Market Size of india cafes & bars Industry
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Study Period | 2017 - 2029 |
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Market Size (2024) | USD 17.54 Billion |
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Market Size (2029) | USD 26.17 Billion |
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Largest Share by Cuisine | Specialist Coffee & Tea Shops |
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CAGR (2024 - 2029) | 8.33 % |
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Fastest Growing by Cuisine | Cafes |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
India Cafes & Bars Market Analysis
The India Cafes & Bars Market size is estimated at 17.54 billion USD in 2024, and is expected to reach 26.17 billion USD by 2029, growing at a CAGR of 8.33% during the forecast period (2024-2029).
17.54 Billion
Market Size in 2024 (USD)
26.17 Billion
Market Size in 2029 (USD)
7.31 %
CAGR (2017-2023)
8.33 %
CAGR (2024-2029)
Largest Segment by Outlet Type
77.34 %
value share, Independent Outlets, 2023
Personalized dining experiences and a wide variety of options are attracting a loyal customer base.
Largest Segment by Cuisine Type
86.04 %
value share, Specialist Coffee & Tea Shops, 2023
The growing popularity of specialty coffee and tea and demand for premium and artisanal products have contributed to the largest share of the segment in the region.
Fastest-growing segment by Outlet Type
10.89 %
Projected CAGR, Chained Outlets, 2024-2029
Changing lifestyles and increasing urbanization in the region, coupled with a wider range of products and services offered by chained outlets, are driving the demand.
Fastest-growing segment by Cuisine Type
17.34 %
Projected CAGR, Cafes, 2024-2029
Increasing demand for a relaxed atmosphere and social interaction among young consumers, coupled with a focus on quality and unique experiences, is driving the demand for cafes.
Leading Market Player
1.14 %
market share, Gujarat Cooperative Milk Marketing Federation, 2022
GCMMF is India's largest food products organization and apex organization of the 18 milk cooperatives in Gujarat. It mainly offers ice cream, flavored milk, and milkshakes.
Rising work from trend and increased disposable income fueling the cafes and bars sales
- The growth of cafes in India, driven by the rise in the trend of people working remotely or freelancing, has led to an increased demand for comfortable and functional workspaces that also offer food and beverages, leading to the emergence of coworking cafes. In 2020, flexible workspace leasing in India accounted for over 5.4 million sq. ft of space, a 43% increase from 2019. The ambiance and atmosphere of restaurants have become an essential aspect of their appeal. Many cafes now offer unique and quirky themes and decor to attract customers and provide live music or entertainment. Hence, cafes in India are anticipated to be the fastest-growing by value, registering a CAGR of 17.06% during the forecast period.
- In the bars and pubs sub-segment, there is an increasing awareness of health and wellness among consumers in India, and many bars and pubs are responding by offering low-calorie drinks, mocktails, and non-alcoholic cocktails. This trend is driven by the growing demand for healthier drinking options, especially among younger consumers. Over 40% of consumers in India were willing to choose low-calorie and low or no-alcohol drinks as of 2020. Around 43% of consumers wanted low-calorie alcohol, 32% wanted gluten-free beers, and 34% were looking for low-calorie beers.
- India has a long-standing tea and coffee culture, and specialty outlets are tapping into this by offering premium and unique blends of tea and coffee. The coffee culture emphasizes high-quality coffee, ethical sourcing, and sustainable practices, which has gained popularity among Indian consumers and is boosting the growth of specialist coffee and tea shops. Hence, specialist coffee and tea shops are anticipated to register a CAGR of 6.95%, by value, during the forecast period.
India Cafes & Bars Industry Segmentation
Bars & Pubs, Cafes, Juice/Smoothie/Desserts Bars, Specialist Coffee & Tea Shops are covered as segments by Cuisine. Chained Outlets, Independent Outlets are covered as segments by Outlet. Leisure, Lodging, Retail, Standalone, Travel are covered as segments by Location.
