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Tea market and ways of its promotion

“Absorption point” – is an article of a new issue of the magazine “Food Promotion. Prod & Prod”. The magazine’s editorial staff has prepared for its readers an overview of the Russian tea market.

Nothing is valued so much and does not cost so cheap. Drink from the tea leaves is known to the human for thousands of years, scientists find its useful qualities every year. In some countries, bun fight is a whole ceremony, somewhere it is not so appreciated, but one thing is clear – tea is drank right and left.

Russian tea market is unique i n its o wn way and somewhat paradoxical. The major market players say about the industry stagnation, and the independent experts point a steady annual increase an average of 4%. This market is characterized by well-entrenched roles’ spreading between leaders and other market players. Another feature of the Russian tea market – is no problem for import substitution because of the impossibility of its implementation. 95% of the raw materials used for production – import. The country’s climatic conditions do not allow to grow own tea, the only suitable place for this – is Krasnodar region, but its area is not enough. The domestic tea market dependents on the world business envir onment directly. Thus, contrary weather conditions in India and Kenya, and the unstable political situation in Sri-Lanka, that is the largest exporter of tea to Russia, led to a significant increase of world and domestic prices for this product in 2009. The magazine’s editorial staff notes that the domestic tea market in much less degree than other industries depends on government regulation. In general, it reached the stage of saturation’s limit long ago. Potential for quantitative growth is exhausted. Upon the average a Russian drinks about one kilogram of tea annually, but make people to drink more of this beverage is impossible. This suggests that growing of the tea market is unreal. However, the experts point reducing of the classic black tea’s consumption, and if five years ago, the proportion of demand was 90%, than now it has gone down to 75%. On the other hand, the positions of the green tea, herbal and fruit brewing drinks have fortified.

Another noticeable trend in the domestic tea market – is increasing demand for the packaged tea. According to the experts, the demand will be only increasing in the near future. This is due to increasing of a pace of life and a habit to drink tea in the workplace. Consumers are willing to immolate quality in exchange for convenience.

Large companies, in its turn, are preoccupied with holding gained positions in the vast mid-price s egment and as well as solve strategic problems. Such, for example, as powerful entry into the premium segment or increasing popularity of the drink among youth. The analysis show that tea is losing young audience rapidly, they prefer coffee, hot chocolate and other beverages.

About Russian tea market and its expectant prospects read in the magazine “Food Promotion. Prod & Prod” in the article “Absorption point”. Stay informed about all the events occurring in the food market.