Brand Loyalty of Tea Drinkers

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Origin & History
There are a number of parables about the origin of tea. One of the popular stories relates it to an Indian ascetic called Bodhidharma (526 B.C). Legend has it that Bodhidharma once fell asleep during meditation. On awakening he was so angered at his own indiscretion that he tore off his eyelids and threw them to the ground. A strange plant with the unique characteristic of banishing sleep grew out of his eyelids. This was tea.
Tea is the most popular non-intoxicating beverage in the world enjoyed by the rich and poor alike. Tea drinking was quite common in China as early as the 6th century B.C. Over a period of time this habit was picked up by neighbouring countries in South East Asia, such as Japan. Western nations started importing tea from China only in the 17th century. The British developed India as a sourcing base in the 19th century to reduce their dependence on China. During the late 19th century and early 20th century, tea cultivation became popular in other colonies like Sri Lanka, Tanzania, Malawi, Kenya, etc. In the last four decades, world production had a growth of 3% pa, which decelerated to 1.5% pa in the last decade.
General Characteristics
Tea is a very popular drink whose demand is relatively insensitive to price. However, being an agricultural commodity its supply is sensitive to weather conditions. Tea plantation and production is highly Labor intensive. Labor cost accounts for around 60% of the total cost of production. Tea bushes begin to yield leaves after 5-7 years and have a life span of about 150 years. This implies that return on new investment is low and spread over along period. World production is concentrated in a few countries like India, Thai, China, Kenya, Sri Lanka and Indonesia mainly on account of climatic conditions. Major import markets are in developed countries but with increase in consumption in developing countries also there is a gradual shift to developing countries becoming big import markets.
Statistics
As per a report by FAO on tea market the tea production increased by 1.8% in 1999 while the consumption increased by 2.05% during the same year. Total world production in 1999 was at 3mn MT. India and China, the largest producers and consumers of tea, account for about 50% of world production. Kenya has emerged as a leading exporter of tea in the world over past two years. While countries like Sri Lanka, Indonesia, Malawi etc too have stepped up their production countries like Pakistan etc have increased their imports. Consumption in other developing markets too is increasing.