Now the world’s seventh-largest coffee producer, India is undergoing a coffee renaissance. Domestic consumption rose from 84,000 to 91,000 tonnes between 2012 to 2023, driven by rising disposable incomes and growing appetite for experience-led offerings.
Macro shifts such as the burgeoning cafe culture, the ‘lipstick effect’ during economic uncertainty and the transition from third- to fourth-wave coffee are fuelling demand for premium, specialty and locally sourced brews. This Report explores how the localism narrative can unlock new value in India’s mainstream coffee market.
To decode evolving consumer behaviour, we identify two key segments, Functional Energy Seekers and Experiential Indulgers, and offer tailored strategies to engage each.
As RTD coffee gains traction, a Key Driver Analysis spotlights the features that matter most to consumers, helping brands sharpen their competitive edge. The Report also explores opportunities to blur category lines – positioning coffee within health-forward beverage spaces aligned with India’s broader wellness movement.
This report looks at the following areas:
- An analysis of coffee types and consumption frequency over the past month
- Key opportunities for RTD coffee to differentiate, uncovered through driver analysis
- Consumer segmentation insights: Functional Energy Seekers and Experiential Indulgers, along with their distinct preferences to inspire innovations
- How to unlock growth potential through localism and category blending
- Three key trends shaping the coffee landscape in India
India’s maturing cafe culture is brewing new opportunities for coffee. Brands must segment wisely, embrace localism, blur categories and offer standout indulgent RTD coffee.
Tulsi Joshi, Principal Food & Drink Market Research Analyst, India
Market Definitions
This Report covers packaged coffee (in powder and granule formats), coffee decoctions and ready to drink (RTD) coffee.
This Report excludes coffee-flavoured dairy drinks.
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EXECUTIVE SUMMARY
- Mintel’s perspective
- Key issues covered in this Report
- Overview
- Make RTD coffee a treat, not just a drink
- Elevate the RTD coffee experience with texture, flavour and sweetness level
- For fuel or escape? Understanding coffee’s dual role
- Two distinct motivations, two coffee consumer segments: fuel for some, treat for others
- Scale Indian specialty coffee into the mass premium segment
- Graph 1: % of launches with select claims* in coffee and RTD coffee, 2022-25
- Unlock growth by blurring category lines
- Mintel predicts
- The outlook for coffee & RTD coffee in India, 2025
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KEY TRENDS
- What you need to know
- Brewing the energy wave: the rise of coffee raving
- Energy boost: the rising frontier of health and wellness
- Graph 2: health benefits of interest in food and drink or health supplements, 2023
- Gen Zs are in search of non-alcoholic drinks that aid physical and mental energy
- Young Indians are embracing coffee for its physical and mental energy-boosting properties
- Graph 3: top five reasons for consuming hot coffee in the last month, 2023
- Clean energy boost is in: young Indians are swapping spirits for a coffee high
- Graph 4: social universe of the search term ‘coffee rave’ on social media channels, 2024-25
- Graph 5: select types of packaged RTD alcohol of interest, 2024
- Coffee is the new spirit, cafes the new party hubs
- Experimental coffee bars are coming to town
- Lipstick effect: inflation, trade-offs and premiumisation
- Brands under margin pressure as coffee bean prices surge
- Lipstick effect playing out in coffee
- Graph 6: respondents’ current financial situation, 2019-25
- India outpaces the global average in premium coffee launches, with notable growth since the pandemic
- Graph 7: % of premium claim as a share of total coffee launches, 2016-25
- Coffee brands are taking the premiumisation route to leverage the lipstick effect
- Localism is going mainstream
- What are the different coffee waves?
