Tea in packings ≤3 kg market in Sri Lanka

Earlier Report Observations

The market for tea in packings ≤3 kg in Sri Lanka faced production headwinds early in the period, with ad-hoc agro-chemical policy changes, plantation work stoppages, and excessive rainfall limiting output in 2018. This, coupled with rising input costs reflected in higher FOB values by 2020, contributed to a decline in domestic market volume from 233 thousand tons in 2018 to 172 thousand tons in 2020.

A recovery push following the COVID-19-induced downturn lifted market volume to 191 thousand tons in 2021, although sharp increases in freight rates and packaging material costs pressured profitability. The market contracted sharply to 153 thousand tons in 2022 when a severe fertilizer price surge linked to the Russia-Ukraine war and a foreign-exchange shortage after Sri Lanka's debt default severely curtailed production. A slight stabilization followed in 2023, with the market volume reaching 157 thousand tons.

Production tea in packings ≤3 kg in Sri Lanka

In kind, 2017-2020, K t

Globally, Sri Lanka ranked as the 4th 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

Sri Lanka's production of tea in packings of 3 kg or less declined for the third year in a row. In 2020, the country produced 278.5 K t, marking a slight decrease of 7.2% compared to the previous year. Over the 2017-2020 period, production fell by 9.5%, with an average annual decline of 3.3%.

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

In value, 2017-2020, M $ US

Sri Lanka's production value of tea in packings of 3 kg or less dropped for the second consecutive year. In 2020, the output was valued at 1 595 M $ US, reflecting a gradual decline of 5.3% from 2019. From 2017 to 2020, production value decreased by 14.7%, with an average annual reduction of 5.2%. The highest value was recorded in 2018 at 2 005 M $ US, while the largest decline occurred in 2019 at 16.1%. The biggest increase was seen in 2018, with a rise of 7.2%.

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

Exports tea in packings ≤3 kg from Sri Lanka

Exports in kind, K t

In 2020, Sri Lanka's exports of tea in packings of 3 kg or less reached 106.1 K t, showing a modest decrease of 7.2% from 2019. Over the 2017-2020 period, exports declined by 6.9%, with an average annual drop of 2.3%. The lowest export volume was in 2018 at 70.8 K t, and the highest was in 2019 at 114.3 K t. The largest decline happened in 2018, falling by 37.9%, while the biggest increase occurred in 2019, surging by 61.5%.

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

From 2017 to 2020, the export destinations for tea in packings of 3 kg or less were highly diversified. Iraq accounted for 18.1% of exports, Turkey for 12.4%, and Libya for 7.8%, together making up 38.4% of total flows. The remaining 61.6% was spread across numerous smaller partner countries.

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

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

Exports in value, M $ US

In 2020, the value of Sri Lanka's exports of tea in packings of 3 kg or less stood at 607.6 M $ US, which is 5.2% lower than in 2019. Over the 2017-2020 period, export value decreased by 12.2%, with an average annual decline of 4.3%. The lowest value was recorded in 2018 at 467.1 M $ US. The largest drop occurred in 2018, falling by 32.5%, while the biggest increase was in 2019, rising by 37.3%.

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

From 2017 to 2020, the value of exports for tea in packings of 3 kg or less from Sri Lanka was not heavily concentrated. Iraq represented 12.4% of export value, Turkey 9.9%, and Russia 6.8%, together accounting for 29.1% of total flows.

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

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

Imports tea in packings ≤3 kg to Sri Lanka

Imports in kind, K t

The import market showed significant volatility during these years. Imports reached their lowest point in 2019 at 0.0 K t and peaked in 2018 at 0.1 K t, with a 22-fold difference between these two years. In 2020, imports amounted to 0.1 K t, representing a sharp increase of 946.9% compared to 2019. The largest decline was recorded in 2019, dropping by 95.5%.

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

From 2017 to 2020, the main suppliers of tea in packings of 3 kg or less to Sri Lanka were China, accounting for 29.1% of imports, the United Arab Emirates with 27.3%, and Benin with 10.5%. Together, these three countries made up 66.9% of total imports.

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

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

Imports in value, M $ US

The import market displayed an unstable trend throughout this period. Imports hit their lowest point in 2019 at 0.1 M $ US and peaked in 2018 at 0.6 M $ US, with a 6.4-fold gap between these years. In 2020, import volume totaled 0.3 M $ US, equivalent to a significant advance of 164.1% compared to the previous year. The largest decline occurred in 2019, falling by 84.3%.

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

Throughout 2017 to 2020, the key sources for imports in value terms were the United Arab Emirates, representing 27.1% of imports, China with 19.4%, and Japan with 9.5%. Together, these three directions accounted for 56.0% of total flows.

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

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