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More people are drinking specialty coffee than instant coffee
Specialty coffee
More people are drinking specialty coffee than instant coffee
Atomo Coffee raised INR 75cr funding to manufacture molecular coffee, from non-coffee plants (Arabica, Robusta, Liberia). Traditional coffee farming is harming the planet.
The coffee industry comprises of two product categories. One, instant coffee. It dissolves in water or milk. It takes seconds to prepare a cup. Big brands such as Nestle and Kraft buy coffee beans from millions of farmers, and then process it into instant coffee. Global instant coffee market size is worth about $12bn. Two, roasted beans. Roasters roast green coffee into roasted beans. Coffee lovers use machines and manual methods to brew coffee such as espresso, drip and French Press. Global market size for specialty coffee is worth about $36bn.
As per Specialty Coffee Association of Europe: Secondly, they highlight that among a growing, diverse consumer base, premiumization — which includes specialty — is leading overall growth. The total value of global retail sales of coffee was US$173.6 billion in 2018, jumping to US$180 billion in 2019. Here, Euromonitor estimates that the global retail value growth by 2023 will be US$12.5 billion, and that 52% of this will be led by premiumization.
India’s cafe chain market may be worth INR 4500cr by 2023. The current market leader in instant coffee segment are Nestle and Tata. The current market leader in coffee beans segment are Tata, Cotha’s, Blue Tokai.