The dawn of premium instant coffee in India
How new-age coffee brands used storytelling to make instant coffee premium — and what their marketing is quietly normalizing.
Instant coffee is a lazy man’s beverage. Throw in a spoon of instant coffee powder and sugar into a glass of milk and microwave it for a minute and you get a glass of hot coffee. No wonder the younger generation is drawn towards instant coffee.
I am no exception. Even though I am a tea person, I can’t start my day if I did not have my dose of morning coffee.
Our love for coffee
Coffee is still a staple among several Indian households. India produces 4.5% of the World’s coffee and 78% of the coffee produced in the country is exported as coffee grown in India is considered one of the finest coffees in the world.
India consumes 1,20,000 tonnes of coffee every year of which 80,000 tonnes is consumed by the Southern states (Tamilnadu, Kerala, Andhra, Telangana, and Karnataka). The country also boasts 2,50,000 coffee growers, of which 98% are small vendors.
From a commercial and a business point of view, coffee hasn’t changed much for several years. It was either filter coffee, which is still the preferred way of coffee for the previous generation, and instant coffee which is quite popular among young people who live alone or with roommates. And, if an industry hasn’t changed in a long time, it is normal for businesses to get into that space and try something new.
The new-age coffee companies came into the market with the hopes of bringing something new to the instant coffee market. With new flavors and bold marketing campaigns, a new segment of instant coffee started getting visibility — premium instant coffee.
The target customer base
The target persona of these coffee brands are youngsters who enjoy coffee and are inclined to try something new like dark chocolate coffee, hazelnut coffee, and so on — and who are willing to pay a premium price. It narrows down to a niche of people working in IT jobs and startup companies who wouldn’t mind paying 2–2.5x more for their coffee.
If you think ‘who would pay so much for coffee?’, you’re wrong. There was a significant boom in the instant coffee market this year. This reminds me of the arrival of cafes in India. When cafes started in India, people thought it will never take off — ‘why pay a hundred rupees for a coffee if you can get it for ten rupees in a normal shop?’ But, cafes stayed and has become a huge thing now. Every Starbucks outlet is crowded these days.
The story behind every cup of coffee
The marketing around premium instant coffee revolves around creating a story behind a cup of coffee. Every pack contains information about the type of coffee it is (100% Arabica), where it was grown (something like ‘along the slopes of Chikmagalur’), and at what elevation it was grown (3124m above sea level) by a family that is into the coffee business for several generations, the flavor note in each blend, and so on.
The details and the story behind a cup of coffee make it more of a conversation starter among friends. I can see people discussing coffee flavors, about where it comes from, etc. With subtle storytelling, the new-age coffee companies made coffee a cool thing among the younger generation.
If you think about it, it doesn’t matter at which elevation your coffee was grown or whether it is 100% Arabica or not. We don’t even know the other types of coffee! But, we still believe in the story. We feel exclusive and special when we open a box of premium instant coffee.
The alarming trend
The ads and marketing campaigns I came across were normalizing the concept of overworking. Being a workaholic is portrayed as a cool thing. I saw one particular coffee brand running campaigns with slogans like “Drink this coffee before pulling an all-nighter” and “new perk of drinking coffee: faster promotions.”
For several decades, coffee was always portrayed as a morning drink — something that prepares you for the day. But, I never thought it would be used to normalize sacrificing sleep for a faster promotion.
But, people love it. And, they spend 2.5–4x more than what they spend for a regular instant coffee. A 50g bottle of a premium instant coffee is sold for Rs.350–Rs.500, whereas the normal instant coffee costs Rs.90–Rs.100.
Love it? Hate it?
Honestly, I am not worried. A huge portion of coffee consumers in India are still middle-class families who resort to conventional filters and instant coffee brands. The trend might attract only a very small portion of these consumer base to try a premium instant coffee.
But, the one thing I am worried about is the normalization of working around the clock and pushing coffee as fuel to stay awake. Coffee brands who are working on their marketing campaigns should also think about the long term effects of what they stand for.