Globally this is a good time to be involved in manufacturing soluble tea.
“There is a favorable business environment for soluble tea in developing as well as developed countries,” according to India-based market research firm Fact.MR. “In the recent years demand for both hot water-soluble and cold water soluble tea has increased significantly. China and India are amongst the nodal points of soluble tea export,” according to a Fact.MR analyst.
“China itself exports more than 500 brands of soluble tea to the world. At present, demand for soluble tea is slightly higher than the supply, and to address this several importers have been following a long-term supply contract with their suppliers. The number of small providers of soluble tea has also been increasing to bridge the demand-supply gap,” as reported in Fact.MR’s “Spray-dried Tea Products Market: Latest Trends, Demand and Analysis 2018-2026.”
Tariffs have put a temporary damper on trade, according to Fact.MR analysts. “Though the demand in consumer clusters, as well as the producers’ efforts to increase supply, has been rising constantly, the demand-supply dynamics have been affected by the trade wars. As trade tariffs are lifted, the previous stocks are expected to clear off at a fast pace, and the market is expected to regain confidence,” writes Fact.MR.