According to official data, India’s coffee exports fell to 3.77 lakh tonnes in 2023, compared to 3.98 lakh tonnes in the previous year. There was a decline of 5.4% in 2023, primarily due to a decrease in the shipment of Robusta coffee. This can be attributed to a decrease in the shipment of Robusta coffee beans, which dropped by 15% to 1.87 lakh tonnes. Robusta coffee is known for its higher caffeine content and tends to have a more bitter taste compared to Arabica coffee.
In contrast to the decline in Robusta coffee exports, the shipment of Arabica coffee beans witnessed a 5.79% increase, reaching 46,869 tonnes in 2023. Arabica coffee is known for its sweeter and smoother flavour profile. This increase in Arabica coffee exports indicates a potential shift in consumer preferences towards milder and more aromatic coffee varieties. The export of instant coffee, a popular choice among consumers for its convenience, saw a notable increase of 6.68% in 2023, reaching 1.42 lakh tonnes. This growth suggests a rising demand for instant coffee products both domestically and internationally.
Despite the decline in coffee exports, India’s total coffee production is projected to increase to 3,74,200 tonnes in the 2023-24 marketing year, surpassing the previous year’s output of 3,52,000 tonnes. In terms of value, total coffee exports in 2023 amounted to Rs 9,580.58 crore, with a unit value realisation of Rs 2,54,104 per tonne. This indicates that even though export volumes decreased, rising worldwide coffee prices contributed to the overall value of coffee exports.
RTM Watch’s Take
The decline in India’s coffee exports in 2023, primarily driven by a decrease in Robusta coffee shipments, highlights the need for the Indian coffee industry to diversify its offerings and adapt to changing consumer preferences. The increase in Arabica coffee exports and the growth of instant coffee exports present opportunities for the industry to cater to evolving consumer demands. Additionally, the projected increase in coffee production for the upcoming marketing year indicates a positive outlook for the Indian coffee sector. However, it is crucial for industry stakeholders to closely monitor market trends and explore strategies to enhance competitiveness in the global coffee market.
