BUSINESS
03/18/2013 12:13 pm ET | Updated Mar 19, 2013

Coffee Prices Could Go Up Thanks To Increased Demand In India

You might soon be paying more for your morning pick-me-up thanks to recent coffee converts on the other side of the world.

The coffee market in India is booming, which could be a boon for coffee sellers looking to expand, like Starbucks and Nestle, the Wall Street Journal reports. But it could be bad news coffee drinkers at home as the boost in demand means a decrease in coffee exports from the country, which could drive up the price of a brew in the U.S.

India's conversion to coffee has been a long time coming, and is only poised to continue. India, a traditionally tea-drinking subcontinent has doubled its coffee consumption over the last 10 years, according to NPR, as young Indians with more money to spend are lured by the coffee house culture. As a result, coffee houses have exploded in the region, pushing American-based chains like Starbucks and the Coffee Bean to invest in setting up shop there.

India isn’t alone in embracing the coffee drinking trend. Andrea Illy, the CEO of Illy coffee company, told Reuters last year that demand in China is poised to rise so sharply over the next few years that the nation will become one of the top five countries for coffee consumption.

That’s no accident. While rising incomes in countries like China and India explain some of the increased interest in coffee, targeted marketing campaigns are contributing to the boost as well, according to Reuters. The coffee industry is setting its sights on the two countries with huge populations in hopes of converting them into craving a Cup of Joe.

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