Indian Tea Market Analysis

Topics: Tea, Black tea, Green tea Pages: 15 (4593 words) Published: June 8, 2010


Historical perspective of tea market

Current scenario

Consumer habits and practices

Consumer awareness

Market size and growth

Major players


Future trend



The Tea Business in India is nearly a 170 years old practice. This agro-based industry is a very important contributor to the economy of India. The main axis of tea business in India is located along the rural hills and backward areas of Northeastern and southern states like Assam, West Bengal, Tamil Nadu and Kerala. Further, the regions, which are associated with small time tea business in India, are Karnataka, Tripura, Himachal Pradesh, Uttaranchal, Arunachal Pradesh, Manipur, Sikkim, Nagaland, Meghalaya, Mizoram, Bihar andOrissa.

The process of tea cultivation in India requires specific climatic and as well as soil conditions, which is prevalent only in the aforesaid areas of India. The tea business in India is mainly based on cultivation of tea variants like CTC, Orthodox tea and green tea. There is a huge demand for green tea in developed countries for its rich aromatic flavor and medicinal properties. The trend of green tea consumption is also on the rise in India due to rise in purchasing power capacity and overall living standards of Indian.

In India, tea is an essential item of domestic consumption and is the mostly consumed beverage. Further, tea is the cheapest beverage amongst all the beverages that are available in India and it is very popular amongst all sections of India society. The Indian tea industry engages around 20 lakh of workers, directly and they mainly represents the under privileged sections of the India society. The Tea Business in India registered a total turnover of Rs.8000 crore in the financial year ended 31st March 2006- 2007.

Some notable facts about the tea industry of India are as follows - •There are 1655 registered tea manufacturers in India
A total of 2008 registered tea exporters controls the export of tea from India •The total number of registered tea buyers in India is 5148 •There are nine tea auction centers in India
India is now the largest producer, exporter and consumer of tea. Tea is one of India’s oldest organized industries, with gardens located in remote and largely backward areas of the country. Indeed tea is perhaps the only commodity in respect of which India leads in productivity and technical innovation – while maintaining a high level of quality. Its industry provides employment directly to nearly a million people and indirectly to a large number in ancillary and service industries. The Indian tea industry suffered loss due to emergence of China, Vietnam, Indonesia, Sri Lanka and Kenya as cheap tea exporters. Today, the major competitors to all Indian tea varieties are China (green tea), Sri Lanka (orthodox), Kenya (CTC), Indonesia (orthodox) and Vietnam. Over the last decade, the Indian tea industry registered a substantial growth with respect to the overall production of Indian tea, due to ever increasing size of its domestic market. Its contributions to the country in all aspects of tea production, consumption and export, India has emerged to be the world leader, mainly because it accounts for 31% of global production. It is perhaps the only industry where India has retained its leadership over the last 150 years.

Here are some statistical facts about the Indian Tea Industry:

The total turnover of the tea industry is around Rs. 10,000 crores.

Since independence tea production has grown over 250%, while land area has just grown by 40%.

There has been a considerable increase in export too in the past few years. Total net foreign exchange earned per annum is around Rs. 1847 crores.

The labour intensive tea industry directly employs over 1.1 million workers and generates income for another 10 million people approximately. Women constitute 50% of...

Bibliography: There has been a considerable increase in export too in the past few years. Total net foreign exchange earned per annum is around Rs. 1847 crores.
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