Author: Shalini Bharti, Research Analyst
08 May 2025
Technological Solutions: The Implementation of Artificial Intelligence, automation, and data analysis is improving the internal processes while opening up new opportunities for revenue generation.
North America/Asia-Pacific is considered to be the largest market due to good infrastructure, high investment, and strong industry players.
Market Trends: Currently, the market is quite fragmented, and experienced players continue to unlock strategic partnerships, acquisitions, and new product developments as some of the approaches towards gaining a competitive advantage.
New trends: Changes in the supply system and challenging conditions, such as sustainability concerns, digitalization, and customer demands, are transforming the markets and the supply of products/services.
According to a new report by UnivDatos, The India Coffee Retail Chains Market is expected to reach USD Million in 2033 by growing at a CAGR of 8.20% during the forecast period (2025-2033F). The primary growth drivers of the India Coffee Retail Chains market are the increasing urbanization, shift in the population’s consumer habits, and an increased trend among the youth to spend time in cafes. Also, the higher disposable income and the ongoing trend to select superior, away-from-home endorsements fuel further growth. Moreover, access to more digital platforms and franchises also enhances the size of the market. 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 using technology in the form of loyalty apps and online ordering.
For instance, 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.
Store expansion in India’s chain retail involves key factors such as store location, store positioning, and store expansion roll-out strategy for metros as well as non-metros. Franchise and expansion with outlets on high streets and malls are some of the strategies adopted by the leading brands to expand the market coverage. There are also trends for Tier II & III cities to open up since there is capacity for growth. Concentration of outlets in strategic cities also helps to increase brand awareness and/or/ operating economy.
In January 2024, India's Barista reached 400 stores with a new outlet at Metro Station in New Delhi. The Haryana-based coffee chain opened its first site in the Indian capital in 2000 and launched in Sri Lanka in 2002, where it currently operates 29 stores. Barista operates both standalone outlets and Express kiosks.
In October 2024, Tata Starbucks becomes the largest branded coffee shop chain in India with 457 stores across 70 cities. Mumbai-based Tata Starbucks has surpassed Café Coffee Day (CCD) as the largest branded coffee chain in India after strong second-quarter outlet growth.
According to the report, the impact of Coffee Retail Chains has been identified to be high for the South India area. Some of how this impact has been felt include:
South India is expected to grow with a significant CAGR during the forecast period due to the growth of the market. South India, in particular region is a major consumer of coffee in India as it is also a traditional region where coffee is consumed in India. Bengaluru, Chennai, Hyderabad, Kerala, and Coimbatore are among the more urbanized cities where the coffee literacy level is high, and consumers are loyal and well ingrained in coffee culture. The younger and tech-savvy urban population, especially the students and working-class people, provides a steady market for the dine-in cafés and specialty coffee brands. This is one of the reasons that many brands subject new products to testing and launch in this area. Moreover, cultural convenience coupled with the coffee drinking pattern and the presence of skilled human resources make South India a strong and most suitable area to venture into. For instance, 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.
Market Size, Trends, & Forecast by Revenue | 2025−2033.
Market Dynamics – Leading Trends, Growth Drivers, Restraints, and Investment Opportunities
Market Segmentation – A detailed analysis By Type of Outlet, By Ownership Model, By Region/Country
Competitive Landscape – Top Key Vendors and Other Prominent Vendors
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