LPG Shortage Could Drive Instant Tea Demand, Says Guwahati Tea Auction Buyers’ Body

A potential shortage of Liquefied Petroleum Gas (LPG) in parts of India could create an unexpected opportunity for the country’s instant beverage segment, with industry observers expecting a rise in demand for instant tea products. “Tea preparation in most Indian households traditionally requires boiling water, milk and tea leaves on an LPG stove. However, supply disruptions or rising LPG prices often push consumers to adopt quicker and more energy-efficient alternatives. Instant tea, which requires only hot water for preparation, could benefit from this shift,” stated Dinesh Bihani, Secretary of the Guwahati Tea Auction Buyers Association.

Unlike conventional tea, instant tea can be prepared using electric kettles, induction heaters, or office water boilers, significantly reducing dependence on cooking gas. “This makes it particularly attractive for urban households, offices, travel hubs and small food outlets where LPG usage may become constrained,” Bihani said. Market participants say the trend could accelerate the growth of the value-added tea segment, which includes instant tea powders, premixes, and ready-to-drink beverages. These products rely on processed tea extracts and offer convenience along with longer shelf life. India, one of the world’s largest tea producers, has been gradually expanding its instant tea manufacturing capabilities. Industry experts believe that any prolonged LPG supply disruption could further encourage consumers to shift toward instant beverage formats.

“For tea-producing regions such as Assam, this shift could open new avenues for value addition and export opportunities, particularly as global demand for convenient beverage solutions continues to rise,” he said. While traditional brewed tea remains deeply ingrained in Indian culture, changing consumption patterns driven by convenience and energy efficiency may provide a significant boost to the instant tea market in the coming months.