It’s just coffee
Expensive specialty coffees
Expensive specialty coffees
Gourmet coffee businesses are struggling. High pricing attracts fewer customers. 92% female, 82% male workers earn less than Rs 10000 per month. India’s per capita consumption of coffee is 90gms.
Blue Tokai is the leader of Indian speciality coffee market. It’s cheapest roasts coffee is for INR 400 (250gms). Its competitors are Third Wave, Seven Beans Coffee, Flying Squirrel, Black Baza, Nagpur and Bizibean. They offer their coffees at similar prices. Filter coffee comes next, which costs INR 275 per kilogram (Bru Green Label). Southern India is the biggest market for filter coffee. Rest of the country consumes instant coffee, which Nescafe (INR 150 for 50gms) and Hindustan Lever (INR 180 for 100gms) dominate.
As per Economist: To get in the top 1% of earners, an Indian needs to make just over $20,000. Adjusted for purchasing-power parity, that is a comfortable income, equating to over $75,000 in America. But in terms of being able to afford goods sold at much the same price across the world, whether a Netflix subscription or Nike trainers, more than 99% of the Indian population are in the same league as Americans that count as below the poverty line (around $25,000 for a family of four), points out Rama Bijapurkar, a marketing consultant.
Not more than 8cr Indians earn INR 20,000 per month. Spending 5% of that income on speciality coffee is not sustainable. The next big Indian consumer segment of 30cr doesn’t earn more than INR 15,000 per month. Either the prices have to come down or the earnings have to go up.
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