Indian Tea industry set to boom, says study

By Ankush Chibber

- Last updated on GMT

Related tags Tea

Indian Tea industry set to boom, says study
The Indian tea industry – the world’s biggest – Is set to almost double in just three years – leaping from US$3.7bn to US$6.3bn by 2015 as health benefit awareness rises, according to the Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Its study showed India has 600,000 hectares under tea cultivation, on the back of which the domestic tea industry is growing at an annual growth rate of 15%.

“Awareness about health benefits associated with moderate intake of tea is another significant factor behind this upsurge in its demand as now more and more people are familiar with healing properties of tea,”​ ASSOCHAM secretary general D.S. Rawat said in a statement to FoodNavigator-Asia.

The study disclosed that the penetration of tea in the non-alcoholic cold beverage segment is also driving the industry owing to the rising affinity with ice tea, which accounts for more than 5% of entire non-alcoholic beverage market in India.

The study said there is not much product differentiation at rural and urban levels thereby broadening a market fed bykey industry players releasing value-added products to gain a competitive edge.

“With rapidly changing market scenarios and technological advancement in agri business there is tremendous scope and potential for growth and development ofdomestic tea industry,”​ the report said.

Skills investment

The report also explained that in order for the industry to increase yield and revenue, companies will have to invest in marketing skills, research, training and technical know-how for tea cultivators and pluckers.

Rawat pointed out that in the entire Indian teamarket, the branded segmentaccounts for nearly 55% of the total market and growing at 20%. The unbranded market is growing at 10% annually.

“India is world’s largest consumer, second largest producer and fourth largest exporter of tea after China and accounts for nearly 30% of global output and nearly 25% tea produced worldwide is consumed in India,” ​said Rawat.

The report revealed that Hindustan Unilever is the current market leader in terms of sales value with over 20% market share, while Tata Tea is the leader in terms of sales volume nearly 20% market share.

Wagh Bakri, Duncan’s Industries, Goodricke Group, Golden Tips Tea, Gimar Food & Beverages, Twinings, Jay Shree Tea, Gopal Dhara Tea are other key players.

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