The 2013 edition of the World Tea and Coffee Expo, India’s only trade fair dedicated to the tea and coffee sectors, commenced at Bombay Exhibition Centre on February 15, 2013. The chief guests at the inaugural session were Suresh Kotak, chairman, Kotak Commodities Ltd, and G Chandrasekhar, specialist in agribusiness and commodity markets and editor, The Hindu Business Line.
The event, organised by Sentinel Exhibitions Pvt Ltd, brings manufacturers, producers and exporters of tea and coffee from various states of India and other countries together. It is the only trade show on the hot beverage sector in India. Kotak said, “The thriving independent upscale café culture will ensure huge growth in the domestic ready-to-drink (RTD) tea and coffee sectors aided by the health benefits of tea and coffee.”
The success of coffee chains in India has spurred tea-makers to launch similar cafes selling a variety of teas. Tea has the added advantage of being considered a healthy drink. The café chains (for both beverages) are expected to generate a turnover of $410 million in India by 2017. Internationally, the market of RTD tea and coffee in terms of revenue is expected to reach $125 billion by 2017 as against $69 billion in 2011 (estimated), signalling an anticipating annual growth of 10.9 per cent between 2012 and 2017.
“For international brands, India – a market of a billion people – is almost impossible to ignore. The total branded tea segment in India – currently valued at Rs 6,000 crore – is expected to double in the next five years. Domestic coffee consumption too has been continuously growing annually at six per cent,” said Priti Kapadia, director, Sentinel Exhibitions Pvt Ltd.
Participants from various tea and coffee organisations has presented their products, there are various flavours in fruits, flowers and spices, which can be added to the tea. Tea and coffee-making machines from countries like the USA and Germany, and other technologies which are used for moisturising, fermentation and other processes involved in tea and coffee-making and also showed the products to preserve the quality and aroma of the beverages when they are stored or during transportation.
When asked about the conditions prevalent in the tea and coffee markets, Chandrashekhar said, “India is a country with fluctuations in climatic conditions, so there is the need of research to be done for the technologies which can serve as a solution and can prevent the quality of the product and there are flaws in the government policies. Though there is demand for Indian products, it is due to these reasons that they can’t reach the market.”
According to a study by the Associated Chambers of Commerce and Industry of India (Assocham), the domestic tea industry is growing at a compound annual growth rate (CAGR) of about 15 per cent. The study further states that India is the world’s largest consumer, the second largest producer and the fourth largest exporter of tea and accounts for nearly 30 per cent of global output and nearly 25 per cent of tea produced worldwide is consumed in India.
“Wider health awareness, a burgeoning middle-class population with lifestyles and an increase in disposable income is making consumers opt for RTD tea and coffee. Some segments like premium and organic coffee and green or herbal tea have created an entirely new market,” Kapadia said.
The three-day expo, which will conclude on February 17, 2013, is supported by leading trade bodies like the Tea Board of India, Federation of India Tea Traders Association (FAITTA), Bombay Tea Traders Association (BTTA), India-China Chamber of Commerce and Industry, Small and Medium Business Development Chamber of India, Confederation of Indian Small Tea Growers Association (CISTA) and Darjeeling Tea Association.
