Although India is one of the biggest producers of tea, coffee is taking over, with numerous brands penetrating the market, and expanding their footprint across the country. Veterans along with new-age coffee brands, with their USPs, allow customers to pick and choose. 

The Onset of Coffee Culture

According to Navin Gurnaney, India CEO, Tim Hortons, the coffee culture has always existed in the country, “There has been approximately 8 to 10 percent compounded growth in consumption for over a decade, the growth can be credited to the millennial population wanting to have global experience,” Gurnaney stated. Barista has been in business for over 22 years with over 350 stores. 

Rajat Agrawal, CEO, Barista believes an important flux happened over the last 3-4 years aiding the increase in coffee consumption.

“The market is on a high, the coffee phenomenon is no longer restricted to metros, which is why there is a driver of growth that is happening, allowing us to open more than 100 stores,” commented Agrawal. 

The Raging Café Culture

Although the café culture is here to stay, the post-pandemic influx cannot be denied. “The current wave of coffee is witnessing a growth of coffee brands; focused on serving specialty coffee that caters to everyone’s taste,” said Bharat Sethi, Founder, and CEO, Rage Coffee. 

With new-age D2C brands offering coffee in an instant, many might think offline stores might lose its charm, however, the human connection is here to stay. Reiterating the same, 
“A good percentage of our business comes through online platforms, but the physical locations are what create our brands, where people come and meet Tim mates - our employees - feeling the warmth and care that we put into our offerings,” said Gurnaney.

The Coffee Diversity

While the new-age coffee brands are bringing a variety of coffee discoveries to the table, the veterans continue to experiment with their menus to cater to the evolving taste palates of different consumers. 

“We aspire to be the ultimate caffeine innovation brand catering to all Indians wanting to experience the coffee magic,” stated Sethi. 

Rage has introduced flavored, functional coffee, infused with plant vitamins that complement coffee and help deliver its benefits. Nescafé recently launched a complete Freshly Brewed solution with a range of 100 percent arabica and blended whole roasted beans, and machines capable of serving 13-80 different options to satisfy the diversity of choice. 

To provide the consumers with global experiences, Navin Gurnaney said, “While we will stay true to the brand with our core beverages and food there will always be innovations with the menu which the customer is clambering for and we aim to constantly provide that.”

The Coffee Marketing Strategy

With its aim to open 120 stores within 3 years of its operations, Tim Hortons intends to drive growth through its stores, while Barista plans to increase consumer engagement to keep up with the evolving trends. Rage Coffee uses an omnichannel approach, selling 50 percent of products online and the rest offline with around 4,500 offline touchpoints.

The Coffee Technology

Technology is an absolute necessity for every business but it also has to enhance the customers’ experience.
Rage Coffee with its instant coffee, liquid coffee decoction, cold brew bags, etc. has been innovating with its product portfolio offering a new range of products. 

“We offer a complete proposition with a machine, product, and servicing with 13+ menu options with customization, hygiene and semi-auto cleaning features for food safety, comprehensive service offering, and IoT enabled machines,” said Amantran Ghosh, Marketing Head- Beverages, Nestlé Professional.

Tim Hortons is in production of an application that will allow people to order and pay online and have it delivered everywhere. Barista on the other hand has implemented consumer-friendly solutions capturing consumer data.

The Coffee Future

Growing 500 percent YoY, Rage Coffee is aiming to reach 10,000 stores by March 2023. With 350 outlets, Barista is looking at 500 outlets in the next 2 years, having matured its FMCG business it aims to grow into the international markets. Focussed on the northern belt, Tim Hortons intends to expand into the western part of India.

In totality, the coffee culture is evolving, with coffee retailers and cafes offering not just coffee but an experience.