By the time Jarin leaves for college, her day has already begun with coffee.
It is the first thing she reaches for after waking, a small ritual before the rush of getting ready and heading out.
She fills a flask to carry to class, relying on it to stay alert through long lectures and tired afternoons.
Between classes, the coffee is often shared among friends and, when the flask runs out, she turns to mini sachets in her bag for another quick cup.
Jarin’s routine reflects a wider shift.
Across the cities, particularly among students and young professionals, coffee has moved beyond an occasional indulgence into a daily habit, reshaping how people study, work and socialise.
For decades, tea defined the country’s beverage culture.
That is beginning to change.
Tea consumption continues to grow at around 5 per cent annually, but coffee has expanded at a far faster pace, growing at an estimated 56 per cent a year over the past decade, according to Debabrata Roy Chowdhury, director of legal and corporate affairs at Nestlé Bangladesh.
The surge is being driven by a combination of forces.
Rising incomes, rapid urbanisation, changing tastes and exposure to global lifestyles have all played a role, alongside the expansion of café chains and the influence of social media.
What was once seen as a premium or niche drink is now becoming mainstream.
In Dhaka alone, more than 100 premium cafés now operate, catering to a generation that increasingly associates coffee with both productivity and leisure.
Coffee shops have become informal workspaces, meeting points and social hubs, particularly for students, freelancers and corporate employees.
The shift is not confined to affluent neighbourhoods.
Even in smaller towns and rural areas, coffee is becoming more visible.
Village shops now stock mini sachets, and in many roadside tea stalls, or “tong” shops, a cup of coffee is available for as little as Tk20.
This accessibility has broadened the consumer base beyond traditional urban elites.
Market data illustrates the scale of the transformation.
According to Nestlé Bangladesh, the country’s coffee market has expanded five to seven times since 2016.
A decade ago, annual consumption was estimated at just 300 to 350 tonnes, with a market value of between Tk50 crore and Tk100 crore.
Within five years, demand rose to around 1,000 to 1,300 tonnes, pushing the market value to roughly Tk600 crore.
Today, annual consumption is estimated at between 2,500 and 3,000 tonnes, with the market value exceeding Tk1,200 crore.
Brewed and roasted coffee now account for nearly two-thirds of the market, indicating a gradual shift away from purely instant formats.
International brands continue to dominate key segments.
Nescafé remains the leading player in instant coffee, while MacCoffee is widely recognised for its mixes and creamers.
Davidoff has positioned itself in the premium segment with blends such as Espresso 57 and Rich Aroma, and Italian brand Lavazza supplies both ground coffee and whole beans.
Alongside these global names, a growing ecosystem of local cafés and roasters is shaping the country’s coffee culture.
Brands such as North End Coffee Roasters, AMA Coffee, Tabaq Coffee, Gloria Jean’s Coffees and Crimson Cup Coffee are expanding rapidly, particularly in major urban centres.
Yet the industry’s rapid expansion is facing mounting pressure.
Retail prices have risen sharply over the past decade, with the strain intensifying since 2021 due to global supply disruptions, currency depreciation, higher freight costs and a heavy tax burden.
Bangladesh relies almost entirely on imports for coffee, leaving the market exposed to international price swings.
Recent price trends illustrate the impact.
A 100 gram pack of Davidoff coffee rose from Tk750 to Tk950 within a year, while another variant increased from Tk900 to Tk1,150.
Nestlé’s 50 gram pack climbed from Tk200 to Tk260, and Nestlé Gold 200 gram now sells for around Tk1,450.
MacCoffee Gold 200 gram packs have increased from Tk900 to Tk1,300, while MacCoffee Original has risen from Tk480 to Tk700.
Across Dhaka and Chattogram, coffee prices now range from about Tk1,000 to more than Tk10,000 per kilogram, depending on quality and brand positioning.
Industry representatives say taxation is a key factor behind these increases.
The total tax incidence on coffee has reached 89.32 per cent, one of the highest levels in South Asia.
While bulk imports of unroasted beans face somewhat lower duties, around 59 per cent, packaged retail coffee often attracts the full rate.
The burden intensified further after a 20 per cent supplementary duty was imposed in the 2022–23 budget.
“This could eventually slow down the rapid expansion of a market that has grown almost seven times in the last ten years,” said Debabrata Roy Chowdhury.
High taxes have also created distortions in the market.
Industry sources say illegal imports have increased, allowing untaxed products to undercut formal retail channels.
Reports from the fast-moving consumer goods sector suggest that smuggled coffee can leave 15 to 20 per cent of legally imported stock unsold.
Companies that have invested in local processing say they are particularly affected.
Nestlé, for example, has invested Tk245 million in local operations, but faces difficulty competing with duty-free smuggled products, according to Roy Chowdhury.
Domestic production, meanwhile, remains limited.
Coffee cultivation is still at an early stage in Bangladesh, although it has shown signs of growth.
Production rose to around 122 tonnes in 2024–2025, up from about 55 to 58 tonnes between 2020 and 2022.
Farming is concentrated in the Chattogram Hill Tracts, especially Bandarban, with smaller initiatives emerging in areas such as Tangail, Nilphamari and parts of North Bengal.
Both Arabica and Robusta varieties are being grown.
Locally produced coffee, particularly from the Boga Lake region, has attracted attention for its quality, with international organisations including the Food and Agriculture Organization noting its potential. The government has launched initiatives to scale up production.
A Tk211 crore project running from 2021 to 2025 aims to expand cultivation, with the Department of Agricultural Extension targeting 10,000 hectares under coffee farming by 2025.
Longer-term plans envisage output reaching between 4,000 and 5,000 tonnes annually by 2030.
Industry stakeholders argue that policy adjustments could accelerate this transition.
Allowing greater imports of bulk green beans for local roasting, they say, would reduce duties, support domestic processing, create jobs and lower retail prices.
