Tea in packings ≤3 kg market in Iran

Earlier Report Observations

The market for tea in packings ≤3 kg in Iran grew to 34 787 tonnes in 2019 from 33 780 tonnes in 2018, primarily due to government-guaranteed purchases of green tea leaves from farmers in the northern provinces, which revitalized domestic production. However, from 2020 onward, the market volume contracted, falling to 31 925 tonnes in 2021 and stabilizing near 31 976 tonnes in 2022. This decline was driven by substantial price increases for tea caused by global price fluctuations, rising production and packaging costs, and domestic inflation coupled with currency depreciation, which reduced consumer purchasing power.

Consumer preferences shifted toward domestically produced tea during this period, while packaging standards improved with the adoption of automated equipment and materials that better preserve freshness. The longstanding ban on imports of tea in packings under 10 kg reinforced the focus on local manufacturing, and companies increasingly offered smaller, attractive packages to cater to changing tastes and explore export opportunities.

A steep contraction occurred in 2023, with market volume dropping to 25 438 tonnes as domestic production fell sharply to 23 814 tonnes. Imports rose to 1 744 tonnes that year and further to 2 739 tonnes in 2024, indicating a growing reliance on foreign tea to meet demand amid ongoing market adjustments.

Production tea in packings ≤3 kg in Iran

In kind, 2017-2020, t

From 2017 to 2020, Iran ranked 15th globally in the production of tea in packings of 3 kg or less.

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

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

After two years of growth, Iran's production of tea in packings of 3 kg or less declined. In 2020, Iran produced 34 000 tonnes, marking a 2.9% decrease from the previous year. Over the 2017-2020 period, production increased by 2.6%, with a compound annual growth rate of 0.9%. The highest production level was recorded in 2019 at 35 000 tonnes, while the largest annual increase occurred in 2018 at 3.3%.

Annual dynamics of production in Iran in kind, 2017-2020, t

Exports tea in packings ≤3 kg from Iran

Exports in kind, t

In 2020, Iran's exports of tea in packings of 3 kg or less reached 344.7 tonnes, representing a 58.3% increase year-over-year. From 2017 to 2020, exports decreased by 9.6%, with a compound annual growth rate of -3.3%. The lowest export volume was recorded in 2019 at 217.7 tonnes, while the highest was in 2018 at 436.4 tonnes. The most significant decline occurred in 2019, with a drop of 50.1%.

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

From 2017 to 2020, Turkmenistan, Afghanistan, and Uzbekistan were the key partners for Iran's exports of tea in packings of 3 kg or less, accounting for 26.7%, 19.0%, and 8.1% of exports in kind, respectively. Together, they represented 53.8% of total export flows.

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

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

Exports in value, K $ US

The market showed an unstable trend during this period. Exports peaked in 2017 and reached their lowest point in 2019, with a 3.7-fold difference between these years. In 2020, Iran exported 430 000 US dollars worth of tea in packings of 3 kg or less, indicating a sharp increase of 113.4% compared to 2019. The minimum value was recorded in 2019 at 202 000 US dollars, and the largest decline occurred that same year at 70.7%.

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

The market base for exports in value terms from 2017 to 2020 was broad. Turkmenistan, Afghanistan, and the United Arab Emirates accounted for 20.9%, 17.7%, and 7.1% of exports in value terms, respectively, totaling just 45.7% of total flows. The remaining 54.3% was distributed among numerous other countries.

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

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

Imports tea in packings ≤3 kg to Iran

Imports in kind, t

Imports of tea in packings of 3 kg or less into Iran declined for the second consecutive year. In 2019, import volume stood at 4.9 tonnes, indicating a dramatic decrease of 70.9% compared to the previous year. Between 2017 and 2019, imports fell by 98.7%, equating to an annualized rate of -76.5%.

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

The country composition of imports in kind from 2017 to 2020 was dispersed. Sri Lanka, Free Zones, and Kenya accounted for 29.6%, 8.9%, and 3.8% of imports in kind, respectively, together forming just 42.3% of total flows. The remaining 57.7% was split among a wide range of other destinations.

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

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

Imports in value, K $ US

Imports of tea in packings of 3 kg or less into Iran declined for the second consecutive year. In 2019, imports totaled 15 000 US dollars, indicating an abrupt drop of 86.0% compared to 2018. Between 2017 and 2019, imports decreased by 99%, equating to an annualized rate of -78.1%.

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

From 2017 to 2020, Sri Lanka, Free Zones, and Poland were the largest suppliers of tea in packings of 3 kg or less to Iran, accounting for 28.5%, 9.2%, and 6.3% of imports in value terms, respectively. However, their combined contribution was limited to 44.0% of total imports in value terms, reflecting a diversified country structure.

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

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