Recent Trends in Coffee Consumption in India

1
Consumer attitudes towards coffee drinking
2

• Attitude towards Coffee Drinking
• Research Objectives
• Understand consumer perceptions and attitudes
  towards Coffee in the context of other beverages.
• Understand the attitude towards coffee with
  respect to quality, variety, price, additives
  especially chicory, positive and negative
  associations related to consumption as well as
  drivers and barriers to coffee consumption.
• Regular drinkers Drink 1-2 times or more
  everyday including yesterday
• Occasional Drinker Drunk once in the last 6
  months, but not yesterday
• Non-Drinker Not drunk at all in the last 12
  months / cannot remember when last drunk coffee

3
Spontaneously Recalled Beverages

• Spontaneous Recall
• Spontaneous recall measures whether a respondent
  recalls a beverage spontaneously without any
  aiding.
• Both coffee and tea enjoy high spontaneous
  recall. These are followed by Plain Milk and
  Carbonated Soft drinks

URBAN
RURAL
Coffee
Tea
Plain Milk
Carbonated beverages
All figures in
4
Top of Mind Recalled Beverages
Top of Mind Category recall Starting with recall
of beverages, the first beverage recalled is
referred to commonly as the Top of Mind (TOM)
beverage. While 66 of the respondents recall
Tea, only 22 recall coffee as the first
beverage. TOM recall of coffee is higher in
traditional coffee strong holds such as TN and
KN. Across the country TOM recall for Coffee is
higher among SEC A, B C than SEC D (the lowest
socio-economic strata)
URBAN
RURAL
Coffee
Tea
Plain Milk
Carbonated beverages
All figures in
5
Regular Beverage Consumption Urban
In KN and TN, percentage of heavy drinkers (who
drink coffee more than 2 times a day) is higher
than in other regions
Maltova/ Complan/ Horlicks/ Boost/ Bournvita
Total
33
39
38
39
28
25
25
26
Total
84
75
58
87
97
98
95
92
Total
34
37
24
16
39
71
33
41
Total
14
14
12
20
20
17
14
9
Coffee
Tea
Plain Milk
Total
Tamil Nadu
Karnataka
Andhra Pradesh
Kerala
North
East
West
Drink more than 2 times everyday including
yesterday
All figures in
Drink 1-2 times everyday including yesterday
6
Regular Beverage Consumption Rural
A similar pattern as earlier is observed in the
rural markets as well
Maltova/ Complan/ Horlicks/ Boost/ Bournvita
Total
84
79
58
91
91
Total
33
36
40
40
24
Total
34
38
33
9
13
Total
14
12
10
1
22
Coffee
Tea
Plain Milk
Total
Tamil Nadu
Karnataka
Andhra Pradesh
Kerala
Drink more than 2 times everyday including
yesterday
All figures in
Drink 1-2 times everyday including yesterday
7
Top beverages consumed by Coffee Drinkers
8
Choice of Beverages By coffee drinker Type
9
Beverage Perceptions

• In TN, coffee has moderate associations on family
  beverage but strongly associated with special
  occasions and hence has high status associations.
• In KN, coffee has very strong associations with
  Family beverage. Interestingly, it also has
  special/high status perceptions.
• In AP, perception of Tea is very close to Coffee
  on key dimensions. Tea comes across as mainly an
  evening cup.
• In Kerala, Tea has higher positive associations
  on key dimensions of family, health and status.
• In the North, East and West, coffee is largely a
  Social or outside home drink. Coffee is
  associated with high status, modernity, ideal for
  cold weather suggesting it is a special and
  occasional drink.

