International Tea Day: Exploring India's position in the global market
What's the story
Many "tea-totalers" would be overjoyed this Saturday celebrating International Tea Day. Tea has evolved immensely over the past decade in India. While cutting chai used to be the go-to option at every tea stall or cafe, now there are a host of other teas which are being reordered. Here's what industry experts had to share about India's position in the global market.
Who imports what
Importers of tea produced in India
From Darjeeling, renowned tea taster and managing director of a premium retail tea brand, Madhav Sarda says India is only second to China in tea production. Mrs. Ekta Jain, CMO of a well-known tea brand pointed out the importers. "Germany, USA, UAE, Australia, UK, and the Netherlands import green tea. Major black tea (CTC) importers are Iran, Russia, USA, UAE, Kazakhstan, UK, and Germany."
Teas and blends in demand
What do the international 'chaiophiles' love?
"Black teas dominate the international market. Masala chai is one of the most popular worldwide and is relished for its rich and distinctive taste. Other popular tea blends are English Breakfast, Earl Grey, and recent hits are herbal teas like turmeric tea, ginger tea, and floral blends," explained Mrs. Jain. Herbal infusions like potent potpourri are also in high demand, as per Mr. Sarda.
Forecast
India's growth forecast in the global tea market
The Asia Pacific tea market is expected to account for a significant share of revenue in the global market over the forecast period. In 2019, China accounted for a sizable market share, informs Mrs. Jain. Expert Market Research firm reports that the Indian tea industry is expected to grow at a CAGR of 4.2% from 2021 to 2026 and reach approximately 1.40 million tons.
Global tea trends
Emerging trends in the world of tea
"The emergence of tea as a wellness superfood, increasing customer preference for premium teas, eco-friendly and sustainable packaging, growing brand consciousness and mushrooming of tea boutiques and cafes are some of the new trends in the tea industry," said Mr. Sarda. Tea estates are evolving too, to suit the needs of their patrons in and out of India.
Growth of tea industry
The youth is a driving force for growth of tea
The tea industry has been in the grip of rapid changes and alterations for the past few years. From your local tea stalls to gourmet tea points, all are now offering new and quirky tea recipes and combos. People love them and the young generation has become a driving force for their growth. People also gift tea blends on occasions now, said Mrs. Jain.
Reasons for growth
People have become health-conscious
After the pandemic, people have become very fitness and health-conscious. Tea has emerged as one of the most cost-effective and healthy beverages, having a myriad of health benefits, especially the traditional Indian recipes. It became the go-to drink for all Indians amidst the lockdown. Newer segments within the tea industry are on the rise like herbal teas, kadha, organic teas, etc.