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Coffee Consumption in India-2005

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Per capita consumption of coffee: 75grams

Penetration of coffeeProportion of people consuming the beverage in the last 12 months.

Up in 2005 to 62% from 59% of 2003.

Instant coffee Penetration - 52%

But R&G (Filter coffee) - (15%).

Penetration of tea- 94%.

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Share of Throat

Ratio of the volume of thatbeverage consumed to thevolume of all beverages

consumed yesterday(excluding water).

Tea 52%Plain milk 14%.

Coffee 13% (filter +instant) during 2005

against 10% earlieryear

2

52

9

4

14

1 1

2

1

2005

Butter milk

Lassi

Flavoured Milk

Natural berevages

Packaged fruit

flavoured drink l

CSD

Plain milk

Filter Coffee

Instant Coffee

Tea

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Heaviness of consumption

Classification of Consumers

38% Non-drinkers - who did not consumecoffee in the past 12 months.

40% Occasional drinkers - who consumedcoffee in the past 12 months but not yesterday.

22% Coffee drinkers who consumed coffeeyesterday.

Light (1-2 cups a day)Medium (3 cups a day)

Heavy (4 or more cups a day).

.The potential for growth lies with occasionaldrinkers and more so in North and Eastern

zones where the occasional drinkers aremaximum in number i.e 64% and 52%respectively.

Between 2003 and 2005, there is a marginalreduction of non-drinkers but the proportionof occasional drinkers remains the same.

38%

40%

19%2%

1%

Non drinker Occasional drinker Light drinker Mediumdrinker Heavy drinker

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Places of consumption

Most of the daily consumption is at home.During 2005 about 24% also consumed itaway from home. This is a marginal

increase of 2% over the previous estimate of22%. Consumption of coffee away fromhome is mainly at restaurants (45%) and hotteashops (40%). Cafes and vending

machines are more visible now in the out-of-home segment.

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Estimation of volumes

During the year 2005, the total volume of coffee consumption 80,200 MTwith an urban and rural divide of 58,500 MT (73%) and 21,700 MT (27%).

This represents an overall increase of 9900 MT or 7% annual growth overthe 2003 consumption of 70,300MT (with an urban and rural share of49,600 MT and 20,700 MT respectively).

About 64,405 MT is consumed in South India, which is 80% share of allIndia consumption of 80,200 MT.

In the South, Tamil Nadu is the largest coffee consuming state with anestimated volume of about 22,000 MT (34%) closely followed byKarnataka with 19,000 MT (30%). Andhra Pradesh & Kerala accountfor about 13,000 MT (20%) and 10,000 MT (16%) respectively.

In South zone, instant and filter coffee almost have an equal share. Inother zones, instant coffee is more predominant.

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ConsumptionVolume Trends

2005 Instant % R&G % Instant Vol. R&G Vol Total

Overall 52 48 41704 38496 80200

Urban 59 41 34515 23985 58500

Rural 45 55 9765 11935 21700

2003 Instant % R&G % Instant Vol. R&G Vol Total

Overall 51 49 35853 34447 70300

Urban 53 47 26288 23312 49600

Rural 47 53 9565 11135 20700

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Statewise volume (Urban+Rural)

2003 20052003

Share

2005

share

T.N 22692 22000 0.35 0.34

Karnataka 17505 19000 0.27 0.30

AP 12967 13000 0.20 0.20

Kerala 11670 10000 0.18 0.16

South 64834 64000 0.92 0.80

Non-South 5466 16200 0.08 0.20

Total 70300 80200

AP

20

Kerala

18%

TN

35

Karnataka

27%

AP

20%

Kerala

16%

TN

34

Karnataka

30%