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Annual Review

Tea Demand and Supply

Major portion of tea growing area is owned by big tea estates (those owning more than 10.12 hectares of land). Until the end of CY12, about 1,686 big tea growers in India accounted for 72% of the total area under tea plantation. The remaining 28% of the area was owned by 1.6 lakh small tea growers.

During CY12, tea production in India witnessed an increase, albeit marginally by 0.9% on a Y-o-Y basis to 1,126 million kg as erratic weather conditions hampered tea production in the key tea growing regions. During CY13, the tea production India grew at a healthy rate of 6.5% on a y-o-y basis to reach about 1,200 million kg. The rise in tea production is mainly attributable to the substantial rise in the tea production in the north India led by the favourable weather conditions.

In India, average per capita consumption of tea is around 0.7 kg, compared with 3 kg in Ireland, more than 2 kg in U.K., Turkey, and Iraq, and around 1 kg in Sri Lanka and Pakistan. However, despite meager per capita consumption, the total consumption in India is among the largest in the world due to its huge population base. The domestic tea consumption has increased from merely 73 million kg in 1951 to 890million kg in 2013. During the period of CY06-13, tea consumption in India grew at a CAGR of 2%.

Impact Analysis

  • Coffee to register a higher consumption growth compared to tea …

    Demand for tea in India has remained consistent as tea is being consumed in over 90% of the households as an integral part of the daily routine......

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