Tea Market

The article provides a comprehensive analysis of the global tea market, highlighting increasing demand for tea worldwide and forecasted growth in consumption and market value. Key insights include the top consuming and producing countries, import and export statistics, and pricing trends for different types of tea. The data reveals fluctuations in consumption and production volumes over the years, with notable growth rates in specific regions. Overall, the article offers valuable information for stakeholders in the tea industry looking to understand market trends and opportunities for growth.

Market Forecast

Driven by increasing demand for tea worldwide, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +3.0% for the period from 2022 to 2030, which is projected to bring the market volume to 37M tons by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +5.3% for the period from 2022 to 2030, which is projected to bring the market value to $193.2B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Tea

In 2022, after ten years of growth, there was decline in consumption of tea, when its volume decreased by -1.9% to 30M tons. The total consumption volume increased at an average annual rate of +3.3% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2021 with an increase of 6.6% against the previous year. As a result, consumption attained the peak volume of 30M tons, and then fell in the following year.

The global tea market size contracted to $128B in 2022, declining by -6.6% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, the total consumption indicated strong growth from 2012 to 2022: its value increased at an average annual rate of +5.3% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, consumption increased by +66.9% against 2012 indices. As a result, consumption attained the peak level of $137.1B, and then dropped in the following year.

Consumption By Country

The country with the largest volume of tea consumption was China (14M tons), accounting for 48% of total volume. Moreover, tea consumption in China exceeded the figures recorded by the second-largest consumer, India (5.8M tons), twofold. Kenya (1.8M tons) ranked third in terms of total consumption with a 6% share.

From 2012 to 2022, the average annual growth rate of volume in China totaled +6.2%. The remaining consuming countries recorded the following average annual rates of consumption growth: India (+2.0% per year) and Kenya (+3.3% per year).

In value terms, China ($72.9B) led the market, alone. The second position in the ranking was held by India ($18.2B). It was followed by Sri Lanka.

In China, the tea market expanded at an average annual rate of +10.5% over the period from 2012-2022. The remaining consuming countries recorded the following average annual rates of market growth: India (+1.6% per year) and Sri Lanka (-0.6% per year).

The countries with the highest levels of tea per capita consumption in 2022 were Sri Lanka (51 kg per person), Kenya (31 kg per person) and Turkey (15 kg per person).

From 2012 to 2022, the most notable rate of growth in terms of consumption, amongst the leading consuming countries, was attained by China (with a CAGR of +5.7%), while consumption for the other global leaders experienced more modest paces of growth.

Production

World Production of Tea

In 2022, production of tea decreased by -1.6% to 30M tons for the first time since 2011, thus ending a ten-year rising trend. The total output volume increased at an average annual rate of +3.3% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The pace of growth appeared the most rapid in 2021 with an increase of 6.1%. As a result, production attained the peak volume of 30M tons, and then shrank modestly in the following year. The general positive trend in terms output was largely conditioned by a perceptible increase of the harvested area and a relatively flat trend pattern in yield figures.

In value terms, tea production fell to $131.9B in 2022 estimated in export price. Over the period under review, the total production indicated a resilient expansion from 2012 to 2022: its value increased at an average annual rate of +5.7% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production increased by +74.8% against 2012 indices. The most prominent rate of growth was recorded in 2021 when the production volume increased by 16% against the previous year. As a result, production attained the peak level of $141.7B, and then dropped in the following year.

Production By Country

China (15M tons) constituted the country with the largest volume of tea production, comprising approx. 49% of total volume. Moreover, tea production in China exceeded the figures recorded by the second-largest producer, India (6M tons), twofold. Kenya (2.3M tons) ranked third in terms of total production with a 7.8% share.

In China, tea production increased at an average annual rate of +6.0% over the period from 2012-2022. The remaining producing countries recorded the following average annual rates of production growth: India (+1.9% per year) and Kenya (+3.8% per year).

Yield

In 2022, the global average tea yield dropped slightly to 5.7 tons per ha, falling by -2.9% against the previous year. Over the period under review, the yield continues to indicate a relatively flat trend pattern. The pace of growth appeared the most rapid in 2021 when the yield increased by 4.1% against the previous year. Over the period under review, the average tea yield reached the maximum level at 6.3 tons per ha in 2013; however, from 2014 to 2022, the yield remained at a lower figure.

Harvested Area

In 2022, approx. 5.3M ha of tea were harvested worldwide; standing approx. at the previous year's figure. The harvested area increased at an average annual rate of +4.1% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The pace of growth appeared the most rapid in 2017 when the harvested area increased by 12%. Over the period under review, the harvested area dedicated to tea production reached the peak figure in 2022 and is likely to continue growth in years to come.

Imports

World Imports of Tea

After two years of decline, overseas purchases of tea increased by 0.4% to 1.9M tons in 2022. In general, imports saw a relatively flat trend pattern. The most prominent rate of growth was recorded in 2013 when imports increased by 5.8%. As a result, imports reached the peak of 2M tons. From 2014 to 2022, the growth of global imports remained at a somewhat lower figure.

