Tea in packings ≤3 kg market in SADC

Earlier Report Observations

In 2018, the market for tea in packings ≤3 kg reached 112.7 thousand tons, supported by the re-imposition of import tariffs and a 'buy-local' campaign to bolster domestic producers. However, the market contracted to 104.3 thousand tons in 2019 due to continued pressure from the removal of export duties in other African tea-producing countries, which raised production costs and increased competition. The implementation of the R1153 regulations for grading, labeling, and packaging in 2020 added compliance costs, contributing to a further decline to 98.1 thousand tons.

COVID-19 logistics disruptions in 2021 caused a temporary drop in international tea prices, affecting exporter profitability, while the introduction of AfCFTA tariff cuts on black tea reshaped regional trade flows, with the market volume falling to 95.6 thousand tons. In 2022, minimum wage adjustments increased labor costs for tea estates, and although major brands launched new functional-tea product lines, the overall market decreased to 91.2 thousand tons. By 2023, regulatory uncertainty from delayed front-of-pack warning-label rules and rising consumer price inflation influenced retail strategies, reducing the market to 86.1 thousand tons.

In 2024, China's reduction of import duties on South African rooibos tea boosted export volumes, while the EU's reinforced PDO labeling requirements tightened export standards, though full market volume data for the year is not yet available.

Production tea in packings ≤3 kg in SADC

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

SADC's production of tea in packings of 3 kg or less declined for the second year in a row. In 2020, the region produced 97.0 K t of this tea, marking a moderate year-over-year decrease of 7.7%. From 2017 to 2020, overall production fell by 4.7%, which translates to an average annual decline of 1.6%. The highest production level was recorded in 2018 at 109.9 K t, with the largest increase that year reaching 7.9%.

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

Exports tea in packings ≤3 kg from SADC

Exports in kind, t

The market showed an unstable trend over the period. Exports peaked in 2019 at 4 186 t and hit their lowest point in 2018 at 1 061 t, resulting in a 3.9-fold difference between these years. In 2020, deliveries of tea in packings of 3 kg or less from SADC totaled 1 331 t, down by 68.2% compared to the previous year. The largest increase occurred in 2019, surging by 294.6%.

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

From 2017 to 2020, the partner portfolio for exports of tea in packings of 3 kg or less from SADC was quite broad. The United Kingdom accounted for 14.1% of exports, Kenya for 6.3%, and Russia for 4.0%, with these three countries together representing only 24.4% of total flows.

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

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

Exports in value, K $ US

In 2020, the value of exported tea in packings of 3 kg or less from SADC reached 16 025 K $ US, a drop of 37.1% from the previous year. Over the period from 2017 to 2020, exports decreased by 32.1%, with a compound annual growth rate of -12.1%. The highest value was recorded in 2019 at 25 487 K $ US, and the largest increase that year was 15.9%.

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

The structure of exports in value terms from 2017 to 2020 can be described as diversified. The United Kingdom contributed 6.4% of exports, Kenya 2.7%, and Russia 1.9%, with these three countries together accounting for just 11.1% of total flows. No single country held a clearly dominant position.

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

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

Imports tea in packings ≤3 kg to SADC

Imports in kind, t

Imports of tea in packings of 3 kg or less into SADC declined for the second consecutive year. In 2020, the region imported 2 425 t of this tea, which is 27.1% less than the previous year. From 2017 to 2020, imports decreased by 26.3%, equating to an average annual decline of 9.7%. The maximum volume was recorded in 2018 at 3 874 t, with the largest increase that year at 17.8%.

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

From 2017 to 2020, imports of tea in packings of 3 kg or less into SADC were spread across many countries. Sri Lanka accounted for 19.5% of imports, India for 7.9%, and China for 4.6%, with these three countries jointly making up only 32.0% of total flows.

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

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

Imports in value, K $ US

After a two-year increase, imports of tea in packings of 3 kg or less into SADC declined. In 2020, imports totaled 19 514 K $ US, representing a sharp drop of 25.9% from 2019. Between 2017 and 2020, imports decreased by 13.9%, with an average annual decline of 4.9%. The highest value was recorded in 2019 at 26 335 K $ US, and the largest increase occurred in 2018 at 11.8%.

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

The structure of imports in value terms from 2017 to 2020 points to a diversified set of partners. Sri Lanka accounted for 18.2% of imports, Portugal for 3.4%, and the United Arab Emirates for 2.8%, with these three countries together representing only 24.4% of total flows. The remaining 75.6% was dispersed among numerous smaller markets.

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

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