Tea in packings ≤3 kg market in China

Earlier Report Observations

The market for tea in packings ≤3 kg in China saw consistent volume growth from 2 481 thousand tons in 2018 to 3 403 thousand tons in 2023. This expansion was initially supported by improvements in cultivation and processing techniques, which enhanced product quality and yield. The rise of online sales platforms broadened market access and helped sustain growth through the pandemic period, as the industry began to recover with rising disposable incomes. Subsequently, the entry of younger consumers, attracted by trendy formats like bagged tea and novel brewing methods such as 'stove-boiled tea,' provided a fresh source of demand.

In value terms, the market peaked at $23 555 million in 2021 before declining to $18 320 million by 2023. The shift in consumer preferences towards more affordable and convenient products, including bagged tea popular with younger demographics, moderated average prices. Furthermore, from 2023, mandatory national standards aimed at curbing excessive packaging began to influence the market, reducing packaging costs and simplifying product offerings. Concurrently, leading players like Bamacha accelerated digitalization and smart production, aiming to boost efficiency amidst these structural changes.

Production tea in packings ≤3 kg in China

In kind, 2017-2020, K t

China was the world's leading producer of tea in packings of 3 kilograms or less from 2017 to 2020, consistently ranking first in production volume.

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

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

China's production of tea in packings of 3 kilograms or less grew for the third consecutive year. In 2020, output reached 2 932 thousand tonnes, marking a controlled year-on-year increase of 5.6%. Over the period from 2017 to 2020, production rose by 19.2%, with a compound annual growth rate of 6.0%.

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

In value, 2017-2020, M $ US

The production value of tea in packings of 3 kilograms or less in China increased for the third year in a row. In 2020, it was valued at 23 473 million US dollars, reflecting a strong 17.4% rise compared to 2019. Between 2017 and 2020, production value grew by 56.7%, equating to an annualized rate of 16.2%.

Annual dynamics of production in China in value, 2017-2020, M $ US

Exports tea in packings ≤3 kg from China

Exports in kind, K t

After a two-year decline, the volume of tea in packings of 3 kilograms or less exported from China increased. In 2020, exports amounted to 132.8 thousand tonnes, a small increase of 1.4% from the previous year. Between 2017 and 2020, exports decreased by 3.2%, with an annualized rate of decline of 1.1%. The lowest volume was recorded in 2019 at 131.0 thousand tonnes, while the largest decline occurred in 2018 at 2.6%.

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

From 2017 to 2020, tea in packings of 3 kilograms or less from China was exported to a wide range of markets. Even the top destinations—Ghana, Senegal, and Mauritania—together accounted for only 35.1% of total export volumes, indicating a diversified market structure.

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

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

Exports in value, M $ US

The value of tea in packings of 3 kilograms or less exported from China increased for the third consecutive year. In 2020, exports reached 1 063 million US dollars, showing a strong gain of 12.8% compared to 2019. Between 2017 and 2020, export value rose by 27.3%, with an annualized growth rate of 8.4%.

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

From 2017 to 2020, Hong Kong, Ghana, and Malaysia were the largest buyers of tea in packings of 3 kilograms or less from China in value terms, contributing 20.7%, 8.1%, and 6.8% of exports, respectively. However, their combined share was limited to 35.6% of total export value, reflecting a diversified country structure.

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

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

Imports tea in packings ≤3 kg to China

Imports in kind, K t

Imports of tea in packings of 3 kilograms or less into China declined for the second consecutive year. In 2020, imports amounted to 2.9 thousand tonnes, a significant decrease of 10.7% compared to 2019. Between 2017 and 2020, imports fell by 8.5%, with an annualized decline of 2.9%. The highest volume was recorded in 2018 at 3.8 thousand tonnes, while the largest decline occurred in 2019 at 13.2%. The largest increase was in 2018 at 18.1%.

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

From 2017 to 2020, the main suppliers of tea in packings of 3 kilograms or less to China were Asia, not elsewhere specified, Sri Lanka, and Poland, accounting for 41.8%, 28.0%, and 7.1% of import volumes, respectively. Together, they formed 76.9% of total imports in kind.

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

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

Imports in value, M $ US

After a two-year rise, the value of tea in packings of 3 kilograms or less imported into China declined. In 2020, imports reached 39 million US dollars, reflecting a decrease of 23.4% year-on-year. Over the period from 2017 to 2020, import value decreased by 4%, with a compound annual growth rate of -1.4%. The highest value was recorded in 2019 at 51 million US dollars, while the largest increase occurred in 2018 at 20.9%.

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

From 2017 to 2020, the three main markets—Asia, not elsewhere specified, Sri Lanka, and Poland—together accounted for 72.9% of the total import value of tea in packings of 3 kilograms or less into China.

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

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