Building Biz Over A Cup Of Coffee
Building Biz Over A Cup Of Coffee

The Indian food processing industry accounts for 32 per cent of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. The Confederation of Indian Industry (CII) estimates that the food processing sectors have the potential to attract as much as US$ 33 billion of investment over the next 10 years and also to generate employment of nine million person-days.

The new generation is faster and are convenience influenced attracted towards western culture. And, this is pushing the growth of the cafe culture in the country where coffee pacts as a saviour for the person who craves for caffeine in the morning. As per a report café business comprised some 11 per cent of total organised food services market in the country.

“It’s good that everybody is getting mature in food and beverage industry and they want to innovate something actually amazing to give customer an outstanding experience. Industry is growing towards specialised foods and in the next few years coffee will also bring a boom in beverage sector,” says Anit Dang, Proprietor at Selfie Swag Cafe’.

According to a report by Technopak Advisors, a consultancy firm, the per organised café market in India, which grew almost six fold in the last five years to $230 million currently, is likely to hit $410 million by 2017, maintaining a compounded annual growth rate of 13-14 per cent. It shows that the future of the cafe’ is definitely bright as it is time savour and way convenient. Things have changed over the period of time, now people are smart and convenience friendly. They know what they want and they do not want to compromise because they have options. They are spoiled for choices and cafe’ segment is offering them the bombardment of choices. Cafes on one hand are providing them convenience and on the other hand they do not burn a hole in consumer’s pocket.

“One visits cafe’ just to hang out with friends and to have some quality time. Cafes’ are primarily about community who are comfortable enough to enhance bonding and communication whereas restaurants are about food, exploring new things and novelty,” Riyaaz Amlani, CEO at Impresario Entertainment which runs Mocha Cafes in India.

Retail Market in India is estimated to reach USD 1 trillion by 2020 from beverage market. The Cafe’ market has witnessed an aggressive expansion by established brands, both domestic and international. Over the past five years, the café culture has grown with many new cafés opening across all major Indian cities. According to a report by FICCI, the market size for cafe’s is around INR 25,000 crore and is growing at 10 per cent per year. Newer brands such as Starbucks and Costa have been aggressive with opening new branches all over.

With a market size of around Rs 1700 crore and expected to grow at a fast pace of 20%, the segment has been largely dominated by only two or three key retail coffee chains. As the industry involves different format to catch customers’ attention, it gives emerging player a wide range of opportunity to tap upon the mid-level segment. 

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