From Beans to Bottles: India’s Ready-to-Drink Coffee Offers a Taste of Tradition!

India's coffee consumption has witnessed a remarkable surge, with the nation consuming more than 1.2 million bags (each weighing 60 kilograms) of coffee annually as of 2023. This growth is propelled by a youthful demographic looking for convenient and flavourful caffeinated beverages.

The ready-to-drink (RTD) coffee market, in certain, is seeing significant momentum, tapping into the on-the-go lifestyle of urban consumers. Metropolitan cities like Delhi, Mumbai, and Bangalore are leading the charge, with Mumbai alone accounting for the consumption of more than 200,000 RTD coffee units monthly.

The economic structure of the India ready-to-drink coffee ecosystem is still evolving, and a report by Astute Analytica Projects that the?India ready-to-drink coffee market is anticipated to reach a market size of US$ 4.51 billion by 2032, with a compound annual growth rate (CAGR) of about 8.57% during the forecast period from 2024 to 2032.

A brief about the market: -

Several factors contribute to this growing trend Indian ready to drink (RTD) coffee market. The proliferation of café culture has presented a variety of coffee styles and flavors to the Indian palate. Also, the influence of Western lifestyles and the growing number of double-income households have boosted the demand for convenient beverage alternatives. The RTD coffee segment is capitalizing on this demand by delivering products that cater to taste choices ranging from conventional espressos to creative flavors like hazelnut and ginseng-infused blends.

Key players driving the market include Nestlé with its Nescafé range, Starbucks' bottled Frappuccino, and domestic brands like Café Coffee Day establishing their RTD variants. This development trajectory indicates a strong market potential, leading to augmented investments in product development and distribution networks. The sector's growth is paving the way for competition and innovation, ultimately improving consumer choices and market dynamism.

Growing Demand for Convenient Caffeinated Beverages

The modern Indian consumer is navigating an increasingly fast-paced lifestyle, marked by hectic schedules and a continuous on-the-move routine pushing more growth for ready to drink (RTD) coffee market in India. This dynamic change has ignited a strong demand for convenient caffeinated beverages that stop the requirement for time-consuming preparation. In 2023, the RTD coffee market has burgeoned, with more than 65 million urban Indians looking for quick beverage solutions to fuel their busy days. Brands are capitalizing on this trend by establishing a plethora of single-serve RTD coffee bottles, with annual sales exceeding 150 million units. This surge is further propelled by the burgeoning population of young professionals and college students who are gravitating towards coffee as their go-to energy booster.

The average Indian professional clocks in more than 48 hours a week, highlighting the appeal of a ready-made caffeine fix. The ready to drink (RTD) coffee market is responding proactively by presenting a diverse collection of alternatives available at supermarkets, vending machines, and online platforms, providing maximum accessibility for consumers. This growth is clear with the introduction of RTD coffee kiosks at more than 500 metro stations and the integration of RTD coffee alternatives in more than 1,000 corporate cafeterias across major cities. The market has also seen a boost from collaborations with more than 200 local coffee chains, which are now offering RTD variants alongside their conventional brews.

Moreover, a substantial growth in the number of RTD coffee vending machines in India ready to drink (RTD) coffee market, now exceeding 8,000 nationwide, reflects the increasing consumer demand for instant gratification. The market is also noticing the proliferation of RTD coffee delivery services, with more than 5,000 delivery personnel catering to the urban populace. As the demand continues to escalate, brands are doubling down on creative flavors and functional ingredient infusions, such as adaptogens and vitamins, to cater to health-conscious consumers. The RTD coffee market is poised for exponential growth, with projections showing a spike in demand from not only urban centers but also tier-2 cities, where the working population is rapidly adopting the comfort of ready-to-drink solutions.

Adoption of Sustainable and Eco-Friendly Packaging Solutions

The growth of environmental consciousness among consumers is steering market trends, and the RTD coffee segment is no exception. In 2023, more than 30 million Indian consumers have shown a preference for products featuring sustainable packaging. This has boosted brands to adopt eco-friendly materials such as recyclable PET bottles and biodegradable packaging in India ready to drink (RTD) coffee market. A leading coffee brand, for instance, traded 50 million RTD coffees in recyclable containers this year alone, highlighting its dedication to environmental responsibility. This trend is attracting environmentally conscious consumers and aligning with global sustainability goals. Companies funding green packaging solutions are seeing improved customer loyalty and a positive brand image.

