As per my understanding goes the de-compression is taken care by the Consumer it self. As mentioned in their official wiki page
The consumer iterator transparently decompresses compressed data and only returns an uncompressed message
As found in this article the way consumer works is as follows
The consumer has background “fetcher” threads that continuously fetch data in batches of 1MB from the brokers and add it to an internal blocking queue. The consumer thread dequeues data from this blocking queue, decompresses and iterates through the messages
And also in the doc page under End-to-end Batch Compression its written that
A batch of messages can be clumped together compressed and sent to the server in this form. This batch of messages will be written in compressed form and will remain compressed in the log and will only be decompressed by the consumer.
So it appears that the decompression part is handled in the consumer it self all you need to do is to provide the valid / supported compression type using the compression.codec
ProducerConfig attribute while creating the producer. I couldn't find any example or explanation where it says any approach for decompression in the consumer end. Please correct me if I am wrong.
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