India’s Cafe, Bakery, and Smoothie Bars segment witnessing a multi-dimensional growth

The branded cafe, bakery, and smoothie bar segment in India is sized at 5,856 crores in FY 24, growing at a CAGR of 25.59% since FY 22, as per the research by The India Watch. In the last 12 months, the segment has climbed from 5047 crores to 5,856 crores, a significant growth of 16.02%.

Cafes in India were mostly limited to dates and special occasions during the 90s and 2000s. However, with the rise in disposable income, easier access to international lifestyle, and growing urbanization, cafes and other related categories play a wide spread role in the current times. 

Today people across age groups frequently visit such places for college meetups, family hangouts, semi-formal business meetings, etc. Similarly, such places are popular amongst freelancers, start-up owners, poetry clubs, reading clubs, or simply book lovers who would like to spend some “me time” with their favorite chai or brew. 

Businesses also understand how lucrative the Indian market is and are adopting a wide range of strategies from localizing their cuisines to lowering the price points to reach a larger audience. 

It is important to highlight the role of social media influencers in promoting the café culture in India. Today thanks to the power of visual displays, from a connoisseur to a casual drinker and food lover can talk and discuss about their favorite brew, chai, and bakery items, thereby spreading more awareness. 

Insights into India’s Café, Smoothie Bar, and Bakery Business 

As per the research study by The India Watch, India has presently close to ~6,700 branded café, bakeries, and smoothie bar outlets. Around 40% of the market is led by coffee cafes (~ 2,650 units). India has seen a spurt in coffee cafés since the early 2000s. 

Besides indigenous brands such as Café Coffee Day and Barista, international chains such as Starbucks, Costa Coffee, Café Di Bella, Gloria Jeans, Tim Hortens are either an established name in India or eyeing big expansion. India’s growing café culture is also seeing new emerging  brands such as Blue Tokai, third wave coffee, Hatti Kapi, which are expanding at notable pace, giving stiff competition to incumbent players. Backed by generous venture funds, they will play a major role in India’s F&B landscape. 

If 2000s saw steep jump in coffee café culture in posh urban neighborhoods, the 2010s saw growth tea cafes. This was the time when brands like  Chaayos and Chai Pointcame to the scene and introduced ruggedly designed but cozy places to enjoy India’s favorite drink- Chai or tea. With 25-30 base favors, they introduced almost 1000 custom varieties to tea, taking the drinking culture in India to new heights. In FY 24, there are a total of 1238 tea cafes with an aggregate revenue of INR 873 crores. Besides Chaayos and Chai point, there are other popular brands such as Chai Point, MBA Chaiwala, Bagh Bakri Tea Lougue, etc. 

If 2000s was coffee cafes in India and the next decade was dedicated to tea chains, the current one is surely for smoothie bars in India. The Indian millennials and gen Z are now embracing healthy lifestyle, which is marked by lowering in consumption of carbonated drinks and surge in healthy beverages such as juices, smoothies, shakes, etc. As per our study India has ~ 438 smoothie bar with a combined revenue of INR 550 crores in FY 24.  

Market Research and Feasibility Study for your Eatery Business 

If you are running a café or any other F&B business and looking for custom research and feasibility study solution, then we at The India Watch can help you. In the past we have worked with numerous F&B brands, investors, and food entrepreneurs, helping them with their research requirements.

• Feasibility study for new restaurants, cafes, bakeries, cloud kitchen, etc.
• Strategic intelligence and market knowledge for brands looking to expand and scale up
• Consumer behavior surveys for existing and new brands. 
• Custom information and intelligence on competition, ecosystem, future potential, vendors & suppliers, etc. 
• Brand positioning study 
• For any further information, drop us a mail at info@theindiawatch.com