Singapore (2 July 2024) – The aroma of freshly brewed coffee is permeating through India’s cultural fabric as a growing number of consumers, particularly young professionals, embrace coffee not just as a beverage but as a lifestyle choice. According to a recent report published by Canvas8, a global strategic insights practice with expertise in cultural and behavioural trends, this trend is reshaping India’s beverage landscape.
The report, titled ‘What’s fuelling Indians’ newfound obsession with coffee?’, was authored by Anushree Arora and features interviews with Rajdeep Singh Kukreja, the founder of Boojee Cafe, and Idris Bakri, Brand Manager at Iceberg Hospitality. It reveals that the surge in coffee consumption marks a significant shift in consumer behaviour, driving innovation and growth in the country’s food and beverage industry.
Idris Bakri comments, “Coffee represents modernity and variety, appealing to a generation eager to explore new experiences and socialize in vibrant settings.” This cultural pivot has spurred a wave of diversification in coffee offerings, from specialty roasts by brands like Blue Tokai and Subko, to innovative coffee-infused products such as Rage Coffee’s single-use pour-over bags and Sleepy Owl’s cold brews.
Coffee shops like Starbucks, Blue Tokai, and Subko have become popular hangouts for young professionals who want to socialize, work, and experiment with their coffee. Gen Y and Gen Z are particularly drawn to coffee for its modern appeal and variety. Additionally, there is a growing interest in the origins and stories behind different coffee blends. Rajdeep Singh Kukreja notes, “Personalised service combined with expert knowledge keeps customers coming back.”
The allure of coffee as a symbol of affordable luxury has been bolstered by international brands like Starbucks, which have successfully blended Western appeal with local tastes. Despite pricing considerations, Indian consumers have shown a willingness to pay a premium for the Starbucks experience, underscoring its aspirational value.
Driven by a young demographic, with over 52% of the population under the age of 30, India’s coffee market has witnessed substantial growth. It is projected to reach approximately $1.23 billion by 2032. This demographic is not only fuelling demand but also influencing the evolution of coffee as a cultural icon, reflecting India’s economic growth and increasing exposure to global influences.
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The influx of international coffee chains like Starbucks, which plans to expand to 1,000 stores by 2028, and Tim Hortons, aiming for 120 outlets by 2026, underscores the robust growth potential of the Indian coffee market. Concurrently, homegrown brands are scaling up operations and diversifying product lines, supported by significant venture capital investments aimed at capturing a burgeoning consumer base.
“In the midst of this transformation, consumers are increasingly prioritizing transparency and ethical practices,” Bakri notes. This shift towards conscientious consumption is driving demand for sustainably sourced coffee and environmentally friendly packaging, exemplified by brands like Rage Coffee and Blue Tokai.
The rise of coffee culture extends beyond cafes to innovative applications in industries like skincare and spirits. Brands like mCaffeine and Greater Than have successfully infused coffee into beauty products and alcoholic beverages, respectively, capitalising on the beverage’s health benefits and cultural cachet.
Nick Morris, UK-based founder and Managing Director of Canvas8, said: “As the coffee landscape continues to evolve, businesses are innovating to cater to diverse consumer preferences and create unique experiences. From artisanal coffee tastings to community-focused spaces, the industry is embracing a holistic approach to engage and nurture a growing coffee-loving community.”
About Canvas8
Canvas8 is a global strategic insights practice operating out of London, Los Angeles, New York, and Singapore. Since 2008, we have helped organisations grow through a better understanding of people. Our award-winning insights inspire clients including Google, Mindshare, Molson Coors, The North Face, Mars, Nike, and Logitech. Supported by our network of over 5,500 experts, from TED speakers to MIT fellows, we work at the intersection of behavioural science, culture, business, and creativity to understand human behaviour. For more information, visit: Canvas8.
