Inflation slows down packaged tea consumption growth, rural impact bigger

Tea drinkers forced to downgrade to lower qualities of beverage; consumption also impacted by rising milk prices

Packaged tea consumption in India has been under pressure due to inflation across the consumption basket coupled with higher tea prices. This is forcing tea drinkers to downtrade, especially in rural areas. Milk prices have also gone up and this has impacted tea consumption along with delayed winters in the north, companies have said.

NIQ (formerly known as NielsenIQ) data shows that the packaged tea category grew around 4 per cent in value and volume terms in 2022 compared to 2021.

“Although price growth is similar (around 4 per cent) for both urban and rural for 2022, inflation hit rural