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Growth of India’s Coffee Industry: Export Reached $1.29 Billion in FY24

Written by: Sachin GuptaUpdated on: Jan 21, 2025, 3:47 PM IST
The growth in Coffee exports was mainly fueled by the growing global demand for its unique and rich flavours.
Growth of India’s Coffee Industry: Export Reached $1.29 Billion in FY24
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India’s coffee industry has witnessed exceptional growth over the past years. The coffee cultivation in India has transformed from a modest practice into a major industry. Today, India stands as the 7th -largest coffee producer in the world, with its coffee beloved by global consumers. In FY24, coffee exports from India reached an impressive $1.29 billion, nearly double the $719.42 million in exports recorded in 2020-21.

Growth in Coffee Exports

India’s coffee exports have witnessed significant growth, backed by the growing global demand for its unique and rich flavours. In the first half of January 2025 alone, India exported over 9,300 tonnes of coffee, with top buyers including Italy, Belgium, and Russia. The majority of India’s coffee production, which includes Arabica and Robusta beans, is exported as unroasted beans. However, there is an increasing demand for value-added products, such as roasted and instant coffee, contributing to a surge in export figures.

Rising Domestic Coffee Consumption

Alongside increasing global exports, coffee consumption within India has also seen a steady rise. The country’s growing café culture, higher disposable incomes, and a shift in preference from tea to coffee are key drivers of this trend. Domestic consumption rose from 84,000 tonnes in 2012 to 91,000 tonnes in 2023. This increase in demand indicates a broader cultural shift, with coffee becoming a staple part of daily life, especially in urban and rural areas alike.

Initiatives to Boost Coffee Production

In response to the growing demand for coffee, the Coffee Board of India has launched several key initiatives to enhance coffee production. Through the Integrated Coffee Development Project (ICDP), the focus is on improving yields, expanding cultivation in non-traditional areas, and ensuring the sustainability of coffee farming. These initiatives are part of a broader strategy to strengthen the Indian coffee industry, increase productivity, and enhance its global competitiveness.

Strategic Support for the Coffee Industry

The initiatives led by the Coffee Board of India, combined with export incentives and logistical support, play a crucial role in boosting both domestic production and global competitiveness. These efforts are positioning India as a key player in the global coffee market, ensuring that the country’s coffee industry continues to thrive on both the domestic and international fronts.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Published on: Jan 21, 2025, 12:30 PM IST

Sachin Gupta

Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.

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