Zarin T.

What if Ispahani Mirzapore Tea launches in New Zealand?

Ispahani Mirzapore Tea is a well-known brand of tea that has a long and rich history dating back to the 19th century. The company was founded by the Ispahani family, which was a prominent and influential business family in East India at the time. Ispahani Mirzapore Tea is renowned all over Bangladesh and its best-selling brands such as Mirzapore Best Leaf and Mirzapore Double Chamber Tea Bags are household names. The company has an unrivaled distribution network of over 517 sales centers under 25 Divisional offices in Chittagong, Dhaka, Dhaka North, Dhaka West, Pabna, Habiganj, Bogra, Barisal, Comilla, Khulna, Kushtia, Mymensingh, Rangpur, Dinajpur, Sylhet, Dhaka South, Dhaka East, Kishoreganj,Tangail, Chittagong South, Chittagong North, Jessor, Rajshahi and Faridpur. It also owns four of the finest tea gardens in Bangladesh: Ghazipore, Mirzapore, Zareen and Neptune, all of which are equipped with state-of-the-art tea manufacturing machinery.

Why New Zealand?

New Zealand, 7th country out of the world’s top 10 tea consumption countries, has a strong demand for high-quality tea, with a growing market for specialty and artisanal blends. Also, a reputation for producing high-quality food and beverage products, which can help to boost the reputation of imported tea. The country has a strong tradition of tea culture, with a well-established tea industry and a growing number of specialty tea shops. New Zealand is known for having a stable and business-friendly environment, which can be attractive for companies looking to expand internationally. The country also has strong protections for intellectual property, which can be important for businesses that rely on their brand and product offerings.

In 2015, New Zealand’s tea market had a value of 125.80 million USD (estimated using retail prices). The tea market in New Zealand is anticipated to grow at a CAGR of 4.17% each year from 2020 to 2025, reaching 199.07 million USD (in retail prices). Compared to the rise of roughly 5.46% each year that was seen from 2015 to 2019, this represents a drop. In 2015, the average per capita consumption in terms of value was 27.56 USD (at retail prices). It increased at an annual CAGR of 4.42% over the following five years. The indicator is expected to slow down and expand at a CAGR of 3.30% per year over the medium term (by 2025).

New Zealand has a growing market for specialty teas, including those that are organic and sustainably sourced. This could be a good opportunity for a business to tap into a new market with a high demand for high-quality tea products. Customers are demonstrating strong preferences for single estate artisanal teas and functional botanical mixes, which is another good market development known as premiumization. People are becoming more and more interested in unique flavor combinations, authenticity, and the history of particular brands. According to a recent trend, natural, earthy alternative flavors like ginger, matcha, turmeric, and cumin are more popular than other sorts. Another trend in food service is cheese tea, which has become particularly well-liked in Asian nations including Malaysia, Taiwan, and China. Tea pairing menus have become popular, which is another intriguing trend in the tea industry. Different restaurants have been attempting to improve the dining experience by creating a multi-course tea matching menu as customers have been choosing more distinctive and experience-driven items. As new ready-to-drink beverages and iced tea varieties have been created, the tea market has also been growing outside of the hot beverage category. For instance, kombucha, which was once a specialty item, has grown significantly over the past few years to become a well-known item at large-format supermarkets.

In recent years, the tea market has seen a significant evolution in keeping with shifting consumer trends. The demand for healthy green, functional botanical teas and herbal blends has increased since tea lovers nowadays are more interested in high-quality goods with an interesting backstory and beverages that provide them with specific health advantages. Additionally, the way that tea is perceived has changed as well. The majority of younger customers now see tea as a sensuous and healthy beverage because New Zealand has a strong focus on health and wellness, making it a good market for tea producers promoting the health benefits of tea.

New Zealand has strong trade relationships with a number of countries, including many in the Asia-Pacific region, which could make it easier for a business to establish new supply chains and distribution networks. The country’s close proximity to major tea-producing countries in Asia makes it an ideal market for importing fresh tea. New Zealand has a long tradition of tea consumption and a sophisticated tea culture, making it a receptive market for new tea products. The country has a well-developed transportation and logistics infrastructure, making it easy to import and export tea. It’s worth noting that exporting a business to any country can be a complex process, and it’s important to carefully consider all the factors that could impact a decision. It’s a good idea to research the market, consult with experts, and seek advice from local business organizations before making a final decision.

