Coffee has emerged as a lifestyle and experiential product, particularly among urban consumers
The Indian outside coffee market is on an exciting growth trajectory, evolving into a dynamic, multi-segment beverage industry. Once overshadowed by the country’s dominant tea culture, coffee has emerged as a lifestyle and experiential product, particularly among urban consumers. By 2028, the outside coffee market is projected to grow at an impressive CAGR of 15-20 per cent to become $2.6-3.2 Bn, reflecting a transformation in consumer behaviour and significant opportunities for growth.
According to Redseer Strategy Consultants, the Indian outside coffee market is structured across three main price segments: mass, mid, and premium. Each of these caters to distinct consumer groups but offers varied growth opportunities:
Mass Market (below Rs 100): Comprising primarily local, unbranded players and roadside stalls, this segment caters to budget-conscious consumers. While sizable, it has limited scope for differentiation or experiential growth.
Mid-Price Segment (Rs 100-200): Positioned between affordability and premium quality, this segment is gaining traction. It bridges the gap for coffee enthusiasts seeking speciality options at accessible prices, making it ripe for innovation and new entrants.
Premium Segment (above Rs 200): This segment targets coffee connoisseurs and emphasises artisanal brews and experiential aspects. Though niche, it demonstrates strong potential due to consumers’ willingness to pay for quality and customisation.
The whitespace in the mid-price segment is particularly notable. With relatively few brands meeting the demand for affordable speciality coffee, the segment offers opportunities for players to capture this underserved audience.