Industry Analysis

India ranks 10th in the world’s fastest-growing market for specialist coffee and tea retail chains and is
valued at 2,570 Crore in 2018. It is expected that the Indian Café Chain market will reach a value of
INR 4,540 Crore by 2023, growing at a percentage of 6.9% (Source: Euromonitor International).

With local vendors trying to enter the market, the retail chains are facing good competition from
them. A good chunk of customers prefer filter coffee from local vendors compared to Cafes. India
being a price-sensitive market, has customers who prefer the place which costs less. So, the local
vendors have been successful in capturing some customers of the big retail chains.

Competitor Analysis
Café Coffee Day currently leads the market with a 46% market share. Its share has fallen drastically
compared to the past after the untimely death of its CEO due to lack of direction but the reputation
that it has earned over the years has helped it maintain it’s position in the market. It’s competitors
are:

Starbucks
Starbucks, an American coffee company that was established in 1971, is a top Café Coffee Day
competitor. It has a global reputation which, despite it’s high priced products, is able to gain a good
share in the Indian Market.

Costa Coffee
Another competitor which has a global reputation is Costa Coffee, which has recently been acquired
by the beverage giant Coca-Cola. The new management has announced that they will be entering
into so far untapped markets.

Barista
An Indian coffee retail chain headquartered in New Delhi has given a good competition to CCD so
far. Unlike CCD which targets young college-going individuals, Barista focussed on working
professionals more.

Other
India has already been targeted by brands like McCafé, Lavazza and Dunkin Donuts in the past and
now new entrants like Wake Up Coffee have also joined the competition. Although Café Coffee Day,
Starbucks, Costa Coffee, and Barista own a huge chunk of the market, they can pose good
competition in the coming future.