According to the UN COMTRADE database on global commerce, Bangladesh exported coffee, tea, mate, and spices to New Zealand for a total of US$7.96 thousand in 2015. The data, historical chart, and statistics on Bangladesh’s exports of coffee, tea, mate, and spices to New Zealand were last updated in December 2022.

The political environment in New Zealand is stable and democratic, with a government that is committed to free trade and open markets. This provides a favorable environment for exporting tea, as there are no significant barriers to entry for foreign companies and there are few regulatory or political hurdles to overcome. The political environment in New Zealand is generally stable and the country is a member of the World Trade Organization, which facilitates international trade. The government also encourages small and medium-sized enterprises to participate in international trade through various programs and initiatives.

Political stability index (-2.5 weak; 2.5 strong), 2021 – Country rankings: Based on 194 countries, the average for 2021 was -0.07 points. Liechtenstein had the highest rating (1.64 points), while Somalia had the lowest value (-2.68 points) and New Zealand was 5th. The indicator can be used between 1996 and 2021. The chart for a few nations where data are available is shown below:

Economic Environment of New Zealand
For the year ending in December 2021, New Zealand’s two-way trade climbed by 8% to $163.6 billion, with $77.2 billion in exports and $85.4 billion in imports, resulting in a $8.2 billion trade deficit. For the year ending in December 2021, New Zealand’s total exports decreased by 1%, with robust growth in goods exports (up 6% to $63.3 b) offsetting a 25% reduction in services exports to $13.9 b. 2019’s goods exports are now significantly greater than they were before COVID, with rising export prices (especially for commodities) serving as the primary driver of higher export income.
On the other hand, imports of goods climbed by 22% ($12 billion) to $66.1 billion, which is 8% more than they were before to COVID. Strong domestic consumer demand and business investment have been the main drivers of this significant growth in imports.

Including $85.4 billion in imports and $77.2 billion in exports, New Zealand’s two-way trade increased by 8% to $163.6 billion in 2021. Despite this expansion, two-way commerce is still 6% lower than it was in 2019, mostly as a result of continuing deterioration in the services sector. As services exports, which totaled $13.9 billion in 2019, fell to almost half their value in 2019, overall exports decreased by 1% throughout the course of the year. Nevertheless, exports of goods have increased significantly from pre-COVID levels, rising 6% from 2019 to $63.3 billion. Compared to 2020, total imports increased by 19% to $85.4 billion, with goods increasing by 22% to $66.2 billion and services by 11% to $19.3 billion, respectively. As a result, there was a $8.2 billion global trade imbalance in 2021.

The economic environment in New Zealand is also supportive of exporting tea, as the country has a strong and diversified economy with a well-developed infrastructure and transportation network. New Zealand is a member of the World Trade Organization (WTO) and has free trade agreements with many countries, including China, the United States, and Australia. This allows for easy access to international markets for tea exports. Overall, the political and economic environment in New Zealand is favorable for exporting tea, and the country has a strong foundation for success in this industry.

Economics Indicators

We see that from 2017 to 2021, Bangladesh’s GDP rate has increased and at a time in a pandemic situation it has decreased a little bit. But on the other hand New Zealand’s GDP growth rate was very disappointing and it was on a decreasing stage over the last 5 years.

Here we see that, compared to Bangladesh’s Per capita income, New Zealand’s per capita income has increased massively over the last 5 years. From this information we can assume that New Zealand’s per capita income level is in a good stage.

IF we talk about the Inflation Rate of Bangladesh, that is not good enough for a developing country. On the other hand, New Zealand’s inflation rate is very low compared to Bangladesh.

And from the last topic Human Development Index, we see that Bangladesh is in a good position at its score rate. According to news, Bangladesh came to 129th position in HDI Score. On the other hand, New Zealand’s HDI score has not increased much over the last 5 years. And according to a global report New Zealand’s position was 14 out of 192 countries.

