"As a step towards this, the Coffee Board has invited proposals from reputed market research agencies to carry out the study. The main scope of the study is to estimate the demand for coffee in India this year (2008) and also to throw light on the patterns of domestic consumption and the attitude of people towards coffee consumption," said a Coffee Board official.
Of India's 280,000 tonnes coffee production, domestic consumption is estimated to be around 29 per cent (80,000 tonnes) and the balance is exported. Coffee Board is making efforts to increase the domestic consumption by at least 50 per cent.
The board had carried out a similar study in 2006. However, this year's initiative assumes special significance after the Brazilian marketing consultant Carlos Brando, credited with turning Brazil from net exporter to a major consumer of coffee.
Brando interacted with the board officials during his two visits to India in 2006 and 2007, and has given his suggestions to boost domestic consumption of coffee. He has also given suggestions to chalk out a detailed marketing plan to boost sales in non-traditional areas.
The market study is expected to cover the key areas of consumption patterns in both urban and rural India. The focus would be on deliverables of penetration, volumes consumed, varieties of coffee consumed, share of throat, socio-economic groups, chicory usage and its awareness.
The official said, "This year's study will also determine share of coffee in the basket of beverages consumed.
It will help understand current patterns in domestic coffee consumption, estimate the chicory tonnage out of the total coffee market - percentage of chicory in coffee-chicory blends consumed and identify potential opportunities for growth."
In this year's study, the Coffee Board is making special efforts to understand the behaviour related to coffee consumption in cafes. For, it is the cafes which gave a boost to domestic consumption in the last decade. Domestic consumption which was stagnant at around 60,000 to 65,000 tonnes during 1980s shot up to the current level of 80,000 tonnes. This sudden rise is being attributed to mushrooming of cafes in the country and out-of- home consumption.
"The study will help understand consumer habits - cafe habits in particular and identify marketing opportunities for popularising coffee cafes," the official said.
In a similar study carried out by the Coffee Board in 2006, S Radhakrishnan and D R Babu Reddy of Coffee Board had said, "Coffee had the highest association in the out-of- home environment especially, at a restaurant, hotel or at special events
