Description
In the past few years, green tea has emerged as a healthy beverage, backed by its perceived health benefits. Regular consumption of green tea is expected to boost the immune system, help maintain body weight, and reduce physical stress. The green tea market in India is expected to reach a value of INR 11.37 Bn by FY 2025, expanding at a CAGR of ~11.59% during the FY 2020–FY 2025 period.
Green tea products are available both in offline stores, as well as online e-commerce portals such as Amazon and Flipkart.
The COVID-19 pandemic has severely impacted tea producers across the world. The green tea market in India suffered huge losses due to stalled imports from China and Iran. Since the nationwide lockdown coincided with the harvest season of the first flush tea, the first tea leaves of the season could not be plucked on time due to lack of manpower, leading to a supply shortage across the country. Logistics constraints due to the lockdown resulted in transportation challenges, which disrupted supply chain. As a result, the price of tea skyrocketed. In July 2020, tea price increased to INR 283.53 per kg year-on-year basis, up from INR 162.09 per kg in July 2019, in Guwahati, Assam.
Market Influencers
Consumers’ improved awareness on leading a healthy lifestyle is fueling the growth of the green tea market in India. The prevalence of obesity and cardiovascular diseases has increased the demand for green tea. However, higher price of green tea as compared to black tea and people’s lack of awareness regarding green tea as a wellness product is deterring the market growth.
Companies covered
• Hindustan Unilever Limited
• Tata Consumer Products Limited
• Organic India Private Limited
• 24 Mantra Organic
• Typhoo India
• Twining and Company Limited
