Going green is natural these days-even when it comes to your daily cuppa. The "green" brew is fast catching on in India and export markets.
Exports of green tea packets have outgrown the traditional teas
KOLKATA: Going green is natural these days-even when it comes to your daily cuppa. The "green" brew is fast catching on in India and export markets. Be it for pure health benefits or being showcased a wellness product, exports of green tea packets have outgrown the traditional black teas over the last three years.
Back home, consumption of green tea, particularly in urban areas, is on the rise and leading companies like Tata Tea, Goodricke, Jay Shree & Industries and a host of merchant exporters are riding on green flavour.
A recent ICRA study stated that exports of green tea, both on the volume and value front, registered a substantial compound annual growth rate (CAGR) of over 30% over the last three years, compared with a negative growth in exports of traditional black tea.
"There is a stagnation of the black tea market in the West and green tea has been a favourite in many of the European countries like UK and Germany. Although the volume of green tea in the total tea production basket is negligible, the growing trend in green teas is very encouraging," a leading merchant exporter said.
In spite of accounting for almost 28% of the world's total tea production, Indian tea exports account for only 13-14% of the world tea exports. "India's tea exports have declined at a 3-year CAGR of 4.1% in volume terms during FY2004-06. Although, exports are marked by significant yearly fluctuations, India's tea exports have declined over the long term," according to ICRA.
Calculations of a 3-year CAGR by ICRA revealed that volume of green tea exported in packets grew by 39.1%, while the non-packet green tea volume increased by 29.1%. Also value-wise, green tea in packets grew by 30%, while the non-packet category grew by 40.7%. Packaged black tea on the other hand declined by 20.2% in terms of volume and 11.5% in terms of value on a 3-year CAGR. However, price realisation for black tea in countries like the US has been higher compared to green tea.
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