Tea market in South America

Earlier Report Observations

Between 2018 and 2023, the South American tea market volume in physical terms fluctuated, declining from 327.3 thousand tons in 2018 to 314.3 thousand tons in 2023. The region's production, heavily concentrated in Argentina and oriented towards exports, saw a significant boost in 2019 when the Argentine Tea Export Consortium doubled its export volume, reducing domestic availability and contributing to a smaller internal market. Challenges in maintaining international markets during 2020 further pressured production and exports, leading to an additional contraction in domestic supply.

Shifting consumer preferences across the region played a key role. In Brazil, the search for healthy drinks fueled growth in organic and ready-to-drink tea production and consumption from 2018 onward. Colombia experienced increased iced tea consumption and saw new competitors enter the market in 2020, accelerating innovation in functional and health-oriented products. By 2022, the preference for low-calorie and functional beverages, alongside improving macroeconomic conditions in Colombia, supported a recovery in market volume to 324.2 thousand tons.

Regulatory developments also shaped the market. Updated food legislation in Argentina during 2022, focusing on safety, quality, and labeling, strengthened the international competitiveness of local tea. Despite a slight market volume decrease in 2023, the region continued to enhance its global standing through quality improvements, genetic advancements, and a growing focus on premium segments like gourmet loose-leaf tea.

Production tea in South America

In kind, 2017-2020, K t

Top producers of tea, 2017-2020

World map of production of tea, 2017-2020

South America's tea production declined after two years of growth. In 2019, production reached its peak at 376.9 thousand tonnes, but by 2020 it had fallen to 350.3 thousand tonnes, marking a 7.1% decrease from the previous year. Over the 2017-2020 period, production dropped by 5.2%, with an average annual decline of 1.8%. The largest year-on-year increase occurred in 2018, when production rose by 1.4%.

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

In value, 2017-2020, M $ US

South America's tea production value declined for the second consecutive year. In 2020, output was valued at 505.4 million US dollars, representing a 7.5% decrease compared to 2019. Over the 2017-2020 period, production value fell by 13.7%, with an average annual decline of 4.8%. The highest value was recorded in 2018 at 603.9 million US dollars. The largest year-on-year decrease occurred in 2019, when value dropped by 9.5%, while the largest increase was in 2018 at 3.1%.

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

Exports tea from South America

Exports in kind, t

In 2020, South America exported 58,528 tonnes of tea, which was 12.5% less than in 2019. Over the 2017-2020 period, exports decreased by 12.7%, with an average annual decline of 4.4%. The largest year-on-year increase was recorded in 2019, when exports grew by 7.3%.

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

From 2017 to 2020, the United States, Poland, and Russia remained the main buyers of South American tea by volume. The United States accounted for 64.9% of exports, Poland for 3.5%, and Russia for 3.0%. Together, these three countries represented 71.5% of total tea exports from South America during this period.

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

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

Exports in value, M $ US

South America's tea export value declined for the third consecutive year. In 2020, exports were valued at 84.4 million US dollars, representing a significant 12.9% decrease compared to 2019. Over the 2017-2020 period, export value fell by 20.5%, with an average annual decline of 7.4%.

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

From 2017 to 2020, the United States, Poland, and Germany were the main destinations for South American tea by value. The United States accounted for 67.0% of export value, Poland for 3.5%, and Germany for 3.1%. Together, these three markets represented 73.5% of total tea export value from South America during this period.

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

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

Imports tea to South America

Imports in kind, t

In 2020, South America imported 17,811 tonnes of tea, marking a sharp 38.1% increase from 2019. Over the 2017-2020 period, imports grew by 29.9%, with an average annual increase of 9.1%. The lowest import volume was recorded in 2019 at 12,902 tonnes, which represented a 15.1% decrease from the previous year.

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

From 2017 to 2020, South America's tea imports by volume were not heavily concentrated among suppliers. Sri Lanka accounted for 31.2% of imports, Kenya for 5.5%, and China for 4.9%. Together, these three countries represented 41.7% of total tea import volume during this period.

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

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

Imports in value, M $ US

In 2020, South America's tea import value reached 86.1 million US dollars, representing a substantial 38.5% increase from 2019. Over the 2017-2020 period, import value grew by 22.5%, with an average annual increase of 7.0%. The lowest import value was recorded in 2019 at 62.1 million US dollars, which represented a 19.4% decrease from the previous year.

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

From 2017 to 2020, Sri Lanka, China, and Kenya remained the main sources of tea imports to South America by value. Together, these three countries accounted for 58.2% of total tea import value during this period.

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

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