CONSUMPTION --1

FAO’S IGG SEES SCOPE TO INCREASE TEA PER CAPITA CONSUMPTION

P S SUNDAR

The Inter Governmental Group on Tea of the FAO has identified the scope to increase the per capita consumption in tea producing nations including India.

“Although 75 per cent of all teas produced globally are locally consumed, there is still untapped demand potential in producing countries, most of which still have low per capita consumption levels”, it has said in its position paper.

It has observed that in Kenya, the world’s top tea exporting nation, domestic consumption is only a fraction of its production.  For that matter, in nearly all the countries in Africa, domestic consumption accounts for a small share of production.

Even among the 30 most consuming countries across the globe, the per capita consumption of as many as 18 countries is well below the groups’ average, indicating a vast untapped market potential, the IGG has noted. 

It has identified the rural markets in India to hold large untapped potential.   “India’s lower-income consumers offer a considerable market for unpackaged tea, which is a typically priced below its branded and bagged equivalent”, the IGG has observed.

“Despite its well known tea culture, India does not rank among the top tea consuming countries on a per capita basis”, it has declared.

“India’s tea market could still shift from unpackaged to packaged teas.   Currently, unpackaged teas account for more than 50 per cent of the overall market.   There is still between US $ 2 and 2.5 billion in yet untapped tea sales, indicating a significant opportunity for tea manufacturers”, the IGG has suggested.

“The shift from unpackaged to brand and specialty tea varieties is driven by several factors including rising incomes and emerging middle class, rapid urbanisation, busy lifestyles and time pressure.   More consumption and the demand for sustainable produce are also driving the investments”, it has added.

India’s per capita tea consumption is 0.78 kg per year against 3.2 kg of Turkey, 2.4 kg of Libya and 1.68 of the UK.

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