Tea market in Asia

Earlier Report Observations

From 2018 to 2020, the Asian tea market expanded steadily, with volume rising from 23 348 thousand tons to 24 497 thousand tons. This growth was primarily fueled by increasing consumer awareness of tea's health benefits compared to sugary soft drinks, alongside rising disposable incomes that shifted preferences toward wellness-oriented products. The emergence of ready-to-drink (RTD) tea, particularly iced tea variants, created a new consumption trend, while the COVID-19 pandemic in 2020 reinforced demand for convenient and healthy beverages, supporting the RTD segment's strength.

The market continued its upward trajectory into 2021 and 2022, reaching 26 448 thousand tons and 26 296 thousand tons respectively. Expansion was underpinned by the broadening of distribution networks and an increase in retail outlets, making tea more accessible. Concurrently, consumer inclination toward organic and natural teas without chemical additives gained momentum, stimulating the organic tea sub-segment. Regulatory tightening on product labeling and traceability enhanced consumer confidence, while major players strengthened their geographic presence and launched functional tea products.

In 2023, market volume grew further to 27 410 thousand tons, supported by significant investments in production facilities and automation of bottling lines to meet rising RTD demand. Companies introduced reduced-sugar formulations and sustainable or plant-based packaging, aligning with wellness and environmental preferences. The RTD segment, led by brands like Suntory Holdings and Starbucks, dominated with a 43% share in Asia-Pacific, emphasizing convenience, health, and sustainability.

Production tea in Asia

In kind, 2017-2020, K t

Top producers of tea, 2017-2020

World map of production of tea, 2017-2020

Tea production in Asia has increased for the third consecutive year. In 2020, Asia produced 24 540 K t of tea, representing a 0.8% rise compared to the previous year. Between 2017 and 2020, production grew by 8.2%, which translates to an annualized rate of 2.7%.

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

In value, 2017-2020, B $ US

Asia's tea production has increased for the third consecutive year. In 2020, the output of tea in Asia was valued at 144.0 B $ US, marking an 8.0% increase compared to 2019. From 2017 to 2020, production rose by 26.9%, equating to an annualized growth rate of 8.3%.

Annual dynamics of production in Asia in value, 2017-2020, B $ US

Exports tea from Asia

Exports in kind, K t

In 2020, Asia's volume of tea exports amounted to 759.1 K t, reflecting a gradual decline of 5.5% compared to 2019. Between 2017 and 2020, exports decreased by 6.4%, with an annualized rate of -2.2%. The lowest value was recorded in 2018 at 732.5 K t. The largest decline occurred in 2018, with a drop of 9.7%, while the largest increase was in 2019, with a rise of 9.6%.

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

From 2017 to 2020, tea from Asia was supplied to a diverse range of markets. Russia accounted for 8.6% of exports in kind, Morocco for 8.1%, and the United States for 3.5%, together making up only 20.2% of total exports in kind. The remaining 79.8% was distributed among numerous smaller destinations.

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

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

Exports in value, M $ US

Tea deliveries from Asia have increased for the second consecutive year. In 2020, exports amounted to 4 455 M $ US, marking a 1.3% year-over-year increase. Over the period from 2017 to 2020, exports grew by 9.8%, with a compound annual growth rate (CAGR) of 3.2%. The lowest value was recorded in 2018 at 3 785 M $ US. The largest decline occurred in 2018, with a drop of 6.7%, while the largest increase was in 2019, with a rise of 16.2%.

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

From 2017 to 2020, Russia, Morocco, and the United States were the largest buyers of tea from Asia in value terms, accounting for 6.7%, 5.4%, and 4.9% of exports, respectively. However, their combined contribution was limited to 17.0% of total exports in value terms, indicating a diversified country structure.

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

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

Imports tea to Asia

Imports in kind, K t

Foreign tea supplies to Asia have increased for the third consecutive year. In 2020, Asia imported approximately 715.9 K t of tea, corresponding to a robust increase of 18.7% compared to the previous year. Between 2017 and 2020, imports grew by 34.4%, equating to an annualized rate of 10.3%.

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

The country composition of imports in kind from 2017 to 2020 was dispersed. Kenya accounted for 33.9% of imports in kind, Rwanda for 1.5%, and Russia for 1.0%, together forming just 36.5% of total flows. The remaining 63.5% 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 Asia in kind, 2017-2020

Imports in value, M $ US

In 2020, tea deliveries to Asia tallied 2 998 M $ US, down by 3.1% compared to the previous year. The lowest value was recorded in 2018 at 2 967 M $ US, while the highest was in 2019 at 3 094 M $ US. The largest increase occurred in 2019, with a rise of 4.3%.

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

Over the period from 2017 to 2020, Kenya, Asia (not elsewhere specified), and Russia were the largest but not dominant suppliers of tea to Asia in value terms, accounting for 25.7%, 2.5%, and 1.6% of imports, respectively. Together, they made up 29.7% of total imports in value terms, against a broad background of smaller partners.

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

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