India Coffee Retail Chains Market: Current Analysis and Forecast (2025-2033)

India Coffee Retail Chains Market Size & Forecast

The India Coffee Retail Chains Market was valued at USD ~615 million in 2024 and is expected to grow to a strong CAGR of around 8.20% during the forecast period (2025-2033F), owing to the increasing disposable income and affinity for café culture.

Coffee Retail Chains Market Analysis

Coffee retail chains are business establishments which serve coffee and related products through a chain of outlets under one common brand. These chains focus on the quality consistency, outlet image, and digital interactivity, and most of these are prospects that are established in urban and semi-urban territories. Its importance cannot be denied in the development of coffee culture and changing the consumption pattern of coffee in India.

To achieve growth in the coffee retail chains market, major players in the coffee retail chains market in India are franchising, setting up franchises in Tier II & III cities, and also using technology in the form of loyalty apps and online ordering. Adding to this, companies are innovating in menus with novelties such as cold brew, vegan dishes, cafe layouts for co-working, and packaging and sourcing responsibly for the planet. Moreover, rising achievements through partnership with food delivery platforms or inclusive of express and drive-thru service are also expanding market reach.

For instance, on August 29, 2024, abCoffee announced that it was partnering with Shoppers Stop, India's iconic Premium shopping destination, to make the customer experience more memorable and seamlessly integrate abCoffee's specialty coffee offerings into Shoppers Stop's retail environment.

This collaboration marks a significant milestone in abCoffee's expansion strategy, opening three new state-of-the-art coffee decks across key metropolitan cities.

India Coffee Retail Chains Market Trends

This section discusses the key market trends that are influencing the various segments of the India Coffee Retail Chains market, as found by our team of research experts.

Growth of Cloud Cafés and Delivery-Only Coffee Brands

The emergence of cloud cafés and delivery-only coffee brands is the new trend in the coffee retailing market of India, based on convenience and order. These models again help in cutting down operating costs as the restaurants expand their customer base by offering food delivery apps. Both start-ups and brands are grabbing this opportunity to grow exponentially without the need for any capital cost in brick-and-mortar stores.

For example, on April 10, 2025, Southeast Asia’s fastest-growing grab-and-go coffee chain, Kopi Kenangan, officially launched its first store of Kenangan Coffee in India at Pacific Mall, Tagore Garden, Delhi. The brand aims to craft a uniquely harmonious coffee experience by bringing together India’s premium coffee heritage with its signature milk and Gula Aren (Indonesian Palm Sugar). Plans to open 10+ stores by the end of the year 2025 and 50 stores in the short term.

Coffee Retail Chains Industry Segmentation

This section provides an analysis of the key trends in each segment of the India Coffee Retail Chains market report, along with forecasts at the regional and state levels for 2025-2033.

The dine-in market held the dominant share of the Coffee Retail Chains Market in 2024.

Based on the type of outlet, the market is segmented into dine-in, take-away. Among these, the dine-in café market held the dominant share of the market in 2024. The dine-in segment contributes a lot towards the growth of India’s coffee retail chain market by offering places where one can work, interact with others, and relax. Chained cafés with franchisees and a bright, comfortable atmosphere, wireless Internet access, and selected food and beverages are popular among youngsters and businesspeople who need something beyond beverages. This consumer behaviour increases traffic and repeated use, which helps the kind of growth in urban areas. For instance, on March 27, 2025, UK-based freshly made food and organic coffee chain Pret A Manger launched its first-ever full-service dine-in store globally in India. Located in Pune at Phoenix Mall of the Millennium, the 989 sq. ft. outlet offers guests the brand’s first-ever global sit-down dining experience.

The Franchise-Owned Outlets segment is expected to grow with a significant CAGR during the forecast period (2025-2033) of the Coffee Retail Chains Market.