- Coffee connoisseurs are on the rise: specialty coffee gains popularity
- Localism fever soars: brands are increasingly taking the local route to drive premiumisation
- Graph 8: consumers’ attitudes towards ‘My heritage is an important part of my identity’, 2021-24
- Cafes are emphasising local specialty coffee
- Mature markets are entering the fourth coffee wave
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WHAT CONSUMERS WANT AND WHY
- What you need to know
- Half of India sips coffee, mostly enjoyed at home; out-of-home continues to gain ground
- Graph 9: coffee consumption in the last month, 2025
- Hot coffee consumption is a daily ritual for nearly one in three Indians
- Graph 10: frequency of coffee consumption in the last month, by types of coffee, 2025
- Millennial working women are emerging as coffee queens
- Graph 11: select consumption frequency of hot coffee at home in the last one month, by employment and gender, 2025
- Graph 12: select consumption frequency of hot coffee at home in the last one month, by gender and age, 2025
- Status quo: instant coffee dominates, but share of RTD coffee launches has doubled in the last five years
- Graph 13: total share of coffee launches, by sub-categories, 2020-25
- Elevating RTD coffee consumption and experience
- Coffee giants are bottling the café experience with revamped RTD lines
- RTD coffee’s growth hinges on Gen Z adoption
- Graph 14: consumption of RTD coffee bought at store in the last month, by generation, 2025
- Graph 15: consumption of coffee in the last month, by types of coffee, 2025
- Most RTD coffee drinkers are just satisfied, affecting growth
- Graph 16: level of overall satisfaction/dissatisfaction from RTD coffee consumption, 2025
- Indulgent features can be the growth accelerator in the RTD coffee segment
- Key opportunities to stand out in RTD coffee
- Elevate the RTD coffee experience with thick texture innovations
- Graph 17: % of launches with textures in RTD coffee, 2020-25
- Elevate indulgence with thicker texture innovations in RTD coffee
- Sweet or subtle? Let consumers decide
- Graph 18: % of launches with low/reduced sugar in RTD coffee, 2021-25
- Graph 19: % of consumers who chose the select statements, by select consumer segments, 2025
- Sweet freedom: offer sugar sachets with RTD coffee for custom sweetness
- Graph 20: % of consumer interested in ‘RTD coffee with separate sugar sachet for customising sweetness’ in coffee, by select consumer segments, 2025
- Indian coffee makers lag behind global counterparts on flavour launches in RTD coffee
- Flavourscape of India’s RTD coffee: Irish cream, toffee and mocha gain traction
- Capitalise on the growing consumer demand for flavour innovations in RTD coffee
- Graph 21: flavours of interest, by RTD consumers, 2025
- Tea, citrus and tropical flavours are the emerging niche globally in RTD coffee
- Tea-flavoured coffee is growing globally; opportune time to explore matcha-coffee combination
- Graph 22: % of launches with select flavour subgroup in RTD coffee, 2021-25
- Give a tropical and citrus twist to RTD cold brews
- Divide & brew: decoding India’s diverse coffee preferences
- Diverse coffee preferences demand tailored products and communication
- Segment and target: meet the Functional Energy Seekers and Experiential Indulgers
- Graph 23: consumers who agree to select statements, 2025
- Reclaim the energy boosting narrative to target Functional Energy Seekers
- Graph 24: % of launches with functional energy claims, by select categories, 2022-25
- Consumption pattern remains the same for Functional Energy Seekers and Experiential Indulgers
- Graph 25: types and frequency of coffee consumption in the last three months, by Functional Energy Seekers , 2025
- Graph 26: types and frequency of coffee consumption in the last three months, by Experiential Indulgers, 2025
- Functional Energy Seekers: demographic profile
- Experiential Indulgers: demographic profile
- Develop diverse strategies for Functional Energy Seekers and Experiential Indulgers
- Divide and conquer: tailor diverse innovation and communication strategies for Functional Energy Seekers and Experiential Indulgers
- Roast matters: tailor taste preferences with roast varieties
- Tap into low/reduced sugar claims
- Graph 27: % of launches with select claims in coffee and RTD coffee, 2020-25
- Graph 28: % of launches with select claims in coffee and RTD coffee, 2020-25
- Innovate low-sugar coffee variants
- Make sensorially indulgent offerings for Experiential Indulgers
- Continental Coffee crafts ‘Percol’ for discerning connoisseurs
- Mintel Spark creates coffee for Functional Energy Seekers
- Mintel Spark creates coffee for Experiential Indulgers
- Captivate Experiential Indulgers with multi-origin coffee multipacks
- Graph 29: select innovative feature/concept of interest in coffee, by select consumer segments, 2025
- Go local!
- Localism is on the rise in coffee – it’s time for Indian coffee to take the spotlight at home
- Transform niche Indian speciality coffee into mass premium offerings
- Percol launches cross-origin coffee: India meets Colombia & Vietnam
- Go beyond ‘made in India’ – introduce hyperlocal coffee beans
- From bean to brew: weave the localism narrative using culture, authenticity and community
- Introduce hyperlocal varieties
- Introduce roasting methods that complement different types of Indian Speciality coffee
- Environmental claims lead – human welfare can be the next localism frontier
- Graph 30: % of launches with select claims* in coffee and RTD coffee, 2022-25
- Elevate localism narrative by giving back to the coffee-growing community
- Blurring category lines – opportune time for brand expansion
- Time to blur category lines with coffee
- India is waking up to coffee flavour with nutrition supplements, biscuits and snack bars leading the way
- Graph 31: % of launches with select flavour in food and drinks, 2021-25
- Graph 32: top five total share of coffee-flavoured food and drink launches, by sub-categories, 2021-25
- Ride the pro-protein wave
- Graph 33: select innovation of interest in coffee, by gender and age, 2025
- Brewed protein: blur the lines between coffee & protein supplements
- Harness coffee’s diverse energy potential
- Innovate coffee for diverse energy demands
- Fuel, refresh, hydrate: explore coconut infused coffee
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APPENDIX
- Report definition
- Consumer survey methodology
- Key driver analysis– regression
- Social data research methodology
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