India’s coffee landscape is changing rapidly. Once dominated by instant coffee and traditional filter kaapi, the country’s coffee market is experiencing an unprecedented transformation as specialty coffee culture takes root in urban cities.
By 2030, India’s coffee market is forecast to double in value, with specialty coffee accounting for nearly 18% of this growth – a remarkable shift in a historically tea-drinking nation. This surge coincides with the entry of international coffee chains like Tim Hortons, Starbucks Reserve, and Costa Coffee, as well as smaller specialty brands, expanding their offerings across major Indian metros.
Undoubtedly, it’s an exciting time for the Indian coffee market, and global coffee brands are recognising its sheer market potential. To learn more, I spoke to Mithilesh Vazalwar, CEO and founder of Corridor Seven Coffee Roasters, Matt Chitharanjan, CEO of Blue Tokai Coffee Roasters, Konstantinos Konstantinopoulos, CEO of Coffee Island, Chandini D P, founder and CEO of LunyBee and director of Harley Estate, and Nishant Sinha, founder of Roastery Coffee House.
You may also like our article on India’s future as a coffee origin.
India’s younger consumers are helping propel its coffee market forward. Millennials and Gen Z, who comprise nearly 65% of India’s specialty coffee consumers, according to the Coffee Board of India’s 2023 consumption survey, are redefining the market with their evolving palates and increasing spending power.
With India’s middle class expected to double to about 61% of its population by 2047, higher disposable incomes in urban areas have created fertile ground for premium coffee experiences. This demographic shift and a growing coffee education movement have transformed what was once a nascent third wave coffee culture into one of Asia’s most promising specialty coffee markets.
There is also a wider cultural shift in India that is supporting interest in specialty coffee. Younger people are increasingly seeking identity, expression, and intentional experiences – and coffee has become an ideal medium.
“We are watching coffee move from being just a beverage to becoming a canvas,” says the 2022 Indian Barista Champion Mithilesh Vazalwar. He is the CEO and founder of Corridor Seven Coffee Roasters in Nagpur, India, and was the first person to represent India at the World AeroPress Championship. “People want to know where their beans are from, who grew them, and how they’re roasted and brewed. This curiosity is driving quality.”
India has been a primarily tea-drinking nation, with masala chai being a staple across the country. However, coffee is increasingly seen as more than just a beverage – it is a lifestyle choice. Exposure to global coffee culture through travel, social media, and international brands has also heightened consumer appreciation for specialty coffee.
“More people now understand the difference between mass-produced coffee and coffee that is carefully sourced, roasted, and brewed,” explains Matt Chitharanjan, the CEO of Blue Tokai Coffee Roasters, which operates roasteries in India and Japan.
The rapid maturation of India’s specialty coffee landscape has transformed the subcontinent into a lucrative frontier for international coffee chains seeking growth beyond saturated Western markets.
Tim Hortons’ expansion since its 2022 entry, opening over 40 stores across multiple Indian cities by early 2025, signals the market’s vast potential. Starbucks has also made strategic investments in the region, with Mumbai now being home to a Starbucks Reserve, putting the city in the company of Seattle, Milan, and Tokyo. Costa Coffee also recently announced plans to position India among its top five global markets by 2030.
Greece’s Coffee Island made headlines recently with its entry into the Indian market and ambitious expansion plans in the coming years. In partnership with Vita Nova, the chain plans to open 20 locations by March 2026 and aims for 250 outlets by 2029, bringing European coffee culture to Indian consumers while still catering to local tastes.
“India has a deep-rooted coffee heritage, and its rapidly evolving coffee culture aligns with our philosophy of offering high-quality, specialty coffee experiences,” says Konstantinos Konstantinopoulos, the CEO of Coffee Island. “We aim to build meaningful connections, combining our European coffee expertise with the rich traditions of Indian coffee consumption.”
Domestic coffee brands also benefit from international influence. Tier 2 and 3 cities like Jaipur, Lucknow, Chandigarh, Ahmedabad, Kolkata, Hyderabad, Chennai, and Indore are now home to thriving specialty coffee scenes, with local entrepreneurs often creating distinctive homegrown brands that merge international coffee standards with regional flavours and aesthetics.
For international brands, following a template from their respective markets may not result in much success when expanding into India.
The Indian market is distinct from more established specialty coffee markets. Focusing on offering not just high-quality coffee, but also sharing as much detail as possible about the supply chain, along with providing a valuable experience to customers, is important.
