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India's coffee revolution brews stronger than ever

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Mar 20, 2025 03:45 PM IST

With rising demand for specialty coffee, Pratyush Sureka, Founder, Vita Nova, is redefining India’s café scene with European flavors.

India’s coffee culture is undergoing a remarkable transformation. Once overshadowed by tea, coffee has now become an integral part of urban lifestyles, fuelled by the rise of specialty brews, café culture, and a growing appreciation for artisanal and premium-quality coffee. With the Indian coffee market projected to reach $1.2Bn by 2032, growing at a CAGR of ~9.87%, 2025 is set to be a defining year for the industry. Here’s a look at the key trends shaping India’s coffee revolution.

India's coffee revolution brews stronger than ever
India's coffee revolution brews stronger than ever

The Rise of Specialty Coffee

Specialty coffee is no longer a niche indulgence but a mainstream movement. As Indian consumers become more discerning, demand for high-quality beans, unique brewing techniques, and globally sourced single-origin coffee is soaring. Premiumization and convenience are driving growth in the single-serve coffee market, with global brands like Coffee Island entering the Indian market with ambitious growth plans while offering global beans and vibrant café atmosphere to capture a growing audience of specialty coffee enthusiasts, further reinforcing India’s shift towards premium coffee experiences. This shift signifies that coffee in India is evolving beyond mere consumption; it’s now an experience.

New-Age European Brands and the Coffee Experience

While global giants have made their mark, a new wave of European coffee brands is redefining the café experience in India. Inspired by Parisian cafés, Italian espresso culture, and Greek minimalism, these brands bring an artisanal approach, emphasizing superior brews, sustainably sourced beans, and aesthetic café designs. Their focus on craftsmanship and authenticity is resonating with Indian consumers who seek a refined, high-quality coffee experience. These brands are also redefining menus with signature European-style beverages such as Freddos, cortados and flat whites, along with expertly crafted pastries, viennoiseries, and gourmet small plates. Their holistic approach, which marries top-tier coffee with elevated food offerings, is raising the bar for the Indian café scene. As these brands expand their presence, they are adding a fresh dimension to India’s growing coffee culture.

Experience-Driven Consumption

Cafés are no longer just places to grab a quick coffee – they have become social and professional hubs. Over 65% of coffee shop visitors belong to the millennial and Gen Z demographics, who see coffee as an experience rather than just a beverage. The ambience of a café plays a crucial role in attracting customers, with themes like minimalism and subculture inspired interiors gaining popularity. The ‘Instagrammability’ of cafés is another driving factor, as over 60% of Gen Z consumers consider aesthetic appeal when choosing a coffee shop.

Affordability Battles with Premiumization

India’s coffee market presents a unique duality; while affordability remains a key factor for 70% of consumers, there is a simultaneous demand for globally sourced coffee. The specialty coffee segment is expanding at a rapid ~15% annually, driven by new brands focusing on artisanal brewing and premium beans. Meanwhile, home brewing is also witnessing a significant boom, with the home coffee equipment market growing at a 20% CAGR. This indicates a rising consumer appetite for barista-style experiences at home. Major brands like Coffee Island have also launched offline expansions in India, offering beans, powders and instant solutions to consumers who don’t want to compromise on their at-home experience.

Coffee Trends from Global to Home

The entry of international coffee brands has introduced Indian consumers to diverse coffee styles and global innovations in Coffee. Concoctions like the Cold brews, Fizzy Espressione, Gelato Affagato and innovative brewing techniques are capturing the interest of younger consumers. In 2025, we can expect a greater focus on global flavour explorations and fusion trends that combine premium beans with global Innovations.

Sustainability and Innovation

Sustainability is becoming a major focus in the coffee industry. With growing concerns about climate change affecting coffee production, brands are adopting greener practices such as regenerative farming and AI-driven crop management. Additionally, brands are also focusing on using biodegradable disposables and farmer wellbeing. As sustainability takes centre stage, businesses that prioritize ethical sourcing and environmentally friendly packaging will stand out in the market.

Outlook of the Coffee Culture in India

The future of India’s coffee industry lies in the intersection of technology, personalization, and sustainability. The balance between affordability and premiumization will define market dynamics, while innovation in brewing and service models will continue to attract new consumers.

2025 is poised to be a landmark year for India’s coffee industry, blending tradition with innovation, and experience with convenience. As the market continues to expand, one thing is clear – India’s love for coffee is only getting stronger.

About the Author

Pratyush Sureka is the founder of Vita Nova, a leading gourmet food and beverage enterprise in India, dedicated to introducing global brands that deliver authenticity, innovation, and quality at value to Indian consumers.

Vita Nova is the Indian partner for Coffee Island bringing India’s First European Coffee Culture, with the vision to expand the brand presence by establishing 15-20 cafés across the country by March 2026. Pratyush is passionate about bringing European coffee culture to Indian coffee lovers, and they envision cultivating a community that appreciates the artistry of brewing and the simple yet profound joy of sharing a great cup of coffee.

This article is authored by Pratyush Sureka.

Note to readers: This article is part of HT's paid consumer connect initiative and is independently created by the brand. HT assumes no editorial responsibility for the content, including its accuracy, completeness, or any errors or omissions. Readers are advised to verify all information independently.

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