An Integrated Guide to Launch a Packaged Tea Business in India

An Integrated Guide to Launch a Packaged Tea Business in India

A typical Indian cannot begin the day without tea, which is a part of our daily existence. Tea is not simply a word or a beverage to us; it is an emotion. Everyone has a beginning when they become attached to “Chai,” and for many people, it is the ideal stress-relieving substance. While coffee is also an option, studies show that Indians drink 30 cups of tea for every cup of coffee. Additionally, individuals drink tea in the evening, and the majority of tea drinkers even do so throughout the day. Studies show that an average adult in India drinks two cups of tea each day, with the number of cups consumed fluctuating according to the weather and one’s mindset. It is one of the key reasons why the tea business is regarded as one of the most lucrative. Additionally, it is the best business to launch with little capital.

Table Of Content

India’s Tea History

India is the world’s second-largest producer of tea, post China. In all, 70% of Indian teas are consumed within the country of India. Additionally, Assam and Darjeeling tea varietals were grown only in India. The tea market is expanding like crazy, and more brands using cutting-edge technology are being offered. Between the early 1800s and 1947, tea was extensively grown and consumed by the British, who had first found it in India. Warren Hastings gave George Bogle permission to grow some China seedlings in 1774, but nothing else happened. Sir Joseph Banks examined the subject later in 1776, and on his advice, India started cultivating tea.

India’s Tea Industry Statistics

In India, 1.1 billion kg of tea were consumed in 2021, and other hot beverages were also used more frequently. The two key regions for tea production in India are Assam and West Bengal. Assam is one of the top tea-growing states in the world. Tamil Nadu produces the most tea in the south, followed by Munnar and Wayanad. From 2022 to 2027, the Indian tea market anticipates growth of about 4.7%. In contrast to other sectors, the industry didn’t suffer throughout the pandemic. According to surveys, businesses will promote tea segments in pubs and restaurants by 2025. In 2022, the average volume consumed per person in the Tea segment increased by 0.8kg.

Aspects to Consider Before Beginning a Tea Business in India

Since tea production is one of the most popular industries, there are many things to consider when building a company:

  • Camellia Sinensis: An Overview

    The miraculous plant known as Camellia Sinensis is crucial to the success of your business if you are a die-hard tea enthusiast looking to launch a new endeavour. More than a thousand different types of tea are produced at the main tea plant. You must have a thorough understanding of the plant if you want to flourish in the wholesale tea industry. The best approach to learning more about this plant is to go to tea estates and talk to the growers there.

  • Understand Your Core Expertise

    As the world's second-largest producer of tea, new brands are launching every day. You must therefore be distinctive and consider how to make your brand stand out from the competition. Gaining an understanding of your target competitors and assessing them will help you determine what is already available on the market and how to separate from the competition. Additionally, it will support your efforts to set competitive rates and combat rival marketing activities.

  • Identify Your Target Market

    Is your target market the 90% of Indians who enjoy drinking tea? Your target audiences are drawn to the products of your business. It's important to determine your target demographic so that your brand design is appropriate. Even the growing premium tea business in India is evidence that individuals have preferences.

  • Budget & Working Capital Needed

    To ensure a smooth operation of the business, you should consider working capital. The segment, operational cycle, company goals, and mission all need to be taken into account. Knowing your working capital well allows you to allocate resources fairly and implement plans that take it into account. A 25–40 lakh investment is needed to start a tea business, including renting space, stocking raw materials, packaging, branding, marketing, packaging machines, and hiring skilled and unskilled labour.

  • Equipment & Labour

    Tea is produced through a drawn-out process. Withering, rolling, oxidation, and drying are the four processes of manufacture that involve various types of technology. Additionally, tea development is a multifaceted labour-intensive industry that demands a plentiful supply of skilled and paid labour, particularly when picking tea leaves.

  • The Official Registration Of The Business

    Registration with the authorities is the first and most important step in starting a packaged wholesale tea business. Applying the MCA portal and other procedures will help you establish it. To choose a brand and begin production, submit a brand registration application.

  • Get Your Tea Business Licensed

    After registering, it's time to obtain your licence number and legalise your tea business. Legalizing your firm enables you to exercise all of its rights.

  • Complete Your GST And MSME Registrations

    After legalisation, you must obtain your GST registration by visiting the official website or contacting knowledgeable individuals, uploading the necessary papers, completing the GST registration form, obtaining an ARN number, and filing the MSME registration receipt.

  • Obtain A Licence From The Food Safety And Standard Authority Of India

    Every tea business organisation in India needs an FSSAI licence to produce, package, sell tea for retail or wholesale, distribute, and supply tea. Additionally, your FSSAI registration must be appropriate for the type and scale of your tea business.

Marketing & Brand Management

  • Brand Design

    A strong tea brand design improves how your customers view your business, products, and services. To capture their attention, you must first understand your target market or audience. A captivating tea brand design helps you launch new products and positions your brand correctly in the market.

  • Packaging Design

    Consumers are more focused on making purchases and are aware of the present situation. Therefore, the design of your tea packaging could be the customer's first interaction with your product, and expertly designed tea packaging will completely alter the look of your business. Effective packaging design can help you communicate your brand or value offer. Brands provide premium, affordable, and distinctive solutions to stand out.

  • Brand Digital Marketing

    Even though the tea sector is one of the top industries, major companies nonetheless encounter marketing difficulties. Digital marketing is the best way to promote your business to a worldwide audience. The tea industry may improve its strengths, seize opportunities, and identify risks with the use of digital marketing.

You are correct if you truly adore tea and intend to launch a new enterprise in India. People will always have a soft spot for tea, and they enjoy trying various flavours. The tea industry is a very competitive sector with strong demand in India. India’s high number of tea lovers makes the country a lucrative market for tea. In addition, the country’s many tea-growing regions have excellent infrastructure and fertile soil, which makes it possible to produce high-quality Tea Leaves at a reasonable price. Due to rising exports and consumer demand, India’s tea sector is expanding quickly. More than 15 million people are employed in the industry, which contributes about 5% of the GDP. Small enterprises have the chance to take part in this expansion by opening retail locations or offering new tea flavours to the market.