British coffee chain Costa Coffee is accelerating its expansion in India, with ambitions to make the country one of its top-five global markets within five years, according to Global CEO Philippe Schaillee. Owned by Coca-Cola, Costa Coffee currently counts India among its top 20 markets and operates over 200 outlets through franchise partner Devyani International Ltd (DIL).
The brand is adding 40–50 new stores annually, focusing on premiumisation and quality-led growth rather than rapid scaling. “India is not just a volume market, it’s a value market,” said Schaillee, citing the rise of millennials and Gen Zconsumers willing to pay more for specialty coffee.
India’s premium coffee segment, though under 50 million consumers today, is expanding at a double-digit rate, offering significant growth potential. Costa Coffee is tapping into this opportunity with store formats designed for urban centers, malls, and even highway petrol stations. India is also the second market after the UK to adopt Costa’s new store design, featuring vibrant interiors and digital integration.
Despite stiff competition from international players like Starbucks, McCafe, and Tim Hortons, and Indian brands such as Blue Tokai and Third Wave Coffee, Schaillee welcomes the rivalry, stating it helps expand the segment in a traditionally tea-drinking country.
Costa Coffee’s India revenue grew 49% in FY24 to ₹151.8 crore, as per DIL’s report. With a strategic focus on quality, innovation, and localization, Costa is committed to redefining India’s café experience for the long term.
