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Nandita Abreo Subramanian, Founder & Director, Firefly Life Sciences Pvt. Ltd.
In recent years, the Indian coffee industry has witnessed a rising demand for disruptive and premium products. This has ushered in a wave of over a dozen independent coffee startups and exciting new innovations in what is believed to be the ‘fourth wave’ coffee movement in India.
India has seen an unprecedented increase in the number of coffee consumers in the past two decades. Between 1998 to 2011, domestic coffee consumption increased from 50,000 metric tonnes (MT) to 115,000 MT. This can largely be attributed to an increase in disposable income, global exposure, digital and media penetration, urbanization, lifestyle changes.
The entry of national and international coffee chain-house brands has been a key factor in the rising awareness and demand for coffee in domestic markets. Key brands include Cafe Coffee Day, Starbucks, Costa and Barista alongside newer artisanal brands like Blue Tokai, Third Wave Coffee Roasters and Araku coffee.
Most of these chains have also diversified their coffee offerings – they offer many different types of coffee beverages to appeal to a wide range of tastes. Moreover, these cafes have also been established as a popular ‘hangout spot’ for the country’s youth, fostering a culture of reading, casual meet-ups, working etc.
Growing demand
India’s coffee culture is undergoing a revolution at the moment – there is genuine domestic market interest and curiosity in understanding, brewing and learning more about Indian coffee. Rising awareness about coffee and its types among students, working professionals and the youth of the country is generating demand for independent coffee brands. Before the pandemic there was an active culture of youngsters visiting cafes for specialty coffee. During the lockdown, the demand for ‘cafe-like’ coffee spurred awareness and demand for home brewing, brewing equipment and exploration of various coffee types.
Indian coffee is one of the world’s finest shade-grown coffees, and monsoon environments contribute significantly to its complex flavour profile. Therefore it is in high demand among coffee enthusiasts across the globe. The new-age coffee entrepreneurs are partnering with Indian coffee growers to pitch their produce at premium values even in the domestic market. Therefore, farmers are beginning to cater to the domestic market as opposed to largely exporting their produce.
Beyond specialty coffee cultivation, the integration of organic, fair-trade, ethical and sustainable practices into coffee growing can allow Indian growers to market their coffee at higher prices. Many micro-roasters also focus on ‘single-origin’ coffees, sourced from select regions or estates to bring out flavour profiles unique to the coffee grown in that area.
Another innovation that is slowly gaining traction is that of coffee fermentation. Fermentation in coffee production involves allowing the coffee cherries to undergo controlled microbial activity before they are processed. This process occurs after the cherries are harvested but before the beans are dried and roasted. The goal is to develop new and exciting flavours by leveraging the natural microorganisms found on the cherries.
These exciting new innovations are ushering in what is believed to be the ‘fourth wave’ coffee movement in India. Fourth wave coffee is often characterised by its emphasis on artisanal craftsmanship, direct relationships with growers, and a focus on the unique flavours and characteristics of coffee beans. There is also an emphasis on awareness building on various coffees, roasting methods, blends etc. among consumers through platforms such as independent cafes, coffee workshops, competitions and festivals.
This movement is likely to lead to a further maturation of India’s domestic coffee market, causing a surge in demand for premium coffees. This would safeguard Indian coffee producers from fluctuations in the global coffee markets and give their coffee long overdue recognition within the country.
(Extracts from a report titled “Regenerative Coffee Cultivation for Sustaining & Growing India’s Coffee Industry” released by Firefly Life sciences Pvt. Ltd at the 5th World Coffee Conference 2023).