Costa Coffee

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Founded in 1971, Costa Coffee is a coffeehouse chain with headquarters in Loudwater, Buckinghamshire, England. It operates in the United Kingdom and 37 other countries. It is the second largest coffeehouse chain in the world, and the largest in the UK.

Costa Coffee was acquired by The Coca-Cola Company in 2019 for $4.9 billion.

Costa Coffee in India is operated in India through franchisee partner Devyani International.

Key Facts about Costa Coffee in India:

  • Top Market Potential: India is currently among Costa Coffee’s top 10 global markets and is expected to be in the top 5 within five years.

  • Competition: Competes with global brands like Starbucks and Tim Hortons, as well as Indian specialty coffee chains like Blue Tokai and Third Wave Coffee, and traditional chains such as Cafe Coffee Day.

  • Local Sourcing: Most products are sourced locally in India.

  • Aggressive Expansion: Costa Coffee is continuing its rapid expansion in India, planning to open 40-50 new outlets each year despite global economic uncertainties. 

  • Consumer Shift: There is a noticeable shift among Indians, especially millennials and Gen Z, from tea to coffee, with increasing interest in premium and specialty coffee.

  • Customer Base: Millennials, with higher purchasing power, form the core customer base in India, similar to global trends.

  • Market Growth: The Indian coffee market is growing at 10-12% annually, about twice the rate of global markets. 

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