Cafe Industry

In India

By - Sandeep Mishra

Industry Background

The café market in India started developments in the 1990s. India is the sixth largest producer of coffee and with the rising

developments in the café market, the consumption of coffee is also rising.

Coffee has turned out to be a trendy beverage for the young population of the country and with the high ratio of young population in India.

According to ‘India Coffee Shops & Café Market Forecast & Opportunities, 2017’

The coffee shops and café market in India is expected to witness phenomenal growth in the next five years.

Mumbai turns out to be the most expensive city for average bill amount of café and Kolkata remains to be the least expensive.

"Indian Cafe Market" said the $230 million cafe market is expected to a $410 million industry by 2017.

Consumer Behavior in India Café Market

India has pre-dominantly been a tea consuming country and coffee has been a luxury drink.  

Following are factors which generally affect consumer behavior

Changing Lifestyle Increasing Disposable Income/Purchasing Power

Parity Spending on Beverages Rising Middle Class Young population

Market Trends, Developments & Opportunities

Rising Investments Merchandising Coffee Lounge Focus on Food & Localize Menu Liqueur Coffee Newer Territories New Players Entering the Fray

Café Industry Players

Café Coffee Day StarbucksBarista Lavazza Café Dunkin Donuts JavagreenCoffee N UCosta CoffeeCoffee Bean and Tea LeafMochaGloria JeansThe Chocolate Room

Café Market Share In India

Players Outlets

Café Coffee day 1270

Barista 188

Costa Coffee 48

Others 494

Total 2000

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Driving Factors

Expansion/Growth

Product/Service Innovation

Collaboration/Partnership   Image/Lifestyle

Technology

Key factors that determine success in the future

Product and Service Innovation in the FutureTechnologyEducation About CoffeeCooperationQuality Control, ConsistencyMeeting DemandRole of Regulations

Links of sources of Secondary Data Café Industry In India http://www.businesswire.com/news/home/20110520005507/en/

Research-Markets-India-Coffee-ShopsCafes-Market-Outlook

http://www.grin.com/en/e-book/111348/coffee-shop-industry-a-strategic-analysis

http://coffee.wikia.com/wiki/Coffee_industry_of_India

http://www.siliconindia.com/news/business/Coffee-Chains-A-Growing-Business-In-India-nid-147376-cid-3.html

http://articles.economictimes.indiatimes.com/2012-10-19/news/34584301_1_technopak-share-cafe-market

http://www.techsciresearch.com/1890

Thank You

IBS Mumbai