Based on the ownership model, the market is segmented into company-owned outlets, franchise-owned outlets. Among these, the franchise-owned outlets segment is expected to grow with a significant CAGR during the forecast period (2025-2033) due to the desire to own a café franchise, and the large players expand their reach at a faster pace at the national level. Franchisee-owned models are quite effective in fast expansion because of low capital exposure and better knowledge of the local market. This segment helps in reaching out to the second and third-tier towns with unified and homogenized services and products.

For instance, on February 28, 2025, Vietnam's beloved 24-hour cafe chain, Three O'Clock, made its grand debut in India through a strategic partnership with FranGlobal, the international business arm of Franchise India. As the master franchise partner, FranGlobal will spearhead Three O'Clock's expansion, as it plans to open 100 outlets across India, Nepal, Sri Lanka, and Bangladesh in the coming years.

North India leads the Coffee Retail Chains Market in 2024.

North India is considered the most significant region of growth for the coffee retail chain market because of rising urban population, disposable income, and globalization. The major metros and emerging cities of Delhi NCR, Chandigarh, Jaipur, and Lucknow have got branded coffee outlets that the young generation and families tend to embrace. The region’s desire for better lifestyles and luxury products further increases the attractiveness of this market for expansion. Also, the number of malls, business parks, and universities contributes to the regular traffic of people in cafés. Seasonal beverages and local cuisines contribute to the enhancement of customer relations in this part of the world.

For instance, on March 6, 2025, Nespresso, the pioneer in premium portioned coffee, announced the grand opening of its first boutique at Select Citywalk Mall, Ground Floor, Saket, New Delhi. This launch marks a significant milestone in Nespresso's global expansion following its initial entry into India in late 2024.

The new boutique offers coffee enthusiasts an immersive experience, showcasing Nespresso's iconic range of high-quality coffees and state-of-the-art machines. Consumers can explore and savor a variety of coffee blends, receive personalized recommendations from trained coffee specialists, and learn about Nespresso's commitment to sustainability.

Coffee Retail Chains Industry Competitive Landscape

The India Coffee Retail Chains market is competitive, with several global and international market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions.

Top India Coffee Retail Chains Companies

Some of the major players in the market are Cafe Coffee Day (Coffee Day Global Limited), Starbucks Coffee Company (Tata Sons Private Limited), Barista Coffee Company Limited, Third Wave Coffee, Coffee By Di Bella, Blue Tokai (Muhavra Enterprises Private Limited), SLAY Coffee, Costa Coffee (Coca Cola group), HATTI FOOD AND BEVERAGES PRIVATE LIMITED, Brewbay Innovations Private limited (abCoffee).

Recent Developments in the India Coffee Retail Chains Market

• On April 04, 2025, Starbucks, the Seattle-headquartered cafe chain, opened its first drive-thru outlet in South India in Bengaluru. The cafe chain’s India operation, TATA Starbucks, a 50:50 joint venture between Starbucks Coffee Company and Tata Consumer Products Limited, opened its maiden drive-thru cafe at Electronics City, also the 50th store in Bengaluru. TATA Starbucks currently has eight drive-thru coffee outlets in the country.

On January 30, 2025, Coffee Island announced its debut in India in partnership with Vita Nova. This strategic entry marks a significant milestone for the brand as it forays into one of the world's most dynamic coffee markets to offer a distinctive European Coffee Culture experience.

India Coffee Retail Chains Market Report Coverage

Reasons to Buy the India Coffee Retail Chains Market Report:

• The study includes market sizing and forecasting analysis confirmed by authenticated key industry experts.

• The report briefly reviews overall industry performance at a glance.

• The report covers an in-depth analysis of prominent industry peers, primarily focusing on key business financials, type portfolios, expansion strategies, and recent developments.

• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.

• The study comprehensively covers the market across different segments.

• Deep dive regional level analysis of the industry.

Customization Options:

The India Coffee Retail Chains market can further be customized as per the requirements or any other market segment. Besides this, UnivDatos understands that you may have your own business needs; hence, feel free to contact us to get a report that completely suits your requirements.