Supply side of instant coffee

Distribution network
Factory-> Mother Godowns->Warehouses->Distributers->Retailers->Customers

As per the supply side, instant coffee is expecting a healthy growth from the year 2020
to 2025 with a CAGR of 5.13%
The market size of domestic instant coffee is currently 3899 crores
The market share of nescafe sunrise is currently at 29%

Coffee market prices

Arabica –Rs292.10 /kg

Robusta- Rs 138.40 /kg

Coffee consumption in India over the years

Quantity (in MT)

140000

120000

100000

80000

60000

40000

20000

0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
(prov.)

Expected growth in coffee prices on the supply side of Arabica and Robusta in India

Source – indiacoffee.org
Source- indiacoffee.org

Competitors-
Its competitors in HUL Bru coffee ( with a market size of 47.4%), Tata coffee ( with a
market share of 5 %) and many other small companies

Nescafe Sunrise HUL Bru Instant Coffee

Pack Price Pack Price
Sunrise 2.2 g Rs 5 Bru 1.5 g Rs 2
13 g pack Rs 20 Cappuccino, Mocha Rs 6
and Cinnamon
50g pack Rs 85 9g pack Rs 10
100g pack Rs 190 100g Pack Rs 153
200g pack RS 324 200g pack Rs 272
Here are the price comparisons of Nescafe sunrise and bru instant coffee.

Changes due to Covid-

The plantations in Kerela had huge losses this year. This has led to high demand and low
supply making shifts in the demand and supply curve. These disruptions in the supply chain
of distribution and harvesting has led to increase in price of coffee