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India RTD tea market: Rs720 million industry in 2012
RTD Tea in India - a new market research report on 2014-04-24 15:51:01
Hindustan Unilever was the clear leader in the India RTD tea market in 2012, with an 80% off-trade value share. Lipton and Nestea were the only notable brands in the Indian RTD tea. Hindustan Unilever commenced distribution of Lipton Ice Tea by extending its international alliance with PepsiCo into India in 2004. In 2010, Coca-Cola, in collaboration with Nestlé, made a foray into RTD tea with the Nestea brand.

The 20% off-trade current value growth in 2012 was in line with the review period CAGR of 23%. However, off-trade volume growth in 2012 was slower at 14% when compared to review period CAGR of 16%.This reflects a lack of marketing activity by manufacturers to create awareness about the product in India during the review period. RTD tea has a small presence in urban areas and is mainly restricted to modern retail outlets. However, its presence in rural or semi-urban cities is close to nil.

Total volume sales are expected to grow by a CAGR of 6% over the forecast period, with the on-trade channel expected to register slightly stronger growth than the off-trade. However, off-trade volume sales will continue to dominate, with a share of 90% in 2012. The popularity of branded RTD tea through off-trade sales may see a slight improvement due to the rising modern retail formats where manufacturers will display new launches.

Key Headlines

- Retail value sales of RTD tea rise by 20% reaching Rs720 million in 2012
- The success of coffee chains has spurred many tea manufacturers, such as Wagh Bakri, to launch similar cafés selling a variety of teas
- Still RTD tea, excluding Asian, remains the only category in RTD tea in 2012
- Average unit prices increase by 5% in 2012
- Hindustan Unilever continues to dominate RTD tea with 80% retail value sales
- Off-trade volume sales are expected to increase by a CAGR of 6% over the forecast period

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