India has solidified its position as the world’s seventh-largest coffee producer, with impressive growth in both production and exports. According to the Commerce Ministry, the country’s coffee exports reached a remarkable $1.29 billion in FY 2023-24, a significant leap from the $719.42 million recorded in 2020-21. This surge highlights India’s growing presence in the global coffee market and its ability to meet the increasing demand for its high-quality coffee beans.
India’s coffee exports have seen exponential growth in recent years, driven by the rising global demand for its distinct and flavorful beans. The first half of January 2025 alone saw over 9,300 tonnes of coffee being exported. Major buyers include countries like Italy, Belgium, and Russia, all of which appreciate India’s rich coffee variety. India’s coffee industry primarily produces Arabica and Robusta beans, which constitute nearly three-fourths of the nation’s total coffee production.
These beans are mainly exported as unroasted beans, although there has been a noticeable shift toward value-added products like roasted and instant coffee. This shift has further fueled the export boom, reflecting changing global coffee consumption preferences.
India’s Growing Domestic Coffee Consumption
Not only is India making waves in the global coffee market, but domestic consumption of coffee is also on the rise. This trend has been particularly strong in urban and rural areas, where coffee is increasingly becoming a preferred beverage over tea.
The rise of café culture, higher disposable incomes, and changing drinking habits have significantly contributed to this growth. Domestic coffee consumption in India has increased from 84,000 tonnes in 2012 to 91,000 tonnes in 2023. This surge reflects how coffee is becoming an integral part of daily life, with more people choosing it as their beverage of choice.
India’s coffee is primarily cultivated in the ecologically rich Western and Eastern Ghats, regions known for their biodiversity and ideal coffee-growing conditions. These areas not only support the coffee industry but also play a crucial role in maintaining the natural environment. Karnataka, India’s largest coffee-producing state, produced 248,020 tonnes of coffee in the 2022-23 season. Kerala and Tamil Nadu also contribute significantly to India’s coffee production.
The coffee plantations in these regions are typically shaded, which supports biodiversity and helps maintain the ecological balance of these environmentally sensitive areas. The shaded plantations provide a unique advantage, contributing to the sustainability of coffee production while preserving the ecosystem.
India’s journey with coffee dates back centuries, and its rich history is rooted in the story of Baba Budan, a Sufi saint. In the 1600s, Baba Budan is said to have brought seven Mocha seeds from Yemen to the hills of Karnataka, planting them in the courtyard of his hermitage in Baba Budan Giri.
This simple act set in motion the rise of coffee cultivation in India, transforming the country into a key player in the global coffee industry. Over the centuries, the cultivation of coffee in India has evolved from a modest practice into a thriving industry, with Indian coffee now being enjoyed worldwide.
Looking ahead, India’s coffee industry is poised for continued growth, both in terms of production and consumption. The increasing global demand for high-quality coffee, coupled with India’s expanding domestic market, positions the country as a significant player in the global coffee sector.
As more consumers globally seek premium, sustainable coffee, India’s coffee production continues to evolve, incorporating innovative practices and value-added products to cater to diverse consumer tastes.
Conclusion
India’s coffee industry has come a long way since the early days of cultivation in the 1600s. Today, it stands as one of the world’s leading coffee producers, with a rich history, a growing export market, and a thriving domestic coffee culture. The rise in global demand for India’s coffee, along with the steady increase in domestic consumption, underscores the country’s pivotal role in the global coffee industry. With its unique blend of tradition, innovation, and sustainability, India’s coffee industry is set to continue its upward trajectory, satisfying coffee lovers both at home and abroad.