Tea in packings ≤3 kg market in ASEAN

Earlier Report Observations

The ASEAN market for tea in packings ≤3 kg expanded from 428.9 thousand tonnes in 2018 to 469.0 thousand tonnes in 2023. This growth was initially supported by robust economic development in the region, which created a larger middle-class consumer base with a preference for premium and specialty teas. Concurrently, rising health consciousness increased demand for herbal, green, and flavored varieties, prompting companies like Tata Consumer Products to diversify their green tea offerings with herbal infusions.

Following a dip to 409.5 thousand tonnes in 2019, the market recovered as major players launched innovative organic tea variants with compostable and biodegradable packaging. The expansion of e-commerce tea brands in 2020 accelerated the adoption of sustainable packaging solutions such as paper boards, aligning with growing consumer awareness for eco-friendly products. This shift in packaging trends helped attract younger consumers and supported market volume growth.

From 2021 onward, market consolidation, exemplified by CVC Capital Partners' acquisition of Unilever's Ekaterra, coincided with a strong industry focus on sustainability. Over a third of global tea launches featured environmentally friendly packaging, and ASEAN markets followed with increased use of compostable and recyclable materials. Innovations in packaging taste and flavor, alongside consumer willingness to pay more for plastic-free options, further sustained the upward trajectory of market volume.

Production tea in packings ≤3 kg in ASEAN

In kind, 2017-2020, K t

Top producers of tea in packings ≤3 kg, 2017-2020

World map of production of tea in packings ≤3 kg, 2017-2020

ASEAN's production of tea in packings of 3 kg or less increased after two years of decline. In 2020, the region produced 426.9 thousand tonnes, marking a modest 5.2% improvement over the previous year. Looking at the period from 2017 to 2020, overall production decreased by 4.6%, with a compound annual growth rate of 1.6%. The lowest production level was recorded in 2019 at 405.8 thousand tonnes, which also saw the largest decline of 6.1%.

Annual dynamics of production in ASEAN in kind, 2017-2020, K t

Exports tea in packings ≤3 kg from ASEAN

Exports in kind, t

Market performance showed noticeable fluctuations during this period. ASEAN exported 10,896 tonnes of tea in packings of 3 kg or less in 2020, representing a dramatic 89.8% increase compared to the previous year. The lowest export volume was in 2019 at 5,742 tonnes, with the largest decline occurring in 2018 at 50.4%. Import levels varied significantly, with a 3.7-fold difference between the high in 2017 and the low in 2019.

Annual dynamics of product's exports from ASEAN in kind, 2017-2020, t

From 2017 to 2020, the largest buyers of ASEAN's tea in packings of 3 kg or less were China, accounting for 11.0% of exports in kind, Australia at 8.8%, and South Korea at 8.2%. However, their combined share was limited to 28.1% of total exports, reflecting a diversified country structure.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from ASEAN in kind, 2017-2020

Exports in value, K $ US

After two years of decline, ASEAN's exports of tea in packings of 3 kg or less increased. In 2020, exports totaled 83,769 thousand US dollars, equivalent to a 16.8% rise over the previous year. Between 2017 and 2020, exports grew by 9.5%, with an annualized rate of 3.1%. The lowest value was recorded in 2019 at 71,698 thousand US dollars, which also saw the largest decline of 6.2%.

Annual dynamics of product's exports from ASEAN in value, 2017-2020, K $ US

From 2017 to 2020, exports in value terms were distributed across a wide range of partner countries. Australia accounted for 11.7% of exports in value terms, followed by Asia, not elsewhere specified at 5.0%, and China at 4.0%. Together, these three represented just 20.8% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from ASEAN in value, 2017-2020

Imports tea in packings ≤3 kg to ASEAN

Imports in kind, t

After two years of increase, ASEAN's imports of tea in packings of 3 kg or less from abroad declined. In 2020, imports reached 8,357 tonnes, indicating an 11.4% drop compared to 2019. Over the period from 2017 to 2020, imports increased by 51.8%, with a compound annual growth rate of 14.9%. The highest import volume was recorded in 2019 at 9,430 tonnes, which also saw the largest increase of 35.2%.

Annual dynamics of product's imports to ASEAN in kind, 2017-2020, t

From 2017 to 2020, the largest suppliers of tea in packings of 3 kg or less to ASEAN were China, contributing 25.2% of imports in kind, Asia, not elsewhere specified at 7.4%, and India at 5.9%. Their combined share was limited to 38.4% of total imports, reflecting a diversified country structure.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to ASEAN in kind, 2017-2020

Imports in value, K $ US

After two years of increase, ASEAN's imports of tea in packings of 3 kg or less declined. In 2020, imports totaled 85,185 thousand US dollars, representing an 8.7% decrease year-over-year. Over the period from 2017 to 2020, imports increased by 46.8%, with a compound annual growth rate of 13.7%. The highest value was recorded in 2019 at 93,314 thousand US dollars, which also saw the largest increase of 29.3%.

Annual dynamics of product's imports to ASEAN in value, 2017-2020, K $ US

From 2017 to 2020, the partner structure for imports in value terms was balanced rather than concentrated. China accounted for 26.2% of imports in value terms, Japan for 11.4%, and Sri Lanka for 7.8%. Together, these three countries represented 45.5% of total flows, with many other countries accounting for the remaining 54.5%.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to ASEAN in value, 2017-2020