India's out-of-home coffee consumption reached $1.5 billion in 2024, up from $1.2 billion in 2023, and is projected to hit $3.2 billion by 2028, driven by a 15-20% annual growth rate, according to RedSeer Consulting. Premium coffee consumption is surging, with the segment expected to dominate 55-60% of the market by 2028.
Currently, mass-market coffee, priced below ₹100, holds 50% of the market but is predicted to shrink to 30-35%. The mid-segment, priced between ₹100 and ₹200, is set to expand from 4% to 8-10%, while the premium segment, priced above ₹200, will experience the fastest growth. Specialty coffee, including Americano and Cappuccino, is gaining traction among urban consumers.
The market’s expansion is fueled by increasing demand for artisanal brews, on-the-go consumption, and health-conscious choices. High street cafés, mall outlets, and kiosks at tech parks and airports see maximum footfall. Enhanced branding with in-house roasteries and innovative brewing techniques is further boosting the sector’s appeal.
