Comments
Tata Consumer Products, acknowledging the lesser prevalence of coffee consumption outside of South India, is determined to tap into India’s branded coffee market valued at approximately ₹3200 crore and has introduced targeted products for the northern region.
Multiple studies suggest that over 70 per cent of coffee consumption is concentrated in the southern regions.
Data indicate that both rural and urban areas of Tamil Nadu account for a remarkable 90 per cent share of the coffee market, with an average monthly consumption of approximately 85 gm.
In contrast, across all urban and rural areas of India, coffee has a penetration rate of 39 per cent, and the average monthly consumption stands at 38 grams, as reported by the Kantar World Panel.
Ahead of International Coffee Day, observed on October 1, Puneet Das, President, Packaged Beverages India and South, Tata Consumer Products, spoke about the Tata Consumer Products branded coffee business and the different market strategies to be a serious or sizeable player in the country.
Coffee market
Currently, the branded coffee market in India is valued at approximately ₹3,200 crore, with the instant coffee segment accounting for 80 to 85 per cent of its value.
“In the non-south market, consumers do not understand what chicory is and hence 100 per cent of coffee blends and decoctions work better in those markets,” explained Das.
The brand had a coffee chicory mix, which worked mostly in the South market and then last year introduced Tata Coffee Premium, a 100 per cent coffee blend launched for non-South markets. Additionally, Coffee Grand and Premium are the volume drivers for the instant coffee business, he added.
Demand trends
“The idea is to grow and eventually become a serious player in the coffee segment. So, we intend to scale up some of the offerings much faster,” Das said. The business grew 31 per cent last year and 21 per cent in the last quarter, he added.
Regarding the current demand trends for both tea and coffee, Puneet Das noted that rural consumption and growth faced challenges due to inflationary pressures until last year. However, from December 2022 onwards, there has been comparatively positive volume growth, albeit in the single-digit range.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.