Tea market in China

Earlier Report Observations

The physical volume of China's tea market grew consistently from 11 471 thousand tonnes in 2018 to 15 067 thousand tonnes in 2023. This expansion was primarily driven by the rapid rise of the new-style tea drink segment, which attracted significant capital investment starting in 2019. Young consumers became a key demographic, boosting overall consumption. Advances in production technology and the expansion of regional markets also supported growth, with post-pandemic recovery in 2020 maintaining the upward trajectory.

In value terms, the market peaked at $86 276 million in 2021 before declining to $71 261 million in 2023. The downturn coincided with mounting challenges in export trade, including international trade barriers and weaker overseas demand. Domestically, intensified brand competition and a clear shift in consumer preferences toward affordable 'everyday tea' and healthier sugar-free options reduced price premiums and altered the market's value structure.

Production tea in China

In kind, 2017-2020, K t

Globally, China was the world's leading tea producer from 2017 to 2020.

Top producers of tea, 2017-2020

World map of production of tea, 2017-2020

China's tea production increased for the third consecutive year. In 2020, the country produced 13,200 thousand tonnes of tea, marking a 4.8% rise compared to the previous year. Over the period from 2017 to 2020, production grew by 18.9%, with an average annual growth rate of 5.9%.

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

In value, 2017-2020, M $ US

China's tea production value also rose for the third year in a row. In 2020, the output was valued at 77,125 million US dollars, showing an 11.1% improvement from the year before. Between 2017 and 2020, production value increased by 53.3%, which translates to an annualized rate of 15.3%.

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

Exports tea from China

Exports in kind, K t

After two years of growth, China's tea exports in volume declined. In 2020, the country exported 348.8 thousand tonnes of tea, a moderate decrease of 4.8% compared to the previous year. The peak was recorded in 2019 at 366.6 thousand tonnes, with the largest increase occurring in 2018 at 2.7%.

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

From 2017 to 2020, China's tea exports in volume were distributed across various countries without a clear dominant partner. Morocco accounted for 20.5% of exports, Uzbekistan for 6.4%, and Ghana for 4.9%, together making up just 31.8% of total flows.

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

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

Exports in value, M $ US

China's tea export value increased for the third consecutive year. In 2020, exports reached 2,038 million US dollars, representing a 0.9% rise versus the previous year. Between 2017 and 2020, export value grew by 26.6%, equating to an annualized rate of 8.2%.

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

In the period from 2017 to 2020, China's tea exports in value terms were spread across many countries. Hong Kong contributed 20.5% of exports, Morocco 11.9%, and Vietnam 6.4%, jointly accounting for only 38.9% of total flows.

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

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

Imports tea to China

Imports in kind, K t

Following a two-year rise, China's tea import volume declined. In 2020, imports amounted to 43.2 thousand tonnes, remaining nearly unchanged from 2019. Over the 2017-2020 period, import volume increased by 45.6%, with a compound annual growth rate of 13.3%. The highest volume was recorded in 2019 at 43.4 thousand tonnes, with the largest increase also in 2019 at 22.4%.

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

From 2017 to 2020, the main sources for China's tea imports in volume were Sri Lanka, with 31.6% of imports, India at 28.2%, and Asia, not elsewhere specified, at 9.5%. Together, these accounted for 69.2% of total import flows.

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

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

Imports in value, M $ US

After two years of improvement, China's tea import value declined. In 2020, imports reached 180 million US dollars, corresponding to a moderate decline of 3.9% compared to 2019. Between 2017 and 2020, import value increased by 20.6%, equating to an annualized rate of 6.5%. The peak value was recorded in 2019 at 187 million US dollars, with the largest increase in 2018 at 19.6%.

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

In the 2017-2020 period, Sri Lanka was the leading source for China's tea imports in value terms, accounting for 35.4%, followed by Asia, not elsewhere specified, at 27.2%, and India at 16.1%. These three together made up 78.7% of total import flows.

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

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