The change towards sustainable packaging is anticipated to slash plastic waste by thousands of tons annually, particularly contributing to environmental conservation efforts in India. This is supported by the introduction of about 2,000 recycling kiosks across major urban centers, enabling consumers to return utilized packaging. Moreover, more than 500 brands have pledged to switch to 100% biodegradable packaging by 2025, further strengthening sustainability efforts. Brands across the country’s ready to drink (RTD) coffee market are also researching innovative packaging designs, such as reusable RTD coffee containers and compostable coffee pods, to appeal to eco-conscious consumers. This has led to collaborations with more than 100 packaging startups concentrated on sustainability, resulting in more than 300 new eco-friendly packaging designs hitting the market.

Furthermore, government incentives for sustainable practices have encouraged more than 150 RTD coffee manufacturers to adopt green packaging solutions. The success of these initiatives is reflected in consumer behavior, with more than 200,000 customers participating in brand-led recycling programs. Also, sustainability-focused marketing campaigns have reached more than 20 million consumers, reinforcing the significance of eco-friendly alternatives. As the trend gains momentum, brands are keen to leverage technology, such as blockchain, to guarantee transparency in their supply chains and further boost consumer confidence in their sustainable practices. The RTD coffee segment is on a path to becoming a leader in sustainable packaging, setting a standard for other beverage categories to follow.

Recent Launches: -

In 2023, Tata Consumer Products (TCP), a leading consumer goods company home to iconic brands like Tetley, Tata Tea, and Tata Salt under the Tata Group, ventures into the ready to drink cold coffee market by introducing Tata Coffee Gold- Cold Brew. This new beverage delivers a refreshing and authentic coffee experience with its carefully crafted cold water brewing procedure and high-quality ingredients. Tata Coffee Gold is available in three delightful flavors: Mocha, Classic, and Hazelnut, catering to various tastes. The company’s Managing Director of NourishCo Beverages Limited, Mr. Vikram Grover says, “Our purpose with Tata Coffee Gold- Cold Brew Ready-to-Drink Coffee is to deliver an exceptional coffee experience to our discerning customers. With Tata Coffee Gold- Cold Brew, we are delivering a product that produces a rich, rounded taste without any bitterness, while still delivering a cold brewed coffee hit.”?

Also, the meticulous preparation of Tata Coffee Gold involves steeping the beverage for more than 12 hours, resulting in a smooth, bold, and luxurious flavor profile. Notably, it stands out by keeping a low sugar content, demanding health-conscious individuals while still ensuring a delightful taste. To make it convenient for consumers, Tata Coffee Gold- Cold Brew Ready-to-Drink Coffee will be readily available at select retail outlets nationwide. Priced at Rs. 125 per bottle, it stops the requirement for extra preparation, delivering a hassle-free way to enjoy a premium cold brew coffee experience.

Closing Note: -

India’s ready-to-drink coffee market is a rich tapestry of tradition and modernity, delivering a unique blend of rich flavors and convenience that resonates with today’s fast-paced lifestyles. The transition towards RTD coffee reflects not just changing consumption patterns but also the increasing preference for products that fit seamlessly into daily routines. With a projected market size poised to reach US$ 4.51 billion by 2032, it is evident that this segment is not just a trend but a substantial change in how Indians perceive and consume coffee.

The proliferation of diverse flavors, from classic espressos to creative blends infused with local ingredients, showcases the creativity and adaptability of Indian brands. As companies like Tata Consumer Products and established giants like Starbucks and Nestlé introduce new offerings, they cater to the growing tastes and preferences of a diverse consumer base. Moreover, the commitment to sustainability within the RTD coffee market is admirable. As more brands adopt eco-friendly packaging solutions, they are not only lowering environmental impact but also appealing to the growing number of consumers who prioritize sustainability in their purchasing decisions. This alignment with global environmental goals underscores the industry's foresight and responsibility.

As people move forward, the ready-to-drink coffee terrain in India will continue to flourish, propelled by convenience, innovation, and a deep respect for coffee culture. Whether enjoyed at home, on the go, or in bustling urban cafés, RTD coffee is set to redefine the coffee experience for millions. Adopt this exciting journey from beans to bottles, where tradition meets convenience in every sip.