India is on the verge of a coffee revolution, with consumption projected to double in the next 5-10 years, according to Raja Chakraborty, CMO of Continental Coffee Limited (CCL). He attributes this surge to the younger generation adopting coffee as their preferred beverage, a shift happening faster than in developed nations.
Meeting the Demand
To keep pace with this growing demand, CCL has already doubled its production capacity across its facilities in India and Vietnam. Praveen Jaipuriar, CEO of CCL, anticipates that the company will achieve 100% capacity utilization by fiscal year 2029. As it approaches full utilization, the company will explore options for further expansion.
Jaipuriar also stated that CCL is open to strategic partnerships with companies looking to outsource operations from their under-utilized units. Currently, the company’s total production capacity exceeds 75,000 metric tons (mt) per year across its plants in Switzerland, Vietnam, and India. Also Read | Top 10 coffee producers and global export trends
Branded Business and Exports
Domestically, CCL’s business is heavily skewed toward its branded products, which account for 70% of its sales. The remaining 30% comes from private labeling and bulk coffee. The company expects the contribution from branded sales to increase further in the coming years.
Exports remain a vital part of CCL’s strategy. Approximately 35-40% of its shipments go to Asia, another 35-40% to Europe (including Russia and the CIS), and about 10% to the American market. The company has a minimal presence in Australia. Jaipuriar highlighted West Asia and Asia as the “most aspirational coffee markets globally,” driving the highest growth in both in-home and out-of-home consumption.
The Power of Sachets
In the Indian market, sachets continue to dominate, making up around 70% of the coffee market. Chakraborty noted that this segment will continue to grow for the foreseeable future. CCL is focusing its efforts on expanding the reach of small packs through targeted micro-marketing initiatives. They are also working on introducing niche products, like premixes, in convenient small packs to enhance their market penetration. The company remains confident that the younger generation’s embrace of coffee will lead to a doubling of consumption within the next decade.
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