Tea Industry analysis

Tea is a major consumed beverage in the world because it has been a culture for people to take it, and the culture has been carried forward from generation to the other. Also, its health benefit has made the demand increase subsequently, especially at the current times when there are so many toxic being emitted daily, and people are using it to remove those toxins. According to (Kumarihami and Song 2018), tea instigated in China, and its production has spread throughout 35 countries in the world with major regions in Asia, Africa, and smalls scales in Latin America. Anderson (2014), the global tea production trend has moved progressively from 2008 to the year 2016, where the largest exporters were China, Sri Lanka, and Kenya, and earned USD1.6 billion, USD1.5 billion and 1.4 billion respectively. Additionally, the production in years 2014, 2015 and 2016, were 5,000,000 metric tonnes, 5,500,000 metric tonnes and 6,000,000 metric tonnes respectively. The trend indicates there are more opportunities for growth.

According to (Baral 2019) research, the results indicated that there was a low bargaining power between the input sellers and tea customers and that there was robust internal competition among the manufacturers. Also, the industry looks less striking to new entrants. Again, Baral noted the sector to be facing significant challenges, which included; (a).there is partial and inadequate production, (b).squat economies of scale, (c).messy supply chain system, and (d).restricted access to the worldwide market by young producers.