Coffee Market in India

Satisfactory Essays
Coffee In India
Competitive Landscape
The two primary coffee brands in India are Bru by Hindustan Unilever and Nescafé by Nestlé India. Bro - retail volume share of 30% , Nescafé-15%.
Bru Roast & Ground - fresh ground coffee sales, Volume share of 26%
Nescafé’s Classic and Sunrise – Instant Coffee 53% of retail value sales in 201; Bru (41%).
Illy and Lavazza are the premium coffees in India. Bru and Nescafé offer differently priced products which cater to low price and premium tastes.
Data

Trends
Coffee chains have have brought in a culture in favour of coffee
Convenience the main factor in driving growth in Instant coffee which is growing at 14%
In 2011, on-trade coffee volume sales(hotels,cafes) increased by 7% whilst retail volume sales only increased by 6%
Packaging changed to portray premium image - Bru Gold was also launched in a trendy triangular jar with a snap-fit cap
Growth Prospects : 1. Entry of coffee chains like Starbucks in India will change the outlook of the on-trade coffee area 2. Forecast period retail volume CAGR of 8%, mainly non traditional areas : North and North East India 3. Instant coffee will grow faster than fresh coffee at about 14% 4. Bru Exotica – The premium segment coffee brand is being watched closely to judge the potential of such a product in India. Rural India however poses a much more tempting prospect for growth. 5. 3-in 1 format of instant coffees being marketed by companies to exploit intest in latte and cappuccino flavours. So far growth has been limited to 3% 6. Scope for growth in vending machine format –

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