It is no longer merely a storm in a coffee cup. A $2.9 Bn market for speciality brews in India is growing at 13.6% a year, reaching more than $6.2 Bn by 2030. This surge is steered by a 377 Mn-strong formidable economic force called GenZ.

The booming consumer class of 18-24-year-olds is aided by millennials, those aged 25-39. Blue Tokai woke up and smelt the coffee in this demographic that seeks premium, artisanal experiences, served by concurrent growth in the café culture aesthetic and powered by social media trends.

The coffee roaster ended FY25 with a topline of INR 270 Cr and aims to surpass INR 500 Cr ARR this fiscal.

“India’s specialty coffee scene is rapidly maturing, now capable of standing shoulder-to-shoulder with any renowned global coffee origin. With distinct advantages like a diverse farming ecosystem, peculiar microclimates and sustainable practices yielding unique flavour notes derived from local spices and fruits, the Indian coffee landscape is uniquely positioned for global recognition,” Blue Tokai cofounder Shivam Shahi told Inc42.

In a freewheeling conversation with Inc42, Shahi discussed how India’s coffee market was shifting from niche roasters to a full-blown specialty coffee movement, and how consumer expectations around coffee quality, experience and pricing were changing.

He also talked about Blue Tokai’s long-term vision for revenue, retail footprint and brand evolution in specialty coffee. After the recent funding, Blue Tokai has geared up for aggressive business expansion, including new store opening, upgrades to its production and bakery facilities and technological enhancements.

Here are edited excerpts from the interaction with the Blue Tokai cofounder and COO:

Inc42: Over the past decade, India’s coffee landscape has shifted dramatically – from niche roasters to full-blown specialty brews. How did this reshape consumer expectations around coffee?

Shivam Shahi: With a better understanding of coffee, consumers are now more open to experimentation, moving beyond the ordinary and seeking novelty. This shift has driven product innovation across various stages of the coffee journey – from the farms to the cup.

Earlier, limited awareness and a nascent industry meant that most brands focussed primarily on common beverages and set up coffee processes.

Today, there is a clear momentum for quality innovation within various product categories and formats. The entry of new players offering high-quality products in the specialty coffee sector is further driving this movement.

Customers now seek high-quality coffee beverages and are willing to pay a premium for these experiences. When it comes to overall experience, I believe consumers increasingly prefer immersive, process-driven coffee experiences rather than just upgraded café interiors.

Inc42: The speciality coffee market is projected to grow at 13.6% a year through 2030. What are the most defining consumption trends today – be it GenZ preferences or retail distribution or tech adoption – that make you believe India is finally entering its coffee moment?

Shivam Shahi: The resurgence of coffee culture across all customer segments, whether millennials or GenZ, is a major factor pushing the coffee moment. Coffee has evolved into more than just a beverage and is viewed as a lifestyle choice and a social experience, attracting a wider demographic than ever.

Accessibility is perhaps the most defining factor for this category. India is still heavily underpenetrated in terms of cafés and there is a strong correlation between the number of cafés and the frequency of coffee consumption. With low per-capita coffee consumption and a growing appetite for premium, quality coffee, the opportunities to expand both café density and home brewing are significant. The growth in home brewing, in particular, can be accelerated through quality, convenience-driven and differentiated products.

When we started, for instance, we estimated that we would open just four cafes in South Delhi in 2017. Today, we operate over 30........

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