ndia's third-largest tea brand is shifting to premium offerings like herbal and functional teas amid a market surging from ₹1 trillion in 2024 to ₹1.5 trillion by 2029 (6-7% CAGR). This strategic move capitalizes on 25%+ growth in high-end segments driven by health trends.
India's tea sector, valued at ₹1 trillion in 2024, eyes ₹1.47-1.5 trillion by 2029, propelled by rising domestic consumption, exports to Russia/UAE/Iran, and premiumization. The third-largest brand—likely Tata Tea or Wagh Bakri, per market shares—is pivoting from mass-market black tea (38-44% dominance) to upscale variants. This aligns with 25%+ CAGR in premium teas, fueled by wellness demands for organic, sleep-aid, and weight-loss blends.
Challenges like production dips (5.9% in Sep 2025), climate impacts, and costs spur innovation via e-commerce, D2C, RTD beverages, and sustainability. Government schemes like TDPS modernize estates, boosting competitiveness. Brands eye higher margins through Assam/Darjeeling specialties and tea tourism.
Key Highlights
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Market Boom: ₹1T (2024) to ₹1.5T (2029); black tea leads, but premium/herbal surges 25%+ CAGR.
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Strategic Shift: Third-largest brand targets functional/organic teas for health-conscious urbanites.
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Growth Drivers: Exports, e-commerce, RTD; organic farming counters climate/labor woes.
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Production Note: Sep 2025 output fell 5.9% to 160M kg; Assam steady.
Sources: Financial Express, ResearchAndMarkets, IMARC Group, Economic Times