Coffee shops India to grow at CAGR of over 11%Staff writer ▼ | February 3, 2016
Increase in the number of independent cafes in India can be attributed to changing consumer lifestyles, expanding working population base and growing influence of western culture.
Western culture in India The number of cafes is growing
These players are anticipated to maintain their dominance in India coffee shops / cafés market through 2021, on account of their expansion plans coupled with continuous efforts towards localizing their product offerings.
According to TechSci Research report, "India Coffee Shops / Cafés Market Forecast, Consumer Survey and Opportunities, 2021", coffee shops / cafés market in India is projected to grow at a CAGR of over 11% during 2016-2021, on account of the growing coffee culture among young population, increasing urbanization, rising disposable income levels and changing eating and drinking preferences of consumers.
Changing work patterns of business executives is also driving demand for such coffee shops / cafés, as these outlets offer services such as free Wi-Fi, entertainment zones, etc.
Sales of non-carbonated beverages along with foreign cuisines and fast food in India is exhibiting rapid growth, due to growing income levels and rising awareness among consumers.
However, the market is being confronted with challenges pertaining to widespread adoption, due to inclination towards traditional beverages, along with high cost of these new offerings. ■