GUWAHATI: The ongoing unrest in West Asia has cast uncertainty over trade, but a tea buyers’ body in Assam has said it could boost demand for the instant beverage segment, including tea bags.
Assam’s orthodox tea is in high demand in West Asian countries, including Iran, which is fighting a war against Israel and the United States. An estimated 41% of India’s total tea consignments are shipped abroad through the Strait of Hormuz.
“A potential shortage of LPG in parts of India could create an unexpected opportunity for the country’s instant beverage segment, with industry observers expecting a rise in demand for instant tea products,” the Guwahati Tea Auction Buyers’ Association said.
India consumes more than one billion cups of tea every day, making it one of the largest tea-consuming nations in the world. However, any disruption in cooking fuel, especially LPG, can quickly influence how tea is prepared across homes, offices and commercial establishments.
Industry observers note that even a small change in preparation methods can significantly increase demand for instant tea and tea premix products, a segment that currently accounts for only a small share of India’s overall tea market.
Dinesh Bihani, secretary of the association, said cooking fuel constraints could change consumption patterns. “Preparing traditional Indian chai requires a gas stove, milk, and around 5-10 minutes of preparation time. In situations where LPG becomes scarce or expensive, many users shift toward alternatives, such as electric kettles, hot-water dispensers, and tea vending machines, which require only hot water."
According to him, large institutional consumers such as offices, factories, hospitals, transport hubs and catering services are usually the first to adapt to fuel disruptions. Instead of preparing tea on gas stoves, many adopt vending machines that use premix sachets.
“A single vending machine in an office can serve 200-500 cups of tea per day, meaning large institutions can shift thousands of cups daily from traditional preparation to premix-based systems,” Bihani said.
He noted that out of every 100 cups consumed in India, around 95 cups are traditional chai, three cups are tea bags or ready-to-drink tea and about two cups are instant tea or premix.
The instant tea and premix segment in India is already expanding at an estimated 8% annual growth rate, driven by urban lifestyles, office vending machines and institutional consumption.
“Under normal conditions, India’s instant tea market is estimated at 30,000-45,000 tonnes annually, with a market value of roughly Rs 700-1,000 crore. If fuel shortages cause even a 3-4% shift from traditional chai to premix, the market could potentially expand to 60,000-80,000 tonnes, effectively doubling demand,” Bihani further stated.