Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

It’s not unheard of see a heated argument between individuals over whether <keyword id="6354798" type="ORGANIZATION" weightage="20" keywordseo="coffee">coffee</keyword> is the supreme beverage or <keyword id="6375197" type="UNKNOWN" weightage="20" keywordseo="tea">tea</keyword> is the ultimate drink. A new report by <a href="https://www.ubereats.com/en-IN/" data-type="tilCustomLink">UberEats</a> looks at how the consumption habits of these beverages varies in <keyword id="3658" type="COUNTRY" weightage="20" keywordseo="India">India</keyword> from city to city. While the metropolitan city of Mumbai drinks twice as much coffee as it does chai, Delhi’s consumption of chai is 32% higher than its consumption of coffee. And, though most of India looks to the southern states for filter coffee, Chennai, Hyderabad and Bangalore consumer twice as much chai as compared to coffee.

Battle of the Brews in India

The Indian <keyword id="6354798" type="ORGANIZATION" weightage="100" keywordseo="coffee">coffee</keyword> retail market has been buzzing over the last 12 months with two key players <keyword id="6377922" type="CITY" weightage="100" keywordseo="Starbucks">Starbucks</keyword> and Cafe Coffee Day on expansion drive. The market size of retail coffee in India is estimated at Rs 1700 crore plus and expected to grow at a fast pace of over 20% in the recent times. This story explores what are the key drivers fuelling the industry and what are the key challenges breaking its growth speed. 
 
The good: What’s working and key drivers 
 
Expansion drive: The entry of global coffee retailer Starbucks has turned out to be one of the key growth drivers of the coffee retail market. Since the launch of its first store in 2012, the coffee retailer has opened 50 stores across Delhi, Mumbai, Pune, Bangalore and Chennai. Starbucks’ India operations are a part of Tata Starbucks Ltd, which is a 50:50 joint venture between the US coffee retailer and Tata Global Beverages. Starbucks stores attract not only the regular coffee goers (which are the youngsters), but it also has lured the executive segment which otherwise stayed away from coffee shops due to their association with being a spot for college goers. 
 
On the other hand, Cafe Coffee Day, India’s biggest coffee retailer, has launched approximately 150 stores over the last one year. The total store count of this retailer is about 1550, with presence in 200 cities. This increase in the total number of stores and Starbucks brand name has added to the growth and expansion of this market. 
 
Increasing disposable income and expansion of consumption culture: Another key drive which has given a boost to the Indian coffee retail space is the increase in consumption culture, westernization and increased disposable income. Over the last one decade, Indian consumers have shifted from being saving oriented to be more consumption oriented, more so in the last 4 years. This shift in our consumer behaviour has taken away the mental barrier on spending on eating out. Thus, Spending Rs 200-400 on a cup of coffee along with some food is not big deterrent for today’s Indian consumers. 
 
Different formats to catch every consumer segment: Cafe Coffee Day follows a mix of various formats including mall formats, highways, Lounge (premium upscale format) and Square (which is a single-origin coffee destination). Having these different formats has helped it tap into the various consumer segment in the market with their different spending power and preferences. This has been quite a smart strategy and a few small coffee retailers are also following this format to tap this market better. 
 
Indianisation: One of the key reasons of Starbucks instant success in India is being attributed to its Indianisation of store ambience as well as food menu. Most of the stores of this US retailer have interiors done with an Indian flavour. Hand-carved wooden screens, tables of solid Indian teak, painted vintage trunks, Indian theme paintings, etc. are a key part of the stores. The indianisation is clearly visible in the menu too. So there is a Reshami Kabab fighting for your attention against the Classic Breakfast Chicken Sandwich. The Indian Chai Latte, Murg Kathi Roll, Konkani Twist, etc. are a few other options that add Indian flavour to the offering of Starbucks in India. Experts believe that this Indianisation of the menu, particularly, food has really helped increase spending per person/group in a single visit and also ensured repeat visits of families. While the standard global offerings like blueberry muffic, Sandwich biscuit, quiche, etc. keeps stays to be an attraction for the younger as well as corporate consumers. 
 
