Sri Lanka Coffee Market 2025

In 2024, the Sri Lankan coffee market saw a notable shift toward premiumization and health-conscious consumption, driven by the growing preference among younger, urban consumers for high-quality, ethically sourced coffee. Specialty coffee, particularly single-origin and organic varieties, experienced rising demand as consumers sought out products that aligned with both their quality expectations and ethical values. This trend was further fueled by the expanding influence of social media and the increasing popularity of specialty cafés and coffee shops, which became hubs for coffee aficionados. In parallel, health-conscious consumers showed a marked interest in functional coffee, with products enhanced with vitamins and antioxidants gaining traction.

While both fresh ground coffee and instant coffee continue to enjoy widespread use, the demand for packaged coffee has shown some fluctuation. Instant coffee remains a staple due to its affordability and convenience, but fresh ground coffee is becoming increasingly popular among more discerning consumers who seek a superior coffee experience. This shift has been bolstered by the introduction of innovative product offerings, often with unique flavors or environmental credentials, appealing to a market that is more selective and informed than ever before.

Sri Lanka, traditionally known for its tea, is working diligently to carve out a reputation in the coffee industry, both domestically and internationally. Although the country’s coffee production remains small, its quality has rapidly improved, particularly among middle and upper-income urban consumers who are more inclined to explore specialty coffee options. Despite this progress, the country has faced setbacks, notably the negative impact of a ban on synthetic fertilizers, which has reduced coffee yields and slowed the growth of the sector.

The coffee shop scene in Sri Lanka has also seen expansion, particularly in urban centers like Colombo, and in popular tourist destinations such as Galle and Kandy. Coffee shops in these areas cater mainly to young professionals and tourists, offering a social space for business meetings and casual gatherings. The most popular coffee beverages in Sri Lanka include cappuccinos, lattes, and iced coffee with milk, reflecting the local preference for pairing their beverages with milk—a trend that aligns closely with the country’s longstanding tea culture. Despite the increasing popularity of coffee, it remains more expensive than tea, resulting in significantly lower coffee sales by volume. However, the growing presence of upscale coffee shops, particularly in tourist hotspots like Galle Fort, signals a positive trajectory for the market, with consumers increasingly embracing coffee as an indulgence and a lifestyle choice.

This report offers a detailed examination of the Sri Lanka coffee market, leveraging historical data from 2020 to 2024 and projecting trends through 2030. It evaluates market size, growth trajectories, and key drivers of change, providing a nuanced view of the industry’s development. Through a structured analysis of product type, packaging type and distribution channel, the report identifies strategic opportunities and challenges, supporting data-driven decision-making.

Market Segmentation

The Sri Lanka coffee market is categorized into the following segments:
Product type: ground coffee, instant coffee
Packaging type: flexible packaging, folding cartons, glass, others
Distribution channel: bars and HoReCa, small grocery stores, supermarkets and hypermarkets, others

The Sri Lanka coffee market is segmented by product type, packaging type and distribution channel. The market is classified by product type into ground coffee, and instant coffee. Packaging type segments are divided into flexible packaging, folding cartons, glass, and others. Distribution channel segmentation comprises bars and HoReCa, small grocery stores, supermarkets and hypermarkets, and others.

Competitive Landscape

The coffee market is dominated by key players, including Harischandra Mills PLC, Island Coffee Co. Pvt Ltd. and Nestle S.A. This comprehensive report analyzes the performance of leading companies in the coffee sector from 2020 to 2024. The findings highlight shifts in market share, revealing both established market leaders and emerging competitors.

Why Buy This Report?

Obtain precise statistical data and forecasts for the Sri Lanka coffee market.
Gain in-depth analysis and forecasts for the key segments of the Sri Lanka coffee market: product type, packaging type and distribution channel.
Develop region-specific strategies and set strategic priorities based on localized data analysis.
Gain deep insights into the dynamics of the Sri Lanka coffee market.
Identify high-potential investment opportunities by targeting growth sectors and emerging trends.
Anticipate the future trajectory of the Sri Lanka coffee market with informed projections.
Assess the competitive landscape to determine the ideal timing for capitalizing on market opportunities.
A single unlimited user license within the same organization, with no additional charges for extra users.

Table of Contents

TABLE OF CONTENTS
Key Findings
Market Segmentation
Market Overview
Sri Lanka Coffee Market – Product Type Analysis
Sri Lanka Coffee Market – Packaging Type Analysis
Sri Lanka Coffee Market – Distribution Channel Analysis
Company Shares Analysis
Harischandra Mills PLC
Island Coffee Co., Pvt Ltd.
Nestle S.A.
Macroeconomic Data and Forecast
Research Methodology
Disclaimer

FIGURES AND TABLES
Table Sri Lanka Coffee Market 2020-2030
Chart Sri Lanka Coffee Market, Net Growth, 2020-2030
Chart Sri Lanka Coffee Market, Growth Rates, 2020-2030
Table Sri Lanka Coffee Market by Product Type, 2020-2030
Chart Sri Lanka Coffee Market by Product Type, CAGR Historic and Forecast, 2020-2030
Chart Sri Lanka Coffee Market by Product Type, 2020-2030
Table Sri Lanka Coffee Market by Packaging Type, 2020-2030
Chart Sri Lanka Coffee Market by Packaging Type, CAGR Historic and Forecast, 2020-2030
Chart Sri Lanka Coffee Market by Packaging Type, 2020-2030
Table Sri Lanka Coffee Market by Distribution Channel, 2020-2030
Chart Sri Lanka Coffee Market by Distribution Channel, CAGR Historic and Forecast, 2020-2030
Chart Sri Lanka Coffee Market by Distribution Channel, 2020-2030
Table Sri Lanka Coffee Market Share (%), by Companies, 2020-2024
Chart Sri Lanka Coffee Market, by Companies, 2024
Table Sri Lanka Coffee Market Share (%), by Brands, 2020-2024
Chart Sri Lanka Coffee Market, by Brands, 2024
Table Sri Lanka – Population (Millions) and Forecast
Table Sri Lanka – Consumer Price Index (CPI) and Forecast
Table Sri Lanka – Gross Domestic Product and Forecast
Table Sri Lanka Coffee Market: Spend as a Proportion of GDP (%)
Table Sri Lanka Coffee Market: Consumption per Capita (Population)

Companies Mentioned

Harischandra Mills PLC
Island Coffee Co., Pvt Ltd.
Nestle S.A.