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Coffee In India

India was first introduced to Coffee way back in the 16th century in the southern part of our country. And this part today dominates the production of coffee, 53% of the coffee comes from Karnataka, 28% from Kerela, and 11% Tamil Nadu off the total production of 8200 MT (metric tonnes). You would be surprised to know that 80% of the coffee is exported to different parts of the world.

Over the past two decades, India has seen an unprecedented increase in the number of coffee lovers. Increase in disposable income, global exposure, digital and media penetration, urbanization, lifestyle changes, are responsible for India Coffee Market growth. These changes have led to what we call coffee culture and are driving the growth of coffee in the market. Factors driving demand for coffee in India include rising incomes, growing demand from the institutional sector, changing eating habits, health benefits, increased coffee cultivation in India, etc.

Market Opportunities:

  • Coffee cultivation in India is expanding to non-traditional areas like Andhra Pradesh and Odisha on the Eastern Coast and Tripura, Manipur, Assam, Nagaland, and Arunachal Pradesh in the Northeast.
  • The bulk coffee production is exported, and the domestic industry focuses its marketing on export promotion. Around three-quarters of coffee production in India is exported and rest is consumed domestically. The largest importers of coffee in India are Italy, Germany, Russia, Belgium, USA, Poland, Turkey, Spain, and Libya.
  • Coffee is the second most traded commodity in the world. The coffee industry is USD 20 billion industry globally.

Competitive Factors:

  • India is the third largest producer of coffee in Asia after Vietnam and Indonesia.
  • India is the third largest exporter globally and second largest in Asia after Vietnam.
  • India is the sixth largest producer of coffee in the world.
  • Indian coffee is widely known to be the best coffee grown in the shade as opposed to direct sunlight anyplace in the world.
  • There are 16 varieties of coffee in India which are sourced from 13 different regions.
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