Blue Tea India - Growing 5X Yearly; Riding on Global Shift on Wellness

28 October 2021

Business Wire India

BLUE TEA - New Healthy Flower Herbal Tea
BLUE TEA - New Healthy Flower Herbal Tea

Herbal Tea definition has changed in global market. Herbal Tea now in 2021, is considered as herbal hot beverage - which has some health benefits.
It’s a new category emerging out especially in Europe and North American market. With democratization of internet and heightened feeling of self-awareness among consumers who are reading more about body and mind fitness, than ever before.
Global consumer’s perspective for tea is changing and it is more to do with specific health benefits for body, slimming, etc. Internet penetration and E-commerce have fuelled this growth even more in the past decade. This effect has also coincided with rise of Instagram and influencers with more Videos and Internet articles about recipes, health benefits, etc. If you put together these macro factors - the wellness category’s growth is inevitable. And on top of everything 2019 - 2021 Pandemic has expedited the products adoption rate.
BLUE TEA INDIA has been there at right time to ride the effects of macro-economic factors. The brand is now, easily one of the global leaders in micro category of Flower Herbal Teas. Friends turned Co-founders - Sunil Chandra Saha and Nitesh Singh want to build a global brand coming from India which is loved by customers across the globe.
Today, the Three and Half-year-old start-up offers 30 flavours of flower teas across 12 countries, including in UK, Ger, the US, Australia, and 6 More countries in EU via Amazon with a revenue run rate of Rs 10 crore ($1.4M) FY22.
Herbal Tea as a category in 2020 is about $3.7 Billion market. Indian, China, and UK were traditionally leading the consumption, however, Tea adoption across the world faster than ever before in the past decade with Green Teas, Herbal Teas, and Matcha leading this new growth story. Organic tea is projected to grow at a CAGR of 16% from 2020-2028.
“Even though BLUE TEA competes with Vahdam India, Teabox, Yogi Tea & Tea Forte (US) globally. But there is a huge market to be tapped online and offline, as long as you have delightful value to offer to consumer,” says Sunil, who has been in offline Retail with Aditya Birla Group, Bestseller Denmark, and Shoppers Stop.

D2C Tea Brand, Vahdam India has raised about INR 174cr ($24m) in FY22, & $38M in total so far, expecting higher revenues from offline retail and b2b along with online expansion. BLUE TEA even though bootstrapped has been on route for fast online expansion and is backed by organic way of consumer adoption. 

BLUE TEA - This Kolkata-based D2C tea brand is taking advantage of the accelerated demand for high-quality wellness-oriented teas. Having seen a 5X YoY growth for the past two years, the brand is set to make ‘flower tea’ term synonymous with Indian Teas.

“Availability of organic herbs will play a crucial in future to provide consumers high-quality tea. One of the reasons As BLUE TEA, we are focusing on farming side as well to sustain such high growth,” Nitesh adds.

Blue Tea now has contracted about 100 Acres of farms in Uttarakhand - in the foothill of the Himalayan region along with Ganges Plains, for the cultivation of Butterfly Pea, Hibiscus, Chamomile, and Lavender.

“Speedy delivery and availability are critical for BLUE TEA. We will strive for 100 Cities 1 Day Delivery in 5 Countries by FY23 end,” adds Sunil.

Operationally, the Brand offers one-day delivery in 22 cities in India. At this moment, 60% of BLUE TEA’s business comes from Foreign Markets.

The wide variety of ‘Flower Tea’ is one of the most significant competitive advantages of the Brand along with beautiful packaging. BLUE TEA’s aim is to be a global leader in the micro categories and for this brand is prepared for the continuous introduction of new products into the market.

“We aim to touch Rs 56 crore($7M) in the subsequent year if we have just the right funding support. Healthy margins have enabled BLUE TEA to continue this high growth rate even in our 4th year of operations, thus far,” says Nitesh, the finance professional himself.

The founders have created a debt-free start-up and add as they actively look to raise investments to fuel their future growth and quest of leading global markets.

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