Tea market in Southern Asia

Earlier Report Observations

The tea market in Southern Asia, in volume terms, expanded from 7.98 million tons in 2018 to 8.19 million tons in 2023. This overall growth was not linear, as the market contracted in 2020 before reaching a peak in 2021.

In value, the market showed a parallel trajectory, rising from $40.0 billion to $41.9 billion over the same period. The most significant downturn occurred in 2020, when the market's value dropped to $36.0 billion, but it recovered firmly in the subsequent years.

Production trends closely followed market volume, also peaking in 2021 at 8.53 million tons. Imports and exports remained relatively stable components, with annual imports typically between 300 and 350 thousand tons and exports between 250 and 300 thousand tons.

Production tea in Southern Asia

In kind, 2017-2020, K t

Top producers of tea, 2017-2020

World map of production of tea, 2017-2020

In 2019, Southern Asia's tea production reached its peak at 8 129 K t, marking a 3.3% increase. However, in 2020, production declined to 7 611 K t, showing a modest reduction of 6.4% compared to the previous year. Over the period from 2017 to 2020, overall production decreased by 4.3%, with a compound annual growth rate of 1.5%.

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

In value, 2017-2020, M $ US

Tea production in Southern Asia has declined for the second consecutive year. In 2018, output reached its highest value at 40 168 M $ US, reflecting a 2.2% increase. By 2020, production fell to 36 443 M $ US, indicating a controlled decline of 9.1% compared to the previous year. From 2017 to 2020, production decreased by 7.3%, equating to an annualized rate of 2.5%.

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

Exports tea from Southern Asia

Exports in kind, K t

Tea exports from Southern Asia have increased for the second consecutive year. In 2018, exports hit their lowest point at 234.4 K t, with a significant decline of 26.4%. The following year, 2019, saw a substantial recovery with a 19.9% increase. In 2020, exports reached 291.9 K t, showing a moderate advance of 3.9% compared to 2019. Over the period from 2017 to 2020, exports decreased by 8.3%, with a compound annual growth rate of 2.9%.

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

From 2017 to 2020, tea exports from Southern Asia were not heavily concentrated. The top three destinations—Iraq (12.4% of exports in kind), Turkey (10.8%), and Russia (10.7%)—together accounted for only 33.9% of total flows.

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

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

Exports in value, M $ US

Exported tea volumes from Southern Asia have increased for the second consecutive year. In 2018, exports reached their minimum value at 1 197 M $ US, with a sharp decline of 24.0%. The following year, 2019, saw a notable increase of 15.8%. In 2020, exports amounted to 1 398 M $ US, reflecting a small uptick of 0.9% year-over-year. Over the period from 2017 to 2020, exports decreased by 11.2%, with a compound annual growth rate of 3.9%.

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

From 2017 to 2020, the partner landscape for tea exports in value terms was wide. The top three countries—Russia (10.9% of exports in value terms), Turkey (9.9%), and Iraq (9.1%)—together formed only 29.9% of total flows, while a substantial 70.1% was supplied to many other countries.

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

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

Imports tea to Southern Asia

Imports in kind, K t

In 2019, Southern Asia's tea imports recorded their largest decline at 12.4%. However, in 2020, imports rebounded to 351.5 K t, indicating a strong gain of 14.7% compared to 2019. Over the period from 2017 to 2020, imports increased by 27%, with a compound annual growth rate of 8.3%. The largest increase was recorded in 2018 at 26.4%.

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

From 2017 to 2020, the main markets for tea imports in kind to Southern Asia were Kenya (54.6% of imports in kind), Vietnam (9.1%), and the United Arab Emirates (3.8%), together accounting for 67.5% of total flows.

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

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

Imports in value, M $ US

After a two-year rise, Southern Asia's tea import volume declined. In 2019, imports reached their maximum value at 1 064 M $ US. In 2020, import volume registered 984 M $ US, reflecting a moderate decline of 7.5% compared to 2019. Between 2017 and 2020, imports decreased by 2.6%, equating to an annualized rate of 0.9%. The largest increase was recorded in 2018 at 3.3%.

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

From 2017 to 2020, the principal suppliers of tea to Southern Asia in value terms were Kenya (49.8% of imports in value terms), the United Arab Emirates (7.1%), and Vietnam (5.2%), jointly accounting for 62.0% of total imports.

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

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