“This generation doesn’t really see tea as a commodity anymore, it’s so much more than that,” says Snigdha Manchanda, a certified tea sommelier who also owns the craft tea brand, Tea Trunk. The Goa-based label just celebrated a 10-year run and offers some signature Indian tea blends, and was one of the first brands to introduce packaged matcha blends in the Indian retail category.
“Tea is very closely associated with wellness now; consumers are being led towards teas by fitness trainers, by doctors, by friends. They may not like drinking green tea, but for them, it’s part of a lifestyle. When you tell them, a green tea has apple or vanilla notes, it’s an easier sell, obviously. They’re more open to trying different blends if it’s not just being pushed as a health tonic and that has grown its market too,” Manchanda says.
Artisanal blends, green teas, new-age flavours like matcha and the emergence of coffee in the beverage space have deepened problems for a stagnating Darjeeling tea industry. Nepalese tea is another challenger that’s piquing interest in the global market. Last week, the Tea Association of India (TAI) raised an alarm over the challenges facing the industry and warned of a return to the ‘dark phase’, i.e. the period between 2002-2007.
Though Darjeeling produces roughly 1 per cent of the total tea in India, Darjeeling tea has been appraised by experts over the globe, as an elite single-origin tea. The Darjeeling tea was the first Indian product to be GI-tagged and comes in white, green and oolong varieties. The delicate muscatel-flavoured brews are produced in flushes; the first flush, the most widely appreciated variant, is plucked in a bud-and-two-leaves method when the leaves are tender along with the new shoots on the tea bushes.
“Darjeeling first flush is undoubtedly one of the best teas ever, there’s no doubt about it. It's an artisanal wonder,” says Samrat Manik, a tea supplier based in Bhubaneswar
Often dubbed as the ‘champagne of teas,’ the Darjeeling tea has several crises threatening its legacy. “The economic strides made by our nation are indeed commendable, yet the tea industry is currently experiencing challenges reminiscent of the dark phase two decades ago,” Ajay Jalan, the president of the Tea Association of India (TAI) said at the association’s meeting in Kolkata.
The ‘dark phase’ in the noughties saw a significant slump in the Indian tea market due to regulatory challenges, low demand, and competition from cheaper overseas markets. The problems Darjeeling tea is facing now are multi-faceted; besides the dip in demand, the decline in quality, the climate crisis and poor wages, the tea is being overtaken in popularity by other blended varieties and of course, the steadily rising popularity of coffee.
What’s The Darjeeling Crisis?
Last year Darjeeling's tea production declined to 6.1-6.3 million kg, which industry veterans consider to be the lowest yield in 50 years. The premium tea belt currently has around 87 tea gardens and the collective yield this year saw a 9 per cent decline (between January and November, production is estimated to have been around 6 million kg, as compared to 7.5-8 million kilograms, which used to be the standard yield, as per Calcutta Tea Traders Association).
Climate change, lack of new bushes and pest attacks have emerged as the biggest challenge for planters. Moreover, many estates have shut or changed hands leading to logistical delays. Nearly half of Darjeeling's tea estates were reportedly up for sale last year as planters were unable to run operations.
Darjeeling tea enjoyed a big overseas market but the demand for the tea in Europe has fallen by 10-15 per cent. Germany, the biggest importer of this tea, is reeling under a recession. Japan, another big market steadily reduced buying from Darjeeling post the agitations of 2017.
“The tea industry never fully recovered from the aftermath of the 2017 agitation, there were no crops that year. The pandemic slowed down production too. Internationally it doesn’t have the market it once had. In India, we have so many fads, be it matcha or flavoured teas which are trending and people are clearly curious to try them as well. Coffee,” says Dhiraj Arora, co-founder of the artisanal tea label Karma Kettle.
Climate change, too, has loomed large over the production of this tea, which is famously dependent on its local climate and traditional way of picking. “Winter is usually delayed nowadays; tea production in Darjeeling needs frost which is essential for pruning around November and December since it provides moisture to the bushes. It’s quite key to a good first flush. But winter is usually delayed now and frost doesn’t happen all too often. If the first flush is delayed, the second flush is delayed as well,” says Arora.
The popularity of contemporary tea blends is a major driving force in the industry, as modern tea lovers lean towards exploring different pairings. Single-origin teas, on the other hand, are prized for their unique terroir and would be wasted if blended with other teas. “I would say using Darjeeling tea in blends would be wasteful. Its unique taste notes would be lost,” remarks Manchanda.
The New Players
“Many people scoff when tea is compared to coffee, but in terms of market trends, it’s very significant. Coffee has been a big challenger to tea, its market in India has grown exponentially,” Manik remarks.
A recent study revealed that In India, one in four coffee consumers are willing to spend more on ready-to-drink coffee with added protein. Another market study shows that the Indian retail coffee market, valued at $570.3 million in 2022, is projected to grow by 13% to reach over $640 million by 2025. Green tea remains a steady competitor of the Darjeeling white and black teas, although Darjeeling produces green varieties as well.
“The green tea market in India is experiencing notable growth, albeit still occupying a niche segment at present,” says Ketan Desai, Chief Tea Officer, VAHDAM India.
“The potential for expansion within this sector is substantial, prompting an increasing number of producers to transition towards crafting high-quality, handmade artisan green teas. This shift is primarily driven by the considerable acceptance of such products in both the domestic and global markets,” he adds. “Our green teas and flavoured teas like chamomile, lavender or hibiscus far outsell Darjeeling tea at the moment,” Desai shares.
The newest player in the market is Nepalese tea, which is cheaper, although doesn’t match Darjeeling in taste or credibility.
In August last year, the Indian Tea Exporters Association January suggested to Commerce and Industry Minister Piyush Goyal that a minimum import price or MIP be implemented for tea from Nepal since cheap imports from Nepal have been further slashing Darjeeling tea prices in the domestic market. “Nepal has younger bushes, it has similar altitude and similar terrain, it’s doing well domestically or otherwise. For most buyers, who are not as discerning it doesn't matter if the tea is coming from Darjeeling or Nepal or North Eastern India, if it has similar attributes, it works,” says Arora.
What's The Way Forward For Darjeeling Tea?
Manchanda, who has sampled more than 2,000 varieties of tea during her stint as a sommelier pinpoints something interesting. “Whenever I’m at an international tea conference, I see appreciation for the Darjeeling tea. If there are two cups of tea and one of them is Darjeeling, anyone can pick up on that. I don’t see the same kind of exposure in the country. it‘s important to build awareness about its unique flavour profile and its taste notes. Most people don’t know why Darjeeling tea is famous globally or about its signature taste but awareness could open up its demand further,” she says.
“I would love to see tea being made available in more grab-and-go formats across the country. I love Darjeeling and I think something like that would be in demand because I know so many people who appreciate Darjeeling tea and also consume tea more than 3-4 times s day,” says Khushi Kanoria, a tea lover from Bengaluru. Arora suggests something along similar lines, to drive up the demand for Darjeeling tea which sees a lack of recognition among younger buyers.
“I own a cafe in Kolkata, where we do a Darjeeling cold brew. We’d done an event with a popular gin company where they got the popular mixologist Yangdup Lama from Delhu’s Sidecar, who incidentally grew up near Kurseong and we agreed that the signature cocktail he’ll make has to have Darjeeling first flush. Similarly, it needs some popularising. We see northeast restaurants and the cuisine doing so well; momo is such a popular QSR food that’s being made accessible in kiosks all over major cities. They sell bubble teas, maybe they start selling Darjeeling tea as well! I just think Darjeeling tea needs some re-thinking, some new formats and some ambassadors to make it popularise further,” he signs off.