PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1661594
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1661594
The India Coffee Machine Market is valued at USD 194.4 million in FY2024 and will reach USD 370.3 million by FY2032, growing at a CAGR of 8.39% during the forecast period between FY2025 and FY2032 owing to the country's expanding coffee culture and rising dual-family income. Innovations, new product introductions, and escalating customer demand have contributed to the coffee industry's evolution and thereby, affecting the coffee machine market. Furthermore, technological improvements, growing working-class population, increased knowledge of health advantages, and rising demand for smart kitchen appliances are anticipated to fuel the growth of the India coffee machine market.
However, it is also projected that rising coffee machine repair and maintenance costs may impede industry expansion. Additionally, the market has temporarily been impeded by escalating transportation challenges, labour scarcity concerns, and instances of lengthier delivery delays as a result of the unpredictable supply chain interruption during the COVID-19 outbreak.
Growing Gen Z and Millennials Population
India is experiencing a greater proportion of millennials and Generation Z as a percentage of the total population, whereas Western nations are seeing this proportion drop. The proportion of millennials and Generation Z in the country's population was 52% in 2021. This segment of the population has experienced a paradigm shift in choice of coffee over any other traditional drink such as tea. The return to office scenario and adoption of western cafe culture, India is witnessing a spurge in the setup of such infrastructure with direct impact on the demand of coffee machines.
Expansion of HoReCa Led to Market Growth
The popularity of cafes and coffee shops is on the rise as a result of shifting lifestyles, an increase in the number of workers, and customer preferences. Numerous opportunities in the food and beverages industry have influenced many small and midsize players to enter the industry, thereby increasing the growth of coffee machine market. Additionally, it is anticipated that the coffee machine market is anticipated to grow owing to an increase in coffee flavors and variations.
Growing Need of Customized Coffee Machines Drive Market Growth
A new driver in the India coffee machine market has been experiential consumption of coffee. Brands are focusing on designing machines that allow for customization in flavor profiles and brewing methods as consumers increasingly seek unique, personalized coffee experiences. This way, the beverages appeal to the younger generations, who value artisanal and craft beverages. Moreover, the rising coffee subscription service is impacting the market because it often demands a specific machine for brewing quality coffee at home. This is the trend towards more engaging and tailored coffee experiences that will have a huge demand for advanced coffee machines. Companies are launching new coffee machines that offer customizable experiences to cater the customer demands.
For instance, in April 2024, Nestle India Limited has launched Nespresso, offering customizable machines that let users personalize cup size, coffee strength, and milk frothiness. The first boutique opens in Delhi, with plans for expansion.
India Coffee Machine Market Pre and Post COVID-19
While the demand for coffee machines in non-residential sectors decreased significantly during COVID-19, the demand for coffee machines in residential sectors increased, as a result of the closure of several cafes and the transition to work-from-home. Sales of coffee machines have soared as a result. Additionally, the market was impeded by escalating transportation challenges, labour scarcity concerns, and delivery delays as a result of the unpredictable supply chain interruption during the COVID-19 pandemic. However, the expansion of business infrastructure and the number of offices ensured development in coming years even if there was a brief halt during the pandemic.
Key Players Landscape and Outlook
The India coffee machine market is expanding quickly, which has sparked fierce rivalry. The market is, nevertheless, dominated by a few renowned companies. In order to capture a significant market share, companies work on new product launches and innovations. For instance, Philips India has introduced three models from the Philips Saeco portfolio which are priced at Rs 13995, Rs 54995, and Rs 74994. All of these devices can assist in making a variety of coffee drinks, including cappuccinos, espressos, lattes, and macchiatos. Furthermore, many companies are working on advanced technology such as WiFi/Bluetooth-enabled smart coffee machines. Smart coffee machines allow the ability to remotely monitor the coffee maker using smartphones.
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work