India Instant Coffee Market Size, Share, Trends and Forecast by Packaging, Coffee Type, Distribution Channel, and Region, 2025-2033

India Instant Coffee Market Size, Share, Trends and Forecast by Packaging, Coffee Type, Distribution Channel, and Region, 2025-2033

Report Format: PDF+Excel | Report ID: SR112025A1235

India Instant Coffee Market Size and Share:

The India instant coffee market size was valued at USD 468.25 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 771.18 Million by 2033, exhibiting a CAGR of 5.42% from 2025-2033.  South India dominates the market, driven by abundant coffee cultivation, strong domestic consumption, export-oriented production, rising café culture, increasing urbanization, and the presence of major coffee processors in the region.

Report Attribute
Key Statistics
Base Year
2024
Forecast Years
2025-2033
Historical Years
2019-2024
Market Size in 2024 USD 468.25 Million
Market Forecast in 2033 USD 771.18 Million
Market Growth Rate (2025-2033) 5.42%


The instant coffee market in India is witnessing substantial growth, fueled by shifting consumer preferences and changing lifestyles. In addition, the increasing urbanization and busier work schedules have boosted the demand for convenient, ready-to-drink beverages, making instant coffee a preferred choice, thus aiding the market growth.  Additionally, the expanding middle class with increased disposable income is driving demand for premium coffee products, further boosting the India instant coffee market share. For instance, the Indian brand, Blue Tokai reached 100 stores across India in March 2024 boosting coffee culture and increasing the consumer demand for premium instant coffee. Besides this, the increasing number of modern retail chains, e-commerce platforms, and quick-service restaurants has improved instant coffee accessibility, providing an impetus to the market. Furthermore, health-conscious consumers are increasingly shifting from sugary beverages to coffee, perceiving it as a healthier alternative with functional benefits.

Concurrently, the strong coffee production of India, particularly in South India, supports the instant coffee industry by ensuring a steady supply of raw materials, boosting the India instant coffee market demand. In line with this, the robust export market of the country, with major players supplying instant coffee to Europe, the United States, and Russia, is strengthening the market share. Additionally, the increasing influence of global coffee culture, driven by social media and international cafe chains, has encouraged younger consumers to embrace coffee as a daily habit, impelling the market demand. Besides this, continuous innovations in flavors, packaging, and ready-to-mix formulations have enhanced product appeal, driving the market demand. For instance, in 2023, Hindustan Unilever Limited (HUL) expanded its Bru Gold lineup by introducing a new range of flavored coffee in vanilla, caramel, and hazelnut variants. This highlights how innovation in flavors and packaging is propelling market growth. Furthermore, the increasing shift toward sustainable and organic coffee farming aligns with the growing consumer preference for ethical and eco-friendly products, driving market expansion.

India Instant Coffee Market Trends:

Growing Popularity of Premium and Flavored Instant Coffee

The India instant coffee market growth is fueled by robust demand for premium and flavored products, as customers demand high-quality and superior coffee experiences. The market appeals to customers with premium coffee blends and hazelnut caramel and vanilla specialty flavors and single-origin coffee offerings. For instance, the Coffee Board of India stated that coffee consumption increased to 91,000 tonnes in 2023 from 84,000 tonnes in 2012, with instant coffee being a favorite among consumers. Apart from this, the market growth is mainly driven by young consumers who are inclined towards new coffee products with international influences. In addition, the changing health-driven consumer sentiments drive manufacturers to create functional instant coffee drinks with ingredients such as vitamins, superfoods, sugar-free, and organic instant coffee products, thereby driving the market growth.

Expansion of Online Retail and Direct-to-Consumer Channels

The rise of digital retail and direct-to-consumer (D2C) channels is helping in the growth of India instant coffee market size. The presence of prominent e-commerce players and company websites provides premium and specialty coffee brands with access to consumers across geographies in India. The model of coffee delivery on subscription has come forth as an emerging trend, which offers customizable and convenient coffee offerings to customers. In addition, social media marketing and influencer partnerships strongly influence consumer decisions because they specifically target urban millennials and Gen Z. Consequently, digital transformation allows brands to build direct customer interactions while discovering customer tastes to create customized merchandise, which is leading the market forward. Also, a constant supply of coffee, with 374,200 tons being produced in India during 2023/24 consisting of 261,200 tons of robusta and 113,000 tons of arabica, makes the increasing demand comply with the market preferences.

