Demand for tea is significant and rising, though relatively price inelastic. The top tea producing countries are India, China, Kenya, Sri Lanka, and Indonesia, while the top consuming countries are India, China, Japan, the UK, and Russia/CIS. The supply of tea has traditionally exceeded demand and tea is a non-competitive commodity. Factors affecting demand include price, income, tastes, and expectations, while factors affecting supply include production costs, expectations, input prices, number of suppliers, and policies.

2. Demand And Supply
• Demand is Significant & Ever rising .
• The demand is relatively price inelastic.
• Fierce competition in the market.
Top Five Tea Producing Countries Top Five Tea Consuming Countries
India
Others
30%
25%
India
23%
Others
Indonesia 44%
5%
Kenya China
10% Sri Lanka China
16%
9% 21% Japan UK Russia / CIS
5% 6% 6%
• The supply of tea has always been greater than the
demand.
• Tea is basically a non competitive or a independents
commodity.

3. Factors Affecting Demand And Supply
Demand
• Goods own price
• Price of related goods
• Personal disposable income
• Taste or preferences
• Consumer expectations about future price and income.
Supply
• Conditions of production
• Expectations
• Price of inputs
• Number of suppliers
• Government policies and regulations

4. Price fluctuations