The global tea market is a complex web of production, demand, and environmental challenges. Yet, at its core, the industry’s success hinges on understanding the crucial statistics that drive global tea production statistics and consumption. This post cuts through the noise to deliver the hard facts about tea production, spotlighting the leading countries, their output, and the emerging trends shaping the future of tea around the world.
Tea Production Statistics of Tea Producing Countries
1. China Leads in Global Tea Production with a 40% Market Share
China solidifies its position as the top tea producer globally, contributing 40% to the world’s tea production with an annual yield of approximately 2.4 million tonnes. This dominance is attributed to its vast growing regions like Yunnan, Guangdong, and Zhejiang, producing a wide array of teas including Lapsang Souchong, Keemun, and Green Gunpowder (Global Tea Auction).
Implications: China’s dominance in the tea market significantly influences global tea trends and prices. Its vast production capacity and variety make it a pivotal player in setting quality standards and innovation in tea cultivation and processing. Moreover, China’s tea culture, deeply rooted in thousands of years of history, contributes to the global appreciation of traditional tea ceremonies and the exploration of rare tea varieties.
2. India stands as the second-largest tea producer, generating around 1.2 million tonnes annually, accounting for approximately 20% of global tea production.
The country’s tea diversity, including Assam, Darjeeling, and Nilgiri teas, is a testament to its rich tea heritage and the British’s efforts in the 19th century to establish tea cultivation, competing with China (Global Tea Auction) (John Farrer & Co (Kendal) Ltd)
Implications: India’s diverse tea landscapes offer unique flavors and types of tea, contributing significantly to the global tea culture. Indian tea plantations are major sources of livelihood for millions, emphasizing the social and economic importance of tea production. Furthermore, India’s tea industry faces challenges such as labor rights and environmental sustainability, sparking discussions on fair trade practices within the global tea trade.
3. Kenya, producing approximately 432,000 tonnes, is not just one of Africa’s largest tea producers but also a global leader in black tea production.
Kenya, with its production of approximately 432,000 tonnes, emerges as a leader in black tea production, contributing about 10% to the global supply. The country’s innovation in “CTC” (Crush, Tear, Curl) processing caters to the high demand for tea blends and teabags, marking its significance in the mass-market segment. (Camellios )
Implications: Kenya’s focus on CTC tea production meets the high global demand for tea blends and teabags, positioning it as a leader in the mass-market tea segment. This specialization also raises questions about diversification and value addition in Kenya’s tea industry to enhance profitability and sustainability amid fluctuating global prices.
4. Sri Lanka, formerly known as Ceylon, prides itself on producing about 340,000 tonnes of tea yearly. This represents around 15% of the world’s tea exports.
The island’s diverse climates yield a variety of flavors, making Ceylon tea a globally sought-after commodity (Camellios ).
Implications: Sri Lanka’s tea industry, characterized by its high-quality Ceylon tea, highlights the importance of geographical indications and branding in global markets. The country’s emphasis on orthodox tea production techniques also underscores the balance between tradition and modernity in maintaining tea quality and heritage.
5. Turkey, with a production of 175,000 tonnes annually, ranks among the top tea producers. It consumes over 5% of Global Tea Consumption.
Turkey, while producing 175,000 tonnes of tea annually, stands out for its high per capita tea consumption, contributing to over 5% of global tea consumption. The country’s unique tea culture and the popularity of Rize tea, grown in the Black Sea region, emphasize the significance of tea in Turkish society. (Global Tea Auction)
Implications: Turkey’s unique position as both a major tea producer and the highest per capita tea consumer highlights the cultural significance of tea within the country. The social aspect of tea drinking in Turkey exemplifies how tea acts as a unifier and a staple of daily life, reflecting broader patterns of tea consumption in different cultures.
6. Indonesia contributes 157,000 tonnes to the global tea market, representing 7% of the world’s black tea production.
Indonesia contributes 157,000 tonnes to the global tea market, with a history of tea cultivation dating back to the 1700s during Dutch colonial rule. The country is known for its black and green teas. (Global Tea Auction).
