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2023

India Instant Tea Premix Consumption Market

India Instant Tea Premix Consumption Market Size, Share, Competitive Landscape and Trend Analysis Report by Form (Powder, Paste, and Granules), Product type, (Cardamom Tea Premix, Ginger Tea Premix, Masala Tea Premix, Lemon Tea Premix, Lemon Grass Tea Premix, and Other Tea Premix), Distribution Channel (Supermarket/Hypermarket, Specialty Stores, Discount Stores, Convenience Stores, E-Commerce, and Others), and State (Gujarat, Haryana, Goa, Punjab, Jammu and Kashmir, and Others): Opportunity Analysis and Industry Forecast, 2023-2032

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Author's: Jaya Bundele | Roshan Deshmukh
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The India instant tea premix consumption market was valued at $37.6 million in 2022, and is projected to reach $88.7 million by 2032, registering a CAGR of 9.0% from 2023 to 2032.

Instant tea premix serves as an alternative to regular tea and is frequently used to prepare tea within a short duration. This type of tea is highly preferred in offices due to its ease of handling and preparation, and its role in the regulation of blood sugar levels. Instant tea premixes are easily prepared drinks in powdered form, which are mixed with milk or water to boost the overall metabolism, improve functionality, and provide long-lasting hydration.

 

These premixes are widely available in the form of paste, powder, and granules, which contain edible acids, vegetable extracts, vitamins, aromatizing agents, and fruit powders. They are available in the form of sugar-based and sugar-free beverages. Moreover, due to longer shelf life and cheaper costs, instant tea premixes are in huge demand across India and are expected to witness significant growth, especially in developing economies during the forecast period.

Convenience and ready-to-drink beverages are becoming more popular as consumer preferences change. These preferences are in line with instant tea premixes, which provide a speedy and hassle-free method to enjoy a cup of tea. The desire for convenient beverage options is further fueled by growing urbanization and hectic lives, which is propelling the market for instant tea premix in India.

Market Dynamics

The rise in concerns related to obesity is the major factor that drives the growth of the India instant tea premix consumption market. One of the most widely used instant tea premixes is green tea, which offers several health benefits such as efficient glucose regulation and weight loss. In addition, an increase in demand for ready-mixed drinks results in the rapid adoption of instant tea premixes, especially in the corporate sector, which fuels the growth of the market. Moreover, changes in the lifestyle of consumers have considerably altered food habits, thus leading to an escalating demand for instant tea premixes across the country, which is anticipated to boost the growth of the market.

Instant tea premix has been popular in emerging markets, owing to the prevalence of tea culture. Furthermore, an increase in health awareness and a surge in disposable income have driven the India instant tea premix consumption market growth. Moreover, the introduction of additional healthy ingredients in instant tea premix by different market players contributes toward the growth of the market. However, the increase in the trend of coffee consumption and fluctuating prices of raw materials caused by unpredictable climatic conditions act as the major restraints of this market. On the contrary, the rise in demand for herbal tea and the introduction of new flavors & varieties of instant tea premix are anticipated to provide growth opportunities for the market.

Moreover, the key players in the industry adopted a marginal pricing strategy, which is anticipated to hamper the overall market growth. Limited awareness about instant tea premixes is further anticipated to impede market growth. Innovations in marketing strategies are expected to popularize instant tea premixes in the coming years. In addition, enhanced access to products through retail websites and significant efforts by market players in consolidating retail chains, especially in emerging markets, are projected to provide lucrative opportunities for the market.

Tea is a popular beverage consumed by a large number of people all around the world, due to its superior taste and associated health benefits. It falls in the category of products that are consumed daily. Hence, the demand for such products remains consistent among consumers. However, the outbreak of the novel coronavirus has significantly affected the growth of the instant tea premix market.

This decline in growth in the India instant tea premix consumption market is attributed to a disruption in the supply chain. Moreover, the halt in the production of tea and its processing due to lockdown and social distancing being practiced all around the world has adversely affected the growth of this industry. The instant tea premix market, on the other hand, has not experienced a steep downtrend, in terms of demand, as it remains somewhat similar prior to the virus outbreak, being a daily consumable item. This disparity in the availability of products and their demand is expected to foster a quick recovery of the India instant tea premix consumption market once the pandemic ends.

