Sip into the hot tea and coffee stocks

The tea and coffee industry has taken a big leap from Rs 25,166 crore in 2013 to almost Rs 41,800 crore in 2017. In less than five years, the industry has grown three-fold, bringing out a lot of business opportunities in both the tea and coffee sectors.  

In the last few years, many international brands entered into India, which was a wake up call for the Indian entrepreneurs to think of taking a sip from this ever-growing industry. The café chain market, which stands at Rs 1,820 crore, is growing at the rate of 20 per cent in value. This brings out the fact that the cafe market is brimming with opportunities for the investors.  

We analysed some companies from this industry and out of them STEL Holdings Ltd and Tata Coffee Ltd have given returns of 13% and 30%, respectively, to the investors within a period of one year.  



During the last decade, the companies positioned tea and coffee as recreational products, which have proved beneficial in attracting younger population. Tea bags have made tea drinking convenient, just as instant coffee is creating a huge demand in packaged coffee segment. The packaged coffee market is expected to grow at a CAGR of around 12% over the next five years. The tea industry in India is around $10 bn market and it is growing at CAGR of around 16%.