Rising Popularity Of Coffee Shops

Coffee consumption and trend is undergoing a rapid change resulting in the rise in growth of café chains. Several individual coffee shops have also proved popular. The popularity of cafes has been on the rise due to various reasons. India has become a popular destination for several coffee chains due to the increasing demand from the populace. This, in turn, has encouraged several entrepreneurs to venture into this field. Ashok Malkani examines the reasons for the growing popularity of cafes and tries to enlighten an enterprising businessman seeking to venture into this field on the pros and cons of café business.

- Ashok Malkani

India is now the 10th fastest-growing market for specialist coffee and tea retail chains, globally. According to a report by market researcher, Euromonitor International, the café chain market, led by Cafe Coffee Day and Tata Starbucks, is also one of the fastest growing categories in the consumer food service industry, and is expected to touch Rs 4,540 crore by 2023 in value sales.

The Globe Newswire in its report "India Café Market By Segment (International, and Domestic), By Service (In Dine and Take Way), By Product Offering (Coffee, Tea, Other Beverages, Snacks, and Others), Competition, Forecast & Opportunities, 2024" states that the Indian coffee cafe market is expected to register growth at a CAGR of over 12% during 2019-2024.

One of the main reasons which can be attributed to the popularity of cafés is the fact that Millenials and Gen-Zs love coffee and cafes. There has been an increasing demand from young population with rising disposable income. Some of the other reasons for popularity of coffee houses are rapid urbanization, corporate culture, and global lifestyle. Moreover, rising number of double-income households, more global exposure, increasing innovation, and media penetration is further fueling growth in the Indian café market.

International Café Brands