As coffee emerges as a lifestyle choice for millions of urban consumers in a tea-loving nation, India’s out-of-home coffee market is projected to reach $2.6-$3.2 billion by 2028, with a compound annual growth rate (CAGR) of 15-20 per cent, according to a report on Tuesday.

The premium coffee segment (above Rs 200), which represented 46 per cent of the market in 2023, is projected to grow to 55-60 per cent of the market at a CAGR of 20-25 per cent, underscoring its dominant role in shaping India’s outside coffee landscape, according to the report by Redseer Strategy Consultants.