Tea in packings ≤3 kg market in Nepal

Earlier Report Observations

From 2018 to 2019, Nepal's tea market expanded, with production rising from 24,803 t to 25,206 t and market volume increasing from 24,794 t to 25,182 t. This growth was supported by government extension programs through the National Tea and Coffee Development Board and the emergence of blending operations and packaging innovations in orthodox tea factories.

Market volume then contracted over the next two years, falling to 23,957 t in 2020 and 23,799 t in 2021. During this period, the industry began emphasizing organic and specialty teas, particularly in regions like Ilam, reflecting a shift in consumer preferences towards higher-quality, health-conscious products.

Production and market volume recovered from 2022 onward, reaching 25,500 t and 25,457 t respectively by 2023. The rebound was driven by the entry and expansion of private-sector players such as Nepal Tea Exchange, which promoted Nepalese orthodox teas globally, and by sustained demand for organic, high-altitude teas. In 2024, tea exports surged by 52% in the early part of the fiscal year, driven by high demand from India, underscoring the growing international appeal of Nepalese tea.

Production tea in packings ≤3 kg in Nepal

In kind, 2017-2020, t

From 2017 to 2020, Nepal ranked 19th 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

Following two years of growth, Nepal's production of tea in packings of 3 kg or less declined. In 2020, production reached 24 118 tonnes, marking a 4.3% year-on-year contraction. Over the 2017-2020 period, production decreased by 2.2%, with a compound annual growth rate of 0.7%. The highest production level was recorded in 2019 at 25 206 tonnes, which also saw the largest increase of 1.6%.

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

Exports tea in packings ≤3 kg from Nepal

Exports in kind, t

The market exhibited volatility during the observed period. Exports reached their lowest point in 2018 at 51.0 tonnes, which represented the largest decline of 61.8%. By 2020, exports had surged to 196.5 tonnes, showing a 188.5% increase from the previous year, with a 3.9-fold difference between the peak in 2020 and the trough in 2018.

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

From 2017 to 2020, Russia and India were the primary export destinations in volume terms, jointly accounting for 89.1% of total flows, while the remaining share was distributed among other markets.

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

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

Exports in value, K $ US

Nepal's exports of tea in packings of 3 kg or less increased for the second consecutive year. In 2020, exports amounted to 567.7 thousand US dollars, reflecting a sharp 53.9% improvement compared to 2019. Between 2017 and 2020, exports grew by 17.2%, equating to an annualized rate of 5.4%. The lowest value was recorded in 2018 at 294.4 thousand US dollars, which also saw the largest decline of 39.2%.

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

From 2017 to 2020, three main markets—Russia, India, and Germany—together absorbed 80.2% of the total export value of tea in packings of 3 kg or less from Nepal.

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

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

Imports tea in packings ≤3 kg to Nepal

Imports in kind, t

After two years of gains, Nepal's imports of tea in packings of 3 kg or less declined. In 2020, imports were recorded at 35.9 tonnes, representing an 18.3% loss over the past year. Between 2017 and 2020, imports increased by 16.7%, equating to an annualized rate of 5.3%. The highest import volume was in 2019 at 44.0 tonnes, while the largest increase occurred in 2018 at 36.8%.

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

From 2017 to 2020, India was the key supplier of tea in packings of 3 kg or less to Nepal, accounting for 78.5% of total imports in volume terms, with a diversified group of other countries making up the remainder.

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

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

Imports in value, K $ US

Following a two-year increase, Nepal's imports of tea in packings of 3 kg or less declined. In 2020, imports totaled approximately 188.4 thousand US dollars, indicating a 9.1% decline over the past year. Over the 2017-2020 period, imports increased by 4.9%, with a compound annual growth rate of 1.6%. The maximum value was recorded in 2019 at 207.3 thousand US dollars, while the largest increase occurred in 2018 at 8.3%.

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

From 2017 to 2020, India remained the primary source for tea in packings of 3 kg or less to Nepal, accounting for 81.7% of total imports in value terms, with other destinations being much less significant.

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

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