Tag: India coffee market

Starbucks aims to reach 1,000 stores in India by 2028

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Dubai – Qahwa World

Starbucks’ global leadership has reaffirmed India’s position as one of the company’s most dynamic international markets, announcing new growth targets and fresh support for the country’s coffee sector.

The company’s Chief Executive, Brian Niccol, said in an interview with CNBC TV18 that India is now among the fastest-growing territories for the brand. The joint venture between the US coffee chain and Tata Consumer Products is expected to reach 500 stores this month, marked by the opening of a second Reserve location in the Delhi NCR area.

Niccol confirmed that the long-term ambition is to expand the network to 1,000 stores by 2028, emphasizing that success depends on pairing the company’s global expertise with a strong local presence. He highlighted that the strategy includes rolling out more premium formats aligned with the wider “Back to Starbucks” roadmap.

Starbucks first entered India in 2012 with a store in Mumbai and established a roasting facility in Karnataka the following year.

Alongside its retail growth plans, Starbucks also announced a new initiative aimed at strengthening India’s coffee value chain. Through the newly launched Farmer Support Partnership, the company’s global procurement and trading arm—Starbucks Coffee Trading Company—will work with growers in major producing regions including Karnataka, Tamil Nadu, Andhra Pradesh, and Kerala. The programme is designed to create technical model farms, promote best agricultural practices, and connect local producers with Starbucks’ global farming network.

The initiative will also support trials of new coffee varietals and collaborate with existing Farmer Support Centers located in countries such as Indonesia, China, and Costa Rica. Niccol said the partnership aims to train 10,000 farmers, combining Starbucks’ agronomy knowledge with Tata Starbucks’ understanding of local conditions.

Tata Consumer Products recently reported that Tata Starbucks returned to like-for-like sales growth for the first time in a year, supported in part by a government reduction in food and beverage taxes. The brand recorded 8% revenue growth in the second quarter ending 30 September 2025.

India’s Coffee Shop Market Rises as Homegrown Brands Gain Ground

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New Delhi, 11 September 2025 – Qahwa World – India’s branded coffee shop sector is undergoing remarkable growth, highlighting both the strength of global players and the rise of domestic champions. New industry data shows the market expanded by 12.7% over the past year, adding more than 600 new outlets to reach a nationwide total of 5,339 branded coffee shops. This surge underscores the growing appetite for café culture in the world’s most populous nation.

Market leaders and shifting dynamics

At the forefront is Tata Starbucks, which operates 480 outlets across India, securing its position as the market leader. It is closely followed by Barista with 465 stores, while Café Coffee Day remains in third place with 425 stores, though it continues to shrink in scale due to financial pressures.

India’s branded coffee landscape is not just defined by large chains. Among the 104 branded operators currently active, nearly four in five are homegrown, demonstrating the growing dominance of domestic brands. Boutique names such as Blue Tokai Coffee Roasters, Third Wave Coffee, and Subko have built reputations by spotlighting India’s coffee-growing heritage, while affordable brands like Nothing Before Coffee, abCoffee, and First Coffee attract younger professionals seeking value-driven options.

Fastest movers in the market

Two local chains stand out for their rapid expansion: Third Wave Coffee and Café Buddy’s Espresso. Each grew by 56 outlets in the past year, bringing their store counts to 172 and 145 respectively. Their rise reflects the strong momentum of Indian-owned businesses as they capture consumer loyalty.

Consumer preferences: social and experiential

Unlike in many Western countries, takeaway culture remains limited in India. Coffee shops are primarily social spaces where family and friends gather, with nearly one-third of visits taking place after 5 p.m. The experience comes at a premium: average spending per visit, including food, is ₹660.86 ($7.53), while beverage-only visits average ₹426.22 ($4.85).

Beyond coffee shops, coffee also plays a growing role in restaurant culture, with nearly 75% of surveyed consumers reporting that they ordered coffee in restaurants over the past year. This has encouraged international players to adapt, with UK-based Pret A Manger launching its first-ever full-service restaurant format in India earlier this year.

