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India Packaged & RTD Tea Market Outlook, 2027-28

India Packaged & RTD Tea Market Outlook, 2027-28

Bonafide Research 07-10-2022 82 Pages Figures : 15 Tables : 16
Region : Asia-Pacific Category : Food & Beverages Beverages

1. Ceylon Tea Services Limited

2. Duncans Tea Limited

3. Silver Leaf Tea Private Limited

4. Gujarat Tea Processors and Packers Limited

5. Hindustan Unilever Limited

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After China, India is the world's second-largest producer of tea. The nation is also a major user of the beverage, making up roughly a fifth of global consumption over the course of history. In 2017, India's tea exports reached their greatest level in nearly four and a half decades. Due to the high domestic consumption, the country's exports saw only moderate annual increase. In India, around 80% of all production is used for domestic consumption. Over the past ten years, the nation's per capita consumption of the beverage has significantly increased. The British East India Company built the first commercial tea plantations in the nation, which facilitated the widespread production of the locally indigenous tea variety that north-eastern Indians typically brewed. When it was first introduced, tea was a luxury beverage. But over the years, rising production and usage made the mixture affordable for everyone to enjoy today. Unsurprisingly, tea was the most expensive beverage on the retail market, and it was predicted to keep growing steadily.

The India Packaged Tea & RTD Tea Market Outlook, 2027 study by Bonafide Research projects that the market would expand in value at a rate of more than 14% CAGR between 2022 and 2028. Over three-fourths of the industry in India is located in the north, which is the dominant region. West Bengal and Assam are the two states that produce the most tea in the nation. The beverage's Assam and Darjeeling varieties are the most well-known worldwide, according to the region of origin. The industry is dominated by South India, with the Nilgiris serving as the primary production hub. Despite having a substantially smaller output than North India, the region's industry is supported by the production of high-end, superior-quality cultivars.

Black tea makes up the largest type of tea market in India. Due to the perceived higher quality of packaged tea, customers are increasingly choosing it over unpackaged kinds. Currently, about 80% of urban Indian households and almost 75% of rural Indian households prefer to purchase its packaged product varieties. The increasing consumption of tea across all socioeconomic strata in India is another factor driving the country's tea sector. Indian customers are increasingly favouring luxury brands, which is being fuelled by the country's robust economic growth and the consequent rise in the middle-class population. The tea sector in India is also being helped by the growing demand for the packaged variant of the beverage in both urban and rural areas due to the reduced risk of adulteration, easy storage, and improved quality of these products. Young customers like green tea in its regular and lime/lemon flavours. Brands including HUL, Tata Tea, and Duncans Tea Limited have benefited from the popularity of packaged tea.

The middle class is also more open to experimenting with different tea blends, which is encouraging the creation of niche markets for fruit-flavored, herbal, and other specialty teas. Green tea is expected to witness a robust growth in the coming years as its consumption is witnessing an increase as people become more aware of its health benefits. As more people become aware of the health advantages of green tea, there is projected to be a rise in demand for the packaged variant of the beverage in both categories in the upcoming years. Urbanization and the rising consumption of the beverage without milk in these areas are driving the green tea sector. As a result, India's tea sector is benefiting from both the country's rising urbanisation and the increase in disposable income.

In the upcoming years, the business is anticipated to be driven by the rising popularity of cafes and lounges that serve largely different iterations of the beverage. The industry's expansion will also be aided by the convenience of its distribution channels, which include neighbourhood "kirana" stores and supermarkets as well as the expanding online channel. Because of busier lifestyles and an expanding workforce, the RTD category should experience a healthy uptick as customers look for more practical foods and drinks. In the upcoming years, the business will also be fueled by an increase in packaging and flavour innovation. Another market for the industry's expansion is the rural sector.

One of the main elements fostering a favourable view for the market is the significant increase in the food and beverage sector. Additionally, the inclination of consumers for premium and packaged tea brands is fueling market expansion. To store and deliver tea, manufacturers use multi-layered packaging to reduce the risk of adulteration and spoiling while preserving the flavour and freshness of the tea leaves. Accordingly, rising consumer awareness of the therapeutic and health benefits of organic and green tea varieties also contributes to the expansion of the market.

Novel fruit, herbal, and other speciality types that promote relaxation, reduce anxiety, and lower the likelihood of acquiring chronic medical conditions are becoming more popular. The industry is expected to grow as a result of additional factors, such as rising consumer spending power and the proliferation of online retail channels. During the projected period, the RTD tea market is anticipated to expand significantly. The two market leaders in the RTD tea space are Lipton by HUL and Nestea by Nestle, with lemon and peach being the most often consumed flavours. Manufacturers of tea are emphasising the advantages of the antioxidants and flavonoids in the beverage due to the growing consumer interest on health.

