Project report for Tea Bags

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Introduction

The Indian tea bag packaging industry is developing day by day and the demand for varieties of black, herbal, green, and fruit infusions is getting stronger day-by-day, and the competition is quite fierce as well. The packaging not only preserves and protects the product within the tea bag but also communicates a brand’s message and ultimately contributes to the sales process. Sustainability is also one of the primary concerns in the tea bag packaging industry. As a result, packaging equipment manufacturers are increasingly adopting automation in their production line and adhering to Sustainable Trade Initiatives throughout the globe. Tea bags have constant and rising worldwide market potential. 

A tea bag, or the compound teabag, is a small, porous, sealed bag or packet, typically containing tea leaves or the leaves of other herbs, which is immersed in water to steep and make an infusion. Originally used only for tea, they are now made with other tisanes as well. Tea bags are commonly made of filter paper or food-grade plastic, or occasionally of silk cotton or silk. The tea bag performs the same function as a tea infuser. Tea bags can be used multiple times until there is no extraction left. Some tea bags have an attached piece of string with a paper label at the top that assists in removing the bag, while also displaying the brand or variety of tea. Tea bags are composed of two main ingredients: processed tea leaves and filter-paper Tea bags. The top tea leaves and leaf buds are hand-picked from the plant. The leaves are then subjected to several processes including withering, rolling, drying, cutting, and blending. The intensity and duration of each process differs according to the type of tea.

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Market potential & Strategy

The tea market in India is being driven by the healthy production and consumption of the beverage. In 2020, nearly 1.10 million tons of tea was consumed in the country. The global tea bag market is expected to grow at a CAGR of 5.5% during the forecast period. Teabags are the most convenient form of tea that is consumed as it is a faster and easier way. The factors that fuel the global tea bag industry include the premiumization trend market, which pushes the consumers to invest more in the products that are convenient as well as healthy and natural thus escalating the market revenues over the forecast timeframe. However, the preferences of consumers towards the loose tea in comparison with the tea bag as loose tea is better in taste and even smells better, which is expected to hamper the tea bag market growth during the forecast period. India is the second largest producer of tea, globally, after China. However, the annual growth of the exports from the country was only moderate due to the high domestic consumption. Almost 80% of the total output in India is consumed domestically. The per capita consumption of the beverage in the country has witnessed a significant increase in the last decade.

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