According to the report by Expert Market Research (EMR), the Indian tea market size is projected to grow at a CAGR of 4.5% in the forecast period of 2024-2032. Aided by the growing consumer shift towards premium and speciality teas and the rise of e-commerce and digital marketing, the market in India is assessed to attain around 1.82 million tons.
Tea, an aromatic beverage with a rich history, is made from the leaves of the Camellia sinensis plant. It is one of the most widely consumed drinks globally, second only to water. The versatility, cultural significance, and health benefits associated with tea have made it a staple in various societies and a subject of great interest in both historical and contemporary contexts.
The Indian tea market, a cornerstone of the nation’s agricultural economy and a significant player on the global stage, has been undergoing notable transformations in recent years. As one of the world’s largest producers and consumers of tea, India holds a unique position in the market, characterised by a rich history, diverse tea varieties, and a dynamic market landscape. This market, valued at billions of dollars, is shaped by various factors, including changing consumer preferences, technological advancements, and evolving market dynamics.
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One of the most prominent trends in the Indian tea market is the growing consumer shift towards premium and speciality teas. This shift is driven by increasing health consciousness among consumers and a desire for unique and high-quality tea experiences. Specialty teas such as green tea, white tea, oolong tea, and herbal infusions are gaining popularity due to their perceived health benefits. Green tea, in particular, has seen a significant surge in demand, fuelled by its antioxidant properties and association with weight loss and overall wellness. This trend is further supported by the expanding middle class and the rising disposable incomes that allow consumers to explore premium products.
In addition to the demand for speciality teas, there is a noticeable trend towards organic and sustainably sourced teas. With the global movement towards sustainability and environmental responsibility, producers in the Indian tea market are increasingly adopting organic farming practices and obtaining certifications to appeal to eco-conscious consumers. This trend is not only driven by domestic demand but also by international markets that are placing greater emphasis on sustainable sourcing. As a result, many tea estates in India are transitioning to organic cultivation methods, which, although initially more costly, promise long-term benefits in terms of marketability and premium pricing.
The rise of e-commerce and digital marketing has also significantly impacted the Indian tea market. The proliferation of online retail platforms has made it easier for consumers to access a wide variety of teas from different regions of India. This accessibility has democratised the market, allowing smaller and regional tea brands to reach a broader audience without the need for extensive physical distribution networks. Furthermore, digital marketing strategies, including social media campaigns and influencer endorsements, have become crucial tools for tea brands to engage with consumers and build brand loyalty. These platforms allow tea companies to educate consumers about the benefits of various teas and share stories about their sourcing and production processes.
Innovation in tea packaging and branding is another trend shaping the Indian tea market. Contemporary consumers are not just interested in the tea itself but also in the experience and aesthetics associated with it. As a result, tea companies are investing in attractive, eco-friendly packaging and innovative product formats such as tea bags, pyramidal infusers, and ready-to-drink tea beverages. These innovations cater to the modern lifestyle, where convenience and sustainability are highly valued. Additionally, storytelling through branding has become a powerful tool, with many brands highlighting their heritage, ethical sourcing practices, and the unique characteristics of their tea offerings.
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The impact of globalisation cannot be overlooked when discussing trends in the Indian tea market. Indian tea brands are increasingly exploring international markets, leveraging the global reputation of Indian tea varieties such as Darjeeling, Assam, and Nilgiri. Export-oriented strategies are being developed to meet the growing international demand for high-quality Indian teas. This trend is supported by government initiatives aimed at promoting Indian tea exports and enhancing the global competitiveness of the Indian tea market. Efforts to comply with international quality standards and certifications are also part of this strategy, ensuring that Indian teas meet the stringent requirements of foreign markets.
Another significant trend is the increasing focus on value addition within the Indian tea market. Instead of merely exporting raw tea leaves, there is a growing emphasis on processing, blending, and packaging tea within the country to create value-added products. This approach not only enhances the profitability of the tea industry but also creates employment opportunities and stimulates economic growth in tea-producing regions. Value-added products such as flavoured teas, tea blends, and wellness teas are gaining traction both in domestic and international markets, catering to diverse consumer preferences.
Market Segmentation
The Indian tea market can be divided based on type, sector, packaging, processing, application, distribution channel, and region.
Market Breakup by Type
- Black
- Green
- Oolong
- White
- Others
Market Breakup by Sector
- Organised
- Unorganised
Market Breakup by Packaging
- Plastic Containers
- Loose Tea
- Paper Boards
- Aluminium Tins
- Tea Bag
- Others
Market Breakup by Processing
- CTC
- Orthodox (Traditional)
Market Breakup by Application
- Residential
- Commercial
Market Breakup by Distribution Channel
- Supermarkets and Hypermarkets
- Convenience Stores
- Speciality Stores
- Online
- Others
Market Breakup by Region
- North Region
- East and Central Region
- West Region
- South Region
Competitive Landscape
The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Indian tea market. Some of the major players explored in the report by Expert Market Research are as follows:
- Tata Consumer Products Limited
- Hindustan Unilever Limited
- Wagh Bakri Tea Group
- Twining and Company Limited.
- Pataka Group of Companies
- Marvel Group
- The Bombay Burmah Trading Corporation. Ltd,
- Assam Company India Limited
- Ramesh Tea Traders
- Amar Tea Pvt. Ltd
- Rossell India Ltd.
- Goodricke Group Limited
- Others
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