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Dec, 16 2016

Infini ‘tea’ business

India is traditionally better known as a tea country but coffee business suddenly outpaced that of tea in the last decade. Looking at the unorganised tea-cafe market, a lot of established brands & start ups have rushed in chai chains empowering chai drink...

Figures reflect that Indian tea industry and the beverage cafe market are currently valued at Rs.19,500 crore and Rs.1,800 crore respectively. India is said to be the second largest tea consuming market in the world. And India’s enthusiastic entrepreneurs desire to cater to the demands and be the category leader with their novel startups.

Brewing trends

Tea cafes are the new trend in India and you will see many players entering this segment in the coming years. Brands like Chaayos, Tea Trails, The Kettlery, Chai Point, Chai Garam have transformed the traditional garma garam cup of chai to a starbucks coffee cup. Most of the above mentioned brands are offering their franchises to make this industry well organized.

At all the tea cafes & boutiques, most of the brands are trying to use food as a variable to attract more footfall.

As per official spokesperson of Chai Garam: “As an industry, we need to focus on offering better quality full leaf teas with exciting flavors to consumers so there is greater demand for these products. This will encourage more entrepreneurs to enter this space and will in turn encourage the gardens to improve their productivity and quality standards. It will also create new jobs and businesses in the country catering to the tea café segment.”

International brands too are eyeing this hot industry. Arteastiq, an all day breakfast and boutique tea café in Singapore which is blending the finest tea with art and culture is looking at India expansion. As per Ivan Teo, Director, Arteastiq, : “India is a great & growing market. I see tremendous amount of potential in India. For us, the important thing is getting the brand to right location. Of course, we are not looking at mass market. We are looking at people who have a boutique kind of experience.”

Few of the startups believe that Tea is a bigger opportunity than coffee because consumption of the leaf-based beverage.

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