India has attracted $100 million over the last 2 years, according to data research and analysis firm Tracxn. Globally, the coffee market has grown around 2.5% to 3% year on year. In India, growth has been 10-15% with a CAGR of 8.9% from 2020 to 2025.
Here's why coffee is gaining popularity in India:
Growing Coffee Culture: India is witnessing a surge in coffee consumption, especially among urban populations, driven by changing lifestyles and influenced by media/digital exposure, and increasing disposable incomes.
Demographic Dividend of India: India's demographic dividend refers to its advantage of having a large working-age population relative to dependents. With over half of its population below 25 years old, India possesses a significant workforce potential, providing a crucial opportunity for economic growth, innovation, and productivity enhancement.
Health Consciousness: It is a great alternative to carbonated and sugary drinks, relatively better accepted across age groups.
Tech Integration: Technology has enabled companies to streamline operations leading to better and consistent experiences, making it easier for VC for large-scale up.
Export Potential: India's coffee industry has significant export potential, with increasing demand for Indian coffee in international markets. This export potential makes coffee startups appealing to investors seeking global scalability.
Diversification of Offerings: Coffee startups are diversifying their product offerings beyond just beverages, including merchandise, coffee-related accessories, and experiential offerings, broadening revenue streams and attracting investor attention.
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