Bars/pubs remained an urban concept in 2018 as rural Indians remained much more conservative with their drinking habits. Millennials in metropolitan areas are now commonly going for a beer at the end of the working day or during the weekend.
The outlook for both independent and chained cafés and specialist coffee and tea shops remains strong. Many products, such as cold brew coffee, are displaying exceptional growth, as well as constant innovation.
The unorganised tea shops are large in India; however, those outlets are not consumer foodservice ones, but rather tiny stalls located at the corner of roads. Indians love tea, and consume it a lot more often than coffee, especially in the north, east and western parts of the country.
Coffee Day Enterprises continued to lead the highly fragmented cafés/bars channel in 2018 with its Café Coffee Day brand. The company has been the pioneer in establishing the coffee culture in the chained café segment; it has come a long way in terms of the number of outlets spread across major cities of India and has been very aggressive in outlet expansion.
Starbucks experienced explosive growth in outlets during the review period. Starbucks has been present in India for a few years now and is undoubtedly increasingly appealing to affluent millennials in metropolitan areas, with many opting for international over domestic chains.
India’s drinking culture is evolving. The amount of money Indians are spending on alcoholic drinks continues to increase every year.
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This industry report originates from Passport, our Consumer Foodservice market research database.