According to New Delhi-based research and consultancy firm Technopak Advisors, there are currently more than 1,500 coffee cafés in India at present, approximately 1,000 of which have opened within the past five years. Valued at around $185 million, the organized café market in India is estimated to be growing at a compound annual rate of 25 percent, according to a new report from the Wharton School at the University of Pennsylvania.
Prompting the trend appears to be India’s growing youth segment. Approximately 50 percent of India’s 1.2 billion people are age 25 or younger. By 2015, this is expected to increase to 55 percent. For this segment, particularly those with steady, disposable incomes, coffee shops serve as social hubs. “Coffee chains offer a basic emotional need — refuge. They are brands between home and office,” Shripad Nadkarni, managing director at Mumbai-based business and marketing consulting firm MarketGate Consulting, said in the report.