The market for instant tea premixes is impacted by government efforts and laws. For instance, programs that help small and medium-sized businesses, promote healthy beverages, or promote domestic manufacture influence the dynamics of the market. The market is also impacted by policies concerning labeling, quality requirements, and import/export laws. In India, the trend toward health and well-being has accelerated significantly. The nutritional value and components of the products people buy are topics of growing consumer awareness. The possibility exists for instant tea premixes to meet this desire by providing variations with natural ingredients, decreased sugar content, herbal infusions, or functional additives that support well-being.

Consumer preferences are continually changing due to elements including convenience, health consciousness, food preferences, and lifestyle changes. Customers are looking for quick-to-prepare, portable beverage solutions more and more. The needs of hurried metropolitan lifestyles are met by instant tea premixes, which are in line with these tastes. The use of instant tea premix has increased as a result of rising disposable income among the Indian populace. Customers are more ready to spend money on products that provide benefits such as taste, quality, and time savings. Customers now have access to a greater selection of beverage options, including premixed instant teas, due to increased purchasing power.

Segmental Overview

The India instant tea premix consumption market is segmented into form, product type, distribution channel, and region. On the basis of type, the market is classified into powder, paste, and granules. Based on product type, the market is classified into cardamom tea premix, ginger tea premix, masala tea premix, lemon tea premix, lemon grass tea premix, and other tea premix. Depending on the distribution channel, it is fragmented into supermarket/hypermarket, specialty stores, discount stores, convenience stores, e-commerce, and others. State wise, the market is analyzed across Gujarat, Haryana, Goa, Punjab, Jammu and Kashmir, Maharashtra, and others.

By Form

According to the India instant tea premix consumption market analysis on the basis of form, the powder segment accounted for the maximum India instant tea premix consumption market share in 2022. Manufacturers are increasingly focused on producing instant tea powder, as consumers are shifting toward it, as it is easy to prepare. In addition, the rise in consumer demand for healthy and ready-to-drink products propels the demand for instant tea powder. Moreover, an increase in awareness among consumers regarding the health benefits of instant tea powder such as it strengthens the immune system and helps in relieving stress drives the growth of the market. Brands offering instant tea powder include Nestle, Nectar Valley, Society Daily, and Lipton.   

India Instant Tea Premix Consumption Market
By Form
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The Paste segment would witness the fastest growth, registering a CAGR of 7.7% during the forecast period.

By Product Type

Based on product type, cardamom instant tea premix is likely to gain a major demand from the consumer in the forecast period. Cardamom tea premix includes dietary fiber, vitamins, and minerals, which help to strengthen the immune system. In addition, it possesses anti-inflammatory properties, which help to lower blood pressure.

India Instant Tea Premix Consumption Market
By Product Type
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E-Lemon grass tea premix segment would witness the fastest growth, registering a CAGR of 7.4% during the forecast period.

By Distribution Channel

By distribution channel, Supermarkets/hypermarkets are gaining popularity due to the availability of a broad range of consumer goods under a single roof, in addition to ample parking space and convenient operation timings. Moreover, these retail formats serve as a one-stop solution, which makes them a popular option for shopping. In addition, products are arranged nearby, which aids buyers in easy comparison among similar products, thereby helping consumers to decide which product to buy.

India Instant Tea Premix Consumption Market
By Distribution Channel
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E-commerce segment would witness the fastest growth, registering a CAGR of 7.5% during the forecast period.

By State

State wise, Maharashtra is growing at a moderate rate during the forecast period. With a wide range of tea preferences, Maharashtra has a significant consumer base. The convenience-minded consumers who want a quick and hassle-free tea-drinking experience are catered to by instant tea premixes. The market is fueled by consumers' growing preference for a wide range of flavors and blends, as well as their rising demand for ready-to-drink beverages.

India Instant Tea Premix Consumption Market
By Region
2027
North America 
Europe
Asia-Pacific
LAMEA

North America would witness the largest segment registering a major share of 37.5% during the forecast period.

Competition Analysis

Some of the major players analyzed in this report are Tata Global Beverages, Wagh Bakri Tea Group, Nestle S.A., Society Tea, Girnar Tea, Chaayos Bazaar, Unilever PLC, Granules N Beans, Cambridge Tea Party, and TGL Company. India's market for instant tea premixes is extremely competitive, with domestic and foreign companies competing for market share. The environment of competition promotes product differentiation, creativity, and attention-grabbing marketing techniques. To achieve a competitive advantage and grow market share, brands spend money in product development, flavor innovation, strong branding, and focused marketing efforts.

