How do you prefer your coffee ? black with a dash of milk or iced with a strong brew? Whatever your choice, here’s some troubling news… the cost of coffee is set to rise due to climate change. This is significant since coffee is the second most consumed beverage in the world, after drinking water. Every day, people consume 2.25 billion cups of coffee. In India alone, coffee generates 51 billion dollars annually.
Coffee first arrived in India in the 17th century when Baba Budan, on a pilgrimage to Mecca, smuggled coffee seeds hidden in his beard. He brought these seeds to India and planted them in the Chikmagalur hills of Karnataka. This marked the beginning of India’s journey in the coffee industry. By 2023, India’s coffee exports surpassed 1 billion dollar, and the domestic market is valued at approximately 5 million dollar, with projections suggesting it will exceed 1 billion dollar soon
While India is traditionally a tea-drinking country, the younger generation increasingly favors coffee. The first coffee shop in India, Coffee Café Day or CCD, opened in 1996, followed by Starbucks, a US-based coffee giant, launching its first store in India in 2012. Over the past 11 years, Starbucks has expanded to 343 stores nationwide and plans to open around 1,000 more by 2028
Despite this growth, coffee shops may still be considered a luxury for many Indian consumers. An average cup of coffee costs between 3 and 4 dollars in India, while the daily minimum wage is around 2 dollars, making coffee unaffordable for a large segment of the population. Coffee penetration in India is currently at just 3.6%, but it is projected to rise to 6% by 2029, indicating substantial market potential. Despite the affordability challenges, the coffee industry in India is expanding with increasing excitement
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