Gourmet Tea is playing outside the cliché tea stalls, making up for 5 percent of the entire Tea Market. India is growing its tea majorly in North India (83 percent) majorly in West Bengal and Assam.
According to a report by Wazir Advisors, while South India has a significantly lower output than North India, the former is being driven by its production of premium varieties of superior quality and is the region of interest for Gourmet Tea Brands.
The retail formats followed by the Gourmet Tea Brands are mainly Tea Boutiques, Tea Cafes and e-commerce. The anatomy however can be split into 3 parts economy- regular black tea sold in bulk with an average price of Rs 500 per kg, mid-premium- premium quality tea with blends in flavours priced between Rs 750 to Rs 1,200 per kg and lastly luxury tea- from special origins such as Darjeeling, Oolong and Ceylon priced above Rs 1,500 per kg.
While brands like Red Label, Wagh Bakri, Tata tea etc. fall under the economy category; brands including Taj Mahal, Twinings, Tea Trunk Vahdam etc fall under the mid-premium range. Chado, Satori, Anandini fall under the luxury tea category.
As per the report, the Gourmet Tea Culture is penetrating the Indian market in more than one way, including: