Presentation made at the first Tea & coffee festival on 30th Sep, 2013 in New Delhi Tea bag market & trends in india 2013 gives the latest figures,data,market share & trends in the value added tea Industry in India

1. Tea bag Market & Trends in India – 2013
Tea & Coffee Festival
30th Sep, 2013 Askoka, New Delhi
SACHEN VERMA
Sr Vice President – JV Gokal & Co. Pvt Ltd.

2. Tea Penetration – 2012 (All India)
96%
86%
100%
80%
50%
60%
40%
20%
0%
Tea
Branded
tea
Unbranded
tea

3. Major Branded players in the Indian
market
 425 m kg Packaged tea Market
dominated by HUL & Tata
 Unilevers & Tata Global
Market leaders with a total
40%+ market share
 Strong Regional brands
in
many states trying hard to
enter new markets
 RTD share is 80 Cr & growing
by 20% annum
 Green tea accounts for share of
40 m kg in the 800 m kg tea
market & growing @ 35%
annually

4. Branded Tea segments
Premium
21%
Economy
49%
Popular
30%

5. Annual value share break up
National
players
42%
Local players
32%
Regional
players
26%

6. Growth
• As against CAGR of 6% in coffee the CAGR in tea is
3.3% as the penetration of tea is 90%
• As against Russia where the tea consumption in
terms of volume is declining by 1% every year, in
India the CAGR is impressive 3.3%
• Growth from tea parlours is not forthcoming as in
coffee Industry. Café culture has not been
successful due to perception value & tilt of youth
towards coffee. As against over 3000 coffee retail
outlets in India the no. of tea outlets is around
100.
• Probable entry of big marketers like ITC in branded
teas within next year or two will offer consumers
more options & shall be good for the growth of
branded segment

7. Tea Bags Usage
•
Tea bags account for about 12 percent of the volume of world consumption
& in terms of Value it is much higher
•
Tea bags are very Popular in Europe, US, CIS, Middle East, Australia &
Africa
•
Tea bags revolutionised tea brewing, Now volumes look set to grow as tea
drinkers reach for Convenience, Innovation & flavours
•
In India tea bag growth is @ 10% annum via vol. though growth of
flavoured tea bags is estimated @ 18% annum
•
Tea bag in India accounts for annual sales turnover of Rs 450 cr ie. 4% of the
total tea share in terms of Value

8. Global tea bag
consumption
96%
92%
65%
UK
Germany
USA
56%
Russia

9. Tea Bag Share –
India
(In volume)
Tea bags
2%
Packet tea
98%

10. Tea Bag Share –
India
(In value)
Tea bags
4%
Packet tea
96%

11. Tea bags Statistics
2012
 Domestic Consumption – 8000 mt/annum
 Annual Growth – 10 %
 Production – 16500 mt/annum
 Exports – 8500 mt
 In Organised retail - Private label tea sale is 7% & tea bags
sales is double that in General trade

12. Tea bag Exports
 Exports – 8000 mt/annum
 Major exporters – HUL, JV Gokal, Tata Global Beverages &
Madhujayanti account for 85% of tea bag exports
 Major Exports Market – Australia, CIS, US & Middle east
 JV Gokal is the leading exporter in value added flavoured tea
bags

13. Dynamics
•
Emergence of market for premium tea bags
•
Increase in choice of flavours
•
Upgraded packaging
•
Unlike regular packet tea, the purchase of tea bags is
more impulse-led
•
Marketing strategy is focused on visibility and trial
generation at the point of sale
•
As against Packet tea consumption CAGR growth of
4% the CAGR in tea bags is 12%
•
Target group for flavoured now moving on to the
aspiring middle class

14. flavoured tea bags
• Flavoured teabags showing
18% growth annum
• Flavoured teabag annual
consumption – 1000 mt
• Popular flavours Ginger, cardamom, lemon,
Earl grey, Mint and Tulsi
• Green tea getting popular in
flavours like Mint, Lemon
etc.

15. CONSUMER DRIVERS
•
Wellness and convenience - These continue to play major roles for modern
consumers. Consumers are now well aware for instance of the apparent health
benefits of flavoured & green teas.
•
New flavours and functionalities - Today’s consumers is more connected & savvy
then ever, he want new flavours, functionality, interesting ingredients, and practical
packaging that can be taken anywhere
•
Convenience and portability - This shift is having a notable effect on tea bags with
more intensely-flavoured blends and packaging solutions. Increasing appeal among
the youth & growing middle class
•
Emerging Consumer demand – This demand in tea bags specially in the premium
segment is coming mainly from Metro’s & Class 1 cities. Premium segment is driving
growth of teabag. OOH consumption in a major driver . {Middle markets (1-10 lac
population) contribute 20% of country’s FMCG consumption but the consumer pull
for tea bags has not been that exciting}

16. Tea bag Trends
• Modern trade format is a big boost to tea
bags. Premium teas growing at a much
faster rate in organised retail
• Packaging Innovations on their way. Newer
formats available in Nylon pyramid tea
bags. Over 10 brands available in the market
in this new segment
• Companies now focusing on new products
in the flavored tea, green tea, Organic
tea, specialty tea and herbal infusion sectors

17. Appreciate Your Kind Cooperation!