Implications: Indonesia’s tea industry, with its colonial history and focus on black and green teas, underscores the challenges and opportunities in diversifying tea products for global and domestic markets. The country’s tea industry is a case study in the impact of historical trade patterns on current agricultural practices and market focuses.
7. Vietnam, producing 117,000 tonnes of tea annually, showcases a variety of tea leaves, including green, black, and white teas, contributing to 3% of global tea production.
The country’s tea cultivation benefits from the French introduction of the crop during colonial times (Global Tea Auction).
Implications: Vietnam’s tea industry showcases the potential for growth and innovation in the cultivation of green, black, and specialty teas. The country’s tea export strategies and domestic consumption habits offer insights into the evolving preferences of tea drinkers worldwide.
8. Bangladesh’s Rise in Tea Production: 4% Increase in Global Contribution
Bangladesh recently hit a record high in its tea production history, producing approximately 96,510 tonnes. The country has been making significant strides in the tea industry, offering high-quality tea at competitive prices (Global Tea Auction).
Implications: Bangladesh’s recent surge in tea production highlights the potential for growth in less traditional tea-producing countries. This achievement underscores the importance of investment in agricultural technology and market development for the sustainability of the tea industry in emerging economies.
9. Japan’s Green Tea Market: 2% of Worldwide Green Tea Production
Japan produces around 89,000 tonnes of tea, primarily green tea varieties like Matcha, Sencha, and Genmaicha. Despite its relatively small share in terms of volume, Japan’s green tea holds a significant place in the market due to its unique qualities and the cultural heritage associated with its tea ceremonies. (Camellios ).
Implications: Japan’s tea industry, particularly its focus on green tea and cultural practices such as the tea ceremony, contributes to the global interest in tea as part of wellness and mindfulness trends. The country’s meticulous approach to tea cultivation and presentation exemplifies the fusion of art, tradition, and commerce in the global tea market.
10. Iran’s Tea Production: Contributing 1% to Global Black Tea Production
Iran, with an annual production of around 84,000 tonnes, has a rich tea culture dating back to the 15th century. Most of Iran’s tea cultivation occurs in the northern regions, adding a unique flavor profile to the global tea palette (Camellios ).
Implications: Iran’s tea production, deeply embedded in social customs and hospitality, illustrates the cultural dimensions of tea consumption beyond its economic value. The challenges of modernizing production while preserving traditional cultivation methods in Iran reflect broader themes in the global tea industry’s adaptation to contemporary demands.
Tea Production Statistics on Sustainability
11. Global Green Tea Market Size to Reach USD 23.66 Billion by 2027, Growing at 8.2% Annually
The surge in the global demand for green tea, with China and Japan at the forefront of production, correlates with an increased awareness of its health benefits, including potent antioxidant properties. This awareness has propelled the market size from USD 12.80 billion in 2019 to a projected USD 23.66 billion by 2027, reflecting a compounded annual growth rate of 8.2%. (Fortune Business Insights)
Implications: This robust growth in green tea consumption, fueled by health and wellness trends, underscores the changing dynamics of consumer preferences and the tea industry’s adaptability. It has led to innovative green tea products and marketing strategies that tap into the global narrative on health, thereby broadening the market reach and reinforcing green tea’s position in the wellness sector.
12. Sustainable Tea Sourcing Soars to 71% in 2020, Up from 57% in 2017
In 2020, major tea manufacturers have markedly shifted towards sustainability, purchasing 1.6 million tonnes, or 71% of their tea, as sustainably sourced. This is compliant with various Voluntary Sustainability Standards (VSS), showing a significant increase from the 0.9 million tonnes, or 57%, reported in 2017. This shift underscores the tea industry’s commitment to sustainability and ethical sourcing practices. (IISD 2024 Global Market Report on Tea.)
