Tea market in MERCOSUR

Earlier Report Observations

The tea market in MERCOSUR, measured in physical volume, showed moderate fluctuations between 2018 and 2023. Starting at 290.9 thousand tons in 2018, the market volume dipped to 272.5 thousand tons in 2020, recovered to 289.7 thousand tons in 2022, and settled at 285.2 thousand tons in 2023. In value terms, the market experienced a steeper decline, falling from 378.1 million US dollars in 2018 to 306.2 million US dollars in 2021, before rebounding to 346.2 million US dollars by 2023.

The most pronounced contraction in market volume occurred in 2020. The subsequent recovery in 2022 nearly restored the volume to its pre-2020 level, while the market value began its upward trajectory a year later in 2021, indicating a shift in the market's monetary dynamics relative to its physical throughput.

By 2024, the market landscape was being shaped by the launch of new functional and organic tea lines, such as Traditional Medicinals' Stress Ease Teas, and a rising demand for ready-to-drink teas with health benefits. These developments reflect a broader consumer shift towards products supporting mental well-being and immunity, alongside a preference for sustainable and natural ingredients.

Production tea in MERCOSUR

In kind, 2017-2020, K t

Top producers of tea, 2017-2020

World map of production of tea, 2017-2020

Following two years of growth, MERCOSUR's tea production volume declined. In 2019, production reached its peak at 364.0 K t, but by 2020 it had fallen to 337.2 K t, representing a 7.4% decrease from the previous year. The largest annual increase occurred in 2018 at 1.7%. Over the period from 2017 to 2020, overall production decreased by 5.3%, which translates to an average annual decline of 1.8%.

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

In value, 2017-2020, M $ US

MERCOSUR's tea production value declined for the third consecutive year. In 2020, tea output was valued at 393.0 M $ US, marking a 9.4% decrease compared to 2019. From 2017 to 2020, production value fell by 16.5%, equivalent to an average annual decline of 5.8%.

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

Exports tea from MERCOSUR

Exports in kind, t

In 2020, MERCOSUR exported 65 919 t of tea, a significant 12.3% contraction from the 75 134 t recorded in 2019. The largest annual increase was 3.7% in 2019. Over the 2017-2020 period, exports decreased by 11.4%, with a compound annual growth rate (CAGR) of -4.0%.

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

From 2017 to 2020, the United States (65.4% of exports in volume), Chile (12.8%), and Poland (3.6%) consistently held the top positions in MERCOSUR's tea export structure. Together, these three countries accounted for 81.8% of total export volumes.

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

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

Exports in value, K $ US

MERCOSUR's tea export value declined for the third year in a row. In 2020, exports amounted to 76 809 K $ US, a substantial 14.2% reduction compared to the previous year. Between 2017 and 2020, export value fell by 21.9%, equating to an average annual decline of 7.9%.

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

During 2017-2020, the United States was the dominant buyer of MERCOSUR's tea in value terms, accounting for 71.6% of total exports. Other countries collectively made up the remaining 28.4%.

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

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

Imports tea to MERCOSUR

Imports in kind, t

After two years of decline, MERCOSUR's tea imports increased in 2020. Imports reached 1 132 t in 2019, the lowest point in the period, but rose by 5.5% to {value_last_year} t in 2020. The largest annual decline was 14.6% in 2019. From 2017 to 2020, overall imports decreased by 17.7%, corresponding to an average annual decline of 6.3%.

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

The geographical structure of MERCOSUR's tea imports from 2017 to 2020 was highly diversified. China (21.7% of import volume), Sri Lanka (7.5%), and Chile (5.7%) together accounted for just 34.9% of total imports, with the remaining 65.1% distributed among numerous smaller trading partners.

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

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

Imports in value, K $ US

MERCOSUR's tea import value declined for the third consecutive year. In 2020, imports totaled 6 980 K $ US, a moderate 9.1% decrease year-over-year. Over the 2017-2020 period, import value fell by 26.2%, with a compound annual growth rate (CAGR) of -9.6%.

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

From 2017 to 2020, MERCOSUR sourced its tea imports from a broad range of markets. Chile (19.2% of import value), China (18.3%), and Sri Lanka (10.6%) together represented only 48.0% of total imports, while many smaller destinations accounted for the remaining 52.0%.

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

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