ICICI Securities: Black Tea Will Remain Major Sub-Segment Within Tea In India 
An employee displays a handful of tea leaves for a photograph at a Teabox facility in Siliguri, West Bengal, India. (Photographer Sanjit Das/Bloomberg)

ICICI Securities: Black Tea Will Remain Major Sub-Segment Within Tea In India 

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ICICI Securities Report

Narrative: Green tea can be a large market in India similar to global markets and can take share from black tea.

Reality: We believe that black tea (including natural variants) will continue to remain major sub-segment within tea in India (green tea market size is Rs 6 billion whereas black tea market size is Rs 260 billion).

There is higher return on investments in natural care variants of black tea compared to green tea.

While green tea offers higher margins, natural care variants of black tea offer higher revenue growth potential.

Tea companies also focus on natural variants of black tea (like Red Label Natural Care, Tata Tea ‘Tea Veda’ etc.) instead of green tea.

However, post coronavirus outbreak there is higher growth in off-take of green tea. We will be watchful if this consumer trend continues once conditions normalise.

Click on the attachment to read the full report:

ICICI Securities Consumer Narrative Vs Reality Green Tea vs Black Tea.pdf

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