British coffee chain Costa Coffee, owned by beverage giant Coca-Cola, is eyeing India as one of its top five global markets within the next five years, according to its Global CEO Philippe Schaulle. The company is marking its 20th year in India and plans to accelerate growth with the addition of 40–50 new stores annually.
India is currently among Costa’s top 20 markets, with over 200 operational outlets, and is poised for further expansion due to a surge in premium coffee consumption, especially among millennials shifting from tea to coffee. “There are currently fewer than 50 million premium coffee consumers in India, but that segment is growing in double digits,” said Schaillee.
Costa Coffee operates in India through its franchise partner, Devyani International Ltd (DIL). According to DIL’s latest annual report, revenue from Costa operations in FY24 stood at ₹151.8 crore, a 49% increase from the previous year, driven by store expansion.
“We are playing the long game in India. Our focus is on quality growth, not just quantity,” Schaillee stated, emphasizing that the brand is concentrating its efforts in metro cities and high-footfall locations such as high street areas, malls, and highway petrol stations.
India has also become the second market globally, after the UK, to adopt Costa Coffee’s new store design, featuring vibrant interiors, flexible seating, and digitally enhanced customer experiences.
The brand is positioning itself to cater to an evolving customer base that values specialty coffee experiences. Costa competes with global giants like Starbucks, Tim Hortons, McCafe, and Dunkin’, as well as emerging Indian players such as Blue Tokai, Third Wave Coffee, Cafe Coffee Day, and Barista.
Addressing the rising competition, Schaillee welcomed it, noting, “In tea-drinking countries, competition among specialty coffee players has helped grow the entire category.”
Costa Coffee’s India strategy reflects a broader trend of rising premiumization in the café segment, signaling long-term confidence in the market’s potential.