- The growth of cafes in India, driven by the rise in the trend of people working remotely or freelancing, has led to an increased demand for comfortable and functional workspaces that also offer food and beverages, leading to the emergence of coworking cafes. In 2020, flexible workspace leasing in India accounted for over 5.4 million sq. ft of space, a 43% increase from 2019. The ambiance and atmosphere of restaurants have become an essential aspect of their appeal. Many cafes now offer unique and quirky themes and decor to attract customers and provide live music or entertainment. Hence, cafes in India are anticipated to be the fastest-growing by value, registering a CAGR of 17.06% during the forecast period.
- In the bars and pubs sub-segment, there is an increasing awareness of health and wellness among consumers in India, and many bars and pubs are responding by offering low-calorie drinks, mocktails, and non-alcoholic cocktails. This trend is driven by the growing demand for healthier drinking options, especially among younger consumers. Over 40% of consumers in India were willing to choose low-calorie and low or no-alcohol drinks as of 2020. Around 43% of consumers wanted low-calorie alcohol, 32% wanted gluten-free beers, and 34% were looking for low-calorie beers.
- India has a long-standing tea and coffee culture, and specialty outlets are tapping into this by offering premium and unique blends of tea and coffee. The coffee culture emphasizes high-quality coffee, ethical sourcing, and sustainable practices, which has gained popularity among Indian consumers and is boosting the growth of specialist coffee and tea shops. Hence, specialist coffee and tea shops are anticipated to register a CAGR of 6.95%, by value, during the forecast period.
| Cuisine | |
| Bars & Pubs | |
| Cafes | |
| Juice/Smoothie/Desserts Bars | |
| Specialist Coffee & Tea Shops |
| Outlet | |
| Chained Outlets | |
| Independent Outlets |
| Location | |
| Leisure | |
| Lodging | |
| Retail | |
| Standalone | |
| Travel |
India Cafes & Bars Market Size Summary
The India Cafes & Bars Market is experiencing significant growth, driven by evolving consumer preferences and lifestyle changes. The rise of remote work and freelancing has spurred the demand for cafes that offer comfortable workspaces alongside food and beverages, leading to the popularity of coworking cafes. The ambiance and unique themes of cafes have become crucial in attracting customers, with many establishments incorporating live music and entertainment. This trend is particularly evident in the cafe segment, which is expected to grow rapidly. Meanwhile, bars and pubs are adapting to the increasing consumer focus on health and wellness by offering low-calorie and non-alcoholic drink options, catering to the younger demographic's preference for healthier choices. Specialty coffee and tea shops are also gaining traction, emphasizing high-quality, ethically sourced products, which resonate with the growing consumer interest in premium beverages.
The market is characterized by a diverse range of offerings, from juice and smoothie bars to tea and coffee chains, reflecting India's rich tea and coffee culture. The informal sector dominates specialty tea and coffee stalls, with branded chains expanding their presence in urban areas. The demand for healthy food and beverage options is further bolstered by a growing consumer base focused on health and immunity. Despite the low average order value, the high frequency of orders contributes to the market's growth. The market remains fragmented, with major players like Barista Coffee Company Limited and Tata Starbucks Private Limited holding a small share. The cost of alcohol in bars and pubs poses a challenge, encouraging consumers to opt for home consumption. Nonetheless, the market continues to evolve, with companies investing in expansion and innovation to capture a larger share of the growing consumer base.
India Cafes & Bars Market Size - Table of Contents
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1. MARKET SEGMENTATION (includes market size in Value in USD, Forecasts up to 2029 and analysis of growth prospects)
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1.1 Cuisine
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1.1.1 Bars & Pubs
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1.1.2 Cafes
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1.1.3 Juice/Smoothie/Desserts Bars
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1.1.4 Specialist Coffee & Tea Shops
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1.2 Outlet
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1.2.1 Chained Outlets
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1.2.2 Independent Outlets
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1.3 Location
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1.3.1 Leisure
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1.3.2 Lodging
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1.3.3 Retail
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1.3.4 Standalone
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1.3.5 Travel
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India Cafes & Bars Market Size FAQs
How big is the India Cafes & Bars Market?
The India Cafes & Bars Market size is expected to reach USD 17.54 billion in 2024 and grow at a CAGR of 8.33% to reach USD 26.17 billion by 2029.
What is the current India Cafes & Bars Market size?
In 2024, the India Cafes & Bars Market size is expected to reach USD 17.54 billion.