Indian tea, a favourite around the world, is produced in Assam and Darjeeling in West Bengal. The majority of tea kinds that can be found in the nation are called after the areas where they are grown. Darjeeling tea was the first Indian product to be given a Geographical Indication label in 2004-2005 due to its geographic origin. India produced over 1.3 billion kg of tea domestically. To maintain their quality and authenticity, the majority of the top-selling tea companies only buy their tea from designated tea plantations.

The Indian government's participation in encouraging major investors to fund the wellness sector as part of its flagship "Make in India" programme and its decision to create the Ministry of AYUSH are additional signs of the nation's booming health and wellness industry. According to the data acquired, 443 million Indian millennials spend each month more than Rs. 4000 on their health and fitness. This tendency has been recognised by both established businesses and start-ups, who have both seen spectacular growth. The trend of giving tea packets as gifts at weddings, corporate gatherings, and other occasions, on the other hand, raises brand awareness. In place of goods from the unorganised sector, people are now increasingly choosing branded labels. As a result, there has been a rise in investment in tea brands with compelling narratives and scalable business models worldwide.

Additionally, technology like AI (Artificial Intelligence) increase efficiency in the production stage while also enhancing quality. Technology-enabled procedures are more exact and precise, which lowers the likelihood of errors and waste. The manufacturing process has much less time and lower production costs because to the introduction of technology. It goes without saying that as operations grow more effective, the likelihood of human mistake decreases, less time is spent on pointless chores, the company saves money, and revenue increases.

The ever-evolving times have caused tea companies to alter how they approach client targeting. They have subsequently embraced the internet world and are employing fewer traditional marketing techniques like television, newspapers, and billboards. Digital marketing is far more preferred even though not all traditional marketing strategies have been abandoned. It gives brands, regardless of their size, a number of options to create real-time, personalised consumer experiences and enhance AOV (Average Order Values). Increased exposure through internet marketing will help bring in more foreign customers who are passionate about buying Indian tea due to its superior quality. Indian brands will be able to increase their economies of scale as a result.

Recent Developments:
• The market for flavouring tea is rapidly expanding in India, mainly among young people, as several organised firms in the sector enter the race. Since tea with spices and natural herbs has been shown to promote immunity against the virus, the demand for such functional or herbal teas has surged throughout the nation, especially since the start of Covid-19.

• In an effort to increase its competitiveness in the highly competitive packaged tea market, Dabur India recently launched Dabur Vedic Tea, a premium category black tea under the health supplements category, into the Rs 5,600 crore premium tea market. With the introduction of Dabur Vedic Suraksha tea in 2020, it first entered the Rs 19,500 crore tea industry, competing against top brands as Brooke Bond Red Label Natural Care, Tata Tea Gold, and Taj Mahal from the portfolios of Hindustan Unilever and Tata Tea.

Key Product Types
• Packaged Tea (Branded)
• Ready-to-Drink (RTD) Tea
“India Packaged & RTD Tea Market Outlook, 2027-28” discusses the following aspects of packaged and RTD tea in India:

The report gives an in-depth understanding of packaged and RTD tea market in India:
- Global Tea Market Outlook
- Global Tea Market Size By Value & Forecast
- Global Tea Market Size By Volume & Forecast
- China Tea Market Size By Volume & Forecast
- India Tea Market Size By Volume & Forecast
- Turkey Tea Market Size By Volume & Forecast
- Global Tea Market Segmental Analysis: By Country
- India Tea Market Outlook
- India Tea Market Size By Value & Forecast
- India Tea Market Size By Volume & Forecast
- India Tea Market Segmental Analysis: By Category
- India Packaged Tea Market Size By Value & Forecast
- India Packaged Tea Market Size By Volume & Forecast
- India Traditional Black Tea Market Size By Value & Forecast
- India Green Tea Market Size By Value & Forecast
- India Green Tea Market Segmental Analysis: By Flavour
- India Herbal/Fruit Tea Market Size By Value & Forecast
- India Packaged Tea Market Segmental Analysis: By Company, By Type, By Sales Channel
- India Ready-to-Drink Tea Market Size By Value & Forecast
- India Ready-to-Drink Tea Market Segmental Analysis: By Company, By Flavour
- India Unpackaged Tea Market Size By Value & Forecast
- India Unpackaged Tea Market Size By Volume & Forecast
- India Tea Market Production
- Product, Price and Variant Analysis
-The key vendors in this market space
- Competitive Landscape & Strategic Recommendations

This report can be useful to Industry consultants, manufacturers and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

The information contained in this report is based upon both primary and secondary research. Primary research included interviews with various channel partners of packaged and ready-to-drink tea in India. Secondary research included an exhaustive search of relevant publications like company annual reports, financial reports and proprietary databases.




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