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“Indian masala chai increasingly becoming global favourite”
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Monday, 18 August, 2025, 08 : 00 AM [IST]
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 The Wagh Bakri Tea Group, a renowned name in the tea industry for over a century, is rethinking how India drinks tea, not by chasing trends, but by blending. In an email interaction with Ashwani Maindola, Sanjay Singal, CEO, Wagh Bakri Tea Group, elaborates the tea company's plans for the future. Excerpts:
How do you analyse the domestic (India) and international tea market, what are the commonalities and differences and what are the growth prospects?
The domestic and international tea markets are both witnessing robust growth. In India, we are seeing a steady rise in demand for premium CTC teas, alongside growing interest in masala-infused teas. Growing health awareness, especially, among younger consumers, is driving the popularity of speciality teas like green tea, detox and kahwa blends. In the convenience segment, instant teas and iced teas are gaining traction rapidly, aided by the emergence of e-commerce and quick commerce platforms.
In the international markets, there is a rising demand for origin-based and functional teas. Indian teas, particularly Assam, Darjeeling, and Nilgiri teas, are valued for their distinctive flavour profiles. Consumers are also embracing Indian masala chai and wellness-oriented blends like turmeric, ginger, and tulsi.
How do you maintain quality and supply chain excellence across such a wide product range and distribution network?
Since 1892, Wagh Bakri Tea Group has built a legacy rooted in quality, authenticity, and a deep understanding of regional taste preferences. For us, quality and consistency are non-negotiable. We ensure this through a robust, vertically integrated supply chain and stringent quality control processes right from sourcing tea leaves to final packaging.
Our in-house tea tasters evaluate over 5,000 cups daily to maintain blend consistency. Our promoters, who are master tea tasters themselves, personally evaluate hundreds of blends daily to ensure only the finest teas reach our consumers. While staying true to traditional tea-making methods, we have integrated modern technology, investing in state-of-the-art manufacturing facilities and modern logistics infrastructure. Real-time inventory tracking, demand forecasting, and automated systems help us maintain agility and minimise stock-outs.
In addition, close collaboration with our distributors, e-commerce partners, and quick commerce platforms ensures timely delivery, even as consumer expectations around convenience and speed continue to evolve.
The growing trend of tea becoming a lifestyle choice, with tea now seen as the "new cool" over coffee, what are the reasons?
Tea has undergone a remarkable transformation from a traditional household beverage to a contemporary lifestyle choice, especially among younger generations. This shift is driven by several factors like health and wellness awareness, variety and customisation and social and emotional connection.
We have contributed to this trend through our tea lounges, premium outlets across Gujarat, Maharashtra, Delhi-NCR, and Bengaluru. These lounges feature over 100 handpicked blends, thoughtfully paired with gourmet snacks and desserts, creating an immersive and aspirational tea-drinking experience.
What are the opportunities for Indian tea companies overseas, and how is your company tapping it to further their market share and presence?
Opportunities for Indian teas overseas are immense. There is a growing global demand for authentic, origin-based teas. Indian varieties, especially Assam, Darjeeling, and Nilgiri, are widely regarded for their quality and flavour profiles. Wellness-oriented blends such as turmeric, tulsi, ginger, and green teas are also resonating with health-conscious consumers across markets.
Indian masala chai is increasingly becoming a global favourite. The shift toward natural, herbal, and low-caffeine beverages has opened up new avenues for Indian teas to thrive at the global level.
We are leveraging these trends by expanding our footprint in key global markets. Our strong brand recall among the Indian diaspora is an added advantage for us. Moreover, e-commerce platforms are enabling us to reach global audiences directly.
What is your opinion about the competition in the Indian tea market, and how are you ensuring your edge over the rivals?
The Indian tea market is diverse and highly competitive, with legacy brands, regional favourites, and new-age entrants all vying for consumer attention. This competition is a healthy sign of a dynamic category and an evolving consumer base.
We view competition as an opportunity to innovate and stay consumer-focused. Our biggest strength is the trust of consumers we have earned over generations through quality, consistency, authenticity, and deep knowledge of blending. Our expert tea tasters sample over 5,000 cups a day to ensure consistent quality. These give us a unique edge in delivering a distinct and familiar taste.
Our diverse portfolio, ranging from traditional loose tea to instant premixes, green teas, iced teas, and masala-infused blends, allows us to cater to a wide spectrum of consumers. Consumer-centric innovation and omnichannel retail presence also help us maintain our edge.
Describe your diverse product range catering to all tea drinkers. And, the concept of personalisation, wellness, and crafted teas including new blends and product formats.
We offer a comprehensive and diverse product portfolio designed to cater to every kind of tea drinker. Our range includes CTC teas, masala chai, green teas, and herbal blends such as detox, tulsi, honey lemon, and kahwa. We also offer convenient formats like instant tea premixes and iced teas, and speciality and premium teas.
Our approach to personalisation and wellness is based on understanding the evolving needs of our customers. We offer curated immunity-boosting blends and specialised infusions that cater to health-conscious consumers.
What are the key reasons for changing consumption habits and preferences?
Tea consumption in India is undergoing a dynamic shift, driven by changing lifestyles, growing health awareness, and rising consumer expectations. Tea is increasingly seen as a healthier, natural alternative to sugary or carbonated drinks. As a result, functional blends like green tea, detox infusions, kahwa, and herbal teas are gaining popularity. Simultaneously, busy schedules have accelerated demand for convenient formats such as single-serve sachets, instant teas, and ready-to-drink options.
Younger consumers are more open to trying new flavours, ingredients, and brewing styles, from flavoured black teas to bubble tea and cold brews. This is on account of exposure to diverse tea cultures and trends through social media, wellness influencers, and global travel.
The shift in social habits, with tea no longer just a morning beverage, but a part of social gatherings, café culture, and even gifting, and the rise of tea lounges and curated tea experiences to portion tea as a lifestyle choice, are also driving this change. Environmental and ethical awareness, with consumers increasingly choosing organic, sustainably sourced, and ethically produced teas, is another factor.
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