Russia Tea Market Research Report, 2028

Russia has a deeply rooted tea-drinking culture with a long history of tea consumption. Tea was introduced to Russia in the 17th century and quickly became an integral part of daily life and social customs. Russia ranks among the top five countries with the highest global tea consumption per capita. Tea is consumed throughout the day, with a preference for strong black teas. This high consumption volume contributes significantly to Russia's leading position in the European market. The Russian market favours black teas, particularly robust and strong varieties. The affinity for black tea, often brewed to be strong and robust, has a significant influence on the country's tea preferences. Tea holds cultural significance in Russian society. It's not just a beverage but a part of social gatherings, family moments, and hospitality customs. The concept of "Russian tea-drinking" goes beyond the beverage itself to encompass the rituals and traditions associated with tea consumption. In Russia, tea is not limited to specific occasions but is consumed throughout the day. It's common to have tea in social settings, at home, at work, and during leisure times, contributing to high and consistent consumption. Russia shares borders with major tea-producing countries like China, India, and Sri Lanka. This proximity facilitates trade routes and supply chains, allowing for relatively easy access to a wide range of tea varieties and ensuring a consistent supply of tea to the Russian market. Tea in Russia is not only consumed as a beverage but is also integrated into culinary traditions. Tea is used for cooking, particularly in recipes like "Russian tea cakes" or tea-infused dishes, adding to its cultural significance beyond just a drink. Regardless of the season, tea consumption remains consistent in Russia. Cold weather may even amplify tea consumption, contributing to the enduring prominence of tea in the Russian market. In Russia, tea is called chai. The most common preparation of tea is called zavarka. Zavarka is traditionally served in a samovar, which is a large metal container. Chifir' is a strong tea brewed in Russia. It is closely associated with the Russian prison system and is typically drunk by inmates. Russian Country is a blend of four teas (Keemun, Assam, Ceylon, and Formosa Oolong) with a touch of Lapsang Souchong. It is a softer version of the characteristically smoky Lapsang Souchong. The Russian tea industry will face a serious shortage of raw materials this year, due to the ongoing war with Ukraine and unprecedented sanctions imposed on the country – which could result in significant growth of tea prices in the local market. According to the research report "Russia Tea Market Overview, 2028," published by Actual Research, the Russia Tea market was valued around USD 3.40 Billion in 2022. Russian consumers are increasingly demanding premium and specialty teas, such as matcha, oolong tea, and puerh tea. This is due to a growing awareness of the health benefits of these teas and a desire for more unique and flavorful tea experiences. Consumers are becoming more health-conscious and are seeking beverages known for their potential health benefits. Matcha, for instance, is high in antioxidants, vitamins, and amino acids, while oolong tea and puerh tea are often associated with weight management, metabolism boosting, and other health advantages. This awareness of the health properties of these teas contributes to their increased demand. Russian consumers are increasingly interested in tea blends, which offer a variety of flavors and health benefits. Tea blends are also popular because they can be customized to suit individual preferences. Cold brew tea is becoming increasingly popular in Russia, especially among younger consumers. This is due to its refreshing taste and convenience. Russian consumers are increasingly demanding loose leaf tea, as they perceive it to be of higher quality than bagged tea. This is leading to a growing demand for loose leaf tea accessories, such as teapots and infusers. Herbal and fruit teas are becoming increasingly popular in Russia, as consumers are becoming more aware of their health benefits. Herbal teas are often consumed for their medicinal properties, such as relieving stress, improving digestion, and boosting the immune system. Fruit teas are often consumed for their refreshing taste and high vitamin C content. Russian consumers are increasingly interested in organic and fair trade tea. This is due to a growing awareness of the importance of sustainability and ethical sourcing. Organic tea is grown without the use of synthetic pesticides and fertilizers. Fair trade tea is certified to ensure that farmers receive a fair price for their product.

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White tea is often considered a premium or exotic tea variety. Russian consumers, especially those with an inclination towards gourmet experiences, are drawn to the delicate and subtle flavors of white tea, appreciating its rare and sophisticated nature. Russia has a historically strong tea culture, and this interest is expanding into the realm of specialty teas. White tea, with its unique and delicate characteristics, fits into this growing trend toward diverse and higher-quality tea consumption. White tea's subtle flavors and the ceremonial aspect of its preparation align with the Russian tea-drinking rituals, making it an attractive choice for special occasions and ceremonies. White tea is often associated with being minimally processed and organic, which aligns with the preferences of consumers seeking natural and healthy beverage choices. White tea has gained visibility through endorsements by celebrities, influencers, and wellness advocates, influencing consumer choices and preferences. Furthermore, Tea consumption is deeply rooted in Russian culture, particularly in the residential setting. It is a long-standing tradition to drink tea in Russian households, often several times a day, and it holds a significant place in family life and social gatherings. Tea ceremonies and rituals are common in Russian households, especially during gatherings with family and friends. Tea-drinking is an integral part of socializing and hospitality, and this cultural aspect significantly drives tea consumption within homes. Russia has a long history of tea cultivation in regions like the Caucasus and around the Black Sea. The availability of domestically grown tea contributes to its popularity within households. Russian households traditionally have multiple tea breaks throughout the day, including breakfast, mid-morning, afternoon, and after dinner. Tea is consumed as a routine, fostering consistent demand within the residential segment. Russia has seen an expansion in e-commerce platforms, with more consumers turning to online shopping for convenience, extensive product options, and competitive pricing. This trend has facilitated the growth of the online tea market. Online platforms offer a vast array of tea options, including various types (black, green, white, herbal), flavors, and specialty blends. Consumers have access to a more extensive range of choices compared to brick-and-mortar stores. Online channels are particularly beneficial for the sale of niche and specialty teas, catering to consumers seeking unique or hard-to-find tea varieties that might not be available in local stores. The convenience of having tea delivered directly to one's doorstep, especially for bulk orders or specialty teas, contributes to the appeal of online purchases. During seasonal periods and holidays, online platforms often offer exclusive deals and gift packages, attracting consumers seeking tea as a gift or for special occasions. Improvements in online payment methods and security measures offer consumers a safer and more convenient way to make transactions, further encouraging online tea purchases. Some of the well-known and commonly used online distribution channels for tea include Wildberries, Ozon, Ulmart, Utkonos, Lamoda, Tea-Site, Amazon Russia and many more. Considered in this report: • Geography: Russia • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028

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Kripa Shah

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Aspects covered in this report: • Russia Tea market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Tea Type • Green Tea • Black Tea • Oolong Tea • Herbal Tea • White Tea By application • Residential • Commercial

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By Distribution Channel • Supermarkets /Hyper markets • Speciality stores • Convenience stores • Online The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources. Intended audience: This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Tea industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.