05.12.2012, 15:27 27274

Kazakhstan's tea market reaches saturation

According to an analysis of the sector, the share of three companies with top sales account for about 58% of the total market to date. This indicates to a high degree of consolidation in the market.

Almaty. December 5. Kazakhstan Today - Last year's results showed that there was an increase in the country's tea market. However, experts haven't predicted further growth in this sector as there won't be an increase through per capita consumption or increased number of consumers.

According to Caspionet, this is due to the fact that the market has reached its saturation point and further brisk growth is unlikely. According to an analysis of the sector, the share of three companies with top sales account for about 58% of the total market to date. This indicates to a high degree of consolidation in the market.

People in Kazakhstan drink about 3 billion liters of tea every year. The republic is on the list of 'top five' countries with the highest consumption of tea and a leader among other states. The results of the latest survey showed that 99% of the population is tea consumers. 91% of them consume tea several times a day. Kazakhstan's tea market is more than diverse, with leading positions being occupied by domestic brands in recent years, although they are actually imported.

"People mostly buy special varieties of tea. For example, black tea with blueberries, with cranberries, papaya or some exotic fruits as well as ginger, or pepper. So, pure black tea is less popular. However, compared to green tea, black tea sales are greater here in Kazakhstan," said Valery Lomakin, General Director of Chaikofsky Company.

According to some figures, in terms of consumption of black or green tea Kazakhstan outstripped India that is actually a tea-producing country. Every person in Kazakhstan consumes more than one kilogram of tea per year. There has been a trend over the last few years with increasing sales of green tea varieties. Although market research indicated that approximately 69 percent of people drink black tea without additives, and for others, tea variety did not matter at all.

"This is because our tea-drinking habit is associated with black tea or black tea with milk. This is our culture despite the fact that green tea is also healthy," said Valery Lomakin.

Moreover, green tea is very popular around the world and a kilogram of the most expensive variety costs more than one thousand US dollars. Kazakhstan does not yet have gourmet tea lovers, but there are other consumers willing to pay 10-20 thousand tenge for 50, 100 or 200 grams of tea. On a side note, when selecting tea Kazakh consumers mostly pay attention to the country it was produced in.

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