To Tea or Not to Tea

Tea. Once a valuable resource that had the potential to start wars, it now just implies that I can’t keep a secret. Tea has held a great portion of the world in a chokehold, with multiple brewing styles and flavours arising across the globe over the last 5000 years. 

Steeped in History

Tea has been a part of Indian culture for centuries, long before the British made it the new “in thing” during their rule. The Singhpo tribe of Assam and the Khamti tribe have been cultivating tea since as far back as 750 BCE. Their teas were far more herbal in nature, used more for medicinal purposes than the recreational ones we’re familiar with.

Source: Wikipedia and The Better India

The modern tea industry in India was born in the early 19th century during British colonial rule. Today, India is the second-largest producer of tea globally, accounting for 23% of the world’s total tea production. 

Source: A Brief History of Teas in India - TeaOrigin

From Cutting Chai to Chai Tea Lattes

India’s love affair with tea is kind of crazy, making us the largest tea-consuming country globally. Whether it be a roadside stall that serves a tiny cup of kadak chai with a biscuit, or an international chain with a multitude of customisation options, everyone can agree that tea is a staple in this country. And we don’t limit ourselves to a single blend either.

The Indian tea market is primarily segmented into four categories: black, green, herbal and speciality. Black tea accounts for over 70% of the overall consumption in the country*, with unique blends and types cropping up in different regions. As with many other products, there is a fast-growing consumer preference for organic and speciality teas in certain pockets, reaching USD 88.10 Million by 2033 with a growth rate (CAGR) of 7.55%**, mainly due to the following factors:

1. Value-added ingredients

Indians have always loved adding a little spice to our lives, and that didn’t stop us from adding it to our beloved chai either. Modern times have seen a huge uptake in this trend (thanks, COVID), with many people preferring ingredients like ashwagandha, moringa, turmeric, or tulsi for their medicinal benefits.

2. Beyond the drinking experience

Consumers today are spoiled. We have the world at our fingertips, and just making a good product doesn’t cut it anymore. The tea industry in India has had to go beyond by enhancing the overall experience through either premiumization, innovation, or sustainability. 

3. E-commerce, more like Tea-commerce

Jokes aside, e-commerce and q-commerce are becoming a major channel for new brands to stand out from the crowd. With a variety of filters and minimal cognitive overload, finding your favourite blend of tea has never been easier.

Source: Marketsanddata.com | *imarc.com 

Functionali-TEAs

A functional, fizzy, flavoured, probiotic drink, made from either black or green tea and full of all the good stuff, kombucha strikes a perfect balance between “it’s good for me” and “it’s a treat for me”. The market for this ambrosia is expected to grow at a CAGR of 17.6% by 2033. The market for this drink lies predominantly with people who are extremely health- and fitness-oriented. The drink is said to be an excellent form of support to those following a stringent diet as well, since it's quite gut-friendly. 

So what’s the actual tea?

In all honestea, Indians will not be giving up their favourite beverage any time soon. There will be shifts, of course, but the essence of tea consumption will continue to persevere across all the different regions and their unique blends. Tastes may evolve, but the rituals won’t. 

Innovations in manufacturing, such as nitro blends, cold brews, or slow-steep techniques, bring a stronger flavour profile, smoother texture, and enhanced aroma. These advances don’t just elevate taste but also signal craftsmanship, allowing consumers to feel like they are indulging in something beyond the functional cup of chai.

Innovations in packaging are responding to two simultaneous consumer expectations: convenience and responsibility. Portable tea pods, resealable packs, or on-the-go sachets make tea easier to integrate into busy lifestyles, while eco-friendly materials, biodegradable sachets, and minimalistic pack designs align with the growing demand for sustainability. 

Innovations in brand experiences go beyond the cup itself. Curated pairings of teas with foods transform tea drinking into a sensory journey. Pop-up tasting sessions, interactive digital content, and collaborations with wellness or lifestyle brands further immerse consumers in a narrative that ties tea to broader lifestyle aspirations.

For brands aiming to connect with this slightly obsessive market, the future lies in meeting them head-on with authenticity while also creating interest through innovation. The key is to strike a balance: reassure consumers with trust and tradition, then surprise them with new forms, formats, and experiences that keep the relationship with tea exciting.