Inflation concerns in the United States and Europe are driving demand for low-cost Indian instant coffee



Low-cost robusta cherry varieties are used to make instant coffees or value-added coffees. Instant coffee makers in India, including CCL Products and Tata Coffee, import low-cost robusta beans from countries like Vietnam, process them into value-added coffee and re-export them to markets like Russia, Europe and the United States. .








Coffee





Concerns about inflation in western countries like Europe and the United States have increased the demand for cheap Indian instant coffee. With countries like Germany, Italy, Belgium and the United States increasing their purchases of the beverage from India, instant coffee shipments saw a 13% increase in volume compared to the same period last year.












The demand for Indian instant coffees is growing in traditional places like Italy, Germany and Belgium, where roast and ground (R&G) coffee is a popular beverage. For example, shipments of the instant variety more than doubled to 993 tons in the April-June quarter of this year, compared to 487 tons in the same period last year in Italy, the main country market for Indian coffee beans.

Similarly, instant coffee shipments to Belgium more than doubled to 537.81 tonnes, while those to Germany almost tripled to 992.97 tonnes (from 94.31 tonnes) (273 tonnes ).

Low-cost robusta cherry varieties are used to make instant coffees or value-added coffees. Instant coffee makers in India, including CCL Products and Tata Coffee, import low-cost robusta beans from countries like Vietnam, process them into value-added coffee and re-export them to markets like Russia, Europe and the United States. .












KG Jagadeesha, CEO and Secretary of the Coffee Board, attributed the increase in Indian shipments of instant coffee to growing inflationary concerns in the Western world. “Also, our value-added coffee exports to Russia are doing well, and they are looking to import more from India now that they have stopped importing from other countries,” he added.

During the first quarter, instant coffee shipments to Russia increased by 36% to 7,882.28 tons, compared to 5,785 tons a year ago.

According to Ramesh Rajah, President of the Coffee Exporters Association, with rising inflationary concerns around the world, people all over the world are looking for lower priced alternatives and higher quality products. Because coffee is such a popular beverage, the demand for instant coffees is increasing. Rajah also attributed the increase in shipments to last year’s backlog, while shipments of instant coffees to European countries rose from a weaker base.












In the financial year 2021, India exported a record 1.21 lakh tons of instant coffee. On the current trend, shipments will likely exceed last year’s levels. Instant coffee shipments in the first half of calendar year 2022 increased by around 6% to 62,902 tonnes, compared to 59,430 tonnes in the same period last year.











First published: July 15, 2022, 11:27 IST


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