Steady rise in India's coffee, tea consumption

KOCHI: Despite the fast growth of bottled juices and aerated drinks, consumption of tea and coffee is going up in India. Coffee consumption is up by 6% in the last few years while tea consumption has been showing a 3% annual growth.

Product innovation and better marketing strategy have helped coffee demand to spread to north India. Tea continues to be the common man's drink throughout the country.

Widespread popularity of carbonated beverages supported by intense promotional campaigns has not made a dent in the consumption of tea and coffee. Mushrooming coffee bars and cafes have made coffee drinking fashionable in cities. Coffee consumption has been aided by increasing urbanization and greater disposable income. Admittedly, south India as a region has the largest number of coffee drinkers.

But a recent survey by Coffee Board shows that of late more than 50% growth has come from non-south regions. Coffee Board chairman Jawaid Akthar said the coffee consumption has shown an annual average growth of 6% since 2000. In the previous decades, the growth was just 2 %. "Apart from the high-end outlets, the consumption of instant coffee is increasing in north India. Our attempt is to popularise filter coffee in the region by removing the notion that it is difficult to make," he said.

The proportion of occasional coffee drinkers has increased in the last few years in the non-south regions. The board is keen on exploiting this potential of non-south states. Tea consumption is growing by 3% every year. "It is more of a common man's drink and used in 90% of the households in the country," said Sujit Patra, joint secretary of Indian Tea Association.

The higher consumption of coffee and tea is happening at a time when India is fast emerging as a major market for soft drink and fruit juices. "India is a focus market for the Coca-Cola company. The India business has now been growing for the last 19 quarters," said the official spokesmen of the company.