Indian Coffee Industry - A Market Analysis
............................................................6
Profits in Oligopolistic Competition……………………………………………………...7 Short Run………………………………………………………………………….7 Long Run…………………………………………………………………………..7
Demand Analysis of Coffee in India……………………………………………………...8
Conclusion………………………………………………………………………………....8
References………………………………………………………………………………….9
Introduction
Coffee is among the most popular beverages consumed globally. In India, coffee consumption has seen a robust growth during the past decade. Coffee is being increasingly consumed in cafes and other commercial establishments apart from South India where coffee is readily consumed by households. The per capita consumption of coffee in India is only about 90 grams. This is considerably low when compared to other coffee exporting nations. This shows the immense potential for the domestic coffee industry to grow. Majority of India 's coffee production is exported.
Global coffee production stood at about 7.98 billion kg in 2011-12 (crop year). India is the 5th largest producer, accounting for only about 3-4 per cent share in total production. On the basis of player presence in the value chain, the industry can be segmented into:
(i) planters
(ii) planters-cum-traders, and
(iii) non-integrated players
From the consumption point of view, the industry can be segmented into
(i) filter coffee, and
(ii) instant coffee
Filter coffee accounts for 40-45 per cent of total domestic consumption. Instant coffee accounts for around 55-60 per cent of the total domestic consumption of coffee.
Indian Coffee Industry: an oligopolistic competition
The coffee industry in India is oligopolistic with the presence of many players. Major players include Nescafe (Nestle), Bru (HUL), Tata Coffee (Tata Coffee Ltd). An oligopolistic competition is a situation in which a particular market is controlled by a small group of firms. An oligopoly is much like a monopoly, in
Profits in Oligopolistic Competition……………………………………………………...7 Short Run………………………………………………………………………….7 Long Run…………………………………………………………………………..7
Demand Analysis of Coffee in India……………………………………………………...8
Conclusion………………………………………………………………………………....8
References………………………………………………………………………………….9
Introduction
Coffee is among the most popular beverages consumed globally. In India, coffee consumption has seen a robust growth during the past decade. Coffee is being increasingly consumed in cafes and other commercial establishments apart from South India where coffee is readily consumed by households. The per capita consumption of coffee in India is only about 90 grams. This is considerably low when compared to other coffee exporting nations. This shows the immense potential for the domestic coffee industry to grow. Majority of India 's coffee production is exported.
Global coffee production stood at about 7.98 billion kg in 2011-12 (crop year). India is the 5th largest producer, accounting for only about 3-4 per cent share in total production. On the basis of player presence in the value chain, the industry can be segmented into:
(i) planters
(ii) planters-cum-traders, and
(iii) non-integrated players
From the consumption point of view, the industry can be segmented into
(i) filter coffee, and
(ii) instant coffee
Filter coffee accounts for 40-45 per cent of total domestic consumption. Instant coffee accounts for around 55-60 per cent of the total domestic consumption of coffee.
Indian Coffee Industry: an oligopolistic competition
The coffee industry in India is oligopolistic with the presence of many players. Major players include Nescafe (Nestle), Bru (HUL), Tata Coffee (Tata Coffee Ltd). An oligopolistic competition is a situation in which a particular market is controlled by a small group of firms. An oligopoly is much like a monopoly, in
References: http://www.careratings.com/Portals/0/CareAdmin/NewsFiles/SplAnalysis/Tea%20&%20Coffee%20Industry%20-%20_Coffee%20to%20register%20a%20higher%20consumption%20growth%20compared%20to%20tea...%20June%202013-06-13-2013.pdf http://business.mapsofindia.com/top-brands-india/top-coffee-brands-in-india.html www.wikipedia.org