

In India, chai isnโt just a drinkโitโs an emotion, a daily ritual, and now, a booming business. Two brands, Chaayos and Chai Point, are leading the charge in this chai revolution, collectively holding ~51% of the market share. We wanted to see how differently theyโve approached Indiaโs love for chai and turned it into a thriving industry.
At first glance, you might think theyโre similar, but theyโre not! Letโs explore how they differ in their models:
๐๐ฐ๐จ ๐๐ง๐ข๐ช๐ฎ๐ ๐๐ฉ๐ฉ๐ซ๐จ๐๐๐ก๐๐ฌ
Chaayos: With the tagline โExperiments with Chai,โ theyโve turned chai into a playground of possibilities. They have excelled at creating the perfect cup with over 12,000 combinations of tea strength, spice levels, milk ratios, and sugar preferences. Itโs a chai loverโs dream come trueโtailored to oneโs taste buds.
Chai Point: With the motto โIndia Runs on Chai,โ the focus is on simplicity. They might not offer as much customization, but itโs all about no-frills, bold flavors that just work.
๐๐ก๐ ๐๐๐๐ค๐๐ ๐ข๐ง๐ ๐๐๐ฆ๐
Chai Point: They were the first company in India to develop and launch a unique heat-retaining use-and-throw flask. Sleek and practical, it was created after nine months of R&D. They also led the sustainability charge, introducing biodegradable packaging long before it became trendy (later adopted by Chaayos).
Chaayos: Following suit, they launched their version of the flask in 2020. Their kettle-style packaging keeps chai warm for almost an hour. However, they designed it to offer a wholesome experience, complete with stirrers and sugar sachets.
๐๐ก๐๐ซ๐ ๐๐ก๐๐ฒ ๐๐ซ๐๐ฐ
Chaayos: Walk into a Chaayos, and no two stores look the same. From cozy lounges to compact kiosks, their spaces adapt to the neighborhoods theyโre in. (In fact, they wanted to challenge the brand uniformity theory.)
Chai Point: Their spaces are more functional yet thoughtful, with plush lounges for professionals and clever โshutter windowsโ to make life easier for delivery partners.
๐๐จ๐ซ๐ ๐๐ก๐๐ง ๐๐ฎ๐ฌ๐ญ ๐๐ก๐๐ข
Chaayos: Their menu dives deep into Indian comfort food, with snacks like vada pav and bun maska that perfectly complement the chai.
Chai Point: They cater to the health-conscious crowd too, offering options like masala daliya and tomato vermicelli.
๐๐ก๐ ๐๐ข๐ ๐ ๐๐ซ ๐๐ข๐๐ญ๐ฎ๐ซ๐
As of FY24, there are 1,238 branded chai outlets in India and both dominate when it comes to revenue, managing 31% of the outlets. This shows just how strong their hold on the premium chai market is.
๐๐ก๐ ๐๐๐ค๐๐๐ฐ๐๐ฒ
The story of Chaayos and Chai Point shows how two very different approaches and diverse strategies can both win- as long as you know the pulse of the customer!
So, whatโs your pick? Letโs talk chai in the comments! โ
Chaayos
Chaipoint & Street Food
chai chaibars chaiculture indiantearetail resconretail
Amardeep is a retail analyst who studies global retail trends and forecasts across diverse sectors, offering insights into the market dynamics, opportunities, and challenges faced by businesses. Her expertise spans both market-wide and city-level analysis, helping organizations navigate the complexities of the retail landscape with informed, data-driven perspectives.
Radhika is a retail analyst specializing in tracking multinational retailers on their strategy, with a focus on "Go-To-Market" approaches. Radhika examines each potential retailer in-depth, across the geographical scope of the USA, APAC, UK, and Europe
Leave A Comment