Tea is an essential beverage for Indian consumers. With the ever-increasing demand and popularity of Indian tea globally, the tea industry is one of the most important sectors in India. Consequently, many reputed tea manufacturers in India have spread their businesses throughout the nation, as well as overseas. Consumers in India have enjoyed tea, especially masala chai since times immemorial, and it is considered one of the unique elements of Indian culture. The love for the beverage has given the tea industry a loyal customer base in the country resulting in its fast-paced growth in recent times.
Tea Companies in India have observed some trends in tea consumption that indicates significant growth in the industry in the near future. In the past decades, tea has become a multi-million dollar industry, with India being the second-largest tea producer globally, after China. In the 2021-26 period, the Indian tea industry is expected to grow at a CAGR of about 4.2% and reach an approximate volume of 1.40 million tonnes by the end of the period.
Tea as a wellness food:
Due to the various findings and precautions during the pandemic, there is a huge consumption of teas that proves health benefits. It has emerged as a wellness and lifestyle beverage with various new varieties and blends of tea introduced in the market. Immunity-boosting teas with Ayurvedic ingredients like Turmeric, Ashwagandha, Tulsi, etc., are in high demand.
As per a study, about 443 million Indian millennials spend more than Rs. 4000 on their health and wellness monthly. Both established companies as well as startups have followed this trend and have witnessed tremendous growth.
High preference for premium teas:
There has been significant consumer growth for the premium tea brands in India. With the boosting globalization and internet usage, there has been a considerable surge in consumer demand, which has brought new trends in the tea segment. As the variety of teas sold to customers has increased with the popularity of e-commerce, tea-lovers have started to seek innovation and diversity in the products that are offered by premium tea brands in India.
In such a situation, the demand for premium teas has grown. As customers are expressing an interest in the purchase of premium teas online, it has increased sales by providing additional product information to enhance consumer knowledge and awareness. The premium teas include immunity-boosting specialty and flavored teas.
Tea packaging has seen various changes over the years. Tea pouches have become the preferred choice for many of today’s top tea manufacturers in India as they can hold a large amount of the product and can easily fit on shelves at retail stores. Stand-up pouches also help in keeping the leaves fresh and protect them from outside elements that harm the flavor, aroma, and healthful benefits of the product.
Brand loyalty among consumers:
Consumers are now actively choosing branded teas rather than products of the unorganized sector. It has resulted in increased global investment in tea brands with a scalable business model. As per findings, Indian consumers are conscious of the brands more than ever before and do not hesitate to pay more for products, especially those with added benefits. The rise in brand preference can also be attributed to the inclination toward health and hygiene factors as consumers usually believe a branded product to be premium and reliable. Customers who care about the authenticity and hygiene of the product would probably buy products of reputed brands.
High tea consumption during and after the pandemic:
There is a significant increase in tea consumption during and after the pandemic outbreak, considering the work-from-home scenario. During FY20-21, India consumed 89.24% of its tea production. According to the Tea Board, India’s consumption rose to 1,145 million kg in 2020-21.
Rising tea cafes:
Tea stalls are common in India, but they are fragmented and unorganized. Tea café chains gaining popularity across India are giving consumers a midway option of at-home consumption and the humble roadside stall. A number of tea companies in India with tea outlets like modern coffee chains are gradually revolutionizing the tea industry. The companies are looking to appeal to young millennial Indians by offering them an upgraded version of the tea at roadside chai wallahs and their efforts are showing incredible results. Some of these start-ups are now national chains.
Vardhaman Group Of India is one of the leading tea manufacturers in India, serving authentic and flavored tea from various tea gardens in the nation. We provide various tea blends at our several outlets of Chaha House and Tea Kettly. Being one of the leading tea companies in India, we deliver our flavored and tasty tea on online platforms like Amazon and Flipkart.
For more details on our products, visit www.vardhaman.group