 
The bad and the ugly: Key challenges 
 
The struggle: The coffee retail is a segment which has also seen many players struggling and failing. With more than 3100 stores across the country and the industry size of Rs 1700 crore, the competition is quite intense with very less margin for error. Barrista, which had quite a good footing for a few years, is seemingly more lost with its parent Lavazza scouting for a buyer. Gloria Jean, which has been struggling since its launch in India is considering to pull out. Costa Coffee which is world’s second largest coffee retailer and has been in India for quite a few years, has still not been able to find a strong footing and has about only 100 stores after all these years of operation in the country. 
 
Two player battle: So far, the Coffee retailing market seems largely a two player battle between Cafe Coffee Day and Starbucks, primarily because they seem to have winning Indian consumer’s heart as well as their wallet. This is another challenge for the market’s overall growth. Unless, other players don’t hit it off with the consumers expanding the market will remain a challenge. With more players getting established, there will be more innovation, better service, better quality which will boost the sector’s growth. But that seems to be lacking at the moment. 
 
The economic impact: The economic slowdown of 2009 did hit the coffee retail sector majorly, as with incomes and job securities going down, people did became cautious in nature. Industry experts believe while things have started to look up more recently, consumer approach is still not back to what it was back in 2008. 
 
Real estate costs: High real estate cost is another challenge that cuts into the margin of coffee retailers. While these costs have gone down slightly in the last couple of years, it still is quite high. In a good location, almost 505 of the enterprise cost goes for the real estate. This affects the overall costing and profitability of the coffee retailers.

