Experts and industry leaders are calling for a strategic shift towards promoting premium tea varieties in India to enhance global competitiveness and market value. This emphasis comes as the Indian tea industry faces increasing competition and evolving consumer preferences worldwide.
Focus on Premiumisation
Hariram Govind of Hindustan Unilever highlighted at the UPASI Tea Research Foundation’s centenary conference in Coonoor that China, a major tea producer, has significantly increased its consumption of premium teas, with 90% of its market now consisting of such varieties, up from 70%. He suggested that India, which currently has a 90% market penetration for tea consumption, should focus on increasing the demand for its premium offerings to align with global trends and ensure future market growth.
The sentiment was echoed by Vice President C.P. Radhakrishnan, who stressed the need for greater research, modernization, branding, and value addition to make Indian tea more competitive on the international stage. He noted that while India is a large producer and consumer of tea, a greater focus on efficient processing, manufacturing, and the development of strong Indian brands is crucial. Radhakrishnan pointed out that other tea-producing nations are offering stiff competition, and India must innovate to improve revenues and address the challenges faced by its plantation sector.
The specialty tea market in India has seen substantial growth, tripling to ₹1,000 crore in five years, largely driven by younger consumers like Gen Z and millennials. These demographics are increasingly seeking authenticity, unique flavours, and products with distinct origins. This trend signifies a move away from tea being solely a commodity, towards recognizing regional diversity and artisanal craftsmanship.
Challenges and Opportunities
The commoditisation of tea and the impacts of climate change are identified as key challenges by experts like Ena Irino of S. Ishimitsu and Co., Japan. Commoditisation can lead to lower prices for producers, hindering their ability to reinvest in quality and sustainable practices. Climate change, on the other hand, affects productivity. To counter these issues, there is a strong push to increase the production of speciality and premium teas.
Marcus Wulf of Schroeder & Hanmann, Germany, observed that sustainability in the tea sector has often become a mere certification for consumers. He emphasized that producers need to realize greater value from their products to invest more effectively in sustainable production. Countries like Japan, China, and Korea are noted for producing artisan teas, and India is encouraged to focus on similar high-value segments.
The Tea Board of India is actively working to promote Indian teas globally, with initiatives planned in markets like the United Kingdom. The focus is not only on taste but also on provenance, sustainability efforts, and the stories behind tea production, including traditional farming practices and farmer livelihoods. This approach aims to create a stronger emotional and cultural connection with consumers who are increasingly looking for ethical and origin-specific products.
Regional Diversity and Innovation
India’s diverse tea-growing regions, including Assam, Darjeeling, and Nilgiri, each offer unique flavour profiles and characteristics. Assam teas are known for their strong, malty taste, Darjeeling for its lighter, floral notes, and Nilgiri for its smooth versatility. The trend is shifting from blending teas into uniform products to highlighting their regional origins, allowing consumers to make choices based on specific preferences. This regional diversity is seen as a unique advantage for India in the global market.
Industry leaders suggest that the future growth of the Indian tea industry will be driven by greater appreciation for this regional diversity and authenticity, rather than solely by increased consumption volumes. Innovation in product development, such as green teas, herbal infusions, and ready-to-drink formats, is also helping brands reach younger consumers who are open to experimenting with different tea experiences. The industry is looking to create new occasions for tea consumption, moving beyond traditional routines.
The UPASI Tea Research Foundation, a premium institution for tea research, has been instrumental in improving cultivation practices, crop protection, and soil health over the past century. Its work has contributed to increased productivity, quality, and resilience in the tea sector, translating research into practical solutions for plantations and growers in Tamil Nadu, Kerala, and Karnataka. The foundation’s continued research is vital for enhancing the cost-effectiveness and quality of Indian teas to meet global market demands.
The Chenab Times News Desk