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PUBLISHER: Mordor Intelligence | PRODUCT CODE: 1431627

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PUBLISHER: Mordor Intelligence | PRODUCT CODE: 1431627

India Cafes & Bars - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

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The India Cafes & Bars Market size is estimated at USD 17.54 billion in 2024, and is expected to reach USD 26.17 billion by 2029, growing at a CAGR of 8.33% during the forecast period (2024-2029).

India Cafes & Bars - Market

Rising work from trend and increased disposable income fueling the cafes and bars sales

  • The growth of cafes in India, driven by the rise in the trend of people working remotely or freelancing, has led to an increased demand for comfortable and functional workspaces that also offer food and beverages, leading to the emergence of coworking cafes. In 2020, flexible workspace leasing in India accounted for over 5.4 million sq. ft of space, a 43% increase from 2019. The ambiance and atmosphere of restaurants have become an essential aspect of their appeal. Many cafes now offer unique and quirky themes and decor to attract customers and provide live music or entertainment. Hence, cafes in India are anticipated to be the fastest-growing by value, registering a CAGR of 17.06% during the forecast period.
  • In the bars and pubs sub-segment, there is an increasing awareness of health and wellness among consumers in India, and many bars and pubs are responding by offering low-calorie drinks, mocktails, and non-alcoholic cocktails. This trend is driven by the growing demand for healthier drinking options, especially among younger consumers. Over 40% of consumers in India were willing to choose low-calorie and low or no-alcohol drinks as of 2020. Around 43% of consumers wanted low-calorie alcohol, 32% wanted gluten-free beers, and 34% were looking for low-calorie beers.
  • India has a long-standing tea and coffee culture, and specialty outlets are tapping into this by offering premium and unique blends of tea and coffee. The coffee culture emphasizes high-quality coffee, ethical sourcing, and sustainable practices, which has gained popularity among Indian consumers and is boosting the growth of specialist coffee and tea shops. Hence, specialist coffee and tea shops are anticipated to register a CAGR of 6.95%, by value, during the forecast period.

India Cafes & Bars Market Trends

India's tea chains: A new trend for millennials that offers diverse options at lower prices

  • Cafes and bars outlets held a major share of the market at 22.52% in 2022. India has more than 800 bars and clubs that provide alcohol. The younger generation has more disposable income, which has ultimately increased demand for India's pub and bar cultures. The majority of customers prefer to visit businesses that serve food and alcohol. People are drawn to the ambiance of cafes and bars, which makes it easier for customers to socialize.
  • Specialty tea and coffee stalls are popular in India, with the informal sector accounting for the vast majority of them. As an alternative to the ubiquitous tea stall, branded tea chains have sprouted across Indian cities. Millennials are especially attracted to companies that offer more diverse options at lower prices than coffee chains. For instance, a cup of masala chai costs USD 0.85 at Chaayos, one of India's largest tea chain companies, while the cheapest coffee at Starbucks costs USD 1.95. Tea chains also have a larger food menu, which will likely appeal to younger adults who prefer to eat out more than older people. Targeting millennials is not surprising since almost one-third of the country's population is in the age group, thereby promoting such establishments.
  • Over 70% of consumers in India were focused on improving their overall health and immunity through dietary changes in 2021, boosting the demand for juice and smoothie bars to offer a healthy menu. The popular juice/smoothie/dessert bars in India include Jus Booster Juice, Drunken Monkey, Smoothie Factory, and The Thick Shake Factory. These bars offer a range of fresh juices, smoothies, and desserts made from natural fruits and cater to the growing demand for healthy food and beverage options.

