Time of issue:2020-06-12 00:00:00

How can small tea companies survive during the COVID 19 pandemic?

2022-03-11 16:40

COVID 19 has been a disastrous pandemic as it has impacted almost all sectors across the globe. Many countries are experiencing dwindling economies and as a result, many businesses have been negatively impacted unlike before. The same is true for the companies operating in the global tea industry.


Many of the small firms have been negatively impacted due to the pandemic as they do not run with big cash flows. However, this is not the case for tea giants such as Lipton and Tetley. This is because these companies are well established industry leaders who have captured majority of the consumer market. If we analyze these large corporations, it is evident that they have four factors that make them unique and powerful, i.e. - Brand, Culture, Quality and Capacity.


It is up to the small tea companies to deep dive into the above criterias and try to identify how to make their own small brands powerful amongst consumers. While this is the case, small tea companies should keep in mind that customization of blends is a big trend in the market. Many consumers demand unique tea blends which consist of different types of herbs and health drinks. COVID has just enlarged these unique blend requirements in the market as people are now paying attention to healthy drinks. Tea is the second largest drink in the world and its growing unique demands in terms of blend are creating large circles of sub categories within. The advantage which small tea companies need to realize is that large tea companies are unable to cater to these unique market demands as they have big scale production in their factories forcing them to focus on producing for the mass market. Also, the tea giants are generally reluctant to operate in unique customizations specially if the revenue is not substantial. This creates a vacuum in the market which small tea companies can pitch in and operate in.


In conclusion, the small tea companies are capable of navigating in the tea market during this pandemic, specifically by focusing on producing a unique blend together with strict quality controls. Combining this with an attractive brand and strong character will enable small tea companies to cater to the niche markets and become champions within these segments.


Thank you



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