The total turnover of the tea industry in India is likely to touch R33,000 crore by 2015 from the current level of about R19,500 crore. With nearly six lakh hectares under tea cultivation, the domestic tea industry is growing at a compound annual growth rate (CAGR) of about 15%, according to a study titled ?Indian Tea Industry? by the Associated Chambers of Commerce and Industry of India (Assocham).
?India is world?s largest consumer, second largest producer and fourth largest exporter of tea after China and accounts for nearly 30% of global output and nearly 25% of tea produced worldwide is consumed in India ,? said DS Rawat, secretary general of the chamber.
?Branded market accounts for nearly 55% of the total market and is growing at about 20% while the unbranded market is growing at 10% annually,? Rawat said adding ?nearly 35 lakh workers are employed in over 1,500 tea estates across India and about 65% of these are employed indirectly.?
Assam produces over half of India?s tea and accounts for over 12% of annual global tea yield. Tea being cheap, affordable and addictive in nature nearly 90% of Indian households are regular tea drinker. According to an estimate the tea production during the current year is likely to stay over 950 million kg as against 966.4 million kg in 2010.
?Awareness about health benefits associated with moderate intake of tea is another significant factor behind this upsurge in its demand as now more and more people are familiar with healing properties of tea,? said Rawat. It not only helps combat heart related ailments but also helps lower cholesterol, protects skin, keeps cancer at bay, strengthens bones and teeth and contains no calories, fat and salt, he added.
Historically regarded as a hot beverage, the penetration of tea in the non-alcoholic cold beverage segment is another driving force for this industry owing to the rising affinity towards ice-tea which currently accounts for over 5% of entire non-alcoholic beverage market in India, said the study.
There is not much product differentiation at rural and urban levels and thus key industry players are coming out with value added products but with rapidly changing market scenario and technological advancement in agri business there is tremendous scope and potential for growth and development of domestic tea industry.
The chamber has called for imparting proper marketing skills, research, training and technical know-how to tea cultivators and pluckers to further increase the yield and revenue. The Indian tea industry is also facing tough competition from China, Sri Lanka, the UK, Kenya and Japan.
Hindustan Unilever is the current market leader in terms of sales value with over 20% share, while Tata Tea is the leader in terms of sales volume nearly 20% share. Wagh Bakri, Duncans Industries, Goodricke Group, Golden Tips Tea, Gimar Food & Beverages, Twinings, Jay Shree Tea, Gopal Dhara Tea and others hold the remaining share, the study added.