Best Beverage Largely Family beverage
(Healthy Modern keeping up with times)
10
Barriers for coffee consumption
Health is a big barrier to more frequent
consumption among those who drink only 1 cup of
coffee a day. Among occasional coffee drinkers
and non-drinkers, habit, non-consumption by other
family members and price are key barriers. Taste
is an additional barrier among non-drinkers in
North, East and West and TN.
Reasons Reasons Total South Urban South Urban South Urban South Urban Non-South Urban Non-South Urban Non-South Urban South Rural South Rural South Rural South Rural
Reasons Reasons Total TN KN AP Ker North East West TN KN AP Ker
REASONS FOR LOW CONSUMPTION, Among those who drink coffee only 1 or 2 times a day REASONS FOR LOW CONSUMPTION, Among those who drink coffee only 1 or 2 times a day REASONS FOR LOW CONSUMPTION, Among those who drink coffee only 1 or 2 times a day REASONS FOR LOW CONSUMPTION, Among those who drink coffee only 1 or 2 times a day REASONS FOR LOW CONSUMPTION, Among those who drink coffee only 1 or 2 times a day REASONS FOR LOW CONSUMPTION, Among those who drink coffee only 1 or 2 times a day REASONS FOR LOW CONSUMPTION, Among those who drink coffee only 1 or 2 times a day REASONS FOR LOW CONSUMPTION, Among those who drink coffee only 1 or 2 times a day REASONS FOR LOW CONSUMPTION, Among those who drink coffee only 1 or 2 times a day REASONS FOR LOW CONSUMPTION, Among those who drink coffee only 1 or 2 times a day REASONS FOR LOW CONSUMPTION, Among those who drink coffee only 1 or 2 times a day REASONS FOR LOW CONSUMPTION, Among those who drink coffee only 1 or 2 times a day REASONS FOR LOW CONSUMPTION, Among those who drink coffee only 1 or 2 times a day REASONS FOR LOW CONSUMPTION, Among those who drink coffee only 1 or 2 times a day
It is too expensive to drink more cups It is too expensive to drink more cups 22 5 10 23 23 38 27 28 6 12 34 21
It is not healthy to drink more It is not healthy to drink more 56 89 60 50 33 56 71 46 85 41 36 9
It is too much effort to make more cups It is too much effort to make more cups 12 7 5 9 18 12 17 19 8 0 10 9
I drink with other family members, they do not drink more times I drink with other family members, they do not drink more times 24 8 21 30 49 15 14 35 9 47 22 42
REASONS FOR LOW CONSUMPTION, Among Occasional and non drinkers REASONS FOR LOW CONSUMPTION, Among Occasional and non drinkers REASONS FOR LOW CONSUMPTION, Among Occasional and non drinkers REASONS FOR LOW CONSUMPTION, Among Occasional and non drinkers REASONS FOR LOW CONSUMPTION, Among Occasional and non drinkers REASONS FOR LOW CONSUMPTION, Among Occasional and non drinkers REASONS FOR LOW CONSUMPTION, Among Occasional and non drinkers REASONS FOR LOW CONSUMPTION, Among Occasional and non drinkers REASONS FOR LOW CONSUMPTION, Among Occasional and non drinkers REASONS FOR LOW CONSUMPTION, Among Occasional and non drinkers REASONS FOR LOW CONSUMPTION, Among Occasional and non drinkers REASONS FOR LOW CONSUMPTION, Among Occasional and non drinkers REASONS FOR LOW CONSUMPTION, Among Occasional and non drinkers REASONS FOR LOW CONSUMPTION, Among Occasional and non drinkers
It is not drunk regularly in my house O 46 30 34 57 56 25 61 67 46 33 69 46
It is not drunk regularly in my house N 34 23 11 17 55 49 44 39 35 11 33 36
It is too expensive for regular drinking O 29 13 21 9 21 65 40 30 21 41 23 24
It is too expensive for regular drinking N 22 5 7 12 5 55 25 28 9 41 21 8
