Indian tea market snapshot

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Indian tea market snapshot

  1. 1. Indian Tea Market a snapshot presentation
  2. 2. Setting the context… • The presentation aims at exploring the Indian Tea Market • Category size, growth • Key brands and their share
  3. 3. MARKET SCENARIO
  4. 4. India – second largest tea producer in the world… China, 31% India, 26%Kenya, 9% SriLanka, 8% Turkey, 4% Indonesia, 4% Vietnam, 4% Others, 14% Tea Production worlidwide - 2009 Source: World Tea Production – Tea Board of India
  5. 5. The Indian Tea Market… Packaged tea market is 213 million kg in volumes, and valued at Rs. 60 bn* ~231 thousand tons of tea sold in retail in 2008* Urban: Rural split of tea consumption - 56:44# *Euromonitor report April 2009, Figures in Rs.bn # Market Monitor Data 2008
  6. 6. The industry growing at a CAGR of ~54% 40 43 50 61 0 20 40 60 80 2006 2007 2008 2009 MarketValue (RetailSales) Source :*Euromonitor report March 2010
  7. 7. Green tea has a higher growth rate of 6.5% compared to black tea Nascent category. Negligible size Tea Black Tea Green Tea 57 bn 3 bn 3.2 6.4 Fruit/herbal tea Instant tea 2003-08 CAGR (%) Retail Sales Value Rs. Traditional Black tea dominates the market with 93% share
  8. 8. A highly cluttered market with national and local players
  9. 9. KEY BRANDS
  10. 10. A fragmented market apart from players like HUL and Tata Tea… 30% 25% 8% 3% 34% 0% 5% 10% 15% 20% 25% 30% 35% 40% Hindustan Unilever Tata Tea Duncan Industries Wagh bakri Others Tea Company Shares (2009) Source: Euromonitor International, March 2010
  11. 11. Tea Brand Shares – Packaged Tea (By Value) Brand Company 2009 Brooke Bond Hindustan Unilever Ltd 18.6 Tata Tea Tata Tea Ltd 17.9 Lipton Hindustan Unilever Ltd 6.2 Duncans Duncans Industries Ltd 6.2 Kanan Devan Tata Tea Ltd 3.5 Wagh Bakri Wagh Bakri Ltd 3.1 Goodricke Goodricke Group Ltd 1.3 Golden Tips Golden Tips Tea Co Pvt Ltd 1.1 Girnar Girnar Food & Beverages 1 Twinings Twinings Pvt Ltd 0.9 Jay Green Tea Jay Shree tea and Industries Ltd 0.7 Infinitea Gopaldhara Tea Co Pvt Ltd 0.5 Tetley Tata Tea Ltd 0.4 Others ~ 38.6 Source: Euromonitor International, March 2010 Market Share (%)
  12. 12. Packaged tea has more retail outlets in rural areas and the North 0 500000 1000000 1500000 2000000 2500000 3000000 3500000 4000000 4500000 Urban-Rural Urban Rural Metros Class I Retailer Split by Town Class & Rural 0 200000 400000 600000 800000 1000000 1200000 1400000 1600000 North Zone East Zone West Zone South Zone Class I Others Retailer Split By Zone Source: Market Monitor, March 08
  13. 13. Indian Packaged Tea Market – Structure Economy 48% Mid Market 45% Premium 10% Leaf 65% Dust 35% Rs. 40 - 50 Rs. 30-40 Rs. 50-55 Rs. 38-45 Rs. 30-35 Rs. 60 Price per 250 gm
  14. 14. From Peshwa

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