The survey found that 69 per cent of respondents identified tea as their first choice, compared with 26 per cent who preferred coffee. It also revealed that 45 per cent of Indians consume three or more cups of tea or coffee every day, underscoring the deep-rooted role of these beverages in daily life across the country.
Regional consumption patterns showed tea’s overwhelming dominance in northern, eastern, and western India, where its market share exceeds 80 per cent. In contrast, coffee has established a stronger presence in southern states, where its share accounts for more than 25 per cent in both metropolitan and non-metropolitan areas.
India’s coffee market has been expanding rapidly in recent years. The market was valued at USD 1.88 billion in 2024 and is projected to grow at an annual rate of 4.3 per cent through 2032. India is currently the world’s seventh-largest coffee producer, and coffee exports from the country reached USD 1.8 billion in 2025.
Tea, however, remains deeply embedded in the Indian consumption landscape. India is the world’s second-largest tea producer after China. Approximately 80 per cent of all tea produced in the country is consumed domestically. Tea consumption has risen significantly in recent years, supported by the emergence of specialty tea shop chains in several cities and the growing popularity of green tea.
The LocalCircles survey drew responses from more than 50,000 participants across 385 districts, making it one of the most extensive consumer studies on beverage preferences in India.
Consumer purchasing habits further reinforced tea’s dominance. Among respondents, 73 per cent said they prefer to buy branded packaged tea, while 19 per cent continue to purchase loose tea leaves from local markets. Another 8 per cent indicated a preference for green tea and tea sachets.
When asked about beverage styles, 45 per cent said they prefer traditional milk tea. Five per cent favored green tea, while 2 per cent chose black coffee. In addition, 15 per cent reported a preference for milk-based coffee, 12 per cent selected black tea, and 7 per cent said they prefer black tea with less milk.
The findings highlight that even as coffee consumption and exports continue to grow, tea remains the undisputed beverage of choice in India, driven by cultural tradition, widespread availability, and changing consumer preferences that are expanding the market into premium and health-focused segments.
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