India

Report: Coffee-in-a-can manufacturers should broaden ingredient base

By RJ Whitehead

- Last updated on GMT

Report: Coffee-in-a-can manufacturers should broaden ingredient base

Related tags: Caffeine

India’s burgeoning ready-to-drink coffee market will be worth over US$480m by 2020 after seeing annual growth of 3.2% since 2015, according to a report by Mordor Intelligence. 

Though brands in this market have been focusing on a young and urban demographic, the research suggests that consumers can now be found in almost all demographic segments.

While products feature a range of ingredients including taurine, guarana, yerba mate, ginseng, vitamin B and acai, there is scope for brands to introduce more innovative products, Mordor found. 

Its market analysis suggested that the Indian market was highly trend-driven, with innovation in constant demand, and as such it has been continuously evolving in terms of flavours and presentation. 

Iced products with longer shelf-life offer major opportunities, along with liquid coffee and frozen concentrates, with the latter holding particular importance for bulk buyers, such as restaurants and offices. 

However, adapting to regional tastes and preferences has proved to be a challenge for manufacturers, especially in regions where consumers are not used to hot or freshly ground coffee, or where they take a considerable time to adapt to the new tastes. 

Extensive marketing and use of locally sourced products are essential in countering this perception, the report advised.

Related topics: Markets, South Asia, Asian tastes, Beverages

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