Issue link: https://read.dmtmag.com/i/491365
8 STiR tea & coffee industry international W © 2014 October Multimedia Inc. STiR Tea & Coffee Industry International is published bimonthly in January, March, May, July, September, and November by October Mul- timedia Co., Ltd., with production and distribution overseen by October Inter Co., Ltd., 1126/2 New Petchburi Road, Vanit Bldg. 2 Room 1403A, Bangkok 10400 THAI- LAND. Tel +66 22 55 66 25, Fax +66 26 55 22 11 E-mail: info@octobermultimedia.com www.octobermultimedia.com. Visit: www.stir-tea-coffee.com for the latest news. From the Editor Publisher Glenn Anthony John gaj@octobermultimedia.com Managing Editor Dan Bolton editor@stir-tea-coffee.com Art Director Somjet Thitasomboon snt@octobermultimedia.com Global Tea Report Jane Pettigrew Global Coffee Report Jenny Neill Contributing Writers Suzanne Brown Shyamali Ghosh Anne-Marie Hardie Frank Miller Katrina Munichiello Dan Shryock Helen Xu Fei Translations (Chinese) Helen Xu Fei Director, October Inter Co., Ltd. Boonthin Tubsongkroh brt@octobermultimedia.com Administrative Assistant Sayaporn Wattanaking sjw@octobermultimedia.com Sales Director Emerson Leonard edl@octobermultimedia.com Sales Representatives Jonathan W. Bell jwb@octobermultimedia.com Chris Michaelides cam@octobermultimedia.com Editorial/Circulation Offices STiR Tea & Coffee Industry International c/o October Inter Co. Ltd. Vanit Building 2, Room 1403A 1126/2 New Petchburi Rd. Bangkok 10400 THAILAND Tel +66 2255 6625 Fax +66 2655 2211 www.stir-tea-coffee.com Published by: A Member of: Industrious India hat a joy it is to discover the shade-grown coffees of India. The coffee lands are lush and fertile and the growers there industrious and eager to develop the country's largely untapped domestic market. One need only look to Brazil to see the potential – the sheer size of India is impres- sive – the 208 million living in the state of Uttar Pradesh alone outnumber the entire country of Brazil (198 million). Consumers in emerging markets, like India, are expected to account for 50% of global coffee consumption by 2020, according to Ross Colbert, Rabobank Interna- tional's global strategist for Beverages, Food & Agribusiness. While there are significant differences in retail coffee value and volume by coun- try, consumption is rising in all the coffee exporting countries. Premium offerings are growing at a quicker pace thanks to improved quality and differentiation, said Colbert. The three key drivers of future demand are premiumization, emerging café culture in key countries and rising incomes that expand the world's middle class, he explained. Together these trends will account for 76% of volume growth to 2016, according to Colbert. In Brazil, for example, strong volume and value growth are expected to make it the world's largest coffee consuming country before 2020. These three drivers are at play in India as well. Two years ago Rabobank published a report on the rise of India's coffee consumer. Since then "coffee shop culture is start- ing to really become widespread," said Colbert. "The trend began in the south but it is no longer just a regional consumption pattern. We foresee long term growth both in retail and in sales of ground. Coffee on the go is much more accessible at truck stop locations and drive-thrus and in vending. It is still a new concept but locating coffee in convenient locations increases consumption and is definitely a trend." India accounts for 5% of global coffee supply, on par with Honduras and Peru and greater than Mexico, Guatemala, and Uganda. The Coffee Board of India reports the amount of coffee consumed domestically has roughly doubled in the last decade, from 60,000 metric tons in 2000 to an estimated 115,000 metric tons in 2011. Half of India's domestic sales are soluble coffee. Coffee consumption is increasing at a rate of about 5% per year. India's youth and the growing affluence of its middle class are responsible for this increase. Last year market research firm Euromonitor surveyed consumer behavior in 15 countries. Coffee ranked among the top 5 non-alcohol beverages with 55.6% of young people between 16 and 25 years of age naming coffee as their favorite drink. Half of India's population is under 25 years of age and 65% is under 35 years. In this issue, beginning on Pg. 38, STiR Tea & Coffee travels to ecologically diverse and financially sustainable coffee farms in Kerala and Karnataka and to coffee shops in Mumbai and Coimbatore and the country's coffee capital Bangalore to see first-hand the energy and expertise and boundless opportunity that is India. India's coffee industry has not reached the level of sophistication of Western Eu- rope and North America – but in states with high growth and service sector industries, the so called "affluent belt" that stretches from Himachal Pradesh through Punjab, Haryana and Utter Pradesh and in the southern states of Kerala, Karnataka, and Tamil Nadu – the lines at the local coffee shop form early and the baristas know your name.