Tea in Asia Pacific

Delivery

This report comes in PPT.

Key Findings

Chinese tea market still expanding

In China, the dominant regional tea market, over a third of the population is believed to drink tea in one way or another, according to the China Tea Marketing Association, with people in their 20s in particular becoming increasingly interested in tea. Tea is seen as being attractive to people regardless of age and gender, as the widespread tea shops develop countless variants with milk and fruits, with such new tea drinks helping increase the consumer base and frequency of consumption.

COVID-19 sees Indian on-trade players enter the retail channel

Foodservice closures and other COVID-19 restrictions were increasingly seeing on-trade players push into the retail space in India. With people spending more time at home, they also had time to brew their tea themselves, seeing foodservice operators reconsider their portfolios and enter packaged tea products. In 2021, Chai Point was among the first café chains to launch tea products under a packaged product portfolio, which could be a logical extension for other players.

Instant tea remains in decline in China

Milk tea is a popular drink in China, but retail sales of instant tea are in decline due to the convenience offered by fresh milk tea. Milk tea shops and online food delivery platforms enable consumers to enjoy freshly-made milk tea on the go or in just a few clicks. Street stalls/kiosks also offer a wide and attractive selection of milk tea, with consumers even able to customise their choices.

Positive growth expected over 2021-2026

Tea has good forecast period prospects, with India and Pakistan expected to record particularly healthy performances. In India, although sales are still well behind those of loose tea, teabags will continue to gain share in black tea, as players and consumers alike help to premiumise this category.