiential coffee shops are transforming coffee into an immersive experience, offering coffee labs for cupping sessions, fusion concepts like coffee-based cocktails, cold brew mocktails and so on. For instance, the Flying Squirrel in Bengaluru curates live roasting demonstrations and farm-origin storytelling sessions.
Who wouldn’t want to enjoy their cup of coffee from a space as aesthetically designed as the Subko store?
3. Experimenting with flavours – From smoked coffees to popcorn-flavoured ready-to-drink (RTD) beverages, Indian coffee brands are going all out with experimental flavours.
4. Celebrating India and our farmers – Some of the leading specialty coffee brands extensively promote their farms, farmers and geographic heritage. For example, the Roastery Coffee House came up with its Tribe-O Project. Similarly, Subko Coffee experimented with QR codes on their packages, which allows customers to scan and make direct UPI payments to farmer partners and express their appreciation.
Coffee has become such a big part of our lives, but what really piques my interest is this new concept of coffee tourism.
While I am not a die-hard coffee enthusiast, one aspect that really piques my interest is coffee tourism.
Coffee tourism in India
Around the world, regions like Brazil, Colombia, and Ethiopia have made coffee tourism a sought-after experience—and India’s coffee estates are no exception. Tucked away in serene landscapes like Coorg, Nilgiris and Wayanad, more and more plantations are offering an immersive experience for coffee lovers.
At The Tamara Coorg, visitors wade through coffee plants, learning to identify the perfect cherry, participating in harvesting, and even creating their own roast profiles. Meanwhile, innovative players like Black Baza Coffee are pioneering ‘earth-to-cup’ experiences, where tourists engage in sustainable farming practices while learning about biodiversity-friendly coffee cultivation.
Estates like Halli Berri are pioneering “coffee glamping” – luxury camping amidst coffee plantations with personalised coffee masterclasses.
Iconic estates like Tata Coffee’s Plantation Trails in Coorg and the Evolve Back estate in Chikmagalur have transformed into luxury getaways, offering curated coffee-tasting sessions, plantation walks, and an insider’s view into India’s coffee culture.
India is also seeing innovative experiences like the International Coffee Festival, which brings together artisans, roasters, and coffee lovers. In Araku, the Coffee Museum and cooperative initiatives showcase how tribal communities are redefining sustainable coffee farming.
With an increasing appetite for experiential travel, coffee tourism isn’t just about the beverage – it’s becoming a cultural phenomenon that combines agriculture, gastronomy, and luxury.
To me, this is an extremely different yet interesting aspect of the growth story of coffee.
In summary
India’s coffee industry is brewing something exciting— specialty blends, artisanal brands, and even coffee tourism are reshaping how we experience coffee.
What stands out is how domestic coffee brands are seamlessly combining global standards with homegrown beans, good marketing and community creation.
For entrepreneurs and investors, the market is bursting with potential. Premium coffee experiences, direct-to-consumer models, and conscious branding are just a few of the avenues where we are seeing high interest.
Disclaimer: The information contained herein is for informational purposes and should not be interpreted as soliciting, advertising, or providing any advice.