India sees steady rise in coffee, tea consumption

06 Jun 2011 Evaluate

The consumption of tea and coffee is been growing up in India despite the fast growth of bottled juices and aerated drinks. Coffee consumption is up by 6% in the last few years while tea consumption has been showing a 3% annual growth. Product innovation and better marketing strategy have helped coffee demand to spread to north India as well. The higher consumption of coffee and tea is happening at a time when India is fast emerging as a major market for soft drink and fruit juices.

The consumption of tea and coffee is not affected despite widespread popularity of carbonated beverages supported by intense promotional campaigns. Mushrooming coffee bars and cafes have made coffee drinking fashionable in cities. Coffee consumption has been supported by increasing urbanization and greater disposable income. Admittedly, south India as a region has the largest number of coffee drinkers.

A recent survey by Coffee Board shows that of late more than 50% growth has come from non-south regions. The Coffee Board chairman stated that since 2000 the coffee consumption has shown an annual average growth of 6% compared to the growth of just 2% in the previous decade. Apart from the high-end outlets, the consumption of instant coffee is increasing in North India. Their attempt is to popularize filter coffee in the region by removing the notion that it is difficult to make.

In the last few years in the non-south regions the proportion of occasional coffee drinkers has increased and the board is keen on exploiting this potential of non-south states. The Indian Tea Association stated that tea consumption is growing by 3% every year and it is more of a common man's drink and used in 90% of the households in the country.