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Indian Tea Market Expected to Grow at a CAGR of 4.2% between 2020 and 2025.

According to a new report by EMR titled, 'Indian Tea Market Report and Forecast 2020-2025', the Indian tea market consumption reached a volume of almost 1.10 million tons of tea in 2019. The market consumption is further expected to grow at a CAGR of 4% in the forecast period of 2020-2025 to attain 1.40 million tons by 2025.

The Indian tea market is driven by the rising penetration of the beverage in the country, preferred by various socio-economic classes. The country is globally the second largest producer of tea, after China. India is also the major consumer of tea, accounting for almost a fifth of the global consumption in 2016. Nearly 80% of the total output of tea in India is consumed locally. Assam is the key tea producing state in India, followed by West Bengal. Based on origin, Darjeeling and Assam types are globally recognised types of beverages. On the basis of types, black tea is the largest segment in India.

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The Indian tea market is driven by the increasing popularity of cafes or lounges themed serving variations of the beverage, such as Chaayos, Wagh Bakri Tea Lounge, and Starbucks (NASDAQ: SBUX). Tetley, owned by Tata Global Beverages Limited, is a renowned and leading tea brand in India, famous for its diverse flavours and tastes. It has been a pioneer in the tea industry, launching the first-ever range of flavoured tea bags. The brand brought the green tea wave back in 2006 by introducing the green tea range, which comes in two forms- Tea Bags and Loose Leaf.

Market Breakup by Type, Packaging, Distribution Channel, Application, Processing, and Region:

  • The market is divided on the basis of types into black, green, oolong, and white, among others.
  • On the basis of packaging, the tea market is segmented into loose tea, plastic containers, paper boards, aluminium tin, and tea bags.
  • The tea market is categorized on the basis of distribution channels into supermarkets/hypermarkets, specialty stores, convenience stores, and online retailers, among others.
  • On the basis of applications, the market is divided into residential and commercial.
  • The market is segmented based on processing into CTC and orthodox (traditional).
  • By states, the market is divided into Assam, West Bengal, Tamil Nadu, Kerala, Karnataka, Uttar Pradesh, Maharashtra, Gujarat, West Bengal, and Bihar, among others.

Key Findings of the Report:

  • The Indian tea market is driven by the excessive penetration of the beverage in India across various socio-economic classes.
  • With the rise in the economic growth of the country, along with the growing middle-class population, the tea market in India is growing, owing to the increasing preference for premium brands.
  • The demand for the packaged varieties of the beverage in urban as well as rural areas is rising owing to the lesser chances of adulteration, superior quality, and convenient storage.
  • The people are willing to experiment with more tea blends, further providing an impetus for the growth of segments such as herbal, fruit, and other specialty varieties.
  • The green tea segment is predicted to have a robust growth due to its vast consumption among health-conscious people and the urban population.

Key Offerings of the Report:

  • The EMR report gives an overview of the Indian tea market for the periods (2015-2019) and (2020-2025).
  • The report also offers the historical (2015-2019) and forecast (2020-2025) markets for the types, packaging, distribution channel, application, processing, and regional markets of tea in India. 
  • It gives an in-depth look at the price trends in the Indian tea market for the periods (2015-2019) and (2020-2025).
  • It analyses the global trade data, looking into the value and volume of the significant importing as well as exporting countries.

Tata Global Beverages Limited, Hindustan Unilever Limited, Gujarat Tea Processors & Packers Ltd, Amar Tea Private Limited, Organic India Private Limited, and Pataka Industries Private Limited, among others, are the key players in the Indian tea market as identified by EMR. The comprehensive report looks into their market share, capacity, and latest developments like mergers and acquisitions, plant turnarounds, and capacity expansions.

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Expert Market Research (EMR) is a leading market research and business intelligence company, ensuring its clients remain at the vanguard of their industries by providing them with exhaustive and actionable market data through its syndicated and custom market reports, covering over 15 major industry domains. The company's expansive and ever-growing database of reports, which are constantly updated, includes reports from industry verticals like chemicals and materials, food and beverages, energy and mining, technology and media, consumer goods, pharmaceuticals, agriculture, and packaging.

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