“To succeed in the Indian market, understanding the Indian consumer is key. While global specialty coffee trends matter, success in India requires a nuanced approach that aligns with local habits, economic diversity, and cultural preferences,” says Chandini D P, the founder and CEO of coffee supplier LunyBee and the director of Harley Estate, a coffee farm in the historic Manjurabad region.
“International coffee brands need to recognise that India is one of the fastest-growing coffee markets, but unlike other regions, it remains under-penetrated in the premium and specialty segments,” she adds. “The opportunity lies in not just offering coffee but in shaping India’s evolving coffee culture.”
Moreover, consumer needs and preferences are diversifying in India, opening up opportunities for new business formats.
“Semi-self-service or takeaway models don’t usually lead to long-term, sustainable growth in India,” says Nishant Sinha, the founder of Roastery Coffee House, which was the first Indian coffee chain to expand into Europe, opening an outlet in Helsinki, Finland. “Our success, in a large part, is due to our commitment to the Indian way of hospitality. The Indian market doesn’t see specialty coffee as a convenience product.”
The Indian specialty coffee market is developing its own character rather than simply mimicking Western models. Cafés are venues for social and work interactions, which means savouring a cup of coffee for a significant amount of time is common.
Store formats, seating layouts, service models, table turnovers, and food offerings should all account for this consumer behaviour.
“One of the key takeaways we have adapted to India is through our collaboration with Mrs. Sunalini Menon, a renowned expert in the Indian coffee market,” shares Konstantinos. “Her insight has helped us refine our offerings to align with the local preferences while maintaining our standards for quality and innovation.
“Our journey is one of continuous growth, learning, and adaptation, always with respect for local communities and a focus on the consumer experience,” he adds.
For international brands, however, catering to local preferences doesn’t require complete reinvention.
“Our food menu is largely inspired by non-Indian flavours,” Matt says. “We’ve noticed that many customers prefer their coffee extremely hot. In such cases, we heat milk beyond our usual standard to meet their expectations. It is about striking the right balance that aligns with your brand.”
Integrating India’s vibrant coffee culture in different aspects of a brand is then important for any company, local or global, to find success.
“India isn’t just one market, it is a blend of diverse tastes, cultures, and preferences. Keep your core identity strong but localise intelligently – offer flavours or experiences that resonate regionally,” Mithilesh says. “Collaborate with local talent, invest in storytelling, and engage communities beyond just the café.
“Most importantly, have patience. India rewards brands with intent, not those looking for quick wins.”
India is a price-sensitive market that consistently seeks good value for money. However, some of the top luxury brands of the world have still found success in the Indian market, largely thanks to a growing middle class.
This is because India’s market is also aspirational, and premium experiences symbolise a status and value that the market increasingly strives for. The key is to position a product appropriately to draw the right target audience.
“Affordability doesn’t mean compromising on quality; it’s about positioning premium coffee in a way that feels accessible and worth the spend,” Chandini says. “In India, the perception of value is as important as the price itself.”
Coffee brands then need to find their competitive edge to succeed in India. The amount of money that most consumers are willing to spend on coffee is still somewhat limited compared to more established markets.
A brand that invests in top-tier interiors, premium ingredients, and prime locations will likely need to charge higher prices. Instead, it’s crucial to identify a core strength and focus resources on that area.
Consumer education also plays a critical role. Brands like Blue Tokai regularly host workshops to help consumers learn more about roasting, brewing, latte art, cupping, and the wider supply chain, which has played a significant role in building awareness as well as growing the market.
YouTube channels like the one run by Mithilesh, meanwhile, have also been integral in creating awareness about specialty coffee and competitions. “Coffee raves” hosted by Corridor Seven Coffee Roasters also help make specialty coffee more accessible.
As the growth of India’s specialty coffee market continues to unfold, industry analysts predict we’re witnessing only the initial stages of a profound transformation. With domestic coffee cultivation expanding beyond traditional regions in Karnataka and Kerala into experimental growing areas, and with an increasing number of Indian baristas making their mark in international competitions, the country is positioning itself not merely as a consumer of global coffee culture but as a distinctive contributor to it.
The convergence of rising disposable incomes, evolving consumer preferences, and the strategic entry of both international and homegrown specialty brands creates a uniquely dynamic ecosystem.
As urban professionals, digital nomads, and students continue embracing specialty coffee as both a luxury and a lifestyle, India stands poised to become one of the world’s most significant specialty coffee markets in the coming decade.
Enjoyed this? Then read our article on how the Iranian coffee market is overcoming challenges.
Photo credits: Coffee Island, Roastery Coffee House, Harley Estate
Perfect Daily Grind
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Bhavi is a brand-building specialist, a dairy technologist, and a storyteller with a keen interest in coffee.
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