Through innovation and distinctive product offerings, market competitors try to set themselves apart from one another. Introducing novel flavors, herbal infusions, health-focused variations, or customized formulas aimed at particular customer groups are examples of this. Brands have a better chance of gaining the attention and loyalty of customers if their products have distinctive and appealing features.

 The Indian market is heavily influenced by price sensitivity. Competitive prices, special deals, and value packs are just a few of the pricing techniques used by businesses to draw in customers. To remain competitive in this industry, it is essential to maintain a balance between pricing, product quality, and brand positioning.

Some examples of partnerships in the market –

  • Tata Consumer Products Limited partnered with Domino’s and Zomato which are restaurant and food delivery companies. With this partnership, it will strengthen its product distribution channel and product reach in Delhi, Mumbai, and Chennai, and will distribute various foods such as Tata Sampann Spices, Pulses, and Tata beverages.
  • Tata Consumer Products Limited partnered with Flipkart which is an online store company. Under this partnership, it launched a new distribution channel for delivering essential foods such as Tata Sampann Spices, Pulses, and beverages including Tata Tea.

Key Benefits For Stakeholders

  • The report provides a quantitative analysis of the current India instant tea premix consumption market trends, estimations, and dynamics of the market size from 2023 to 2032 to identify the prevailing opportunities.     
  • Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier–buyer network.
  • In-depth analysis and the market size and segmentation assist to determine the prevailing India instant tea premix consumption market opportunities.   
  • Drivers and restraints are analyzed depending on type in the India instant tea premix consumption market.

India Instant Tea Premix Consumption Market Report Highlights

Aspects Details
India Instant Tea Premix Consumption Market By Form
By Form
  • Powder
  • Paste
  • Granules
India Instant Tea Premix Consumption Market By Product Type
By Product Type
  • Cardamom Tea Premix
  • Ginger Tea Premix
  • Masala Tea Premix
  • Lemon Tea Premix
  • Lemon grass Tea Premix
  • Other Tea Premix
India Instant Tea Premix Consumption Market By Distribution Channel
By Distribution Channel
  • Supermarkets/Hypermarkets
  • Specialty Stores
  • Discount Stores
  • Convenience Stores
  • E-commerce
  • Others
India Instant Tea Premix Consumption Market By State
By State
  • Gujarat
  • Haryana
  • Goa
  • Punjab
  • Jammu and Kashmir
  • Maharashtra
  • Others

Analyst Review

Based on the insights of various CXOs’ of leading companies, health, fitness, and habit are three key factors that determine the growth of the instant tea premix market in India. At present, consumers’ interest is shifting toward instant tea premix, as it serves as a rich source of diverse nutrients and offers numerous health benefits.

For instance, instant tea premixes are high in antioxidants and help to trigger weight loss since they are low in calories. Moreover, the increase in demand for instant tea premixes products in corporate, real estate, and other commercial offices is likely to augment the growth of the market. The CXOs further added that the launch of instant tea premixes such as herbal instant tea, Tulsi instant tea, and lemon instant tea are gaining high traction in the Indian market.

Author Name(s) : Jaya Bundele | Roshan Deshmukh
Frequently Asked Questions?

The India instant tea premix consumption market was valued at $37.6 million in 2022, and is projected to reach $88.7 million by 2032, registering a CAGR of 9.0% from 2023 to 2032.

The forecast period in the India Instant Tea Premix Consumption report is 2023 to 2032.

The base year calculated in the India Instant Tea Premix Consumption report is 2022.

The top companies analyzed for India Instant Tea Premix Consumption report are Tata Global Beverages, Wagh Bakri Tea Group, Nestle S.A., Society Tea, Girnar Tea, Chaayos Bazaar, Unilever PLC, Granules N Beans, Cambridge Tea Party, and TGL Company.

The powder segment is the most influential segment in the India Instant Tea Premix Consumption report.

Cardamom tea premix holds the maximum market share of India Instant Tea Premix Consumption.

The company profile has been selected on the basis of key developments such as partnership, product launch, merger and acquisition.

The market value of India Instant Tea Premix Consumption in 2022 was $37.6 million.

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India Instant Tea Premix Consumption Market

Opportunity Analysis and Industry Forecast, 2023-2032