Tea market in Iran

Earlier Report Observations

The Iranian tea market volume expanded to 168 thousand tons in 2019, largely driven by a reduction in import tariffs from 20% to 5% in September 2018, which facilitated higher imports. However, in 2020, volume contracted to 143 thousand tons as tightened quality and safety inspections in Gilan province constrained supply.

Market volume recovered to 162 thousand tons in 2021, supported by state-funded financial and insurance aids to farmers and factories, alongside a five-year development plan for the industry. The following year, despite a 48% surge in exports, the market stabilized around 160 thousand tons, partly due to rising consumption of fruit tea, a new segment that gained popularity among health-conscious younger consumers.

A sharp decline to 105 thousand tons occurred in 2023, triggered by substantial price increases stemming from currency depreciation and higher production costs, compounded by a corruption scandal leading to the seizure of assets of Dabesh Tea Company for currency violations.

Production tea in Iran

In kind, 2017-2020, K t

From 2017 to 2020, Iran ranked 17th globally in tea production volume.

Top producers of tea, 2017-2020

World map of production of tea, 2017-2020

Following a two-year decline, Iran's tea production rebounded in 2020, reaching 94.1 K t. This marked a 3.6% increase compared to 2019. However, over the entire 2017-2020 period, production fell by 6.5%, averaging an annual decline of 2.2%. The lowest production level was recorded in 2019 at 90.8 K t, which represented the largest annual drop of 8.5%.

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

In value, 2017-2020, M $ US

Tea production in Iran declined for the third consecutive year in 2020, with output valued at 92.1 M $ US. This reflected a 6.5% contraction compared to 2019. From 2017 to 2020, production decreased by 30.8%, equating to an average annual decline of 11.5%.

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

Exports tea from Iran

Exports in kind, t

The market exhibited volatility during the observed period. Tea exports from Iran reached their lowest point in 2019 at 6 893 t and peaked in 2018 at 16 327 t, representing a 2.4-fold difference. In 2020, exports totaled 16 203 t, showing a significant rise of 135.1% compared to the previous year. The largest decline occurred in 2019, with a drop of 57.8%.

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

From 2017 to 2020, Uzbekistan (14.2% of exports in kind), India (13.8%), and Turkmenistan (11.4%) were key buyers of Iranian tea. However, their combined share accounted for only 39.4% of total exports in kind, with the remaining 60.6% distributed among numerous other trading partners.

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

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

Exports in value, M $ US

Market performance showed noticeable fluctuations during this period. Export values reached their lowest point in 2019 at 7.5 M $ US and peaked in 2018 at 19.8 M $ US, changing by a factor of 2.7. In 2020, tea exports from Iran totaled 15.9 M $ US, reflecting a sharp rise of 112.3% compared to the prior year. The largest decline occurred in 2019, with a drop of 62.4%.

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

From 2017 to 2020, tea exports from Iran in value terms were not heavily concentrated. The United Arab Emirates (14.7% of exports in value terms), Uzbekistan (13.1%), and Turkmenistan (12.2%) together captured only 39.9% of total export flows.

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

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

Imports tea to Iran

Imports in kind, t

After a two-year increase, foreign tea supplies to Iran declined in 2020, with imports totaling 64 967 t. This represented a 22.9% decrease compared to 2019. Over the 2017-2020 period, imports increased by 11.7%, averaging an annual growth rate of 3.8%. The highest import volume was recorded in 2019 at 84 251 t, which also saw the largest annual increase of 35.3%.

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

From 2017 to 2020, India (50.8% of imports in kind), Sri Lanka (21.8%), and the United Arab Emirates (19.1%) formed the main cluster of markets for Iran's tea imports, jointly accounting for 91.8% of total import flows.

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

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

Imports in value, M $ US

After a two-year rise, foreign tea supplies to Iran declined in 2020, with imports valued at 329.8 M $ US. This marked a 20.6% decrease compared to 2019. Over the 2017-2020 period, imports increased by 16.7%, with a compound annual growth rate of 5.3%. The peak import value was recorded in 2019 at 415.5 M $ US, which also experienced the largest annual increase of 42.1%.

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

From 2017 to 2020, India (45.4% of imports in value terms), Sri Lanka (25.4%), and the United Arab Emirates (21.3%) consistently held leading positions in Iran's tea import structure, jointly accounting for 92.1% of total import flows.

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

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