Tea Industry, Pakistan

Tea Industry of Pakistan

Pakistan, a country of tee-totallers due to the Islamic ban on alcohol, is one of the highest per capita consumers of tea in South Asia. Local tea importers speculate that this is due to a limited choice of beverages.

Pakistan is the third largest tea importer in the world after Russia and the UK and consumes about 155 million kg of tea every year (of which about 130 million kg is imported).On average, each Pakistani consumes about a kilo of tea a year, a total of approximately 155 million kg. for a population of around 150 million. The annual tea import bill, which this year may be more than US$200 million, highlights the importance of the country becoming self-sufficient in both growing and manufacturing tea. So far, these efforts have failed, and Pakistan continues to rely heavily on imported tea. In addition, consumers increasingly want better quality tea.

The tea marketing chain typically resembles one of two models. The first one, used mainly by large trans-national companies, is vertically integrated, with one company managing all the steps, from cultivation on large estates (which is often highly mechanised) to processing of tea bags. The second model can be considered more "traditional". The tea is grown in smaller gardens, which are often owned by a co-operative of producers, and is then usually marketed by national boards, as in India, Kenya and Tanzania. The fair trade movement has had an impact on the tea trade.

Tea imports from Kenya make up about 85 percent of the total import and India is in the second place. Smugglers bring in another 60 to 70 million kg. The import statistics for the month of April 2007 shows that 1.69 million kg tea is imported from India.Imports are mainly from Kenya and other African countries, while the two multinationals blenders import tea from Sri Lanka, Indonesia and Bangladesh. In addition, tea is smuggled into the country via the border areas of the NWFP and Balochistan. It is also smuggled to Afghanistan.

Market share data

• Unilever (lipton and supreme brands) 29%

• Tapal tea 21%

• Tetley ,vital and others