Coffee Consumption in India-2005

Per capita consumption of coffee: 75 grams Penetration of coffee

Proportion of people consuming the beverage in the last 12 months.

Up in 2005 to 62% from 59% of 2003. Instant coffee Penetration - 52% But R&G (Filter coffee) - (15%). Penetration of tea- 94%.

Share of Throat
2 1

Ratio of the volume of that beverage consumed to the volume of all beverages consumed yesterday (excluding water).

2 1 1 14 Butter milk Lassi Flavoured Milk Natural berevages

Tea 52% Plain milk 14%. Coffee 13% (filter + instant) during 2005 against 10% earlier year

Packaged fruit flavoured drink l CSD Plain milk 52 Filter Coffee Instant Coffee Tea

2005

Heaviness of consumption
Classification of Consumers 38% Non-drinkers - who did not consume coffee in the past 12 months. 40% Occasional drinkers - who consumed coffee in the past 12 months but not yesterday. 22% Coffee drinkers who consumed coffee yesterday. Light (1-2 cups a day) Medium (3 cups a day) Heavy (4 or more cups a day).
Non drinker

19%

2% 1% 38%

40%
Occasional drinker Light drinker Mediumdrinker Heavy drinker

.The potential for growth lies with occasional drinkers and more so in North and Eastern zones where the occasional drinkers are maximum in number i.e 64% and 52% respectively. Between 2003 and 2005, there is a marginal reduction of non-drinkers but the proportion of occasional drinkers remains the same.

Places of consumption

Most of the daily consumption is at home. During 2005 about 24% also consumed it away from home. This is a marginal increase of 2% over the previous estimate of 22%. Consumption of coffee away from home is mainly at restaurants (45%) and hot teashops (40%). Cafes and vending machines are more visible now in the outof-home segment.

Estimation of volumes
During the year 2005, the total volume of coffee consumption 80,200 MT with an urban and rural divide of 58,500 MT (73%) and 21,700 MT ( 27%). This represents an overall increase of 9900 MT or 7% annual growth over the 2003 consumption of 70,300MT (with an urban and rural share of 49,600 MT and 20,700 MT respectively). About 64,405 MT is consumed in South India, which is 80% share of all India consumption of 80,200 MT. In the South, Tamil Nadu is the largest coffee consuming state with an estimated volume of about 22,000 MT (34%) closely followed by Karnataka with 19,000 MT (30%). Andhra Pradesh & Kerala account for about 13,000 MT (20%) and 10,000 MT (16%) respectively. In South zone, instant and filter coffee almost have an equal share. In other zones, instant coffee is more predominant.

Consumption Volume Trends

2005 Instant % R&G % Instant Vol. R&G Vol Total Overall Urban Rural 52 59 45 48 41 55 41704 34515 9765 38496 23985 11935 80200 58500 21700

2003 Instant % R&G % Instant Vol. R&G Vol Total

Overall
Urban Rural

51
53 47

49
47 53

35853
26288 9565

34447
23312 11135

70300
49600 20700

Statewise volume (Urban+Rural)

2003 T.N Karnataka AP Kerala South 22692 17505 12967 11670 64834 2005 22000 19000 13000 10000 64000 2003 Share 0.35 0.27 0.20 0.18 0.92 2005 share 0.34 0.30 0.20 0.16 0.80
TN 35 %
K erala 16 % TN 34%

A P 2 0%

K arnataka 30 %

AP 2 0%

Non-South

5466

16200

0.08

0.20

Total

70300

80200

K erala 1 8%

K rnata a ka 2 7%