Brewing Innovation: How Technology is Transforming Coffee Industry In India

Authored by Raja Chakraborty, CMO, Continental Coffee Limited

An estimated 374 thousand metric tons of coffee was produced in India in the fiscal year 2024. Not only India is a significant contributor to global coffee production, but it is also growing in popularity in consumption among Indians as well. This can be attributed to the thriving global coffee culture in India, as well as technologies that are making it more convenient and affordable in India. Technology is brewing innovation in India’s coffee industry on multiple fronts, from smarter farming and the rising popularity of home brewing to the expansion of specialty coffee shops and the rise of e-commerce and direct-to-consumer (D2C) channels. The digital era is revolutionising how coffee is produced, consumed, and enjoyed in both mass-market and premium segments, making coffee culture more accessible than ever before.

Smart Farming

Climate change poses significant threats to coffee production worldwide, and India is no exception. However, smart farming techniques like precision agriculture are helping coffee farmers become more climate resilient. By leveraging tools like remote sensing to monitor crop growth and stress, GPS for geo-locating specific areas, and crop scouting to provide precise treatments, farmers are now better equipped to manage and mitigate climate risks. Additionally, big data analytics helps detect issues early, allowing for more effective crop management and yield optimization.

According to a report by the Food and Agriculture Organization (FAO), precision agriculture has been instrumental in increasing crop productivity in many regions globally. For India, where coffee production is largely concentrated in the southern states of Karnataka, Kerala, and Tamil Nadu, smart farming practices are vital to maintaining a competitive edge.

Brewing at Home and in Coffee Shops

India’s specialty coffee market is expected to grow in the coming years, fuelled by urbanisation and a shift in consumer preferences towards high-quality coffee. The rise of advanced coffee machines, including IoT-enabled devices, is transforming how coffee is brewed at home and in coffee shops.

Specialty coffee shops are now offering consumers a premium experience that was once limited to a few urban centres. Simultaneously, Indian consumers are increasingly embracing home brewing. Coffee machines that cater to varying levels of expertise—from simple drip coffee makers to sophisticated espresso machines—are making their way into households. This trend is accelerating coffee consumption among younger demographics, contributing to a growing coffee culture in the country.

Coffee Vending Outside the Home (OOH)

Technology has seeped into almost every facet of the coffee industry, including the coffee vending segment. Internet-enabled vending machines are becoming more sophisticated, offering a broader range of beverages with improved quality. Unlike older machines, modern vending systems are capable of delivering premium coffee using less energy at optimised costs per cup, making them more accessible to a wider audience. This evolution is helping to expand coffee consumption beyond traditional cafes and restaurants to offices, educational institutions, and other public spaces. In fact, the Indian OOH coffee market is projected to grow threefold over the next decade.

Innovative Coffee Products

Coffee enthusiasts who enjoy brewing at home now have access to versatile and innovative products like coffee pods, pour-over kits, and a variety of coffee bags at a reasonable cost. Meanwhile, newer formats such as cold brew, micro-grounds, and coffee concentrates are enticing purists to explore different ways of enjoying it too. Even non-habitual drinkers are being drawn into the coffee culture, thanks to the convenience of premixes and flavoured instant coffees. Popular flavours like hazelnut and mocha, once exclusive to cafes, are now readily available at home for a fraction of the price. Flavoured instant coffee is one of the fastest-growing segments in the market, contributing to coffee’s increasing penetration across the country. India’s coffee market is expected to grow at a CAGR of 11.19% from 2024 to 2029, driven by the rise of such innovative products.

E-Commerce and D2C Channels

Perhaps the most profound impact of technology has been the rise of e-commerce and D2C platforms in expanding coffee consumption. Today, online channels account for a significant share of coffee sales in India, rivalling traditional retail outlets. However, the diversity of products available online is far greater, ranging from specialty roast and ground coffee to premium and luxury brands, flavoured instant coffees, new packaging formats like pods and pour-over kits, and coffee brewing machines for homes. Internet-based platforms have further democratised access to premium coffee, making it easier for consumers across the country to explore global brands and local specialties alike. As a result, India’s e-commerce coffee market is projected to grow at a CAGR of 25.7% over the next four years.

Technology is reshaping the entire coffee value chain in India, from farm to cup. It plays a pivotal role in increasing coffee penetration in India and fostering a robust coffee culture among the youth. As India continues its journey from a predominantly tea-drinking nation to one where coffee is equally beloved, innovation will remain at the heart of this transformation. As the saying goes, 'A lot can happen over a cup of coffee,' and in India, the coffee revolution is well underway.

DISCLAIMER: The views expressed are solely of the author and Adgully.com does not necessarily subscribe to it.