4 Trends to Follow if you are Running a Tea/Coffee Biz
4 Trends to Follow if you are Running a Tea/Coffee Biz

The tea and coffee markets are incredibly dynamic, and although there are some unique nuances for each sector, they do share some important trends, which in turn presents opportunities to learn from each other. According to reports, India is the second-largest producer of tea after China, and the largest consumer of said beverage, using nearly 30 percent of the world’s tea output. Despite this, the country exported the most tea globally after China and Sri Lanka. The Indian tea market size reached US$ 11.1 Billion in 2023. Looking forward, the market is expected to reach US$ 14.7 Billion by 2032. Similarly, the Coffee market in India was estimated at USD 9,240 Million in 2023. During the forecast period between 2024 and 2030, the India Coffee Market size is projected to grow at a CAGR of 11.99% reaching a value of USD 20,410 Million by 2030. A prominent driver of market growth is the shifting taste preferences of the people in this region. As consumer demographics and lifestyles undergo transformations, there's a noticeable shift in the preferences for coffee products. Increasingly, consumers are gravitating towards specialty and premium coffee offerings, driven by a desire for unique flavors, higher quality, and experiential consumption.

Sustainable Practices are Back: One of the main trends we see across the board for coffee and tea is a major focus on sustainable practices, from sourcing to production, to meet the growing consumer demand for environmentally friendly products.

Innovation is the Key: Innovation is driving new brewing methods and ingredients to cater to evolving consumer preferences for unique and diverse beverages. We see new ingredients and flavours for coffee as well as increased popularity of herbal and functional teas that target specific health benefits.

Premiumisation is at Peak: Premiumisation is also fuelling growth in both the tea and coffee industries by emphasising superior quality, rarity, price, or exclusivity. People are now looking at customises, premium products and options and tea, coffee industry is not behind.

Convenience is Driving the Biz: There is an increasing demand for ready-to-drink products, reflecting consumer preferences for convenient and on-the-go beverage options. In fact, the ready-to-drink tea and coffee market will reach USD 172.28 billion by 2030.

Finally, growth in disposable income plays a crucial role in shaping consumer spending patterns, including the consumption of coffee and tea. We see individuals spending more on premium or specialty coffee and tea products, driving market growth. With inflation coming down in markets such as the US, UK and the EU, consumer spending will likely increase.

 
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