Mapping India’s Tea Consumption Landscape

Gujarat Leads the Charge in India’s Tea Consumption

Gujarat, famed as the birthplace of India’s White Revolution, boasts a remarkable tea-drinking culture. According to the latest findings from the Western India Tea Dealers Association (WITDA), an average person in Gujarat savors about 1.4 kilograms of tea annually, surpassing the national average by a significant margin.

Gujarat’s love affair with tea transcends mere numbers. With a per capita tea consumption soaring above the national average of 700 grams, it’s evident that tea holds a cherished place in the hearts and cups of Gujaratis. This voracious appetite for tea isn’t merely satisfied by local production; approximately 80% of Gujarat’s tea requirements are met by imports from Assam, the country’s leading tea producer, with the remainder sourced from Southern states and West Bengal.

A Brewing Trend

As the nation’s thirst for tea continues to surge, accompanied by escalating procurement costs, the price of tea witnessed a notable 21% hike in 2012-13. Despite the steep rise in prices, tea production in India has been on a steady incline, experiencing an annual growth of 30 million kilograms. Notably, the recent surge saw a staggering 70 million kilogram increase in production, with a significant portion earmarked for export, particularly to Iran.

The trajectory of India’s tea production is poised for further growth, with forecasts indicating a projected output of 1,500 million kilograms by the year 2020, as projected by the Tea Board. Maharashtra leads the pack as the highest tea-consuming state, trailed by Uttar Pradesh, Gujarat, and Rajasthan. However, a deeper dive into per capita consumption reveals a reshuffling of ranks, with Chandigarh, Lakshadweep, Punjab, Gujarat, and Goa reigning supreme.

Few Insights and Surprises

Contrary to popular belief, the principal tea-growing states of West Bengal and Assam surprisingly ranked 9th and 14th, respectively, in the share of total consumption. Furthermore, they lagged behind in per capita consumption, trailing even the traditionally coffee-drinking states of Karnataka and Kerala.

Commissioned by the Tea Board, a comprehensive study conducted by the Indian Institute of Management, Calcutta, shed light on intriguing consumption patterns. Maharashtra claimed a lion’s share of 14.86% in total Indian tea consumption, closely followed by Uttar Pradesh at 10.35% in the 59th NSSO round. Notably, Gujarat, Rajasthan, and Uttar Pradesh maintained their positions across successive NSSO rounds, underscoring their steadfast tea consumption habits.

Tea industry experts attribute the robust tea markets in Gujarat and Rajasthan to their formidable regional brands, complemented by the presence of strong national brands. Chandigarh’s ascent to the pinnacle of per capita consumption underscores shifting consumption trends, while Gujarat continues to maintain its stronghold on both consumption and per capita levels.

Despite its large population, Madhya Pradesh ranks 18th in per capita consumption, while Uttar Pradesh, one of India’s largest states, surprisingly ranks 27th. These statistics paint a nuanced picture of India’s diverse tea-drinking landscape, where regional preferences and consumption patterns intersect to shape the tea market’s dynamics.

In conclusion, Gujarat’s fervent affair with tea not only mirrors its rich cultural heritage but also underscores its pivotal role in shaping India’s tea consumption landscape. As the nation embarks on an upward trajectory in tea production, Gujarat stands as a beacon of tea appreciation, steadfast in its commitment to the beloved beverage.