GLOBAL CONSUMER BEHAVIOUR – SUPPLY & DEMAND www.inttea.com.

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Presentation transcript:

GLOBAL CONSUMER BEHAVIOUR – SUPPLY & DEMAND

WORLD PRODUCTION OF TEA

WORLD PRODUCTION OF TEA IN 2005 In Million Kgs

WORLD PRICE OF TEA EX-AUCTION 1986 – 2005

APPARENT CONSUMPTION OF TEA IN 2005 BY COUNTRIES

DEMAND FOR TEA IN IMPORTING NATIONS

 SUPPLY GROWTH OF 26% OVER LAST 10 YEARS  TIGHTER SUPPLY FOLLOWED BY HIGHER PRICE  COMBINED CROP OF INDIA & CHINA 53% OF TOTAL  SUPPLY EXPECTED TO TOP 4 M. mt BY 2016  PRICES DISMAL AT AROUND US $ 1.50 PER KG  WEAKER CURRENCIES OF TEA PRODUCERS SUPPLY & PRICES

DEMAND  INDIA & CHINA CONSUME 40% OF WORLD SUPPLY  GROWTH AMONGST PRODUCERS NOT MATCHED BY IMPORTERS  WIDER CHOICE OF BEVERAGES  STAGNANT POPULATION  HIGHER DISPOSABLE INCOMES  STABLE ECONOMIES & LOW INFLATION  IMPENDING CHANGES IN CONSUMER PREFERENCES IN THE MIDDLE EAST

SUPPLY & ABSORPTION  SUPPLY OVER DEMAND GAP WIDENING  DEMAND FOR LOWER PRICES CREATING OPENINGS FOR POORER TEAS  TO DEMAND BETTER QUALITY PAYING IMPROVED PRICES  EXPLORE POSSIBILITIES OF CURTAILING CROP

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