Tea in packings ≤3 kg market in India

Earlier Report Observations

The Indian tea market in packings ≤3 kg saw production and market volume grow from 1 339 thousand tons and 1 323 thousand tons respectively in 2018 to 1 390 thousand tons and 1 374 thousand tons in 2019. This growth was supported by the Tea Board of India's control orders focused on increasing productivity and heavy investment in tea processing units, which boosted output. Concurrently, consumer attention to branded and nutritious products began driving value growth.

In 2020, market volume dropped to 1 244 thousand tons as COVID-19 pandemic disruptions affected supply chains, even though health trends reinforced tea's wellness image. Recovery followed in 2021, with volume reaching 1 332 thousand tons and market value surging to $8 434 million, largely due to accelerated premiumization where the mass premium segment expanded to 35% of consumption.

The market stabilized around 1 380 thousand tons in volume during 2022-2023, while value moderated to $7 128 million by 2023. Premiumization continued, with the mass premium share reaching 40%, supported by modern retail penetration into smaller cities and launches of new organic and wellness tea products. By 2024, adverse weather conditions emerged as a challenge for production, even as consumer interest in flavored, specialty, and bubble teas kept demand evolving.

Production tea in packings ≤3 kg in India

In kind, 2017-2020, K t

India was the world's second-largest producer of tea in packings of 3 kg or less from 2017 to 2020.

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

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

India's production of tea in packings of 3 kg or less saw a two-year rise before declining. In 2019, output peaked at 1 390 K t, marking a 3.8% increase. However, by 2020, production fell to 1 262 K t, a moderate 9.2% drop from the previous year. Overall, from 2017 to 2020, production decreased by 4.8%, with an average annual decline of 1.6%.

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

In value, 2017-2020, M $ US

The value of India's tea production in packings of 3 kg or less showed minimal change in 2020, reaching 6 832 M $ US. In 2018, the value hit its lowest point at 5 960 M $ US, an 8.9% decrease. The following year, 2019, saw the highest value at 6 863 M $ US, a 15.1% rise. Over the 2017-2020 period, production value increased by 4.4%, with an average annual growth of 1.5%.

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

Exports tea in packings ≤3 kg from India

Exports in kind, t

India's exports of tea in packings of 3 kg or less grew for the second year in a row. In 2018, exports dipped to 15 691 t, a 3.7% decline, but rebounded to 17 733 t in 2020, a solid 12.2% gain over 2019. From 2017 to 2020, export volume rose by 8.8%, with an average annual increase of 2.8%.

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

From 2017 to 2020, the United States, the United Arab Emirates, and Saudi Arabia were India's key export partners for tea in packings of 3 kg or less, accounting for 50.9% of total export volume. The United States led with 21.5%, followed by the UAE at 15.5%, and Saudi Arabia at 13.9%.

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

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

Exports in value, K $ US

India's export value for tea in packings of 3 kg or less increased for the second consecutive year. In 2018, exports fell to 69 864 K $ US, a 13.2% drop, but surged to 96 030 K $ US in 2020, a 23.1% rise from the previous year. Over the 2017-2020 period, export value grew by 19.3%, with an average annual rate of 6.1%.

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

Between 2017 and 2020, the United States, the United Arab Emirates, and Saudi Arabia were the main markets for India's tea exports in packings of 3 kg or less by value, together making up 51.6% of total flows. The United States accounted for 25.1%, the UAE for 14.5%, and Saudi Arabia for 12.0%.

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

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

Imports tea in packings ≤3 kg to India

Imports in kind, t

India's imports of tea in packings of 3 kg or less declined for the third straight year. In 2020, imports dropped to 32 t, a 23.1% decrease from the previous year. From 2017 to 2020, import volume fell sharply by 81.3%, equivalent to an average annual decline of 42.8%.

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

From 2017 to 2020, Zimbabwe, Sri Lanka, and Malawi were the primary sources for India's imports of tea in packings of 3 kg or less, collectively representing 62.7% of total import volume.

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

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

Imports in value, K $ US

India's import value for tea in packings of 3 kg or less stood at 420 K $ US in 2020, down 52.5% from the previous year. In 2019, imports peaked at 885 K $ US, a 9.0% increase. Over the 2017-2020 period, import value decreased by 49.8%, with an average annual drop of 20.5%.

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

Throughout 2017 to 2020, Sri Lanka, Singapore, and Japan formed the core of India's imports by value for tea in packings of 3 kg or less, together accounting for 70.2% of total flows. Sri Lanka led with 32.6%, followed by Singapore at 25.7%, and Japan at 11.8%.

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

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