India's coffee market: growing demand for filter coffee and popular local dishes

  • The average order value for cafes and bars is low. However, the number of orders registered per day has an impact on the growth of the market value for this segment in India. India has traditionally been a tea-drinking country, but coffee consumption has recently increased. Urban consumption accounts for approximately 73% of total volumes, and the remaining 27% account for rural consumption, particularly in South India. Tamil Nadu accounts for 60% of South Indian consumption, while Karnataka, Andhra Pradesh, and Kerala account for 25%, 10%, and 5%, respectively. Instant coffee is more popular in the North, East, and West zones than filter coffee. Occasional drinkers account for 52% of total consumption in these regions. However, in the South Zone, filter coffee consumption outnumbers instant coffee consumption.
  • Since the COVID-19 outbreak in 2019, people have switched to tea as a wellness superfood. India consumed 89.24% of its total tea production during the fiscal year 2020-2021. India's consumption increased from 1,116 million kg in the previous fiscal year to 1,145 million kg in 2020-2021, reporting an increase of 2.6%. About 443 million Indian millennials spend more than USD 50 monthly on their health and wellness products, thereby promoting the growth of immunity-boosting tea containing several ayurvedic ingredients like Turmeric, Ashwagandha, Moringa, and Tulsi. This gives an upper edge to budding start-ups and even established companies that spark new trends in this segment. India's average per capita consumption of hard liquor is the highest in the world at 13.5 liters of pure alcohol compared to 1.1 liters of pure alcohol from beer. However, the cost of alcohol in bars and pubs is driving people to consume at home, acting as a major restraint for the market.

India Cafes & Bars Industry Overview

The India Cafes & Bars Market is fragmented, with the top five companies occupying 2.53%. The major players in this market are Barista Coffee Company Limited, Graviss Foods Private Limited, Gujarat Cooperative Milk Marketing Federation, Impresario Entertainment and Hospitality Pvt. Ltd. and Tata Starbucks Private Limited (sorted alphabetically).

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support
Product Code: 50000831





  • 3.1 Study Assumptions & Market Definition
  • 3.2 Scope of the Study
  • 3.3 Research Methodology


  • 4.1 Number Of Outlets
  • 4.2 Average Order Value
  • 4.3 Regulatory Framework
    • 4.3.1 India
  • 4.4 Menu Analysis

5 MARKET SEGMENTATION (includes market size in Value in USD, Forecasts up to 2029 and analysis of growth prospects)

  • 5.1 Cuisine
    • 5.1.1 Bars & Pubs
    • 5.1.2 Cafes
    • 5.1.3 Juice/Smoothie/Desserts Bars
    • 5.1.4 Specialist Coffee & Tea Shops
  • 5.2 Outlet
    • 5.2.1 Chained Outlets
    • 5.2.2 Independent Outlets
  • 5.3 Location
    • 5.3.1 Leisure
    • 5.3.2 Lodging
    • 5.3.3 Retail
    • 5.3.4 Standalone
    • 5.3.5 Travel


  • 6.1 Key Strategic Moves
  • 6.2 Market Share Analysis
  • 6.3 Company Landscape
  • 6.4 Company Profiles (includes Global Level Overview, Market Level Overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and Analysis of Recent Developments).
    • 6.4.1 Barista Coffee Company Limited
    • 6.4.2 Coffee Day Enterprises Limited
    • 6.4.3 Graviss Foods Private Limited
    • 6.4.4 Gujarat Cooperative Milk Marketing Federation
    • 6.4.5 Impresario Entertainment and Hospitality Pvt. Ltd.
    • 6.4.6 Kitchen Fragrances India LLP
    • 6.4.7 Massive Restaurant Pvt. Ltd.
    • 6.4.8 McDonald's Corporation
    • 6.4.9 Monginis Foods Private Limited
    • 6.4.10 Mountain Trail Foods Private Limited
    • 6.4.11 Tata Starbucks Private Limited
    • 6.4.12 White Monkey F&B LLP



  • 8.1 Global Overview
    • 8.1.1 Overview
    • 8.1.2 Porter's Five Forces Framework
    • 8.1.3 Global Value Chain Analysis
    • 8.1.4 Market Dynamics (DROs)
  • 8.2 Sources & References
  • 8.3 List of Tables & Figures
  • 8.4 Primary Insights
  • 8.5 Data Pack
  • 8.6 Glossary of Terms
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Manager - Americas


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