For the complete report, get in touch with us at : info@netscribes.com The coffee market in India has been growing due to the demand for Ready to Drink coffee and has become a part of an individuals daily consumption basket. Due to changing cultures, consumers are becoming aware of domestic and foreign brands which are boosting the consumption levels. The export promotion schemes and other subsidies by the GOI, and increasing trend of eating out coupled with the rising share of young population has driven the market. The report begins with the market overview section providing the size and growth of coffee production and consumption in volume terms. It also provides the market segmentation of production of coffee showing the state-wise segmentation. Segmentation based on consumption is also included. The impact of changing price trend has also been analyzed. This is followed by the foreign trade value chain, followed by export structure of coffee including key countries where it is exported and the types. Import levels have also been discussed including the key importing countries. An analysis of the drivers explain the factors for growth of the industry including rising demand for ready to drink (RTD) coffee, export promotion schemes for coffee, favorable demographics and growing disposable income. The key challenges being harmful to human health and large number of licenses that has to be acquired. Key trends in the market have also been analyzed including global players foraying into the market, investments made by PE players indicates industry potential, emergence of organic coffee, growth of franchising of emerging coffee retail shops and brand expansion into smaller cities. The competition section provides an overview of the competitive landscape of the market with the share of players in the coffee market in terms of sales. A company portfolio has also been illustrated covering all the players that include brief profiles of the major players in the market.

1. Coffee Market – India
March 2011

2. Executive Summary
The organized coffee market in India is estimated to be worth X bn in 20--
Karnataka accounts for ~X% of India’s total coffee production
Market
Changing consumer lifestyles, increasing urbanization and higher frequency of eating out has
fueled growth in the market
LE
Drivers: Challenges:
Drivers &
Challenges
MP
Rising demand for ready to drink (RTD)
coffee
Export promotion schemes for coffee
Harmful to human health
Large number of licenses to be
acquired
SA
Favorable demographics
Growing disposable income
Global players foraying into the Indian market
Investments made by PE players indicates industry potential
Trends Emergence of Organic Coffee
Growth of Franchising of emerging coffee retail shops
Brand expansion into smaller cities
Indian coffee retail market is dominated by global players, specially in the organized coffee retail
Competition segment
Two major domestic players dominating the market are Company 1 & Company 2
COFFEE MARKET IN INDIA 2011.PPT 2

3. •Market Overview
•Foreign trade
Export
Import
•Drivers & Challenges
•Trends
•Competition
•Key Developments
COFFEE MARKET IN INDIA 2011.PPT 3

4. Southern states like State 1 and State 2 dominate coffee
production in India
Production – Overview Size & Growth – Volume
• Coffee production in India is growing slowly Arabica Robusta
• Although the production gets hampered due to delayed ‘000 mt
and inadequate pre-blossom showers across the growing 400 +Q%
LE
regions in South India e
a d
• Southern parts of India account for the major share 300 b c
P x x
in coffee production x x
200 x
M
• The largest producers include State 1 and State 2
y
A
• Karnataka accounts for ~X% of India’s total coffee 100 y y y y
S
production
0
Production in the state is estimated to rise to XX tonnes in 2006-07 2007-08 2008-09 2009-10 2010-11e*
20--, up from XX tonnes in 20--
State 2’s production is estimated to be XX tonnes in State-wise Segmentation
20XX,up from XX tonnes in 20--
• However, the production is hampered sometimes C% State1
due to pest attacks also D% State 2
• The organized coffee market in India is estimated to B% State 3
be worth XX bn in 20-- Others
A%
Source:
COFFEE MARKET IN INDIA 2011.PPT 4

5. Drivers & Challenges – Summary
Drivers Challenges
Rising demand for ready to drink
(RTD) coffee Harmful to human health
Export Promotion schemes for coffee Large number of licenses to be
acquired
Favourable demographics
Growing disposable income
COFFEE MARKET IN INDIA 2011.PPT 5

6. Trends – Summary
Global players foraying into the
Indian market
Investments made by PE
Brand expansion into smaller
players indicates industry
cities
Key potential
Trends
Growth of Franchising of
Emergence of Organic Coffee
emerging coffee retail shops
COFFEE MARKET IN INDIA 2011.PPT 6

7. The market is highly competitive with a large number of
Indian and foreign players
Overview Indian Coffee Marketing System
• Market is highly competitive with a large number of
Indian and foreign players Coffee Marketing
System
LE
• Growing trend of consumption of different varieties of
coffee and increasing brand consciousness has led to
P
the increase of global player footprints
M
• Indian coffee retail market is dominated by global Route 1 Route 2 Route 3
A
players, especially in the organized coffee retail
S
segment
• Organized modern formats like malls and supermarkets Market share (20--)
have also become a favorite destination for the outlets
Company 1
• Master companies are readily tying up with small Company 2
franchisors and mall owners to promote their brand Z%
Others
• In order to reach a larger younger audience, players are
opening chains of outlets outside colleges, institutions, Y%
petrol pumps and highways
X%
Source:
COFFEE MARKET IN INDIA 2011.PPT 7

8. Major Coffee Players in India (1/8)
Company Snapshot: Company 1
Corporate Information Financial Performance
Revenue Revenue Profit
Headquarters City 1 INR bn Profit / Loss INR bn
80 10
Founded 19-- d
60 c 8
b 6
Products Product 1 40 a
4
20 2
Key People Person 1
0 0
2007 2008 2009 2010
Business Highlights
• Is a subsidiary of xx
LE
• Export sales at xx mn, have decreased by x % in value terms, mainly due to the shift in composition of instant coffee
MP
exports to xx, from retail to bulk packs
• Company makes efforts to facilitate out of home consumption and has increased the number of “x“
Source:
SA
• Offers various varieties of coffee under the brand name Nescafe, such as Product A, Product B
COFFEE MARKET IN INDIA 2011.PPT 8

9. Thank you for the attention
The Coffee Market – India report is part of Research on India’s Food & Beverage Industry
Series.
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