NEW DELHI: India is strengthening its position in global coffee and tea markets, driven by rising demand for value-added products such as instant coffee and packaged teas.
Between April and February FY26, coffee exports rose 20% year-on-year to $1.86 billion from $1.54 billion, while tea exports grew 11% to $934.9 million from $842.5 million, according to commerce ministry data.
The growth builds on a strong rebound last year, when coffee exports crossed $1.8 billion—a record.
“We have consistently recorded over $1 billion in coffee exports for the past four years, and this year marks the fifth. By February itself, we have already surpassed last year’s export level of around $1.8 billion, which is a very positive sign,” said Kurma Rao M., chief executive and secretary, Coffee Board of India.
A closer look at the data reveals that between April and January FY26, coffee exports rose from $1.36 billion to $1.62 billion, with instant coffee contributing $498 million, highlighting the growing role of value-added segments.
“Indian coffee is grown under shade, is hand-picked, and follows sustainable practices, which ensures high quality and differentiates it in global markets,” Rao added.
Tea exports also maintained steady growth, rising from $768 million to $865 million during April-January. Bulk black tea and larger pack formats drove the expansion, while retail packs and tea bags saw stable demand.
Key export destinations for coffee included Italy (16% share, $251 million), Germany (9%, $144 million), and Russia (8%, $137 million), with additional demand from the United Arab Emirates, the US, Belgium, and West Asian markets such as Jordan, Libya, and Turkey.
For tea, UAE remained the largest market (20%, $173 million), followed by Iraq (12%, $100 million), with steady demand from the US (7%), Russia (6%), UK (6%), Iran (5%), China (5%), and Germany (4%).
“India’s tea exports performed exceptionally well in 2025, reaching a record 280 million kg with export earnings of about ₹8,488 crore, supported mainly by strong demand from Iran, Iraq, the UAE and China,” said P. K. Bhattacharjee, secretary general, Tea Association of India.
Bhattacharjee added that orthodox tea exports rose about 20% to 128.47 million kg. However, he cautioned, “Any disruption in these traditional markets may affect export volumes, logistics, payment cycles and price realizations,” referring to geopolitical concerns around the Strait of Hormuz.
Data from the India Brand Equity Foundation (IBEF) shows coffee export earnings have trended upward in recent years despite a brief pandemic-led dip, reflecting steady global demand. India was the world’s seventh-largest coffee grower in FY24, with robusta accounting for about 72% of total production. The sector provides direct employment to more than two million people.
“India’s coffee and tea sectors stand at a critical inflection point,” said Said Vinod Kumar, president, India SME Forum, noting that despite producing some of the finest varieties globally, exports remain constrained by reliance on bulk commodity trade rather than value-added, branded offerings.
He added that while Geographical Indication (GI) products such as Darjeeling, Nilgiri, Araku and Coorg can command a premium globally, their potential remains underutilized due to fragmented marketing, limited visibility and weak international enforcement.
