Green Tea – A hit with online consumers too!

Indians’ love for tea is no secret. One of the oldest beverages, it is no wonder that it is one of the most competitive markets in India. For years, different brands and different varieties have fought for consumers’ attention and market share.

With changing lifestyles and concerns for healthier lifestyles, there has been growing preference and demand for premium products in the market, one of the most prominent being green tea. Although Indians are mostly black tea drinkers (of different varieties), green tea is becoming an acquired habit in a significant part of society. And like most other products today, even green tea has successfully found its way into the online retail space.

With multiple health benefits like stress relief, protection from diabetes and cancer, and stronger immune system, green tea also gives beauty promises like healthier skin and better hair growth. But what really clinches the deal with Indians is probably the weight loss factor.

Growth of the Green Tea market

Figures published in March this year estimated the green tea industry to be worth Rs 150-crore with a growth rate of 50 percent. Latest figures indicate that the industry would be worth Rs 400-crore or more by the end of next year at the current growth rate.

Having become a lifestyle preference across different segments of consumers, many of the FMCG biggies like Hindustan Lever, Twinnings, Tata etc. have launched or re-launched their green tea variants to cater to the growing demand. While Kareena Kapoor endorses Tetley’s green tea to take this product of Tata Global beverages to the masses, Hindustan Lever’s has roped in Anushka Sharma to promote its Lipton green tea.

Who is doing well?

There are several prominent players in the green tea market currently.

To tap into smaller cities and towns, Tata Global Beverages Ltd. (TGBL) has launched their latest variant, Tata Tea Acti Green. ” The Indian tea market is approximately Rs 15000 crore, and only the green tea market is about Rs 100-150 crore. It is an attractive market, which is growing at 40-50 per cent. Even though out of our total tea revenues, green tea currently has a very small share and is dominated by black tea, we expect the green tea segment also to contribute significantly and this is a move towards it,” TGBL Vice President, Head Marketing – India & South Asia, Vikram Grover said.

With around 20 percent market share, Tata Tea is one of the prominent players in the market. The latest product is packaged in small quantities and priced accordingly to appeal to the first-timers or those who want to experiment.

A spokesperson from HUL has similar thoughts to share about the potential of green tea market, “With the increasing emphasis that consumers put on health and wellness, the potential for categories like tea and within those, of segments like green tea is immense. Green tea is relatively new and emerging. We see consumers adding green tea to their hot beverage repertoire. People are leading busy lives and need to be light and active to stay on top of things. Younger urban consumers who are conscious of their health and well-being are driving the switch towards healthier food and refreshments.”

Another very significant player is Organic India, popular and favourite with consumers. With both loose tea and tea bag options available in the online space, they offer interesting variants like Tulsi Green Tea lemon ginger, Tulsi Green Tea pomegranate etc. Available in supermarkets and online, they have their dedicated customer base despite other players making their entry into the market.

Green Tea – Here to stay

Since green tea has become a way of life with the Indian consumers, a decline in its popularity doesn’t figure in the picture of green tea’s potential. For now, FMCG companies are focused on drilling customers with the benefits of consuming green tea regularly, which seems to be working.

An online seller can leverage on the marketing spend of FMCG companies and the popularity of green tea with consumers, and sell green tea online.