Industry Trend Analysis - Growing Luxury and Premium Tea Demand in Asia - NOV 2017
BMI View: Premium and luxury tea brands will benefit from growing tea sales in Asia, with the tea market forecast to be worth USD54bn in the region in 2021. Demand will be boosted by rising levels of disposable income and growing sophistication in the taste of tea. French premium tea company, Kusmi Tea, will be a key beneficiary, as it expands its footprint in Asia, opening stores in Hong Kong and Singapore.
Kusmi Tea, a French leader in premium teas, is expanding its Asia footprint. The 150-year old brand is known for blending modernity with tradition, keeping the same recipes it offered when it first started, while also introducing innovative blends in colourful packaging. Kusmi Tea has also been effective in targeting younger consumers who are more health-conscious, through its wellness range. In Asia and Europe, the company's bestsellers are all ones with a green tea and mate (an ingredient with wellness-boosting properties) base which includes BB Detox (flavoured with grapefruit), Detox (flavoured with lime) and Blue Detox (flavoured with pineapple).
In terms of its Asia focus, Orientis group, parent company of Kusmi Tea, partnered with Bluebell (a distribution company) in September 2016 to expand into Japan. The success has led to Kusmi Tea having a permanent space in the Marunouchi district in Tokyo. Now Kusmi Tea is expanding its collaboration with Bluebell into Hong Kong at the Great Food Hall in Pacific Place and Singapore at the Takashimaya Department Store.
|New Growth Markets For Kusmi Tea|
|Singapore and Hong Kong Tea Sales (USDmn)|
|f= BMI forecast. BMI/National Statistics|