In value terms, tea imports stood at $6.9B in 2022. Over the period under review, imports recorded a relatively flat trend pattern. The most prominent rate of growth was recorded in 2013 with an increase of 8.9% against the previous year. As a result, imports reached the peak of $7.3B. From 2014 to 2022, the growth of global imports remained at a lower figure.

Imports By Country

In 2022, Pakistan (253K tons), followed by Russia (153K tons), the United States (120K tons), the UK (117K tons) and Egypt (111K tons) were the key importers of tea, together mixing up 39% of total imports. Morocco (84K tons), Iran (79K tons), the United Arab Emirates (60K tons), Germany (42K tons), Poland (41K tons), Saudi Arabia (40K tons), China (39K tons) and Iraq (31K tons) followed a long way behind the leaders.

From 2012 to 2022, the most notable rate of growth in terms of purchases, amongst the leading importing countries, was attained by Pakistan (with a CAGR of +7.5%), while imports for the other global leaders experienced more modest paces of growth.

In value terms, the largest tea importing markets worldwide were Pakistan ($642M), the United States ($509M) and Russia ($424M), with a combined 23% share of global imports.

In terms of the main importing countries, Pakistan, with a CAGR of +5.8%, recorded the highest growth rate of the value of imports, over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Imports By Type

In 2022, tea, black; (fermented) and partly fermented tea, in immediate packings of a content exceeding 3kg (1.3M tons) was the main type of tea, committing 68% of total imports. Tea, green; (not fermented), in immediate packings of a content exceeding 3kg (254K tons) took a 13% share (based on physical terms) of total imports, which put it in second place, followed by tea, black; (fermented) and partly fermented tea, in immediate packings of a content not exceeding 3kg (12%) and tea, green; (not fermented), in immediate packings of a content not exceeding 3kg (7%).

Tea, black; (fermented) and partly fermented tea, in immediate packings of a content exceeding 3kg experienced a relatively flat trend pattern with regard to volume of imports. At the same time, tea, green; (not fermented), in immediate packings of a content exceeding 3kg (+4.1%) displayed positive paces of growth. Moreover, tea, green; (not fermented), in immediate packings of a content exceeding 3kg emerged as the fastest-growing type imported in the world, with a CAGR of +4.1% from 2012-2022. By contrast, tea, black; (fermented) and partly fermented tea, in immediate packings of a content not exceeding 3kg (-2.4%) and tea, green; (not fermented), in immediate packings of a content not exceeding 3kg (-2.5%) illustrated a downward trend over the same period. While the share of tea, green; (not fermented), in immediate packings of a content exceeding 3kg (+4.1 p.p.) and tea, black; (fermented) and partly fermented tea, in immediate packings of a content exceeding 3kg (+2 p.p.) increased significantly in terms of the global imports from 2012-2022, the share of tea, green; (not fermented), in immediate packings of a content not exceeding 3kg (-2.4 p.p.) and tea, black; (fermented) and partly fermented tea, in immediate packings of a content not exceeding 3kg (-3.8 p.p.) displayed negative dynamics.

In value terms, tea, black; (fermented) and partly fermented tea, in immediate packings of a content exceeding 3kg ($3.6B) constitutes the largest type of tea imported worldwide, comprising 53% of global imports. The second position in the ranking was taken by tea, black; (fermented) and partly fermented tea, in immediate packings of a content not exceeding 3kg ($1.7B), with a 24% share of global imports. It was followed by tea, green; (not fermented), in immediate packings of a content exceeding 3kg, with a 12% share.

From 2012 to 2022, the average annual rate of growth in terms of the value of tea, black; (fermented) and partly fermented tea, in immediate packings of a content exceeding 3kg imports was relatively modest. With regard to the other imported products, the following average annual rates of growth were recorded: tea, black; (fermented) and partly fermented tea, in immediate packings of a content not exceeding 3kg (-1.3% per year) and tea, green; (not fermented), in immediate packings of a content exceeding 3kg (+6.0% per year).

Import Prices By Type

The average tea import price stood at $3,587 per ton in 2022, picking up by 2.5% against the previous year. In general, the import price, however, recorded a relatively flat trend pattern. The most prominent rate of growth was recorded in 2017 when the average import price increased by 5.8%. As a result, import price reached the peak level of $3,797 per ton. From 2018 to 2022, the average import prices failed to regain momentum.

There were significant differences in the average prices amongst the major imported products. In 2022, the product with the highest price was tea, black; (fermented) and partly fermented tea, in immediate packings of a content not exceeding 3kg ($7,296 per ton), while the price for tea, black; (fermented) and partly fermented tea, in immediate packings of a content exceeding 3kg ($2,779 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by tea, green; (not fermented), in immediate packings of a content exceeding 3kg (+1.8%), while the other products experienced more modest paces of growth.

Import Prices By Country

The average tea import price stood at $3,587 per ton in 2022, growing by 2.5% against the previous year. Overall, the import price, however, saw a relatively flat trend pattern. The pace of growth was the most pronounced in 2017 when the average import price increased by 5.8%. As a result, import price reached the peak level of $3,797 per ton. From 2018 to 2022, the average import prices remained at a lower figure.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Saudi Arabia ($5,715 per ton), while Egypt ($2,435 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Germany (+2.5%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Tea

In 2022, the amount of tea exported worldwide amounted to 2.1M tons, increasing by 3.7% on the year before. In general, exports recorded a relatively flat trend pattern. The pace of growth appeared the most rapid in 2020 with an increase of 9.2% against the previous year. As a result, the exports reached the peak of 2.1M tons; afterwards, it flattened through to 2022.

