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Move over, coffee. India is now warming up with a cup of luxury tea

In a country where chai is a love language, here's how India is embracing the luxury tea culture.

By: Kuldeep Sahani Jul 07,2024

How India is embracing the luxury tea culture

There’s no denying that when it comes to the variety of teas available in the market currently, you will lose count of what the brands have to offer. Even yesteryear brands like Goodricke, Wagh Bakri, and Golden Tips are giving way to innovation and riding on this new wave of luxury tea culture in the country. Not just the Indian palette, the brands are keeping the global clients in mind and curating their brews for people across borders.

“As India embraces innovation, its tea culture evolves to meet modern preferences. The surge in popularity of flavoured herbal teas, fusion blends, and speciality variations reflects a blend of traditional heritage and contemporary tastes,"

What has brought about this shift in consumer preference?

“There is a growing emphasis on the origin and authenticity of food and beverage products. Consumers are drawn to teas sourced directly from renowned gardens and regions known for their exceptional quality and distinct flavour profiles," Bala Sarda, founder and CEO, Vahdam India, said.

“Furthermore, the growing emphasis on sustainability and ethical consumption influences consumer choices in the tea market. Many individuals prioritise products that are sourced responsibly, produced using environmentally friendly practices, and support fair labour standards,” he added.

Speaking about exotic teas finding a foothold in the Indian market, Anurag Bhamidipaty, co-founder of Roastea, said, “People prefer both milk-based and non-milk-based teas. In the realm of non-milk-based teas, luxury varieties have become increasingly favoured, indicating a recent shift in preferences. India has notably embraced these teas on a large scale. This preference is attributed to people's growing health consciousness, as they seek to limit their daily milk intake.”

Suhail Kapur, co-founder and owner of Sancha Tea Boutique, attributes the shift in consumer preference to people’s inclination towards a healthy life.

“Food habits are rapidly evolving towards better quality in everything we eat and drink, which represents a positive and welcome change for the tea industry,” he said.

Is the inclination towards exotic teas because of their medicinal properties?

Anurag Bhamidipaty harped over the fact that people’s changing lifestyle has a lot to do with the emerging tea trend. “Whether you call them exotic teas or luxury teas, ultimately it is the benefits that the consumers are looking at. Good blends always give good health benefits and the contents of the tea determine the health benefits,” he said.
Adding to the discussion, Rudra Chatterjee said, “The increasing demand for exotic teas stems from shifting consumer preferences, particularly amongst Millennials and Gen Z, who prioritise wellness in their daily lives. This inclination towards teas with medicinal properties aligns with a broader trend of integrating wellness into everyday routines.”

“While the preference for premium tea experiences often arises from a desire for indulgence and sensory pleasure, it's important to note that many exotic teas offer not only a luxurious drinking experience but also potential health benefits," Bala Sarda told.

“Firstly, higher quality teas provide a more refined and complex flavour profile, along with an enticing aroma, contributing to a heightened sensory experience. This appeals to discerning consumers seeking moments of indulgence and relaxation.

“Additionally, many exotic teas are renowned for their medicinal properties and functional benefits. For example, certain teas contain antioxidants and other compounds that support weight management, cardiovascular health, and improved sleep. As awareness of these health benefits grows, teas are increasingly viewed as more than just a beverage but also as a means to promote overall well-being,” he further said.

Have brands witnessed an upward trend in sales?

The unanimous response was YES!

Brands have witnessed an upward trend in sales of late and insisted that the inclination towards luxury teas is here to stay.

“Factors such as rising disposable income, consumer curiosity, and a redefined concept of luxury emphasising quality and traceability have contributed to this trend. Consumers are increasingly willing to invest in premium teas that offer unparalleled quality and sensory experiences,” Rudra Chatterjee said.

“The luxury tea culture in India is flourishing and poised for sustained growth. Consumers are not only seeking quality but also value the luxury of choice. Our brand in particular innovates and introduces new tea blends infused with botanicals, superfoods, and herbs to cater to diverse preferences. The expanding palate of Indian consumers beyond the milk and sugar chai, coupled with a growing appreciation for speciality teas, signifies the enduring appeal and longevity of luxury tea culture in the country,” he added.

“India's rich tea heritage and diverse tea-growing regions position it as a key player in the global luxury tea market. The country's tea estates produce some of the finest teas in the world, renowned for their unique flavours, exceptional quality, and artisanal craftsmanship,” Bala Sarda added.

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