Costa Coffee, established in 1971 by brothers Sergio and Bruno, was the first international coffee chain to enter the Indian market in 2005. Today, the brand has expanded from 40 stores in 2022 to 115 outlets, with plans to open more outlets across the top 8-10 cities in India. The coffee retail chain market in India is expected to be worth $855 million by 2025, making it a crucial market for Costa Coffee.
India’s coffee culture has picked up in Tier-1 cities over the decades, although the country is still primarily a tea-drinking nation. The growing interest among the youth in understanding coffee has created significant opportunities for the coffee retail chain industry.
Costa Coffee believes that it has a lot to offer in this emerging market. The brand’s stores offer a welcoming environment and a range of coffee options to consumers. Costa’s coffee is special, and the brand has a role to play in expanding the market rather than just being competitive.
According to Ashish Nair, CEO of Costa Coffee India, the brand has some exciting expansion plans in India, which will rely on the support of the mothership of Coca-Cola. Costa Coffee was acquired by Coca-Cola in 2019, and the vision is to use the strong Costa platform to expand Coca-Cola’s portfolio in the growing coffee category. India is a focus area for Costa Coffee for all the right reasons, and the brand is keen on bringing multiple category offerings to consumers.
Costa Coffee is also positioning its stores as a place where people can work, a concept that has become popular during the pandemic. The brand has collaborated with many international and Indian interior experts to design its stores in the country. Costa Coffee is optimistic about its store expansions, and the response has been bullish.
The brand has launched a campaign called ‘YOUxCOSTA,’ targeting the youth and expressive coffee drinkers of the country. The campaign is based on the insight that self-expression is important to Indian youth today. The brand has also launched a film called #LetsGetBrewing that captures how individuals can authentically express themselves through their passions and interests with a cup of Costa Coffee. The campaign is supported by print, OOH, and DOOH media.
Costa Coffee is focusing on digital-first marketing, targeting specific geographic areas relevant to young consumers. The brand is collaborating with like-minded influencers and may look at TV advertising as it grows.
In conclusion, Costa Coffee has a significant role to play in expanding the coffee retail chain market in India. With its expansion plans, positioning of stores, and marketing strategies, the brand aims to be relevant to current and upcoming coffee consumers. The Indian coffee market is growing, and Costa Coffee is set to capture a significant market share.
