India’s coffee exports have soared by 125% over the past 11 years, skyrocketing from roughly $0.81 billion in FY15 to a record $1.81 billion in FY25, driven by strong global demand and surging Robusta prices
📈 Key Export Milestones
- FY15: Export value at approximately $0.81 billion.
- FY22–FY24: Exports crossed $1 billion in FY22, followed by $1.29 billion in FY24 .
- FY25: Export value hit $1.81 billion, marking over 125% growth since FY15
What’s Driving the Boom?
- Robusta Price Rally
Global Robusta scarcity—due to disruptions in Brazil and Vietnam—has elevated prices by over 60%. Indian exporters, who produce mostly Robusta, capitalized on this trend - Stable Production, Higher Value
Export volumes have remained relatively flat (around 352 kt in FY25), but export value surged, indicating better quality and price realization - Strong European Demand
European countries—Italy (18%), Germany (11%), Belgium (7%)—together accounted for over half of Indian coffee exports in FY25. Italy led the way with 27.9% share of exports in FY24 - Value-Added Exports Growth
Demand for instant and roasted coffee is rising. India shipped significant quantities of these products, with instant coffee exports increasing notably over recent years
Regional & Sectoral Insights
- India ranks 7th in global coffee production, exporting around 80% of its crop
- Production origin: Major producing states include Karnataka (70%), Kerala, and Tamil Nadu, with new cultivation in Odisha targeting tribal development
- Sustainability Advantage: India’s shade-grown “monsooned” coffee aligns well with EU’s upcoming deforestation regulations, making it attractive to conscious buyers .
Market & Industry Implications
- Revenue Milestone: Surpassing $1.8 billion cements India’s place in the global coffee market, boosting farmer incomes and export earnings.
- Value-Focused Strategy: The journey highlights India’s shift from volume to value realization—leveraging quality over bulk.
- Domestic & International Fusion: While exports grow, rising local consumption (from 84 kt to 91 kt between 2012–2023) underscores coffee’s cultural shift in India
What Lies Ahead
- Expand Value-Added Production: India aims to grow high-margin processed coffee segments.
- Geographic Cultivation Expansion: Efforts to bring coffee farming to Odisha and Northeast regions will diversify production and support rural livelihoods
- Sustainability Certifications: New certifications planned in June to strengthen global market positioning livemint.com.
