India produces some of the most renowned teas globally. It is the second-largest tea producer and one of its oldest. From Assam to Darjeeling, Indian chai is a topic of discussion not just in India but across the globe.
Yet, despite all the admiration it has garnered over the years, Indian tea has failed to emerge as a singular global brand.
Where It All Began
According to the Indian Chai Association, “The credit for creating India’s vast tea empire goes to the British, who discovered tea in India and cultivated and consumed it in enormous quantities between the early 1800s and India’s independence from Great Britain in 1947.”
As noted by Business Standard, India produced 146.72 million kg of tea in June 2024, according to data released by the Tea Board. Out of this, Assam is said to contribute to approximately 52% of the Tea produced in India.
Other tea-producing areas include Darjeeling, Dooars and Terai, Kangra, Nilgiris, Annamalai, Wayanad, Karnataka and Travancore, as per the India Tea Association (ITA).
Despite the large-scale production of tea in India, it has yet to establish a global brand name.
Why Is India Falling Behind In The Tea Game?
According to the Indian Express, “In 2024, India produced 1,285 million kg of tea, but 83% was consumed domestically.” Additionally, exports were a mere 254.6 million kg or nearly 20%.
As per the reports by Business Standard, India exported 254.67 million kg (mkg) of tea, resulting in an export earning of Rs. 7,111.43 crore.
Executive Director of the International Tea Committee, James Suranga Perera, told The Hindu, “On the export front, Kenya, which is the largest exporter of tea, ships almost the entire quantity it produces and China, the second-largest exporter, consumes domestically a substantial volume of the tea it produces. Sri Lanka exported 245 million kg worth $ 1.4 billion.
However, India exported 255 million kg valued at almost $800 million. Hence, India should focus on quality to get better realisation and explore newer markets such as South America and Africa.”
He further added, “On the domestic front, Indian consumers are increasingly willing to pay more for quality. While India’s per capita consumption is 840 gm a year, Turkey’s per capita consumption of 3 kg a year is the highest globally.
If the Indian per capita consumption can touch even one kg, it will consume the entire quantity that it produces. So, the scope is definitely there (for the Indian tea sector).”
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Tracing the data from the International Tea Committee Bulletin for 2024, India was the third largest exporter after Kenya and China.
However, unlike countries like Sri Lanka and Kenya, which promote their tea globally and export it in consumer packs, thereby building consumer brands, India falls behind in giving its tea a brand name.
Bala Sarda, the CEO of Vahdam, explains to the Press Trust of India (PTI), “I think Sri Lanka is a great example. In the 1980s, they were also exporting their tea as a commodity, and all the value was being retained by foreign brands who would take Sri Lankan tea.
Later, a plethora of brands came up and took charge and promoted Sri Lankan tea, packed in Sri Lanka from Sri Lanka. This helped the industry massively, and now the Sri Lankan tea industry is one of the highest contributors to their GDP.”
What is exported to the global market is never sold under the Indian tag, which means that India sells its tea without a brand, usually to create a blend where different types of tea are mixed to form a new, unique flavour.
For example, the tea produced in Assam is usually blended with Sri Lankan tea or with Kenyan tea in order to create the English Breakfast Tea.
As The Indian Express quotes Priti Paul, founder of Cha Bar, the country’s first dedicated tea café that opened in 2000, “India is the first tea capital in the world, but we do not claim that title. Instead, we let England claim it, though they just package the tea.”
India exports millions of kilograms of tea that are mostly identified under the names of International brands due to the packaging they add. Perhaps, if India shifts its focus from quantity to branding, this problem could be avoided.
India, too, could sell its tea as Indian Tea just as Japan’s Matcha or Sri Lanka’s Ceylon Tea.
ET Brand Equity by Economic Times, quotes Bala Sarda’s PTI interview, “I think we as consumers have always trusted origin products. For example, wine from France and whiskey from Scotland. But for some reason, European brands are selling more Darjeeling tea, and American brands are selling more Chai than any Indian brand was even doing remotely.”
Sarda further adds in his interview with PTI, “For India to be recognised as a country, which is trusted, which is a superpower, we need global brands to come out of India… I think it is just about taking Indian teas through an Indian brand, and you know, convincing consumers to have that.”
Harish Bhat, Brand Custodian of Tata Sons, while speaking at the session titled ‘Future of Tea: Innovative Practices for Value Addition and Branding’ at the 8th India International Tea Convention 2025, also suggested “that innovations using technology and ensuring consistency were key for the growth of the industry.”
“Tea has entered its experiential era, but there are barriers still. The consumption is only growing at two per cent per year. We have to focus on the premiumisation of the beverage, making it aspirational as well as affordable. The industry also has to debunk myths surrounding it, like the beverage causing acidity, addiction and dehydration,” The Hindu quotes Harish.
As per the article by The Hindu, experts expressed their observation of the Indian tea industry towards a healthier option.
Sumit Patil, Head- Beverages Business Development, HUL, stressed on “the need to elevate consumer experience, embrace technology, build newer segments and consciously develop the market.”
Sebastian Michael, Head-Tata Consumer Products- International, emphasised “the need to formulate new strategies, new voices and to keep innovating and adding new blends of tea to the market.”
The world is witnessing a shift from just flavourful beverages to ones that benefit the body, such as green tea or herbal tea. India already has the rich legacy of Ayurveda, following it for years; if used as a marketing force to present these in front of the world, Indian Chai has the potential to reach the globe.
In a nutshell, India, being one of the finest tea producers, never really claimed its rightful position in the global tea market. While regions like Assam and Darjeeling continue to maintain their legacy in the tea industry.
Perhaps it’s time for India to step up and make Indian tea represent more than just flavour, but a taste of its culture and legacy in every cup of “Indian Chai.”
Images: Google Images
Sources: The Hindu, The Indian Express, Business Standard
Find the blogger: @shubhangichoudhary_29
This post is tagged under: Indian tea, Indian tea branding, Indian tea exports, Assam tea, Darjeeling tea, Indian tea industry, global tea market, Ceylon tea, Matcha tea, tea marketing India, Indian tea legacy, Indian chai, tea export India, Indian beverage industry, tea brands India
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