Tea market in Indonesia

Earlier Report Observations

Between 2018 and 2019, Indonesia's tea production and market volume declined, falling to 533.5 thousand tons. This drop was primarily driven by the continued impact of aging tea plantations and weak farmer institutions, which reduced yields. The persistently low 20% import tariff also facilitated increased tea imports, which altered domestic supply but did not offset the overall production shortfall.

The market rebounded strongly from 2020 to 2021, with production rising to 663 thousand tons and market volume reaching 631 thousand tons. This growth was fueled by heightened global demand for tea as a healthy beverage during the COVID-19 pandemic. Concurrently, the adoption of modern irrigation and processing technologies began improving production efficiency, while government-led promotional events like B2B meetings and Indonesia Tea Day helped bolster both domestic and international demand.

Market volume stabilized at around 624 thousand tons in 2022 before declining to 586.6 thousand tons in 2023. The initial stability was supported by a significant rise in imports, particularly from Vietnam, driven by low tariffs and shifting consumer tastes towards new tea varieties. Government-led plantation rejuvenation programs and strict zoning policies aimed to address long-term productivity issues. However, these measures were insufficient to prevent the 2023 contraction, as the industry focused on enhancing the global competitiveness of Indonesian black tea.

Production tea in Indonesia

In kind, 2018-2021, K t

From 2018 to 2021, Indonesia maintained the 7th position globally in tea production volume.

Top producers of tea, 2018-2021

World map of production of tea, 2018-2021

Indonesia's tea production grew for the second consecutive year. In 2021, the country produced 663.0 K t of tea, marking a 5.9% increase compared to the previous year. Over the period from 2018 to 2021, production rose by 8.7%, with a compound annual growth rate of 2.8%. The lowest production level was recorded in 2019 at 560.0 K t, which represented the largest decline of 8.2% during this period. In contrast, the largest increase occurred in 2020, with production jumping by 11.8%.

Annual dynamics of production in Indonesia in kind, 2018-2021, K t

In value, 2018-2021, M $ US

Tea production in Indonesia increased in value for the second year in a row. In 2021, the output was valued at 1 386 M $ US, reflecting a modest gain of 4.0% year-over-year. Between 2018 and 2021, production value grew by 2.7%, equating to an annualized rate of 0.9%. The lowest value was recorded in 2019 at 1 208 M $ US, which saw the largest decline of 10.5%. The largest increase happened in 2020, with a rise of 10.3%.

Annual dynamics of production in Indonesia in value, 2018-2021, M $ US

Exports tea from Indonesia

Exports in kind, t

In 2021, tea exports from Indonesia amounted to 42 654 t, showing a moderate decline of 5.8% compared to 2020. Between 2018 and 2021, exports decreased by 13%, with an annualized rate of 4.5%. The largest decline was recorded in 2019 at 12.7%, while the largest increase occurred in 2020, with exports rising by 5.7%.

Annual dynamics of product's exports from Indonesia in kind, 2018-2021, t

From 2018 to 2021, Indonesia's tea exports in kind were not heavily concentrated on a few key markets. Malaysia accounted for 18.0% of exports, Russia for 15.4%, and the United States for 7.6%, with these three countries together representing only 41.0% of total export flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Indonesia in kind, 2018-2021

Exports in value, M $ US

Indonesia exported tea worth 89.2 M $ US in 2021, indicating a limited decline of 7.4% compared to the previous year. Over the period from 2018 to 2021, exports decreased by 17.8%, with a compound annual growth rate of 6.3%. The largest decline was recorded in 2019 at 14.8%, while the largest increase happened in 2020, with a rise of 4.3%.

Annual dynamics of product's exports from Indonesia in value, 2018-2021, M $ US

Data from 2018 to 2021 show that Indonesia's tea exports in value terms were not concentrated on a few key destinations. Malaysia represented 13.8% of exports, Russia 12.1%, and Australia 9.4%, with these three countries jointly accounting for only 35.3% of total export flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Indonesia in value, 2018-2021

Imports tea to Indonesia

Imports in kind, t

Indonesia's tea imports declined for the second consecutive year. In 2021, the country imported 10 609 t of tea, showing a significant fall of 28.8% year-over-year. Between 2018 and 2021, imports decreased by 28.9%, with an annualized rate of 10.7%. The highest import level was recorded in 2019 at 16 326 t, which also saw the largest increase of 9.4% during this period.

Annual dynamics of product's imports to Indonesia in kind, 2018-2021, t

From 2018 to 2021, Vietnam, Kenya, and Thailand were the main sources for Indonesia's tea imports in kind. Vietnam accounted for 61.9% of imports, Kenya for 17.6%, and Thailand for 4.7%, with these three countries together representing 84.3% of total import flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Indonesia in kind, 2018-2021

Imports in value, M $ US

The value of tea imports into Indonesia declined for the second consecutive year. In 2021, import volume was recorded at 23.0 M $ US, equivalent to a strong fall of 11.0% compared to the previous year. Between 2018 and 2021, imports decreased by 21.8%, with an annualized rate of 7.9%. The highest value was recorded in 2019 at 36.0 M $ US, which saw the largest increase of 22.4%. The largest decline occurred in 2020, with a drop of 28.2%.

Annual dynamics of product's imports to Indonesia in value, 2018-2021, M $ US

Throughout 2018 to 2021, Vietnam, Kenya, and Thailand formed the key group of partners for Indonesia's tea imports in value terms. Vietnam accounted for 30.0% of imports, Kenya for 20.6%, and Thailand for 13.8%, with these three countries jointly representing 64.4% of total import flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Indonesia in value, 2018-2021