Mumbai: Consumption of coffee is likely to rise by 6% this year because of better availability, driven by promotional activities of the state-run Coffee Board and a surge in out-of-home use, industry officials said.
Coffee consumption is expected to touch 90,000 tonnes this year, from 85,000 tonnes in 2006, a senior official of the board, who did not want to be identified, said. In July, the board said it intends to pump in Rs90 crore over the next five years to boost consumption of the beverage. Global coffee consumption could exceed 125 million 60kg bags in 2008—up from more than 122 million 60kg bags this year, the International Coffee Organization said last week. “In the last two years, domestic consumption of coffee has gone up steadily, but out-of-home consumption of coffee is growing at a faster rate of 12-13%,” said Partha Duttagupta, chief executive of Barista Coffee Co.
A Georgia stall in New Delhi. Coffee drinking has increased in metros as well as in tier II cities.
Consumption is rising in metros as well as in tier II cities and is being driven by growth of cafes and vending machines. “Cafes have made coffee more accessible to the masses,” said Simran Sablok, general manager, marketing, Café Coffee Day, a division of India’s largest coffee conglomerate, Amalgamated Bean Coffee Trading Company Ltd.
The specialist coffee shop chains are also now driving the coffee sales in non-South Indian regions, which are traditional tea consumption centres. South India accounts for more than three-fourths of the total coffee consumption in India annually.
“We have our cafes in Shillong, Guwahati and Darjeeling in the east right up to Baroda and Rajkot in the west that are known for their tea drinking habits,” Sablok said.
The share of coffee consumption in restaurants and cafes is now 85% of the total out-of-home segment, according to the Coffee Board.
However, per capita coffee consumption in India is only about 80g compared with 4.09kg in the US and 3.03kg in the UK and 3.41kg in Japan.
Per capita consumption of the caffeine beverage will only grow when overall consumption rises and coffee companies should work towards this, Duttagupta said.