I am not used to drinking it O 25 34 31 24 19 36 23 25 11 20 5 11
I am not used to drinking it N 41 50 67 47 25 36 27 43 39 43 51 25
I do not like the taste O 17 42 26 9 10 7 14 19 15 32 0 5
I do not like the taste N 36 51 26 22 21 53 40 50 27 43 16 19
No one else drinks in my house O 15 12 11 19 16 27 18 7 3 5 30 16
No one else drinks in my house N 24 5 16 44 19 28 26 24 10 17 62 15
It is not easily available O 5 2 4 2 14 3 5 4 7 12 1 0
It is not easily available N 8 1 0 5 20 8 9 15 2 13 7 1
All figures in
O Occasional Coffee Drinker
N Non-Drinkers
11
Drivers for coffee drinking habit formation
Coffee as any other drink is habit forming
Family drinking is a key for early adoption Most
Regular and Occasional drinkers started drinking
coffee at lt10 years at home, were introduced by a
Family member. The exception is the North, where
most started outside home and were introduced to
coffee by a friend. Can coffee be promoted
creatively to a younger audience so that early
drinking habits are formed?
Consumption History Total South Urban South Urban South Urban South Urban Non-South Urban Non-South Urban Non-South Urban South Rural South Rural South Rural South Rural
Consumption History Total TN KN AP Ker North East West TN KN AP Ker
Age (when began drinking)
Less than 10 years 41 85 45 4 47 47 11 12 72 68 2 71
10 -15 years 25 9 22 39 33 31 17 36 10 21 18 25
16 18 years 16 4 12 32 16 11 25 23 10 3 35 1
18 24 10 1 6 19 2 7 23 15 4 1 29 1
25 8 1 13 6 2 4 24 13 4 6 16 2
Introduced to coffee drinking by
Family member 74 95 78 84 71 41 63 71 94 62 71 78
Friend 13 1 7 11 4 50 9 16 3 4 24 2
Colleague 1 0 1 1 1 1 2 3 1 0 0 0
No one, I saw others drink it and started 3 0 1 0 13 1 12 6 1 0 0 1
Cant remember 9 4 12 5 10 6 13 4 1 34 4 19
Location of first drink
Home 72 89 77 82 82 37 71 67 90 54 63 78
Outside 17 3 10 13 7 56 15 30 7 1 24 2
Cant remember 11 8 14 5 11 7 14 4 3 45 14 19
All figures in
12
Outside home consumption of Coffee
Low penetration but high consumption of coffee in
Offices and colleges opportunity area to
promote category
Among those who drink coffee outside
LOCATION
Opportunity areas
Coffee shop Office College While as a guest in someone's house While out for entertainment At a special event / function Airport / Train station While traveling
FREQUENCY OF CONSUMPTION
50 14 73 31 56 17 17 3 14 4 6 1 5 1 5 1
Regular
Occasional
Regular Drinker
Drink 1-2 times everyday including yesterday
Drink 1-2 times a week
All figures in
13
Awareness Usage of Chicory
Awareness of chicory is limited to the South. In
AP, consumption of coffee with high of chicory,
but awareness of chicory is low. Education may be
needed on pure Vs chicory mix thereby providing
opportunity to promote use of pure coffee/ less
chicory mix coffee in this market
who have heard of chicory
who drink coffee with chicory
Statements (Top 2 Box) Total South Urban South Urban South Urban South Urban Non-South Urban Non-South Urban Non-South Urban South Rural South Rural South Rural South Rural
Statements (Top 2 Box) Total TN KN AP Ker North East West TN KN AP Ker
If chicory is added to coffee, you can get more cups of coffee than you would from pure coffee 60 79 42 52 51 86 56 65 67 46 73 39
Chicory makes coffee taste more bitter 65 85 67 59 63 71 67 35 41 63 73 23
Coffee with chicory in it is more affordable 58 71 54 46 56 86 44 52 61 36 72 32
Chicory spoils the taste of pure coffee 38 52 39 30 44 43 44 29 36 30 22 13
Chicory is bad for health 53 76 35 43 20 0 22 19 72 19 90 39
All figures in