India can be in top five markets for Costa Coffee in five years: Costa Coffee’s Global Chief Executive Officer Mr. Philippe Schaillee

India has the potential to become one of Costa Coffee’s top five markets within five years, according to the company’s Global Chief Executive Officer, Mr. Philippe Schaillee. He said that India, currently one of the top 10 markets for the coffee chain, is seeing double-digit growth that he expects to accelerate as overall beverage consumption rises. “The Indian consumer is starting to shift from tea to coffee and is increasingly moving towards premium coffee,” he added. Costa Coffee, which is celebrating its 20th year in India, operates more than 200 outlets across 58 cities and adds 50 new outlets annually. He said the company would continue to leverage retail and hospitality to sustain growth. Costa Coffee operates in India through a partnership with Devyani International, which he described as a role model in the company’s global franchise portfolio.

He said Costa Coffee has had strong success opening stores in airports and large office campuses with a high concentration of specialty coffee consumers. The company has also entered premium healthcare campuses and selectively penetrated high streets and shopping malls. He noted that Generation Z views specialty coffee as having a badge value. He said that competition helps raise awareness and that the company is not interested in inorganic opportunities, such as purchasing another coffee brand. He added that the ongoing tariff war is not a significant concern for the company, as most of its products in India are locally sourced.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.