A market with global potential

India’s demographics provide fertile ground for future growth. With a population of 1.45 billion, more than half of whom are under 30, and a strong base of coffee-growing regions, the country is poised to become a key global hub for coffee commerce.

Projections indicate that the branded coffee shop market will exceed 6,100 outlets by 2026, and is on track to cross 10,000 outlets by 2030. Analysts forecast a 13.2% compound annual growth rate (CAGR) over the next five years. Coffee-focused chains are expected to expand at 15% CAGR, surpassing 8,050 outlets, while food-led operators will grow at around 7% CAGR, reaching nearly 1,860 stores.

Coffee’s future in India

India’s shift from a tea-first nation to a thriving coffee culture is unmistakable. While global chains such as Starbucks and Costa Coffee initially brought premium café experiences to the country, domestic brands are now setting the pace. By blending modern hospitality with local roots, these operators are shaping India’s evolving identity as a coffee destination.

With rising incomes, urbanization, and a new generation of coffee drinkers seeking aspirational experiences, India is set to become one of the world’s most dynamic coffee markets. From metropolitan hubs like Delhi, Mumbai, and Bengaluru to second- and third-tier cities, coffee culture is spreading fast — and the momentum shows no signs of slowing.

India’s Blue Tokai Raises $25m to Accelerate Global Coffee Ambitions

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Dubai, September 1, 2025 (Qahwa World) – India’s specialty coffee sector is witnessing rapid growth, with local brands no longer limiting themselves to the domestic market but stepping confidently onto the global stage. Leading this movement is Blue Tokai Coffee Roasters, which has announced raising $25 million in a new bridge funding round to fuel both domestic expansion and international ambitions.

Founded in Gurgaon in 2013, Blue Tokai began as a small roastery and has grown into one of India’s most recognized specialty coffee brands. Today, it operates a network of 164 cafés across the country alongside a thriving direct-to-consumer business that has brought Indian coffee to a wider audience. The funding comes at a pivotal moment as urban consumers, especially younger demographics, increasingly seek high-quality coffee experiences.

A portion of the new capital will be directed toward infrastructure development, including new roastery and bakery facilities in Bengaluru and Gurgaon. These investments will boost production capacity and support the company’s expanding retail footprint. The move also comes amid growing competition from fellow Indian specialty chains such as Third Wave Coffee and Nothing Before Coffee, which are also scaling aggressively.

Blue Tokai’s ambitions extend well beyond India. The company already operates a roastery and café in Japan, marking its first overseas venture. In July 2025, it signed a master franchise agreement with Ambrosia Gulf to expand into the Middle East, with a flagship store in Dubai set to open in the final quarter of 2025. This strategic launch places Blue Tokai in the heart of the UAE’s dynamic coffee culture, where both global brands and boutique roasters compete for market share.

According to Shivam Shahi, Co-founder and Chief Operating Officer of Blue Tokai, the company has revised its financial outlook. While earlier forecasts projected revenue of Rs 10bn ($113m) by 2027, the new plan envisions Rs 20bn ($226m) in revenue and over 800 stores within the next four years, driven by strong market response in both domestic and international markets.

The bridge round saw participation from Blue Tokai’s existing investors, including A91 Partners, Anicut, Verlinvest, and 12 Flags, underscoring continued confidence in the brand’s growth trajectory. Since 2023, the company has raised nearly $100 million in funding, including a $30m Series B in January 2023 and a $35m Series C in September 2024.

Although India has historically been a tea-driven nation, coffee culture is undergoing a dramatic shift. Young consumers are driving demand for specialty coffee, placing emphasis on quality, origin transparency, and café experiences comparable to global standards. While multinational players such as Tata Starbucks remain cautious in their expansion strategies, homegrown startups like Blue Tokai and Third Wave Coffee are racing ahead, opening dozens of outlets annually.

With this latest funding, Blue Tokai is positioning itself not only as a leader within India but also as a serious contender on the international specialty coffee scene. By combining domestic infrastructure expansion with strategic global entry points such as Japan and the UAE, the company is charting a course that could redefine the role of Indian coffee brands in the global market.