Tea market in Ethiopia

Earlier Report Observations

From 2018 to 2022, Ethiopia's tea market volume grew from 74 thousand tons to 77 thousand tons. This expansion was supported by an 11% increase in harvested tea area across Africa in 2018, which raised production. The growth continued, peaking in 2022 when total African tea output reached a record high, with Ethiopia as a key regional producer.

The market volume eased to 75 thousand tons in 2023. During this period, the industry benefited from state support, as tea is treated as a strategic crop, and cooperatives helped small farmers access markets and technical assistance, which boosted export activity.

Production tea in Ethiopia

In kind, 2017-2020, t

From 2017 to 2020, Ethiopia ranked 19th globally in tea production volume.

Top producers of tea, 2017-2020

World map of production of tea, 2017-2020

In 2020, Ethiopia produced 75 946 tonnes of tea, marking a slight year-on-year increase of 1.5%. Between 2017 and 2020, production grew by 22%, which translates to an annualized rate of 6.8%. The largest decline occurred in 2019, at 0.2%, while the most significant increase was in 2018, at 20.4%.

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

In value, 2017-2020, M $ US

Ethiopia's tea production value declined for the second consecutive year. In 2020, the output was valued at 115.9 million US dollars, representing a 9.5% decrease compared to 2019. The highest value was recorded in 2018 at 133.7 million US dollars, with the largest increase that year at 16.8%.

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

Exports tea from Ethiopia

Exports in kind, t

The data shows irregular changes, indicating a volatile market environment. The lowest export volume was in 2018 at 1 083 tonnes, while the highest was in 2020 at 2 125 tonnes, resulting in a peak-to-trough ratio of 2 times. In 2020, foreign tea supplies from Ethiopia stood at 2 125 tonnes, reflecting a sharp improvement of 72.5% over the previous year. The largest decline was recorded in 2018 at 48.2%.

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

From 2017 to 2020, Kenya (43.2% of exports in kind), the United Kingdom (32.3% of exports in kind), and Pakistan (20.2% of exports in kind) were the key partners for Ethiopia's tea exports, together accounting for 95.7% of total flows.

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

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

Exports in value, K $ US

Tea exports in Ethiopia increased for the second consecutive year. In 2020, exports amounted to 3 244 thousand US dollars, up by 53.8% compared to the previous year. Over the period 2017-2020, exports decreased by 15.5%, with a compound annual growth rate (CAGR) of -5.5%. The lowest value was recorded in 2018 at 1 931 thousand US dollars, with the largest decline that year at 49.7%.

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

From 2017 to 2020, the United Kingdom (41.5% of exports in value terms), Kenya (27.8% of exports in value terms), and Pakistan (24.7% of exports in value terms) remained the key destinations for Ethiopia's tea exports, together taking 94.0% of total flows.

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

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

Imports tea to Ethiopia

Imports in kind, t

In 2020, Ethiopia imported 19 tonnes of tea, representing a 65.5% decline year-over-year. Over the period 2017-2020, imports decreased by 65.5%, with a compound annual growth rate (CAGR) of -29.8%. The maximum value was recorded in 2019 at 55 tonnes, with the largest increase that year at 18.6%.

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

From 2017 to 2020, China (53.8% of imports in kind), Turkey (19.7% of imports in kind), and the United Arab Emirates (6.4% of imports in kind) were the largest suppliers of tea to Ethiopia, together forming 79.8% of total imports in kind.

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

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

Imports in value, K $ US

Volatility characterized the market behavior during these years. The lowest import value was in 2020 at 97 thousand US dollars, while the peak hit in 2018 at 350 thousand US dollars, resulting in a 3.6-fold gap. In 2020, tea imports into Ethiopia totalled 97 thousand US dollars, representing a 51.0% decline year-over-year. The largest increase was recorded in 2018 at 70.3%.

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

From 2017 to 2020, Turkey (41.4% of imports in value terms), China (29.6% of imports in value terms), and Sri Lanka (15.8% of imports in value terms) consistently occupied leading positions in Ethiopia's import structure, jointly accounting for 86.8% of total flows.

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

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