Youthful population and cut in GST are key growth drivers in 2025
India has large and youthful population and this remained a key growth driver for hot drinks in 2025. Alongside cultural staples like black tea, consumers also showed growing interest in more varied and premium offerings, with younger consumers in particular keen to try new experiences. Sales of coffee and other hot drinks were also boosted by a reduction in the Goods and Services Tax on these products, which was dropped from 18% to 5%.
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Overview:
Understand the latest market trends and future growth opportunities for the Hot Drinks industry in India with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Coffee
- Tea
- Other Hot Drinks
If you're in the Hot Drinks industry in India, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Hot Drinks in India report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Hot Drinks in India?
- To what extent are health considerations impacting consumption of Hot Drinks in India?
- What are the traditional preferences in Hot Drinks in India? To what extent are these tastes changing amidst increasing international influence and the growth of chained cafés?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Hot Drinks in India?
- Which are the leading brands in Hot Drinks in India?
- How are products distributed in Hot Drinks in India?
- How is the rise of e-commerce changing the retail and competitive landscape?
- Have home seclusion and social distancing measures following COVID-19 benefited sales of Hot Drinks?
- Where is future growth expected to be most dynamic?
Hot Drinks in India
Youthful population and cut in GST are key growth drivers in 2025
KEY DATA FINDINGS
Hot drinks sees strong growth buoyed by a young, modern and urban population
Search for new experiences fuels premiumisation in the market
Cut in GST makes coffee and other hot drinks more affordable
Rising cost of key ingredients could disrupt the market
Geopolitical uncertainty casts a shadow over the future of hot drinks
Health and wellness concerns set to shape the future direction of the market
Nestlé making significant gains in coffee
Hindustan Unilever remains on top following aggressive expansion policy
Quick commerce benefits from the rapid digitalisation of the Indian market
Kirana stores remain vital to sales with brands adapting their strategies to reflect this
COUNTRY REPORTS DISCLAIMER
Coffee in India
KEY DATA FINDINGS
Coffee seeing widespread adoption by India’s youthful population
Changes to the Goods and Services Tax (GST) drive demand for coffee in India
Young demographic driving a boom in coffee sales in India
Companies are expected to focus on affluent consumers by integrating a forward supply chain and leveraging e-commerce platforms
Café culture set to remain a key growth driver for coffee in India
Quick commerce set to play a pivotal role in driving coffee sales across urban areas
Nestlé launches first Nespresso store in India
Players absorb costs and employ shrinkflation to limit price increases
Q-commerce putting pressure on small local grocers
Players vary their product offerings across different sales channels
Tea in India
KEY DATA FINDINGS
Tea remains an important staple
Premiumisation a growing feature of the market
Tea consumption across India rises as commodity inflation eases
Health and wellness trend expected to shape the tea market
Rising costs expected to place significant pressure on manufacturers' bottom lines
Companies will leverage the power of social media for their premium assortments
Tata focuses on wellness-oriented launches to cement its lead in tea
Players use hyperlocal and vernacular marketing to attract sales
Small local grocers dominate but lose share as quick commerce asserts itself
Quick commerce a growing feature of an increasingly digital market
Other Hot Drinks in India
KEY DATA FINDINGS
Drop in GST supports growth but health concerns persist
Other hot drinks benefits from decline in GST and an expanding customer base
Sugar content and a shifting regulatory landscape impact demand
Rising prices is expected to be the primary challenge for the category
Malnutrition concerns should sustain demand for malt-based hot drinks
Taste versus nutritional value
Hindustan Unilever maintains its lead with ongoing investment in line extensions
Focus shifts to portfolio diversification
Small local grocers continue to dominate distribution
Q-commerce thriving but new directive presents new obstacle
COUNTRY REPORTS DISCLAIMER
The following categories and subcategories are included:
Hot Drinks
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- Fresh Coffee Beans
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- Fresh Ground Coffee Pods
- Standard Fresh Ground Coffee
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- Instant Standard Coffee
- Instant Coffee Mixes
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- Loose Black Tea
- Tea Bags Black
- Fruit/Herbal Tea
- Green Tea
- Instant Tea
- Other Tea
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- Chocolate-based Flavoured Powder Drinks
- Malt-based Hot Drinks
- Non-Chocolate-based Flavoured Powder Drinks
- Other Plant-based Hot Drinks
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This report originates from Passport, our Hot Drinks research and analysis database.
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