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2026.03.24
India's coffee culture began in the 17th century when the Muslim saint Baba Budan brought coffee beans back from Yemen. These seven beans, planted in the Chikmagalur district of Karnataka, are the origin of India's coffee industry. Today, Karnataka accounts for about 71% of India's coffee production, followed by Kerala and Tamil Nadu (source: IBEF).
In South India, coffee, rather than chai, is the everyday drink, and drinking filter coffee at breakfast is a tradition going back centuries. The blend ratio of coffee powder and the proportion of chicory differ from household to household, and this "taste of home" is passed down across generations.
South Indian filter coffee uses a two-part stainless steel or brass filter: hot water is poured over finely ground coffee (typically a blend of Arabica and Robusta with 10 to 20% chicory added), and it is extracted by gravity over 15 to 20 minutes. The decoction (concentrated coffee liquid) obtained this way is extremely strong, with a flavor entirely different from drip coffee.
The extracted decoction is poured into a brass or stainless steel tumbler (cup) along with milk and sugar, and is frothed by repeatedly pouring it back and forth between the tumbler and the dabara (saucer-cup) from a height. This pouring technique, called "meter coffee," is a uniquely South Indian practice that cools the coffee while creating a creamy froth.
Bengaluru is about five hours by car from the Coorg (Kodagu) district, India's largest coffee-growing region. This hilly area, at an elevation of 800 to 1,200 meters, produces shade-grown Arabica.
In Wayanad, also famous as a spice-growing region, coffee is intercropped with black pepper and cardamom, producing coffee known for its spicy aroma.
Chennai The Nilgiri hills, west of Coimbatore, are also famous as a tea-growing region, but at higher elevations, fruity Arabica is cultivated.
In recent years, third-wave coffee culture has been spreading rapidly in India. Third Wave Coffee, Blue Tokai, Araku Coffee, and other specialty coffee chains are expanding their store networks, mainly in urban areas. By 2030, India's coffee market is expected to double in size, and specialty coffee is forecast to drive about 18% of that growth (source: Coffee Franchise Hub).
Traditional South Indian filter coffee is also merging with the third wave, and new formats have emerged offering filter coffee made with specialty beans and single-origin kaapi.
It is said to have originated in the 17th century, when the saint Baba Budan brought coffee beans back from Yemen and planted them in the Chikmagalur district of Karnataka. India's coffee industry developed from there, and Karnataka remains a major growing region today.
It is a pouring method in which the extracted decoction is poured into a tumbler with milk and sugar, then repeatedly poured back and forth with the saucer-cup from a height to create froth. It is a uniquely South Indian practice that cools the coffee while producing a creamy froth.
In Coorg and Chikmagalur in Karnataka, shade-grown Arabica is cultivated in hilly terrain. In Kerala, intercropping with black pepper and cardamom gives the coffee a spicy aroma. In the Nilgiri hills of Tamil Nadu, fruity Arabica is grown at high elevation.
Specialty coffee chains are expanding their stores mainly in urban areas. India's coffee market is expected to grow substantially going forward, with specialty coffee forecast to drive that growth.
New formats have emerged offering filter coffee made with specialty beans and single-origin kaapi. Ways of serving coffee that combine the strengths of traditional South Indian filter coffee with the third wave are advancing.
New formats that combine Japanese and Indian drink cultures, and well-designed Japanese-style cafes, hold potential, but companies need to comply with FSSAI food safety regulations. Design an entry strategy that respects South Indian coffee culture and fits the local context. We recommend advancing regulatory compliance and local understanding in parallel.
India's Coffee Board has announced a plan to double coffee production over the next decade, and exports in 2025/26 are also running 25% higher year on year (source: Credlix). Japanese Craft beer breweries collaborating on coffee stouts, and matcha menus that fuse lattes with filter coffee are among the new formats with potential, combining Japanese and Indian drink cultures.
Instagram Demand for photogenic cafe spaces is also high, making the rollout of well-designed Japanese-style cafes promising as well. FSSAI's food safety regulations must be complied with, alongside an entry strategy that respects South Indian coffee culture.
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