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Society Tea targets changing consumer tastes
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Monday, 05 October, 2026, 08 : 00 AM [IST]
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Anurag More, Mumbai
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Indian tea market is evolving as younger consumers seek greater variety, convenience and new consumption experiences while retaining their connection with traditional chai. Society Tea is focusing on expanding its portfolio and distribution while adapting to changing consumer preferences, according to Dhaval Shah, Director, Society Tea.
Shah said younger consumers are not moving away from tea but are engaging with the category differently. Greater exposure to digital platforms, travel and new food and beverage experiences is encouraging experimentation with flavours and formats.
“We don't have to convince the next generation to drink tea; we have to give them more reasons to enjoy it,” said Shah. He expects growing interest in iced teas, fruit teas, speciality teas and other contemporary formats, while traditional chai continues to remain an important part of Indian consumption.
Shah expects premiumisation in the Indian tea market to become increasingly informed over the next three to five years. Consumers are paying greater attention to factors such as leaf quality, origin, blends, flavour and the overall drinking experience.
While speciality and premium teas are gaining an audience, particularly in urban markets, the mass market is expected to remain significant. Shah believes premium positioning needs to be supported by a tangible difference in the product rather than simply a higher price.
The packaged tea market, meanwhile, remains mature but continues to offer growth opportunities through branded products, consistency and portfolio expansion. Increasing segmentation is creating demand across every day, premium, speciality, flavoured and convenience-led offerings.
Changing consumption occasions are also influencing tea companies’ product strategies. From morning tea at home and office consumption to travel, social occasions and out-of-home experiences, tea is increasingly being consumed across a wider range of situations.
According to Shah, understanding the occasion is important before deciding on the format. Traditional blends, premixes and iced teas can address different consumer requirements, creating opportunities to expand the category without simply adding products to the portfolio.
Convenience is expected to play a larger role as consumers seek products that reduce preparation time. Society Tea has been present in formats including instant and premix products and sees further potential in products that combine convenience with the familiarity of tea. Iced tea and ready-to-drink formats could also extend tea consumption into occasions where a hot beverage may not be suitable.
Growing health awareness is another factor influencing tea consumption. Consumers are increasingly reading labels, seeking information about ingredients and showing interest in green tea, herbal infusions and wellness-oriented products.
However, Shah believes health positioning alone is insufficient. Consumers continue to expect taste and enjoyment from the product. This creates an opportunity for tea brands to develop offerings that address wellness-related preferences without compromising the sensory experience.
The tea industry continues to face challenges arising from its dependence on agricultural commodities. Weather conditions, crop quality, availability and input costs can influence raw material prices and supply.
For Society Tea, managing this volatility while maintaining a consistent consumer experience is a key priority. Sourcing, procurement and blending become important in managing variations in the crop, while companies must also balance quality with affordability.
Shah said Society Tea uses multiple levers, including sourcing, inventory, manufacturing, product mix and pricing, to manage fluctuations in tea prices. Maintaining product quality and consumer trust remains central to these decisions.
Society Tea is also looking to strengthen its presence beyond its traditional geographic stronghold in Maharashtra. Rather than pursuing expansion purely on the basis of market size, the company intends to understand regional preferences, taste profiles, price points and relevant distribution channels.
“We want Society Tea to be relevant across India, and we believe that will happen by building each market properly rather than trying to do everything at once,” Shah said.
General trade continues to be an important distribution channel for the brand, given the everyday nature of tea and the role of neighbourhood retailers. At the same time, modern retail, e-commerce and quick commerce are becoming increasingly important for product visibility, discovery and convenience.
Society Tea is also examining sustainability across sourcing, manufacturing, packaging and waste reduction. Packaging presents a particular challenge because tea requires protection from moisture and other factors that can affect product quality.
Shah said the company is looking at responsible packaging and broader operational improvements while maintaining product integrity. As a family business, the company takes a long-term view towards building a business that can be carried forward by future generations.
Shah sees opportunities both in the core packaged tea business and in emerging segments such as speciality, premium, flavoured, iced and convenience-led products. The diversity of India's consumer base, he said, provides scope to serve different preferences and occasions.
The company also sees potential in adjacent beverage categories where its experience in sourcing, manufacturing and distribution could be relevant. However, it intends to enter new categories where there is a clear consumer need and an opportunity for the brand to add value.
Consumer insights and market data are increasingly supporting these decisions. Sales data, digital behaviour, e-commerce trends, regional performance and consumer feedback provide new sources of information. However, Shah stressed that data must be complemented by product evaluation and sensory assessment.
Over the next two to three years, Society Tea’s priorities include strengthening its core business, expanding distribution and increasing relevance among younger consumers. The company plans to grow beyond its traditional markets while developing speciality and convenience-led products where it identifies genuine demand. Digital commerce and quick commerce are expected to support this expansion, but Shah said the broader objective is sustainable growth and building consumer pull.
For Society Tea, the opportunity lies in taking its established sourcing, blending capabilities, consumer understanding and brand heritage to a larger and more diverse Indian market. While consumption habits and discovery channels may change, the company intends to retain consistency in the consumer experience as it enters the next phase of growth.
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