Coffee is the most popular and consumed brewed drink prepared from roasted coffee beans, the seed from certain Coffee species. Further, the coffee market is segmented by product type, distribution channel, and geography. On the basis of product type, the coffee market is segmented under whole-bean, ground coffee, instant coffee, and coffee pods capsules. Coffee production in India is dominated in the hill tracts of South Indian states, with Karnataka accounting for 71%, followed by Kerala with 21% and Tamil Nadu (5% of overall production with 8,200 tonnes). Indian coffee is said to be the finest coffee grown in the shade rather than direct sunlight anywhere in the world. There are about 250,000 coffee growers in the country; 98% of them are small growers. As of 2009, Indian coffee made up just 4.5% of the global production. Almost 80% of Indian coffee is exported; 70% is bound for Germany, Russia, Spain, Belgium, Slovenia, United States, United Kingdom, Japan, Greece, Netherlands and France. Italy accounts for 29% of the exports. Most of the export is shipped through the Suez Canal. Coffee is grown in three regions of India with Karnataka, Kerala and Tamil Nadu forming the traditional coffee growing region, followed by the new areas developed in the non-traditional areas of Andhra Pradesh and Odisha in the eastern coast of the country and with a third region comprising the states of Assam, Manipur, Meghalaya, Mizoram, Tripura, Nagaland and Arunachal Pradesh of North-eastern India, popularly known as “Seven Sister States of India".
The global coffee market is anticipated to reach INR 10,692.99 Crores in 2025, growing at a CAGR of 7.60% for the period spanning 2021-2025. Coffee will continue to be a popular dairy beverage in consumer diets around the world in the next years, but its consumption levels are unlikely to reach new highs. Coffee output is also likely to benefit from attractive government subsidies aimed at encouraging cash crop growth. Factors such as increasing out of home coffee consuming population, rapid urbanization, rising e-commerce retail sales, increase in income, increasing instant coffee preference, growing demand for specialty coffee and increasing green coffee consumption in emerging economies are expected to drive the market. The market is driven by multiple factors, a few being increasing demand for certified coffee products, acceptance of single-serve coffee brew systems by the consumers, and constant innovation lead by top players in the coffee market. In developed economies, some consumers are expected to switch from instant coffee to more premium options for reasons of quality and flavour. Instant coffee was once considered a high-end product but began to lose its base of younger consumers, which is changing the market dynamics. In comparison with brewed coffee, instant coffee comprises of lower caffeine content but higher amounts of antioxidants. Regular consumption of instant coffee assists in boosting metabolism, improving brain function and enhancing liver health. Owing to this, instant coffee is gaining immense popularity especially among the working population across the globe.
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