India’s ready-to-drink tea and coffee market to touch $410-mn by 2017
17 Feb 2013 5:27 AM IST
The thriving independent upscale café culture that is attracting Indian youth will be the beacon for ensuring huge growth in the domestic ready-to-drink tea and coffee sectors, said Kotak Commodities Chairman Suresh Kotak.
Inaugurating the three-day World Tea & Coffee Expo in Mumbai on Friday, he observed, 'The tea and coffee café chains are expected to generate a turnover of $410 million in India by 2017 while, internationally, the market for ready-to-drink tea and coffee in terms of revenue is expected to reach $125 billion by 2017 against $ 69 billion in 2011, signaling an anticipated annual growth of 10.9 per cent from 2012 to 2017.'
Quoting a study by the Associated Chambers of Commerce and Industry (Assocham), Priti Kapadia, director with Sentinel Exhibitions which has organised the Expo, said that the domestic tea industry is growing at a compound annual growth (CAGR) of about 15 per cent and that India is the world’s largest consumer, second largest producer and fourth largest exporter of tea while accounting for nearly 30 per cent of global output and nearly 25 per cent consumption of tea produced worldwide.
Pointing out that India, with a population of 1.2 billion, is difficult to ignore, she said that the total branded tea segment in India — currently valued at Rs 6,000 crore — is expected to double in the next five years while domestic coffee consumption has been continuously growing annually at 6 per cent. 'Wider health awareness, a burgeoning middle class population wit busy lifestyles and an increase in disposable income is making consumers opt for ready-to-drink tea and coffee. Some segments like premium and organic coffee and green/ herbal tea have created an entirely new market,' she noted.
Media expert G Chandrashekhar warned that aging bushes, massive deforestation and lack of rejuvenating investment are adveersely affecting this sector, which needs end-to-end solutions and focus from the Tea Board and commerce sector. 'While global warming and climate change will affect tea and coffee plantations, heat and drought-resistant varieties need to be developed alongside much more research into dealing with the negative environmental effects,' he stressed.
He said that production needs to keep pace with the rising market demand, alongside taking a holistic view of this sector as a whole. A big domestic market is waiting to be tapped while coffee futures trading is needed, he added.
The Expo, which will highlight the tea- and coffee-associated industry, alongside seminars and conferences, is being supported by Tea Board of India, Federation of Indian Tea Traders Association, Bombay Tea Traders Association, India-China Chamber of Commerce and Industry, Small and Medium Business Development Chamber of India, Confederation of Indian Small tea Growers Association and Darjeeling Tea Association.
Inaugurating the three-day World Tea & Coffee Expo in Mumbai on Friday, he observed, 'The tea and coffee café chains are expected to generate a turnover of $410 million in India by 2017 while, internationally, the market for ready-to-drink tea and coffee in terms of revenue is expected to reach $125 billion by 2017 against $ 69 billion in 2011, signaling an anticipated annual growth of 10.9 per cent from 2012 to 2017.'
Quoting a study by the Associated Chambers of Commerce and Industry (Assocham), Priti Kapadia, director with Sentinel Exhibitions which has organised the Expo, said that the domestic tea industry is growing at a compound annual growth (CAGR) of about 15 per cent and that India is the world’s largest consumer, second largest producer and fourth largest exporter of tea while accounting for nearly 30 per cent of global output and nearly 25 per cent consumption of tea produced worldwide.
Pointing out that India, with a population of 1.2 billion, is difficult to ignore, she said that the total branded tea segment in India — currently valued at Rs 6,000 crore — is expected to double in the next five years while domestic coffee consumption has been continuously growing annually at 6 per cent. 'Wider health awareness, a burgeoning middle class population wit busy lifestyles and an increase in disposable income is making consumers opt for ready-to-drink tea and coffee. Some segments like premium and organic coffee and green/ herbal tea have created an entirely new market,' she noted.
Media expert G Chandrashekhar warned that aging bushes, massive deforestation and lack of rejuvenating investment are adveersely affecting this sector, which needs end-to-end solutions and focus from the Tea Board and commerce sector. 'While global warming and climate change will affect tea and coffee plantations, heat and drought-resistant varieties need to be developed alongside much more research into dealing with the negative environmental effects,' he stressed.
He said that production needs to keep pace with the rising market demand, alongside taking a holistic view of this sector as a whole. A big domestic market is waiting to be tapped while coffee futures trading is needed, he added.
The Expo, which will highlight the tea- and coffee-associated industry, alongside seminars and conferences, is being supported by Tea Board of India, Federation of Indian Tea Traders Association, Bombay Tea Traders Association, India-China Chamber of Commerce and Industry, Small and Medium Business Development Chamber of India, Confederation of Indian Small tea Growers Association and Darjeeling Tea Association.
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