India’s National Push to Promote Domestic Specialty Coffee

When you walk past a street cart in Mumbai or Delhi, the steaming glass of chai is almost a given—but what if your next stop was a local coffee shop instead? For decades, India’s tea culture dominated, but a quiet revolution is underway as coffee gains ground among the country’s urban middle class.

India’s government and private businesses are actively promoting domestic coffee consumption, with plans to grow the market from $230 million to $410 million by 2017, backed by a surge in coffee shops and rising local demand.

A Nation Built on Tea

For nearly 200 years, tea has been India’s national drink. Religious norms discouraged alcohol, making tea the preferred beverage. India is the world’s largest tea producer, harvesting over 80,000 tonnes annually—almost all black tea, led by Darjeeling and Assam blends. Seventy percent of this tea is consumed domestically, with per capita intake reaching 750 grams a year. Roadside tea stalls remain a defining part of daily life.

The Overlooked Coffee Industry

India also ranks among the world’s top coffee producers, with key growing regions in Karnataka, Kerala, and Tamil Nadu. Yet most of this coffee is exported, often without local consumers even knowing it’s grown in their own country. “Many farmers don’t realize they grow coffee—it just feels like another export crop,” said Ross, founder of TheIndianBean.com, speaking to the Los Angeles Times.

Before 1991 economic reforms, coffee was sold to the government, which exported it to the Soviet Union in exchange for imports like weapons. Today, Indian coffee is shipped raw to Western markets, where it’s roasted and sold at premium prices far above export value.

Coffee Culture Takes Root

India’s average coffee consumption is just 0.25 pounds per person annually—compared to 9 pounds in the U.S.—but that figure has nearly tripled in the last decade. As the economy grows and urbanization accelerates, a new middle class is embracing coffee as a symbol of modernity and Western aspiration.

In 2012, Starbucks opened its first Indian outlet in Mumbai, offering 12-ounce cappuccinos for around $2.10. By then, homegrown chains like CafeCoffee Day had already expanded to 1,650 locations—over three times more than its competitors combined. “I used to drink tea every day, but now I go to coffee shops,” said 29-year-old Mumbai resident Yuvenson Duarte.

Government and Industry Push

The Indian Coffee Board reports that coffee remains a niche product, but efforts are underway to change that. Retail consultancy Technopak Advisors projects the number of coffee shops in India will rise from 1,950 to 2,900 by 2017. John Culver, president of Starbucks Asia Pacific, called India “a very large market in the long term” due to its economic scale, growing café culture, and rising incomes.

CafeCoffee Day’s upcoming IPO, valued at around $1 billion, underscores the sector’s commercial potential. The chain’s rapid expansion reflects a broader shift: coffee is no longer just for the elite but is becoming a mainstream urban habit.

Frequently Asked Questions

Why is tea more popular than coffee in India historically?

Tea became India’s dominant drink due to religious restrictions on alcohol, government promotion, and cultural preference. For 200 years, tea—especially black tea varieties like Darjeeling and Assam—has been the everyday beverage for most Indians, with 70% consumed locally.

How much coffee does the average Indian consume?

The average Indian consumes just 0.25 pounds (about 113 grams) of coffee per year, compared to 9 pounds in the U.S. However, this has nearly tripled over the past decade as coffee gains popularity.

Which regions in India produce the most coffee?

India’s primary coffee-growing regions are Karnataka, Kerala, and Tamil Nadu in the southern part of the country. These areas have traditionally been the hub of domestic coffee cultivation.

What role is the Indian government playing in promoting coffee?

The Indian government, through the Coffee Board, is working to build a domestic market for locally grown coffee. Efforts include supporting retail expansion and encouraging Indians to drink more of their own coffee rather than relying on exports.

How many coffee shops are there in India, and how fast is the market growing?

As of the latest data, India has around 1,950 coffee shops, with projections estimating growth to 2,900 by 2017. The market value is expected to rise from $230 million to $410 million in the same period.

What is CafeCoffee Day, and why is it significant?

CafeCoffee Day is India’s largest coffee chain, with 1,650 locations—over three times more than its nearest competitor. Its planned $1 billion IPO highlights the commercial potential of India’s growing coffee culture.

Recommended FrontStreet Beans for Indian Coffee Culture

Explore FrontStreet Coffee’s Ethiopia Yirgacheffe for bright citrus and floral notes, a great alternative to traditional Indian teas, or try Kenya Little Tomato for bold berry acidity that appeals to coffee newcomers. For something smoother, the Brazil Queen Manor offers nutty sweetness with low bitterness—ideal for those transitioning from tea to specialty coffee. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.