Driven by higher disposable income, perceived quality and better storage options, the demand for packet tea in India is rising, according to a study by Tea Board of India.
The study, on domestic consumption of tea in the country, was undertaken to understand the consumption trends and purchase behaviour of the consumers in the Indian tea market.
"Close to 80 per cent of the households in urban India and around 75 per cent of the households in rural India have shifted to buying packet tea," said the executive summary of the study.
Favourable demographic factors such as increase in disposable income, aspiration levels, more participation in workforce (both male and female), and increasing health consciousness have by and large contributed to the shift from loose to packet tea, it said.
With increasing demand, there has also been a "marked improvement in rural penetration" and a significant number of wholesalers are "diversifying from low margin high volume wholesaling to high margin retail business".
Findings from the survey suggested that tea consumption in India is skewed towards the northern and western parts of the country with contribution from the northern states accounting for 32 per cent and 31 per cent from western region.
"The relatively low consumption belts of east (including the Northeast) accounts for 19 per cent while the southern states contribute 18 per cent of the total domestic consumption of tea," it added.