Implications: The surge in sustainably sourced tea has broad implications for the global tea market. Firstly, it suggests that sustainability is becoming a key factor in the procurement strategies of large tea companies, potentially setting a new standard for the industry. This trend may encourage more tea farmers and producers to adopt sustainable practices, fostering greater environmental protection and social equity within tea-growing regions. Secondly, the emphasis on VSS-compliant tea reflects changing consumer preferences, with more people seeking products that align with their values regarding sustainability and ethical consumption. Lastly, this shift towards sustainability may drive innovation in tea production and processing, as stakeholders across the supply chain seek to meet these standards while maintaining profitability and product quality.
Tea Production Statistics on Emerging Trends
13. The global Black Tea market size was valued at USD 25122.72 million in 2024 and is expected to expand at a CAGR of 5.55% during the forecast period, reaching USD 34734.38 million by 2031
The robust market size indicates the significant demand for black tea, driven by factors such as its rich flavor profile, cultural significance, and perceived health benefits. Black tea remains a staple beverage in many parts of the world, with consumers enjoying it in various forms, including hot tea, iced tea, and flavored blends. (Linkedin)
Implications: The steady Compound Annual Growth Rate (CAGR) of 5.55% forecasted for the black tea market underscores its resilience and potential for sustained expansion over the coming years. This growth trajectory presents opportunities for tea producers, retailers, and exporters to capitalize on the growing demand for black tea products. It also reflects evolving consumer preferences and the industry’s ability to innovate and adapt to changing market dynamics.
14. The White Tea Market Size Set to Surge by USD 200.81 Million, With a CAGR of 6.46% from 2022 to 2027
The white tea market is poised for substantial growth, with a forecasted increase of USD 200.81 million anticipated between 2022 and 2027. This projection reflects a Compound Annual Growth Rate (CAGR) of 6.46% during the specified period, indicating a steady upward trend in market expansion. (Tech Navio)
The forecasted growth in the white tea market underscores the rising popularity and demand for this premium tea variety. White tea, known for its delicate flavor profile and perceived health benefits, is increasingly sought after by consumers seeking natural and wellness-oriented beverages. The anticipated increase in market size reflects evolving consumer preferences and the growing recognition of white tea’s unique attributes.
Implications: The projected expansion of the white tea market presents opportunities for tea producers, retailers, and stakeholders to capitalize on the growing demand for this specialty tea. It signifies a shift towards higher-value tea products and highlights the potential for innovation and differentiation within the tea industry. Additionally, the forecasted growth may lead to increased investment in white tea production and marketing efforts, further driving market expansion and competitiveness.
15. Oolong Tea Market Poised for USD 159.3 Million Surge, With a 5.62% CAGR from 2023 to 2028
The Oolong Tea market is primed for significant growth, with a projected increase of USD 159.3 million anticipated between 2023 and 2028. This growth trajectory is characterized by a Compound Annual Growth Rate (CAGR) of 5.62%, highlighting a steady and robust expansion within the specified timeframe. (Tech Navio)
The forecasted surge in the Oolong Tea market reflects growing consumer interest in this distinctive tea variety. Oolong tea, prized for its unique flavor profile and health benefits, has garnered attention among tea enthusiasts seeking premium and artisanal beverages. The projected increase in market size underscores the rising demand for Oolong tea products and the expanding market opportunities within the tea industry.
Implications: The anticipated growth presents opportunities for tea producers, retailers, and stakeholders to capitalize on the growing popularity of Oolong tea. It signifies a shift towards higher-value tea offerings and underscores the importance of product innovation and marketing strategies in meeting consumer preferences. Additionally, the projected expansion may lead to increased investment in Oolong tea cultivation, processing, and distribution, driving economic growth and competitiveness within the tea market.
16. Projections indicate a significant decrease in tea yields due to climate change, with expected reductions by 5% in China, 14% in Sri Lanka, and 25% in Kenya by 2050. Erratic rainfall and droughts have already reduced yields and impacted the timing and number of harvested flushes per growing season.
