A potential Liquefied Petroleum Gas (LPG) shortage in India is anticipated to create an opportunity for the country’s instant beverage market, particularly for instant tea products. Traditionally, Indian households prepare tea by boiling water, milk, and tea leaves on LPG stoves. However, disruptions in supply or increases in LPG prices could lead consumers to seek quicker and energy-efficient options, with instant tea being a prime candidate. Dinesh Bihani, Secretary of the Guwahati Tea Auction Buyers Association, noted that instant tea’s preparation, which requires only hot water, allows consumers to use electric kettles, induction heaters, or office water boilers, thus reducing reliance on LPG.
This trend suggests a potential growth acceleration for the value-added tea segment, including instant tea powders, premixes, and ready-to-drink forms. These value-added products are produced using processed tea extracts and provide convenience and a longer shelf life. India, being one of the largest tea producers globally, has been enhancing its manufacturing capabilities for instant tea. Experts assert that if LPG supply issues persist, more consumers may transition to instant beverage formats. For tea-producing regions like Assam, this shift could present new opportunities for value addition and exports, especially as the demand for convenient beverage options increases globally.
Despite the deep-rooted cultural significance of traditional brewed tea in India, evolving consumer preferences, influenced by a desire for convenience and energy efficiency, may substantially boost the instant tea market in the forthcoming months.
