Tea market in South-eastern Asia

Earlier Report Observations

The tea market in Southeast Asia contracted in 2019, with volume falling to 1 720 thousand tonnes. A recovery began in 2020 as the market volume started to expand again.

From 2020 to 2023, market volume grew steadily to 1 925 thousand tonnes. This expansion was primarily driven by the rapid rise of bubble tea culture, marked by the entry and aggressive expansion of major Chinese chains like Mixue and Chagee across the region. Their low-price strategies made tea beverages accessible to a mass consumer base. Simultaneously, a broader shift in consumer preferences towards tea as a healthier lifestyle choice, alongside the opening of premium artisanal tea houses, further supported overall demand.

The bubble tea segment evolved into a multi-billion dollar industry in Southeast Asia, with fierce competition among brands stimulating continuous growth in tea consumption. Despite a minor dip in domestic production in 2023, the total market volume continued its upward trajectory, sustained by these deep-rooted trends.

Production tea in South-eastern Asia

In kind, 2017-2020, K t

Top producers of tea, 2017-2020

World map of production of tea, 2017-2020

After two consecutive years of decline, tea production in South-eastern Asia rebounded in 2020. The region produced 1 932 K t of tea that year, marking a 5.6% increase from 2019. Production had reached its lowest point in 2019 at 1 829 K t, which represented the largest decline of 6.0% during this period.

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

Exports tea from South-eastern Asia

Exports in kind, K t

The export data shows irregular fluctuations, reflecting a volatile market environment. Exports hit their lowest point in 2018 at 71.6 K t, then peaked in 2017, with a 2.5-fold difference between these years. In 2020, tea exports from South-eastern Asia reached 155.8 K t, up 3.1% from the previous year. The largest decline occurred in 2018 at 59.8%, while the most significant increase was recorded in 2019 at 111.2%.

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

From 2017 to 2020, tea from South-eastern Asia was exported to a diverse range of markets. The top three destinations—Pakistan (21.8% of exports in kind), Russia (11.9%), and Asia, not elsewhere specified (10.0%)—collectively accounted for 43.6% of total exports. The remaining 56.4% was distributed among numerous smaller markets.

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

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

Exports in value, M $ US

In 2020, the value of tea exports from South-eastern Asia was 382.8 M $ US, a decrease of 1.7% compared to 2019. Over the 2017-2020 period, exports declined by 3%, with a compound annual growth rate (CAGR) of 1.0%. The largest drop was in 2018 at 1.7%, while the biggest increase occurred in 2019 at 0.5%.

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

Between 2017 and 2020, the value of tea exports from South-eastern Asia was relatively evenly distributed across markets. Pakistan (23.2% of exports in value terms), Asia, not elsewhere specified (9.1%), and Russia (9.1%) together made up 41.5% of total flows, with the rest spread among various other destinations.

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

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

Imports tea to South-eastern Asia

Imports in kind, K t

Following two years of growth, tea imports into South-eastern Asia declined in 2020. Imports totaled 38.2 K t that year, down 9.9% from 2019. Over the 2017-2020 period, imports increased by 17.3%, equivalent to an annualized rate of 5.5%. The highest import volume was recorded in 2019 at 42.4 K t, with the largest increase occurring in 2018 at 25.6%.

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

From 2017 to 2020, the partner structure for tea imports in kind was balanced rather than concentrated. China (19.0% of imports in kind), Kenya (7.1%), and India (6.8%) together represented 32.9% of total imports, while the remaining 67.1% came from many other countries.

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

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

Imports in value, M $ US

After two years of gains, the value of tea imports into South-eastern Asia fell in 2020. Imports amounted to 211.5 M $ US, a decline of 11.6% compared to 2019. Over the 2017-2020 period, imports increased by 18.7%, with a CAGR of 5.9%. The peak value was in 2019 at 239.2 M $ US, and the largest increase was in 2018 at 17.0%.

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

During 2017-2020, the partner landscape for tea imports in value terms was broad. China (29.2% of imports in value terms), Japan (9.8%), and Sri Lanka (5.7%) collectively accounted for 44.6% of total flows, with the remaining 55.4% sourced from numerous other countries.

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

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