Tea production is becoming increasingly vulnerable to the effects of climate change, with alterations in precipitation and temperature patterns impacting yield and quality. This challenge is prompting the adoption of more resilient tea varieties and sustainable farming practices. (IISD 2024 Global Market Report on Tea)
Implications: The impact of climate change on tea production is a critical concern that necessitates sustainable farming practices and the development of climate-resistant tea varieties. This challenge presents an opportunity for the global tea industry to lead in environmental stewardship, adopting innovative agricultural techniques to ensure the long-term viability of tea cultivation. It also raises awareness among consumers about the environmental impacts of their consumption choices, influencing demand for sustainably produced teas.
17. Herbal Tea Market Size to Reach USD 4.38 Billion by 2030, With a Projected CAGR of 4.3%
The herbal tea market is expected to witness substantial growth, with its market size forecasted to reach USD 4.38 billion by 2030. This projection reflects a Compound Annual Growth Rate (CAGR) of 4.3% over the forecast period from 2022 -2030. The increasing consumer preference for natural and functional beverages, coupled with the perceived health benefits of herbal teas, is driving market expansion. Prominent players include Tielka, Tega Organic, Tetley, and Twining’s to name a few. (Vantage Market Research)
The rising demand for herbal teas stems from consumers’ growing awareness of health and wellness, leading to a shift towards natural and plant-based products. Herbal teas, infused with various botanicals and herbs, are perceived to offer medicinal properties and functional benefits, contributing to their popularity among health-conscious consumers.
Implications: The projected growth in the herbal tea market presents opportunities for tea companies and beverage manufacturers to diversify their product portfolios and cater to evolving consumer preferences. It underscores the importance of product innovation and marketing strategies focused on highlighting the health benefits and unique flavor profiles of herbal teas. Additionally, the growth of the herbal tea market may lead to increased investment in sourcing high-quality botanical ingredients and sustainable cultivation practices.
18. The global ready-to-drink (RTD) tea market continues to exhibit robust growth, reaching a significant valuation of USD 29,734.9 million in 2022. Projections indicate a steady expansion, with the market expected to soar to USD 48,555.87 million by 2031, showcasing a Compound Annual Growth Rate (CAGR) of 5.6% during the forecast period (2023–2031).
Explanation: Ready-to-drink (RTD) tea, offered in pre-prepared and packaged forms, encompasses popular varieties such as black tea in Western countries and green tea in Asian nations. The cultivation and management of tea involve meticulous attention to factors like site selection, water availability, soil quality, and adherence to pesticide regulations, ensuring optimal growth conditions for tea plants. (Straights Research)
Implications: The escalating demand for RTD tea stems from growing awareness among consumers regarding its health benefits, including weight management, cholesterol reduction, and decreased risk of heart disease. This trend aligns with the global shift towards healthier lifestyle choices, driving the rapid expansion of the RTD tea market. Key factors fueling market growth include increasing disposable incomes, the availability of RTD tea in convenient packaging formats, and the proliferation of distribution channels such as cafes, online platforms, and restaurants.
FAQ
What factors contribute to the variation in tea quality across different regions?
The quality of tea can vary significantly across different regions due to a variety of factors, including climate, altitude, soil composition, and tea cultivation practices. The unique combination of these elements in each region contributes to the distinctive flavor profiles and qualities of teas produced there.
How does climate change impact tea production?
Climate change poses significant challenges to tea production, including altered precipitation patterns, increased frequency of extreme weather events, and shifting temperature ranges. These changes can affect tea yield, quality, and the timing of harvests, necessitating adaptive strategies in cultivation and sourcing.
What are the main challenges facing tea producers today?
Tea producers face several challenges, including environmental concerns like climate change and sustainability, economic pressures such as fluctuating market prices and labor costs, and social issues including labor rights and fair trade practices.
How is the global demand for different types of tea changing?
Global demand for tea is evolving, with a noticeable increase in preference for green, herbal, and specialty teas among consumers. This shift is largely driven by a growing awareness of health benefits, interest in diverse flavors, and cultural practices around tea consumption.
What role does technology play in modern tea production and processing?
Technology plays a crucial role in modern tea production and processing, enhancing efficiency, quality, and sustainability. Innovations include precision agriculture, automated harvesting, and processing techniques, as well as blockchain and traceability systems to ensure product authenticity and supply chain transparency.