Indian Retail Coffee Market: The Good, The Bad And The Ugly

<ul><li><keyword id="41887" type="General" weightage="80" keywordseo="biryani" source="Orion">Biryani</keyword> emerged as the king of food yet again on <keyword id="6358977" type="General" weightage="100" keywordseo="swiggy" source="Orion">Swiggy</keyword>, and Indians prefer chicken biryani way more than they do veg biryani. </li><li>Bangaloreans from the ‘cool city’ also ordered more ice cubes than Mumbai, Delhi and Chennai users combined. </li><li>The evergreen samosa and chai-kaapi were the fuel running Indians this year, while desi desserts and chocolate items were the other top snacks. </li><li>In the quirky stuff, users searched for things like petrol, sofa, beds and ‘mommy’ on <keyword id="9731725" type="General" weightage="20" keywordseo="Swiggy-Instamart" source="Orion">Swiggy Instamart</keyword>. </li></ul>Ordering food online has undergone a radical change in the post-Covid world, in large part due to the convenience it offers. Now, Swiggy’s latest annual trends report reveals just how dependent Indians have become on ordering food and groceries online, ordering everything from food to desserts and searching for ‘mommy’ on Swiggy Instamart. The food delivery platform saw Indians indulging their taste buds with shuddh desi delicacies to firangi flavours and guilt-free options. Swiggy also revealed its users in Bengaluru ordered more ice cubes than Mumbai, Delhi and Chennai put together. Party animals, assemble! <cmsannotation type="cmsannotation" annotationid="No seven year itch for biryani lovers" comment="subhead" text="No seven year itch for biryani lovers">No seven year itch for biryani lovers</cmsannotation> <div type="image" title="Chicken biryani" msid="96275530" hostid="261" sizebytes="112720" caption="&amp;lt;p&amp;gt;Chicken biryani&amp;lt;/p&amp;gt;"></div> Biryani emerged as the undisputed king for the seventh consecutive year, showing just how much Indians love it. In fact, Indians ordered more biryani this year than 2021 – Swiggy says its users ordered 2.28 biryanis per second this year, up from 1.92 in 2021. Chicken biryani emerged as the queen of biryanis, while its leaner cousin ‘veg biryani’ was a distant ninth in the list of the most-ordered dishes. Even Chicken and veg fried out did the veg version of the most loved/ordered dish! <cmsannotation type="cmsannotation" annotationid="Desi desserts rule" comment="subhead" text="Desi desserts rule">Desi desserts rule</cmsannotation> <div type="image" title="Gulab jamun" msid="96275588" hostid="261" sizebytes="115000" caption="&amp;lt;p&amp;gt;Gulab jamun&amp;lt;/p&amp;gt;"></div> The juicy gulab jamun was the favourite dessert of Indians this year – in fact, it was loved so much so that Indians ordered it 27 lakh times, followed by rasmalai at a distant second with 16 lakh orders. The only non-desi dessert Indians love is something with chocolate. The choco lava cake was ordered 10 lakh times. Other desserts which have made it to the list are ice cream with choco chip, alphonso mango and tender coconut. <cmsannotation type="cmsannotation" annotationid="Masala dosa to tandoori chicken and everything in between" comment="subhead" text="Masala dosa to tandoori chicken and everything in between">Masala dosa to tandoori chicken and everything in between</cmsannotation> <div type="image" title="Dosa" msid="96275615" hostid="261" sizebytes="79800" caption="&amp;lt;p&amp;gt;Dosa&amp;lt;/p&amp;gt;"></div> Masala dosa emerged as the second-most ordered food item on Swiggy in a list otherwise dominated by biryani, fried rice and the ever-green paneer butter masala. Other crowd favourites were chicken fried rice, butter naan, veg fried rice, and tandoori chicken – predictable and yet delicious. Indians also experimented more this year with orders for global dishes like sushi, Mexican bowls, Korean spicy ramen, German sausage and Italian pasta seeing a big uptake. <cmsannotation type="cmsannotation" annotationid="Samosa and chai-kaapi – the fuel of Indians" comment="subhead" text="Samosa and chai-kaapi – the fuel of Indians">Samosa and chai-kaapi – the fuel of Indians</cmsannotation> <div type="image" title="Samosa" msid="96275633" hostid="261" sizebytes="129948" caption="&amp;lt;p&amp;gt;Samosa&amp;lt;/p&amp;gt;"></div> Jab tak chalega samose mein aaloo – they’ll keep Swiggyin. It seems Indians run on samosa and chai-kaapi (tea-coffee). They devoured samosas with over 40 lakh orders on Swiggy, while Instamart orders for tea and coffee surged by 300% in 2022. Another snack Indians dug into is popcorn – in fact, Swiggy received 22 lakh orders of popcorn, most of which were post 10 p.m. Popcorn and chill, is it? <cmsannotation type="cmsannotation" annotationid="Quirky and healthy Instamart" comment="subhead" text="Quirky and healthy Instamart">Quirky and healthy Instamart</cmsannotation> <div type="image" title="Fruits" msid="96275656" hostid="261" sizebytes="156782" caption="&amp;lt;p&amp;gt;Fruits and vegetables&amp;lt;/p&amp;gt;"></div> Indians took to healthy eating as well, with Swiggy delivering over 50 lakh kilos of organic fruits and vegetables during the year. Guilt-free orders also saw a 23% increase in searches, but how many of those translated into orders is not known. Window-shopping guilt-free food, people? Indians also apparently became a little lazy this year – according to Swiggy, it delivered an Instamart order for a 50-metre distance in one minute, while a Bangalorean spent ₹16.6 lakh on groceries alone. Milk was the most-ordered item during the India vs Pakistan World Cup match this year, as people refuelled themselves while the tensions on the ground ran high. Sobering up with chai and hot chocolate it seems. Coming to the quirky stuff – Swiggy users apparently searched for petrol, ‘mommy’, sofa, beds, and underwear on Instamart. While Swiggy might work on others, when it comes to delivering ‘mommy’, mum’s the word. SEE ALSO: <a href="https://www.businessinsider.in/policy/economy/news/indian-economy-to-outpace-world-average-growth-in-2023-can-it-duck-global-headwinds/articleshow/96256621.cms">Indian economy to outpace world average growth in 2023 – Can it duck global headwinds?</a> <a href="https://www.businessinsider.in/business/corporates/news/tpg-to-acquire-adar-poonawalla-led-groups-housing-finance-arm-at-3900-crore-valuation/articleshow/96256578.cms">TPG to acquire Adar Poonawalla-led group’s housing finance arm at ₹3,900 crore valuation</a> <a href="https://www.businessinsider.in/stock-market/news/foreign-portfolio-investors-flows-in-2022-in-india/articleshow/96223765.cms">FPI flows in 2022 – a tale in two parts</a>

Ice cubes to gulab jamuns and 50 lakh kilos of organic fruits and veggies – how India Swiggy’d in 2022

