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1. Indian Tea Market
a snapshot presentation

2. Setting the context…
• The
presentation
aims
at
exploring
the
Indian
Tea
Market
• Category
size,
growth
• Key
brands
and
their
share

3. MARKET SCENARIO

4. India – second largest tea producer in the
world…
Tea
Produc+on
worlidwide
-­‐
2009
Others, 14%
China, 31%
Vietnam, 4%
Indonesia, 4%
Turkey, 4%
SriLanka, 8%
Kenya, 9% India, 26%
Source: World Tea Production – Tea Board of India

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. The industry growing at a CAGR of ~54%
80
Market
Value
(Retail
Sales) 61
60 50
40 43
40
20
0
2006 2007 2008 2009
Source :*Euromonitor report March 2010

7. Traditional Black tea dominates the
market with 93% share
Tea
Black Tea Green Tea Fruit/herbal
Instant
tea
tea
Retail Sales Value Rs. 57 bn 3 bn
Nascent category.
Negligible size
2003-08 CAGR (%) 3.2 6.4
Green tea has a higher growth rate of 6.5%
compared to black tea

8. A
highly
clu8ered
market
with
na+onal
and
local
players

9. KEY BRANDS

10. A fragmented market apart from players
like HUL and Tata Tea…
Tea
Company
Shares
(2009)
40%
34%
35%
30%
30%
25%
25%
20%
15%
10%
8%
5%
3%
0%
Hindustan
Tata
Tea
Duncan
Wagh
bakri
Others
Unilever
Industries
Source: Euromonitor International, March 2010

11. Tea Brand Shares – Packaged Tea
(By Value)
Market
Share
(%)
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

12. Packaged tea has more retail outlets in
rural areas and the North
Retailer
Split
by
Town
Class
&
Rural
Retailer
Split
By
Zone
1600000
4500000
4000000
1400000
3500000
1200000
3000000
1000000
2500000
800000
2000000
600000
1500000
400000
1000000
200000
500000
0
0
North
Zone
East
Zone
West
Zone
South
Zone
Class
I
Others
Urban-­‐Rural
Urban
Rural
Metros
Class
I
Source: Market Monitor, March 08

13. Indian
Packaged
Tea
Market
–
Structure
Leaf
65%
Dust
35%
Rs.
60
Premium
Rs.
50-­‐55
10%
Mid Market
Rs.
40
-­‐
50
45% Rs.
38-­‐45
Economy
Rs.
30-­‐40
48% Rs.
30-­‐35
Price per 250 gm

14. From Peshwa Acharya
peshwa.expert@gmail.com