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“We’re looking at portfolio expansion within coffee as well as food”
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Monday, 30 June, 2025, 08 : 00 AM [IST]
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 Three key trends are currently driving the Indian coffee sector: premiumisation, experientialism, and home brewing. The Indian consumer is no longer content with a basic instant brew but they are seeking curated experiences, single-origin beans, and thoughtfully crafted blends, said Raja Chakraborty, CMO, Continental Coffee, in an email interaction with Nandita Vijayasimha. Excerpts:
Share some insights on the overall coffee retail scenario in India.
Across the globe, coffee has steadily outpaced tea as the beverage of choice, even in traditional tea-drinking markets like Japan, Vietnam, and the UK. India is no exception. What started as an urban café trend has now evolved into a larger cultural shift. We see coffee is making its way into Indian homes. The shift is especially prominent among the younger demographic, where coffee isn’t just a drink, but a marker of lifestyle and aspiration. This change is also aligned with global trends of urbanisation, travel exposure, and the desire for differentiated experiences. As a result, we believe that the Indian coffee category is at a tipping point, poised for unprecedented growth across formats: in cafés, on e-commerce, and in home brews.
Where does India stand in the café retail business compared to other parts of the world?
India's coffee consumption is still at a nascent stage. When compared to developed markets, per capita consumption here is roughly 1/20th that of the US. Similarly, while India has around 6,500 registered coffee chains, this is just a tenth of what’s seen in more mature markets. But therein lies the opportunity. This under-penetration, combined with a growing consumer base that’s young, aspirational, and globally exposed, makes India one of the most exciting coffee frontiers in the world today. The café retail space is in a build-up phase expanding not only in metros but also in Tier 2 and Tier 3 cities — and brands that enter early and establish trust will be the ones to shape the future of this category.
What are the key emerging trends in the sector?
Three key trends are currently driving the Indian coffee sector: premiumisation, experientialism, and home brewing. The Indian consumer is no longer content with a basic instant brew but they are seeking curated experiences, single-origin beans, and thoughtfully crafted blends. The rise of premium home coffee machines and brewing tools has made it easier for consumers to replicate café-quality coffee at home. Additionally, there is an increasing awareness around ethical sourcing and sustainability, which influences both purchase decisions and brand loyalty. Brands that are able to combine quality, experience, and responsibility will define the next era of coffee in India.
The coffee retail sector is competitive. What is the strategy adopted for customer engagement, and any plans to set up dedicated outlets for sale?
Our strategy is to focus on strengthening our multi-channel presence across traditional trade, modern retail, and e-commerce. While we are not looking at setting up dedicated physical outlets at the moment, our approach is to be where the customer already is both online and offline. We are investing in building visibility through curated digital campaigns, influencer-driven storytelling, and product innovation that aligns with evolving taste preferences. The idea is to create access and aspiration simultaneously, without the overhead of managing retail infrastructure. With our robust backend and growing brand equity, we believe we can deliver high-quality coffee experiences across multiple touchpoints.
Which are the fastest-growing offerings in your range - Continental Xtra, Continental Speciale, Continental Malgudi, Continental THIS and Greenbird?
Continental Xtra continues to be our flagship product and is growing at strong double-digit rates. However, the real momentum is with Continental Speciale and Malgudi, which are seeing the fastest growth within our portfolio. These brands cater to a more discerning audience those who are seeking unique flavour profiles, speciality formats, and a more premium experience overall. Continental Malgudi, in particular, taps into the heritage and flavour of South Indian filter coffee, while Continental Speciale is designed for modern consumers who are exploring bolder, international-style brews. Our innovation strategy is rooted in understanding these diverse tastes and delivering accordingly.
Would the addition of Percol, which is a premium brand positioned to garner sales?
Percol is a legacy brand with deep roots in ethical sourcing and sustainability, having pioneered Fairtrade certification and plastic-free packaging in the UK. By acquiring Percol, we were not just adding another SKU (stock keeping unit) but were bringing a purpose-led brand with a powerful global narrative to Indian shores. The positioning is very clear: Percol is for the conscious, globally aware Indian consumer who values provenance, quality, and environmental responsibility. Its premium blends are designed for home baristas who want more than just caffeine and want character in every cup. Through e-commerce and premium retail placements, we are making Percol available to this niche, high-value segment.
How are the B2B and B2C formats faring?
Both our B2B and B2C verticals are witnessing high double-digit growth, driven by differentiated offerings tailored to each audience. On the B2B front, we continue to strengthen partnerships with hospitality, QSR, and institutional clients who are looking for consistency and quality. On the B2C front, the surge in online shopping, evolving palates, and interest in premium coffee has worked in our favour. Our diversified portfolio ensures that we can address various needs, from everyday instant coffee to gourmet blends. With the growth of India’s café culture and in-home coffee rituals, we see both segments continuing on a strong growth trajectory.
Where is the coffee sourced and do you have any coffee cultivation?
We do not currently engage in coffee cultivation ourselves. However, we take great care in sourcing our coffee from some of the best plantations in India and globally. Our sourcing team works closely with reputed estates to ensure that the beans meet our quality benchmarks. We source from a combination of Indian plantations especially in Karnataka, Tamil Nadu and Kerala besides international origins known for their unique flavour profiles. This allows us to experiment with blends, maintain consistency, and ensure traceability in our supply chain. Quality and ethical sourcing remain central to our procurement philosophy.
What are some of the challenges that the sector is facing? How is your company navigating through these challenges?
The most pressing challenge the coffee sector faces today is the rising cost of green coffee, driven largely by erratic weather patterns and climate change. This, in turn, has impacted margins and price stability. We are responding through innovation and sustainability. Our manufacturing units are focused on resource-efficient processes, including water recycling and waste-to-energy initiatives. We also collaborate with global organisations like Fairtrade and Rainforest Alliance to ensure our practices support both the environment and farmer welfare. These efforts allow us to create long-term value while also navigating short-term cost pressures.
How receptive are private equity (PE) and venture capitalists (VCs) to this sector? Any key trends/insights to highlight?
The coffee sector is attracting increased interest from private equity and venture capital players. What makes it exciting is the convergence of health, lifestyle, and experiential consumption trends, all of which coffee caters to. We have seen a flurry of new startups in both product and café segments, each addressing different niches whether that’s cold brews, flavoured coffees, or curated café experiences. Investors are recognising coffee’s potential not just as a beverage category, but as a lifestyle space. For established players like us, this ecosystem provides opportunities for partnerships, co-innovation, and market expansion.
What are your expansion plans going forward?
Our expansion strategy is multi-pronged. We’re looking at portfolio expansion within the coffee segment as well as adjacent food categories. Distribution is another key lever, not just expanding footprint, but also deepening presence in emerging channels like e-commerce, quick commerce, and modern retail. Innovation is at the heart of this growth, whether it’s through new product formats, sustainable packaging, or digital-first storytelling. With brands like Percol and our existing portfolio gaining traction, we’re well-positioned to scale both in India and globally. The goal is to build a future-ready coffee brand that reflects modern consumer aspirations.
Any further insights you would like to share on your brand?
We are driven by a simple but powerful belief that coffee is more than a beverage; it’s a shared moment, a morning ritual, a personal experience. We are committed to delivering that experience with authenticity, innovation, and responsibility. Whether it’s sourcing the finest beans, investing in clean manufacturing, or launching purpose-driven brands like Percol, our journey is guided by values as much as it is by vision. As India’s coffee story continues to evolve, we’re proud to play a leading role in shaping it — cup by cup, consumer by consumer.
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