Tea Blending and Packaging Industry. Blending and Packaging of Tea

Tea Blending and Packaging Industry

Tea Blending and Packaging Industry. Blending and Packaging of Tea

Tea is an important beverage in India. Simply, tea as a refreshing energy booster. Additionally, the tea comes with several health benefits too. Basically, the antioxidants help to eliminate toxins and free radicals from the blood.

Indian tea is among the finest in the world owing to strong geographical indications, heavy investments in tea processing units, continuous innovation, augmented product mix and strategic market expansion. The main tea-growing regions are in Northeast India (including Assam) and in north Bengal (Darjeeling district and the Dooars region). Tea is also grown on a large scale in the Nilgiris in south India. India is one of the world’s largest consumers of tea, with about three-fourths of the country’s total produce consumed locally.

According to the tea production process, there are two different types of tea. These are CTC and Orthodox. However, according to the taste and flavor, there are several types of tea available in the Indian market. These are black tea, green tea, white tea, fermented tea, oolong tea, aroma tea, etc. In addition, there is the different variety of tea according to the origin. These are Darjeeling tea, Assam tea, Dooars & Terai tea, Kangra tea, Nilgiri tea, Annamalai Tea, Wayanad Tea, Karnataka tea and Munnar tea.

Globally, India is the largest grower, producer, and exporter of the tea. The tea business of our country accounts for 31% of global production. Nowadays, the industry is having 1692 registered tea manufacturer and 2200 registered tea exporters in the country. Additionally, the industry enjoys 5548 registered tea buyers and 9 tea auction centers. The Indian tea industry has grown to own many global tea brands, and has evolved to one of the most skilled tea industries in the world.

Indian tea industry is about 170 years old. Basically, the Northern and Eastern part of India is the major tea growing areas. However, Nilgiri in the southern part of the country also produces a significant amount of tea. Generally, the three prominent tea-growing regions in India are Darjeeling, Assam, and Nilgiri. Additionally, other tea growing areas are Karnataka, Tripura, Himachal Pradesh, Tamilnadu, Kerala, Meghalaya, Mizoram, and Bihar. Basically, Kolkata, Siliguri, Guwahati, Coonoor, Cochin, and Coimbatore are the major tea auction centers.

Basically, the tea industry holds an important position in Indian economy. The industry earns a significant amount of foreign exchange. Therefore, it has a great impact on GDP. Additionally, the industry is the second largest employer in the country. Because the industry hugely depends on the human labor, not on the machine.

The global tea market is growing rapidly. Tea sales have increased 165% over the last fifteen years. In addition, it is most preferred beverage next to water, available at low price. The tea market has experienced diversified trends across different regions including North America, Europe, Asia-Pacific and RoW. Geographically, Asia Pacific region held the largest market share in 2013. And industry experts are expecting the continuation of its dominance throughout the forecast period. However, some of the major markets are India, China, U.K., Germany, the U.S. and Brazil. These countries among others are expected to witness robust demand for tea in coming years. Therefore, tea production is a profitable opportunity for the new entrepreneurs.

Global Tea Market was valued at $46,392 million in 2016, and is projected to reach at $67,751 million by 2023, growing at a CAGR of 5.5% from 2017 to 2023. Tea is globally the most popular beverage obtained from Camellia sinensis plant leaves. It is known to be originated in China, and is majorly grown in four countries, China, India, Kenya, and Sri Lanka. It offers various health benefits owing to presence of polyphenols working as antioxidants, vitamins, trace minerals, and different amino acids resulting in stronger immunity, lower cholesterol, increased metabolism, prevention of cancer, and more. In addition, presence of small amount of caffeine makes tea a mild stimulant preventing fatigue. Major population consuming tea has developed it as a habit, subsequently contributing in the growth of the tea market.

The global tea market is majorly driven by the health benefits associated with consuming tea and increase in awareness related to carbonated drinks among people. Moreover, increase in caf culture, rise in disposable income, change in tastes of people, and introduction of additional healthy ingredients in tea by different market players are the other factors that fuel the market growth. However, increase in cost of raw materials due to unpredictable weather, rise in cost of agricultural inputs, and increase in trend of out-of-home coffee consumption are expected to limit growth of the tea market. The introduction of new flavors & variety in tea and growth in demand from health-concerned young population are anticipated to provide lucrative opportunities for the market.

Global Tea Market Revenue, By Type, 2016 (US$ Mn)

The tea market has been segmented by form, product type, and distribution channel. By form, the tea market has been segmented into leaf tea, CTC tea, and other forms of tea. Black tea held for the dominant market share of the tea market owing to its wide popularity.

Changing demographics also provide an opportunity to the tea market as the growing middle class and urbanized population of many emerging and developing markets influence the consumption of the various types. The convenience, availability, and versatility of tea have helped create a new consumer experience, all while keeping the product offerings fresh and unique to grab more consumers.

Global Tea Market: Revenue Share (%), By Region, 2017

Top companies operating in the global tea market are Associated British Foods, WISSOTZKY TEA, Unilever, Starbucks Corporation, Akbar Brothers Ltd, Nestlé S.A, Tata Global Beverages (Tata Tea Ltd.), DAVIDs TEA, and The Republic of Tea.

Tea Packaging Market

The tea manufacturers along with its production and quality are also focusing on the attractive packaging of the product in order to attract the consumers as there is wide competition in the market. In order to reduce the cost associated with recycling and logistics, the manufacturers are focusing on sustainable packaging material.

Global tea packaging market is driven by the rise in the disposable income of individuals of the middle class population. Moreover, consumers are keen on buying packaged products from retail shopkeepers which is further driving the growth of the global tea packaging market. Demand for tea packaging intended for single use is a key factor fuelling the growth of the global tea packaging market. Rising concern among individuals about the health benefits of tea is driving both the tea as well as the tea packaging market.

The fluctuating cost of raw materials used for tea packaging is a restraining factor for the global tea packaging market. Also, the more innovative the packaging gets, it adds up to the cost of the product making it priced higher than usual which is an inhibitory factor for the global tea packaging market. Packaging type which is recyclable and reusable in nature is a key trend prevailing in the global tea packaging market.

On the basis of geography, the global tea packaging market is segmented into Asia Pacific, North America, Middle East & Africa, Latin America, and Europe. Currently, the Asia Pacific region leads the global tea packaging market owing to its large population base as well as the significant quantity exports from countries like India and Sri Lanka all over the globe. The increasing disposable income and the economic growth of these countries is also expected to drive the growth of this market over the forecast period.

Rapid urbanization and increasing preference for lifestyle products are also fuelling the tea packaging market in Asia Pacific region. North America is expected to witness steady growth owing to an increasing demand for ready to drink tea by consumers. Innovative tea packaging is also likely to boost the tea packaging market in North America.

The key factor that is driving the tea packaging market is the increasing disposable income of the middle-class population. The recent trend is that the consumers prefer buying products that are packed well from the retail shopkeepers so as to ensure the quality and safety which triggers the growth of the global tea packaging market. The consumers are having increased awareness about the health benefits of tea which will drive the tea market coupled with the growth of the tea packaging market. Reusable and recyclable packaging is the key trend that is prevailing in the global tea packaging market. The volatile cost of the raw materials that is used for tea packaging will restrain the global tea packaging market. Making innovations in the packaging to attract the consumers adds up to the product cost thus hindering the global tea packaging market growth.

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