Sustainability and Ethical Sourcing Driving Consumer Preferences

Sustainability and ethical sourcing are becoming key factors influencing the India instant coffee market trends. A Deloitte study highlighted that consumers increasingly seek coffee products with certifications ensuring adherence to social and ecological standards, reflecting a growing preference for sustainably sourced coffee. People choose brands that endorse responsible trade practices alongside eco-intelligent packaging solutions and environmentally conscious agricultural methods. Moreover, organic and shade-grown coffee products together with products certified by Rainforest Alliance have entered the market as part of industry responses. Also, due to rising environmental awareness brands now use biodegradable packages and plastic-free solutions. Besides this, favorable trends among responsible consumers include their appreciation for programs that strengthen Indian coffee producer communities through direct trade and community-driven sourcing. Furthermore, the customers choose coffee products based on their sustainability and transparency attributes, thereby enhancing the India instant coffee market outlook.

India Instant Coffee Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the India instant coffee market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on packaging, coffee type, and distribution channel.

Analysis by Packaging:

India Instant Coffee Market

  • Jar
  • Pouch
  • Sachet
  • Others

Sachet packaging dominates the Indian instant coffee market due to its affordability, convenience, and widespread availability. This market segment is growing due to the rising single-serve coffee needs among working professionals and students together with travelers. Their small size enables portable consumption, making them a popular choice among consumers. Modern retail chains combined with kirana stores and e-commerce platforms have strengthened the spread of sachet products throughout both urban cities and rural territories. Moreover, the adoption of premium instant coffee products has increased due to promotional distribution methods which provided free sachets and packaged bundles. Besides this, premium brands are now distributing sachets of their products, which is expanding the widespread adoption of instant coffee in India. As a result, this segment of the instant coffee market experiences ongoing growth because of increasing product consumption mainly in price-sensitive demographics.

Analysis by Coffee Type:

  • Spray Dried
  • Freeze Dried

Freeze-dried instant coffee is the largest and fastest-growing segment in the India instant coffee market, driven by its superior quality characteristics along with strong aroma and extended shelf life. The coffee preservation process by freeze drying maintains superior taste quality and essential oils more effectively than spray drying, becoming the choice for premium coffee consumers. Freeze-dried instant coffee attracts urban customers who have more disposable funds and want high-quality instant coffee products. The growth of higher-quality coffee brands across India has boosted marketplace expansion because the companies present freeze-dried coffee products in different flavors and mixtures. Furthermore, the D2C channels and e-commerce platforms have expanded access to premium products, thus increasing adoption rates. The combination of expanding cafe culture and international coffee trends to improve standards of instant coffee stimulates consumer interest in better-quality instant coffee. As a result, the rising demand for freeze-dried coffee continues to grow because health-conscious customers prefer natural products without preservatives.

Analysis by Distribution Channel:

  • Business-To-Business
  • Supermarkets and Hypermarkets
  • Independent Retailers
  • Departmental Stores
  • Online
  • Others

Supermarkets and hypermarkets lead the distribution of instant coffee in India because they provide an extensive product range, competitive pricing, and an improved shopping environment. Multiplex retail stores enable consumers to check prices, flavors, and packaging choices of different brands which helps them decide what to purchase. Additionally, sales within this segment experience substantial growth because of the growing number of organized retail chains, operating in urban and semi-urban regions. Besides this, supermarkets and hypermarkets gain consumer preference for instant coffee acquisition through their practice of offering regular discounts and package deals and conducting storewide promotions. Furthermore, modern trade formats that provide bulk-buying convenience for customers are contributing to the market expansion alongside the increasing interest in industrialized shopping. Apart from this, Indian consumers rely on supermarkets and hypermarkets as their primary distribution channel for instant coffee products because both demographics and disposable income levels keep increasing.

Regional Analysis:

  • North India
  • East India
  • West and Central India
  • South India

South India dominates the India instant coffee market due to its strong coffee cultivation, high domestic consumption, and well-established processing infrastructure. The states of Karnataka Kerala and Tamil Nadu have the highest production of coffee in India, providing a constant supply of raw materials to produce instant coffee. For instance, in 2024, the Coffee Board of India’s 10-year plan aims to double coffee production and exports by 2034, form 100 FPOs, expand cultivation, and establish 10,000 women-led coffee kiosks to boost domestic consumption. Consumers in cities such as Bengaluru and Chennai maintain the traditional drinking habits of coffee which boosts demand for both conventional and premium forms of instant coffee. Furthermore, major coffee processors together with export-oriented production operations and the growing number of specialty coffee establishments are significantly contributing to the market expansion. As a result, South India has emerged as a leading market in the instant coffee industry, driven by rapid urbanization and rising consumer affluence.

