Coffeee.docx

1.2 COFFEE INDUSTRY IN INDIA

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The Coffee Industry of India is the sixth largest producer of coffee in the world accounting for over four percent of world coffee production, with the bulk of all production taking place in its Southern states. Due to its caffeine content, coffee can have a stimulating effect in hum ans. Today, coffee is one of the most popular beverages worldwide. The café market in India started developments in the 1990s. Coffee has turned out to be a trendy beverage for the young population of the country and with the high ratio of young population in India. The humble cup of coffee that cheers up mood, initiates conversation and relaxes you from a tiring day is brewing up a storm in India. The Indian ready to-drink (RTD) tea and coffee market has picked up a great business in the last 5 years. Reports say that the market is expected to grow to a whopping Rs 2,250 crore by 2017- thanks to the cafe culture among urban youth. The domestic market, which currentl y stands at an estimated Rs 1,100 crore, is dominated by outlets like Cafe Coffee Day, Baris tas, Costa Coffee, Coffee World, Lavasa, Coffee Bean & Tea Leaf. The latest entrant is Starbucks and with many more in the pipeline.

More than 1,200 cafes have sprung up across India in the past decade, mostl y from six organized chains, clocking an averag e annual growth of around 40

percent. They have made the cafe industry -- currently capped at Rs1,000 crore -- one of the fastest growing organized retail segments.