Benefits Ispahani Mirzapore Tea Can Get from New Zealand

The New Zealand government is supportive of small businesses and encourages exports, providing resources and assistance to help businesses succeed. New Zealand has a stable political environment and strong rule of law, making it a safe and reliable market for tea exports. The country has a strong export market, with strong demand for tea in other countries around the world. This provides opportunities for tea businesses to tap into global markets and grow their exports.

Export Market Development Grants (EMDG): This is a financial assistance program that provides funding to help businesses enter or expand into new export markets.
Trade Agreement Support Scheme (TASS): This program helps businesses access export opportunities through free trade agreements by providing funding for activities such as market research, business development, and participation in trade shows and missions.
Export Credit Insurance: This program helps businesses reduce the risk of non-payment by foreign buyers by providing insurance coverage for exports.
TradeFinder: This is an online platform that connects businesses with trade partners and helps them identify export opportunities.
Trade Missions: The New Zealand government often organizes trade missions to help businesses connect with potential partners in target markets.
Investment Incentives: The New Zealand government may offer investment incentives, such as tax breaks or grants, to encourage Ispahani Mirzapore to invest in the country.
Access to New Markets: By investing in New Zealand, Ispahani Mirzapore may have access to new markets and customers in the region.
Trade Agreements: New Zealand has trade agreements with several countries, including the United States, China, and Australia, which could potentially benefit Ispahani Mirzapore by reducing tariffs and other trade barriers.
Business Support: The New Zealand government may offer support to Ispahani Mirzapore through business development programs and services, such as access to research and development funding or advice on navigating the local business environment.
Access to Skilled Labor: New Zealand has a highly skilled and educated workforce, which could be a valuable resource for Ispahani Mirzapore.
Access to Technology and Innovation: New Zealand is home to a thriving tech industry, and Ispahani Mirzapore could potentially benefit from access to innovative technologies and research.
Increased Market Access: Exporting to New Zealand allows Ispahani Mirzapore Tea to tap into a new market, potentially increasing the brand’s customer base and revenue.
Diversification: Diversifying the brand market by exporting to New Zealand reduces a company’s reliance on a single market, mitigating risk and increasing stability for the business.
Increased Competitiveness: Exporting can increase the competitiveness of a business, as it allows the business to access new customers and suppliers, and potentially increase the brand’s scale of production.
Increased Revenue and Profits: Exporting to New Zealand can increase a business’s revenue and profits, as the company has the opportunity to sell their products at higher prices in a new market.
Improved Brand Recognition: Exporting can increase the recognition of a brand in the New Zealand market, helping the brand to stand out against competitors and build a loyal customer base.
Improved Efficiency and Productivity: Exporting can help a business to improve efficiency and productivity by streamlining operations, increasing economies of scale, and potentially gaining access to new technology and expertise.
Greater Access to Resources: Exporting to New Zealand can provide a business with access to new resources, such as raw materials, suppliers, and distribution networks, which can help to reduce costs and improve the quality of products.
Greater Stability and Security: Exporting to New Zealand can provide a business with greater stability and security, as it diversifies the market and helps to mitigate risk.
Increased Cultural Understanding: Exporting to New Zealand can provide a company with the opportunity to learn about and understand different cultures and business practices, which can help to increase the company and its employee’s knowledge and expertise in the global market.

Launching Ispahani Mirzapore Tea in New Zealand presents both benefits and risks. On the benefit side, there is a strong demand for premium tea in New Zealand, and Ispahani Mirzapore Tea has a reputation for high quality and unique flavors that could appeal to consumers in the market. Additionally, New Zealand has a relatively small and open economy, making it a relatively easy market to enter compared to other countries.

Thanks to these helpful headlines – New Zealand Economy – GDP, Inflation, CPI and Interest Rate, New Zealand: Tea Market and the Impact of COVID-19 on It in the Medium Term, Bangladesh Exports of coffee, tea, mate and spices to New Zealand – 2022 Data 2023 Forecast 1990-2015 Historical, New Zealand Product Imports from Bangladesh 2016 | WITS Data, New Zealand Economy – GDP, Inflation, CPI and Interest Rate, New Zealand Inflation Rate 1960-2022 | MacroTrends and Political stability by country, around the world.