<ul><li>An estimated 400 kg of dhaniya was sold on <keyword id="964794" type="General" weightage="80" keywordseo="bigbasket" source="Orion">BigBasket</keyword> while tomato became the most sought-after vegetable on the app. </li><li>An estimated 17 lakh kilos of exotic fruits such as <keyword id="6408810" type="General" weightage="50" keywordseo="dragon-fruit" source="Orion">Dragon Fruit</keyword>, Pomelo, Berries, and <keyword id="15929644" type="General" weightage="50" keywordseo="wood-apples" source="Orion">Wood Apples</keyword> were also sold on <keyword id="9728281" type="General" weightage="80" keywordseo="instamart" source="Orion">Instamart</keyword> in 2022. </li><li>The demand for non-alcoholic beer grew 86% on <keyword id="9731725" type="General" weightage="80" keywordseo="swiggy-instamart" source="Orion">Swiggy Instamart</keyword> during the India-Pakistan T20 match this year.</li></ul> Be it quick commerce or the ‘normal’ version, Indians have taken to ordering essentials and groceries online. As per the year-end reports of two such e-commerce platforms – <keyword id="6358977" type="General" weightage="80" keywordseo="swiggy" source="Orion">Swiggy</keyword> Instamart and BigBasket, one state – Karnataka topped the charts when it comes to bringing ‘groceries’ home. As per Swiggy, its most prolific user was from Bengaluru – who spent over ₹16.6 lakhs buying groceries and essentials in 2022. The second most popular grocery item was milk according to Swiggy Instamart. A user from Gurgaon ordered the most – a whopping 1,542 times in 11 months. His go-to items were instant noodles and full-fat milk. The same trends were picked up by grocery delivery platform BigBasket, reporting that Wednesdays is when milk was ordered the most on the app. When it comes to what people need the most and can’t always go shopping personally — the winner is diapers as per BigBasket — which sold 3.97 lakh diapers this year. The green garnishing in red gravies The aroma of the Indian kitchens goes unfulfilled without some dhaniya (coriander) and tomato. An estimated 400 kilos of dhaniya was sold on BigBasket, and tomato was the most sought-after vegetable on the app. Mirroring the sentiment was Swiggy Instamart – onions, potatoes, tomatoes, watermelons, bananas, and tender coconut were the most ordered fruit and vegetables on the platform. Healthy, organic food see uptake, too There is enough interest in healthier, organic food on the apps too. “Users ordered over 5 million kilograms of organic fruits and vegetables with the healthiest eaters hailing from Bengaluru, Mumbai, Hyderabad, <keyword id="2094" type="General" weightage="50" keywordseo="pune" source="Orion">Pune</keyword>, and Delhi,” Swiggy said in a statement. An estimated 1.7 million kilograms of exotic fruits such as Dragon Fruit, Pomelo, Berries, and Wood Apples were also sold on Instamart, the report claims. Indians like to party People order via apps the most when there’s something keeping them glued to the TV — like a nail-biting cricket match. As per Swiggy, many app users went ‘high’ on non-alcoholic beer, — whose demand went up 86% on the day <keyword id="3658" type="General" weightage="50" keywordseo="india" source="Orion">India</keyword> played against Pakistan in the T20 World Cup — i.e., October 23. The silicon valley of India Bengaluru also ordered more ice cubes than Mumbai, Delhi, and Chennai users combined, according to How India Swiggy’d Report 2022. Of course, one can stock alcohol ahead but need the ‘rocks’ to go with it. India also needs other kinds of drinks all year through. When it comes to all-season beverages, nothing can outrun the popularity of chai and kaapi. In 2022, Swiggy Instamart witnessed a 305.5% growth in orders for tea leaves and 273.6% for coffee powder. Indians also searched for things that are not yet available for delivery on Instamart — pillows, sofas, underwear, mommy and petrol. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/health/news/uzbekistan-cough-syrup-issue-manufacturing-at-marion-biotech-stopped-after-probe/articleshow/96620076.cms">Uzbekistan cough syrup issue: Manufacturing at Marion Biotech stopped after probe</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/ril-eicher-motors-elin-electronics-among-stocks-to-watch-today/articleshow/96611190.cms">Indian markets wrap 2022 on a weak note – Sensex, Nifty50 decline on the last day of the year</a>

You Searched For "chennai chai coffee" and got 4 results

Battle of the Brews in India

Prabhjote

BI

Indian Retail Coffee Market: The Good, The Bad And The Ugly

Pallavi Srivastava

Ice cubes to gulab jamuns and 50 lakh kilos of organic fruits and veggies – how India Swiggy’d in 2022

Rounak Jain

Dhaniya, diapers and tomatoes among the top picks for Indians on grocery apps in 2022

Eetika Kapoor

Popular Keywords

Buying Guides