Nestle is considering introducing Starbucks’ ready-to-drink coffee products in India’s retail market as part of its global partnership with the American coffee brand. This initiative aims to leverage the rising coffee consumption trend in India, traditionally a tea-drinking nation, by offering products such as whole bean, roast, and ground coffee.
Nestle’s partnership with Starbucks, established in 2018, grants it the rights to market Starbucks’ packaged coffee and food service products outside Starbucks cafes. This agreement remains separate from Starbucks’ joint venture with Tata Consumer Products, which continues to operate Starbucks cafes in India.
Following the success of their global collaboration, Nestle and Starbucks expanded their partnership to introduce ready-to-drink coffee beverages across Southeast Asia, Oceania, and Latin America. This rollout includes popular products like Frappuccinos and Doubleshots in select markets. Nestle is now evaluating the potential of launching similar products in India, given its fast-growing market for coffee consumption.
India remains predominantly a tea-drinking country, but the coffee market has been growing steadily. Nestle sees significant opportunities to increase coffee penetration and develop consumer habits around coffee consumption. The company has been expanding its coffee portfolio in India, with Nescafe showing strong growth. It also introduced its premium Nespresso range last year, including coffee capsules, machines, and exclusive boutiques.
Industry reports indicate that the global ready-to-drink tea and coffee market is expected to reach $197.4 billion by 2032, up from $107.18 billion in 2023. The Asia-Pacific region leads the market, with Japan, China, India, and South Korea driving sales. Key players in the segment include Nestle, Coca-Cola, Starbucks, and Unilever.
With India’s growing appetite for coffee, Nestle aims to tap into this evolving market by bringing Starbucks’ retail coffee products beyond cafes, further strengthening its footprint in the country’s beverage sector.