Coffee demographics report by month-end

Research International, a US-based global custom market research company, which is carrying out the study of demographics of coffee drinking in India, is to submit its report by the end of this month.

“The study is being carried out to determine the size of Indian domestic coffee market. We had assigned the work to Research International and they are to submit the report by November-end,” said Coffee Board chairman Krishna Rau, on the sidelines of Upasi-KPA coffee conference, here today.

“The outcome of the study will give us an idea as to where we stand and also help us formulate policies regarding domestic coffee promotion,” he added.

The market study is expected to cover the key areas of consumption patterns in both urban and rural India. But the key focus would be on deliverables of penetration, volumes consumed, varieties of coffee consumed, share of throat, socio-economic groups, chicory usage and its awareness.

“The domestic annual coffee consumption is estimated at 80,200 tonnes as of 2005 and has been growing at 5 per cent to 6 per cent per annum since then due to the mushrooming of cafes in major Indian cities,” said Rau.

The Coffee Board, early this year, had invited proposals from market research agencies to carry out the study and Research International had bagged the contract.

India’s share in global coffee production is estimated to be 4.5 per cent at 280,000 tonnes. Of this, domestic consumption is estimated to be around 29 per cent (80,000 tonnes) and the balance is exported. Coffee Board is making efforts to increase the domestic consumption by at least 50 per cent.

The board had carried out a similar study in 2006. However, this year’s initiative assumes special significance after the Brazilian marketing consultant Carlos Brando, credited with turning Brazil from a net exporter to a major consumer of coffee.

Brando interacted with the board officials during his two visits to India in 2006 and 2007, and has given his suggestions to boost domestic consumption of coffee. He has also given suggestions to chalk out a detailed marketing plan to boost sales in non-traditional areas.