Competitive Landscape:

The Indian instant coffee market is competitive due to a combination of long-established players and new entrants. Businesses are concentrating on innovation in products, providing premium, flavored, and organic instant coffee to match changing consumer tastes. The growth of channels like supermarkets, hypermarkets, and online sites has boosted market competition. Also, aggressive marketing practices, including celebrity endorsements, social media campaigns, and convenient packaging options, are shaping consumer decisions. With the growing demand for high-quality and sustainable coffee offerings, brands are investing in ethical sourcing, eco-friendly packaging, and D2C interaction to build their market share.

The report provides a comprehensive analysis of the competitive landscape in the India instant coffee market with detailed profiles of all major companies.

Latest News and Developments:

  • In February 2025, Nestlé revealed its plans to introduce Starbucks Ready-to-Drink (RTD) coffee in India's retail market, further expanding its premium coffee offerings. This move aims to tap into the growing demand for convenient, high-quality coffee beverages, strengthening Nestlé's presence in India's evolving coffee segment.
  • In January 2025, Third Wave Coffee opened its 125th cafe in Chennai, marking a significant expansion in India's premium coffee segment. This growth reflects increasing consumer demand for specialty coffee experiences and strengthens the brand's presence in the competitive market.
  • In January 2025, CCL Products, India's largest instant coffee exporter, urged the government to implement measures in the upcoming Union Budget to enhance domestic coffee consumption. The company emphasized the need for supportive policies to stimulate growth in the local market.
  • In August 2024, GRM Overseas, India's third-largest rice exporter, acquired a 44% stake in Swmabhan Commerce, the parent company of instant coffee brand Rage Coffee. This strategic move marks GRM's entry into modern consumer brands and aims to diversify its portfolio beyond traditional commodities.
  • In January 2024, Continental Coffee partnered with Platinum Outdoor for a 3D anamorphic campaign, highlighting Continental Xtra’s "Xtra strong" flavor. This innovative marketing boosts brand visibility, attracts coffee lovers, and drives demand for premium instant coffee in India's growing urban market.

India Instant Coffee Market Report Scope:

Report Features Details
Base Year of the Analysis 2024
Historical Period 2019-2024
Forecast Period 2025-2033
Units Million USD
Scope of the Report

Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:

  • Packaging
  • Coffee Type
  • Distribution Channel
  • Region
Packaging’s Covered Jar, Pouch, Sachet, Others
Coffee Types Covered Coffee Types Covered
Distribution Channels Covered Business-To-Business, Supermarkets and Hypermarkets, Independent Retailers, Departmental Stores, Online, Others
Region Covered  North India, West and Central India, South India, East India
Customization Scope 10% Free Customization
Post-Sale Analyst Support 10-12 Weeks
Delivery Format PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)


Key Benefits for Stakeholders:

  • IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India instant coffee market from 2019-2033.
  • The research study provides the latest information on the market drivers, challenges, and opportunities in the India instant coffee market.
  • Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India instant coffee industry and its attractiveness.
  • Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.

Key Questions Answered in This Report

The instant coffee market was valued at USD 468.25 Million in 2024.

Key factors driving the India instant coffee market include rapid urbanization, rising disposable incomes, expansion of cafe culture, increasing consumption of convenience-focused, growing e-commerce, and continuous innovations in premium products.

IMARC estimates the instant coffee market to exhibit a CAGR of 5.42% during 2025-2033, reaching a value of USD 771.18 Million by 2033.

Sachet packaging accounted for the largest share of the India instant coffee packaging market due to its affordability, convenience, single-serve portions, and widespread availability across retail stores, supermarkets, and e-commerce platforms, making it the preferred choice for both budget-conscious and on-the-go consumers.

Need more help?

  • Speak to our experienced analysts for insights on the current market scenarios.
  • Include additional segments and countries to customize the report as per your requirement.
  • Gain an unparalleled competitive advantage in your domain by understanding how to utilize the report and positively impacting your operations and revenue.
  • For further assistance, please connect with our analysts.
India Instant Coffee Market Size, Share, Trends and Forecast by Packaging, Coffee Type, Distribution Channel, and Region, 2025-2033
Purchase Options Discount
Offer
Benefits of Customization
  • Personalize this research
  • Triangulate with your data
  • Get data as per your format and definition
  • Gain a deeper dive into a specific application, geography, customer, or competitor
  • Any level of personalization

Get in Touch With Us

UNITED STATES

Phone: +1-631-791-1145

INDIA

Phone: +91-120-433-0800

UNITED KINGDOM

Phone: +44-753-714-6104

Email: sales@imarcgroup.com

Client Testimonials