From Coorg to Zurich: Indian coffee beans find a premium market

Here's something conventional wisdom gets wrong: when trade economists discuss Switzerland's coffee imports, they inevitably focus on the giant re-exporters—Germany, Netherlands, Belgium. But tucked into the Alpine nation's trade data lies a more intriguing story: India's emergence as the 5th largest supplier to Switzerland's $1.5 billion coffee market, with exports surging 33% to $92 million under the new TEPA agreement.

I've been tracking this flow for months, and frankly, it's the most underappreciated trade story in the coffee world right now. Switzerland, Norway, and Iceland now offer zero percent duty on all coffee imports from India under the Trade and Economic Partnership Agreement that took effect in October 2025. But here's what makes this fascinating: Switzerland isn't just any European market—it's historically been the domain of Latin American giants.

EFTA member countries like Switzerland ($145 million), Norway ($27 million) and Iceland ($3 million) together import coffee valued at $175 million, which is about 3 per cent of the global coffee imports. India has carved out 6% of Switzerland's total market, placing it ahead of Vietnam but still trailing Brazil's commanding 27% share and Colombia's 19%.

The Karnataka Connection

The companies driving this growth aren't household names, but they're the workhorses of India's coffee export machine. The largest Coffee exporters in India are NED Commodities India Private Limited, OLAM Agro India Private Limited, NKG Coffee India Private Limited, SLN Coffee and Spices Exports Private Limited, and Company Louis Dreyfus India Pvt Ltd. Tata Coffee is the largest manufacturer of coffee, tea and Indian origin black pepper, while it is Asia's largest integrated coffee company, the second largest exporter of Instant Coffee and foremost producer of Specialty coffee in India.

The biggest exporter of Robusta coffee is Olam Agro India Pvt ltd at 17,640 tons or 31 million of Robusta coffee exports. We offer more than 45 agri-commodity products including almonds, cocoa, coffee, grains, hazelnuts, palm oil, rice, rubber, specialty vegetables, and spices, notes Olam's product portfolio description.

What's driving Swiss interest isn't just price—it's provenance. Indian coffee is generally mild and low in acidity, making it popular in European countries. It has a delicate aroma and an exotic flavor that is very soothing. More importantly, Indian coffee is hand-picked, cultivated in the shade, and naturally sun-dried, resulting in rised demand even at premium prices.

The TEPA Advantage

"Apart from exporting coffee, it is also important to work on 'Brand India' and position the country strongly in the global market."

Indian coffee is sustainable as it is grown in conjunction with forests, and its exports have doubled in recent years, Agrawal emphasized. TEPA provides the most favourable market access to Indian coffee in the EFTA market.

The timing couldn't be better. Over the past four years, India's coffee exports have consistently exceeded USD 1 billion, reaching a record USD 1.8 billion in FY 2024–25, reflecting an impressive 40 percent growth from USD 1.29 billion in the previous year. Despite global geopolitical challenges, exports during April–September 2025 stood at USD 1.07 billion, registering a 15.5% increase over the same period in 2024.

From Coorg to Zurich

The supply chain tells a story of India's diverse coffee geography. The coffee industry in India is primarily concentrated in the major coffee-growing states of Karnataka, Kerala, and Tamil Nadu, which collectively account for nearly 96 percent of the country's total coffee production. Among these, Karnataka leads with a production of 2,80,275 metric tonnes (Post Blossom Estimate for 2025–26), followed by Kerala and Tamil Nadu.

India's diverse geography has created 13 recognised coffee zones, with renowned regions such as Coorg, Chikkamagaluru, Araku Valley, Nilgiris, Wayanad, and Bababudangiris producing coffees celebrated worldwide for their distinct profiles. India also holds seven Geographical Indication tags for regional and specialty coffees, including Coorg Arabica, Wayanad Robusta, Araku Valley Arabica, Bababudangiris Arabica, and the globally acclaimed Monsooned Malabar variety.

This geographic diversity matters in Switzerland's premium market. While Brazil dominates with volume, India's positioning relies on terroir-driven varieties that appeal to Swiss consumers increasingly interested in origin stories and sustainability credentials.

Employment and Economic Impact

Using agricultural sector multipliers, the $92 million Swiss trade flow supports an estimated 1,375 direct jobs in India's coffee sector (calculated at 15 jobs per $100,000 of agricultural exports). Adding indirect employment through the supply chain pushes this to approximately 2,300 total jobs. Due to the labour-intensive nature of coffee cultivation in India, the industry employs over 2 million people directly.

Importantly, We source crops from an estimated 4.8 million farmers. This is supported by our own plantations, concessions and farms for coffee, dairy, palm oil, peanuts, rice, rubber and wood products, according to Olam's sourcing network description. With 95% MSME participation and 50% women's employment in the sector, Switzerland's growing appetite for Indian coffee supports India's most inclusive agricultural value chains.

What fascinates me most about this trade flow is how it challenges the received wisdom about European coffee markets. Switzerland isn't just buying Indian coffee—it's betting on India's unique positioning as the world's only major producer of shade-grown, forest-friendly coffee. Among the EFTA member countries, Switzerland and Norway are high-value markets with strong demand for high-quality coffees.

As TEPA's tariff advantages fully materialize, expect this 33% growth rate to be just the beginning. India's coffee revolution isn't happening in Milan's espresso bars or Seattle's roasteries—it's brewing quietly in the boardrooms of Zurich, where sustainability meets profitability one perfectly cupped Coorg Arabica at a time.