Tea market in Uganda

Earlier Report Observations

The volume of Uganda's tea market experienced significant fluctuations between 2018 and 2023. After a drop to 193 thousand tons in 2019 from 253 thousand tons in 2018, attributed to declining export revenue and the absence of a comprehensive tea policy, production rebounded sharply. Improved agronomic practices and expanded acreage supported a rise to 318 thousand tons in 2020, with growth continuing to 360 thousand tons in 2021. However, from 2022, the market contracted due to reduced export demand caused by the Russia-Ukraine war and economic turbulence in Pakistan, falling to 330 thousand tons in 2022 and 316 thousand tons in 2023.

Throughout the period, the sector grappled with structural weaknesses. The lack of a national tea policy meant farmers operated without a regulatory framework, limiting quality improvements and keeping auction prices low. Ugandan tea consistently fetched the lowest price per kilogram at the Mombasa auction. Although a draft Tea Policy covering the entire value chain was completed in 2022, its enactment remained pending, perpetuating reliance on the Kenyan-controlled auction and restricting direct market access.

In response to price pressures, the industry explored diversification. The emergence of a specialty tea segment, including organic and green tea, was advocated to capture higher-value markets. By 2024, Ugandan tea brands received awards for excellence in this niche. Simultaneously, export promotion efforts targeted new markets like Russia, Pakistan, and the Middle East to counter falling traditional demand, even as global supply chain disruptions and ongoing conflict continued to challenge exporter revenue.

Production tea in Uganda

In kind, 2017-2020, K t

Uganda ranked 11th globally in tea production from 2017 to 2020.

Top producers of tea, 2017-2020

World map of production of tea, 2017-2020

In 2020, Uganda produced 390.0 K t of tea, marking a significant increase of 48.9% compared to the previous year. Over the 2017-2020 period, production grew by 78.9%, with a compound annual growth rate (CAGR) of 21.4%. The largest decline occurred in 2019, when production fell by 18.9%.

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

In value, 2017-2020, M $ US

In 2020, Uganda's tea output was valued at 423.5 M $ US, reflecting a substantial gain of 43.3% from the year before. From 2017 to 2020, production value increased by 44.3%, with a CAGR of 13.0%. The most notable drop was in 2019, with a decline of 27.8%.

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

Exports tea from Uganda

Exports in kind, t

In 2020, Uganda exported 72 454 t of tea, showing a modest rise of 4.9% over the past year. Between 2017 and 2020, exports increased by 22.4%, with a CAGR of 7.0%. The largest decline was in 2019, at 1.4%, while the largest increase occurred in 2018, with an 18.4% growth.

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

From 2017 to 2020, Kenya was the nearly exclusive buyer of tea from Uganda, accounting for 97.4% of total exports in volume.

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

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

Exports in value, K $ US

In 2020, Uganda's exported tea volumes totaled 78 672 K $ US, up by 0.9% compared to the previous year. The minimum value was recorded in 2019 at 77 957 K $ US, while the maximum was in 2018 at 88 831 K $ US. The largest decline was in 2019, at 12.2%, and the largest increase was in 2018, at 11.4%.

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

Throughout 2017-2020, Kenya was the key partner for Uganda's tea exports in value terms, representing 96.9% of total flows.

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

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

Imports tea to Uganda

Imports in kind, t

Tea deliveries to Uganda declined for the second consecutive year. In 2020, imports stood at 85 t, indicating a reduction of 29.6% versus the previous year. Between 2017 and 2020, imports decreased by 32%, equating to an annualized rate of 12.0%. The maximum volume was recorded in 2018 at 180 t. The largest decline occurred in 2019, at 33.0%, while the largest increase was in 2018, at 44.3%.

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

From 2017 to 2020, three main markets—China, Kenya, and the United Arab Emirates—together absorbed 78.1% of Uganda's total tea imports in volume.

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

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

Imports in value, K $ US

After a two-year increase, Uganda's tea import volume declined. In 2020, imports were recorded at 393 K $ US, down by 26.4% year-over-year. Over the 2017-2020 period, imports increased by 40.9%, with a CAGR of 12.1%. The maximum value was in 2019 at 534 K $ US, and the largest increase was in 2018, at 67.0%.

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

From 2017 to 2020, three principal markets—Kenya, China, and Sri Lanka—together accounted for 74.1% of Uganda's total tea imports in value terms.

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

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