Are Traditional Players Betting Big on Home-grown Coffee
Are Traditional Players Betting Big on Home-grown Coffee

In the last few years India has seen a new privy coffee culture where not only traditional drinkers are drinking coffee but there is a sudden rise of new and aspiring consumer base. The coffee retailing market is growing at a speedy rate and various new and home grown brands are entering new territories like hospitals, highways, railway stations and colleges to name a few.

Though, Coffee consumption per capita in developed countries is ~8 kg a year while in India it is ~110 gm a year, says NRAI Food Service Report which means there is lots of potential for both international and local players and surprisingly stands sixth largest coffee producer in the world and has long been a grower of coffee beans.

“Over the years we have introduced lot of technologies for the production of coffees. In fact we have a strict process for selection and monitoring of the quality of coffee we have. We are the only coffee roasting company which is BRC certified. All this has helped us to maintain the quality and to carry forward the legacy which my father has left for us,” shares R Nagaraja Rao, Director, Bayar’s Coffee whose father started this business way back in 1970’s at a very small outlet to serve local people with good quality coffee in south Bangalore.

For locals in southern part of India street-side kaapi shops serve fresh and frothy blends of filter coffee, hot milk and of course sugar. And, the market has witnessed a growing culture of cafe shops; thanks to Cafe Coffee Day which is the biggest player in the segment with around 52 per cent of market share. Gradually, the face of coffee consumption is changing in India. Just as our home made chai has become a staple in cafés in the West under the redundant name “chai tea latte,” European style cafés are now popping up all over urban India.

And, not be surprised many new and young cafe chains are mushrooming with new ideas and variety of coffee in top Indian cities where socialiser and friends are meeting over a cup of coffee.

“All I know is that the quality of Indian coffee is lacking and something has to be done to make it better. We as a venture stepped into this biz so that we can improve this image of Indian coffee. I would love to see cafes coming up serving great quality of Indian coffee,” adds Brijesh Bachkaniwala, Owner, Meraki The Coffee House.

With a market size worth Rs 1,805 crores in 2016, cafe segment is expected to grow at 10 per cent CAGR to reach Rs 2,905 by 2021 ad this surely is inviting much more participation from local and traditional players who remain a local vendor in the south Indian regions.

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