In value terms, tea exports reduced slightly to $7.9B in 2022. The total export value increased at an average annual rate of +1.2% from 2012 to 2022; the trend pattern remained relatively stable, with only minor fluctuations being recorded in certain years. The pace of growth was the most pronounced in 2017 when exports increased by 10% against the previous year. As a result, the exports reached the peak of $8.3B. From 2018 to 2022, the growth of the global exports failed to regain momentum.

Exports By Country

In 2022, Kenya (569K tons), distantly followed by China (375K tons), Sri Lanka (269K tons), India (219K tons) and Vietnam (118K tons) were the major exporters of tea, together comprising 75% of total exports. Argentina (67K tons), Malawi (46K tons), the United Arab Emirates (45K tons) and Indonesia (38K tons) followed a long way behind the leaders.

From 2012 to 2022, the most notable rate of growth in terms of shipments, amongst the key exporting countries, was attained by Kenya (with a CAGR of +4.8%), while the other global leaders experienced more modest paces of growth.

In value terms, China ($2.1B), Sri Lanka ($1.2B) and Kenya ($1.2B) constituted the countries with the highest levels of exports in 2022, with a combined 58% share of global exports.

China, with a CAGR of +7.2%, recorded the highest rates of growth with regard to the value of exports, among the main exporting countries over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Exports By Type

In 2022, tea, black; (fermented) and partly fermented tea, in immediate packings of a content exceeding 3kg (1.4M tons) was the largest type of tea, creating 66% of total exports. Tea, green; (not fermented), in immediate packings of a content exceeding 3kg (288K tons) took a 14% share (based on physical terms) of total exports, which put it in second place, followed by tea, black; (fermented) and partly fermented tea, in immediate packings of a content not exceeding 3kg (13%) and tea, green; (not fermented), in immediate packings of a content not exceeding 3kg (7.7%).

Exports of tea, black; (fermented) and partly fermented tea, in immediate packings of a content exceeding 3kg increased at an average annual rate of +1.4% from 2012 to 2022. At the same time, tea, green; (not fermented), in immediate packings of a content exceeding 3kg (+3.9%) displayed positive paces of growth. Moreover, tea, green; (not fermented), in immediate packings of a content exceeding 3kg emerged as the fastest-growing type exported in the world, with a CAGR of +3.9% from 2012-2022. Tea, green; (not fermented), in immediate packings of a content not exceeding 3kg experienced a relatively flat trend pattern. By contrast, tea, black; (fermented) and partly fermented tea, in immediate packings of a content not exceeding 3kg (-2.2%) illustrated a downward trend over the same period. From 2012 to 2022, the share of tea, green; (not fermented), in immediate packings of a content exceeding 3kg and tea, black; (fermented) and partly fermented tea, in immediate packings of a content exceeding 3kg increased by +3.5 and +2.9 percentage points, respectively.

In value terms, tea, black; (fermented) and partly fermented tea, in immediate packings of a content exceeding 3kg ($3.8B), tea, black; (fermented) and partly fermented tea, in immediate packings of a content not exceeding 3kg ($1.9B) and tea, green; (not fermented), in immediate packings of a content exceeding 3kg ($1.1B) constituted the products with the highest levels of exports in 2022, together accounting for 87% of global exports.

Tea, green; (not fermented), in immediate packings of a content exceeding 3kg, with a CAGR of +8.2%, saw the highest rates of growth with regard to the value of exports, in terms of the main exported products over the period under review, while shipments for the other products experienced more modest paces of growth.

Export Prices By Type

The average tea export price stood at $3,803 per ton in 2022, falling by -3.9% against the previous year. Over the period under review, the export price, however, continues to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2017 when the average export price increased by 7%. As a result, the export price reached the peak level of $4,004 per ton. From 2018 to 2022, the average export prices remained at a somewhat lower figure.

Prices varied noticeably by the product type; the product with the highest price was tea, black; (fermented) and partly fermented tea, in immediate packings of a content not exceeding 3kg ($7,392 per ton), while the average price for exports of tea, black; (fermented) and partly fermented tea, in immediate packings of a content exceeding 3kg ($2,775 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by tea, green; (not fermented), in immediate packings of a content exceeding 3kg (+4.2%), while the other products experienced more modest paces of growth.

Export Prices By Country

The average tea export price stood at $3,803 per ton in 2022, shrinking by -3.9% against the previous year. Over the period under review, the export price, however, recorded a relatively flat trend pattern. The growth pace was the most rapid in 2017 an increase of 7% against the previous year. As a result, the export price reached the peak level of $4,004 per ton. From 2018 to 2022, the average export prices remained at a somewhat lower figure.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was the United Arab Emirates ($6,201 per ton), while Argentina ($1,241 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by China (+5.2%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform