Ethiopia: Tea Market 2025

Tea Market Size in Ethiopia

The Ethiopian tea market contracted to $X in 2022, waning by -14.2% against the previous year. Overall, consumption saw a pronounced contraction. As a result, consumption attained the peak level of $X. From 2014 to 2022, the growth of the market remained at a lower figure.

Tea Production in Ethiopia

In value terms, tea production dropped to $X in 2022 estimated in export price. Overall, production, however, recorded a relatively flat trend pattern. The pace of growth was the most pronounced in 2013 with an increase of 14%. As a result, production reached the peak level of $X. From 2014 to 2022, production growth remained at a lower figure.

The average yield of tea in Ethiopia totaled less than X kg per ha in 2022, stabilizing at the previous year's figure. Overall, the yield recorded a relatively flat trend pattern. Despite the increased use of modern agricultural techniques and methods, future yield figures may still be impacted by adverse weather conditions.

In 2022, approx. less than X ha of tea were harvested in Ethiopia; approximately equating the year before. Over the period under review, the harvested area recorded a relatively flat trend pattern.

Tea Exports

Exports from Ethiopia

In 2022, exports of tea from Ethiopia rose rapidly to X tons, growing by 9.6% against 2021. In general, exports recorded a buoyant expansion. The most prominent rate of growth was recorded in 2020 when exports increased by 47%. As a result, the exports attained the peak of X tons. From 2021 to 2022, the growth of the exports remained at a somewhat lower figure.

In value terms, tea exports expanded sharply to $X in 2022. Over the period under review, exports saw measured growth. The growth pace was the most rapid in 2020 with an increase of 57% against the previous year. As a result, the exports reached the peak of $X. From 2021 to 2022, the growth of the exports failed to regain momentum.

Exports by Country

Kenya (X tons) was the main destination for tea exports from Ethiopia, with a 53% share of total exports. Moreover, tea exports to Kenya exceeded the volume sent to the second major destination, Pakistan (X tons), twofold. The UK (X tons) ranked third in terms of total exports with a 10% share.

From 2012 to 2022, the average annual growth rate of volume to Kenya stood at +40.7%. Exports to the other major destinations recorded the following average annual rates of exports growth: Pakistan (-1.2% per year) and the UK (+18.7% per year).

In value terms, Kenya ($X), Pakistan ($X) and the UK ($X) were the largest markets for tea exported from Ethiopia worldwide, with a combined 81% share of total exports. Ireland, Germany and Somalia lagged somewhat behind, together comprising a further 13%.

In terms of the main countries of destination, Germany, with a CAGR of +81.4%, recorded the highest growth rate of the value of exports, over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

In 2022, the average tea export price amounted to $X per ton, flattening at the previous year. Over the period under review, the export price, however, recorded a noticeable reduction. The pace of growth was the most pronounced in 2013 an increase of 12% against the previous year. As a result, the export price reached the peak level of $X per ton. From 2014 to 2022, the average export prices remained at a lower figure.

There were significant differences in the average prices for the major external markets. In 2022, amid the top suppliers, the country with the highest price was the UK ($X per ton), while the average price for exports to Kenya ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to Somalia (+8.7%), while the prices for the other major destinations experienced mixed trend patterns.

Tea Imports

Imports into Ethiopia

In 2022, the amount of tea imported into Ethiopia dropped to X tons, waning by -3.2% on the previous year's figure. Over the period under review, imports saw a noticeable decline. The growth pace was the most rapid in 2013 with an increase of 71% against the previous year. Over the period under review, imports reached the maximum at X tons in 2014; however, from 2015 to 2022, imports stood at a somewhat lower figure.

In value terms, tea imports fell markedly to $X in 2022. In general, imports showed a relatively flat trend pattern. The most prominent rate of growth was recorded in 2014 when imports increased by 91% against the previous year. Imports peaked at $X in 2015; however, from 2016 to 2022, imports stood at a somewhat lower figure.

Imports by Country

China (X tons), the United Arab Emirates (X tons) and the United States (X tons) were the main suppliers of tea imports to Ethiopia, together comprising 68% of total imports. Italy, Kenya, Sri Lanka, India, South Africa and Poland lagged somewhat behind, together accounting for a further 24%.

From 2012 to 2022, the biggest increases were recorded for India (with a CAGR of +39.0%), while purchases for the other leaders experienced more modest paces of growth.

In value terms, the United States ($X), China ($X) and Sri Lanka ($X) were the largest tea suppliers to Ethiopia, together comprising 75% of total imports. The United Arab Emirates, Kenya, India, Italy, South Africa and Poland lagged somewhat behind, together comprising a further 15%.

In terms of the main suppliers, India, with a CAGR of +59.6%, saw the highest growth rate of the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

The average tea import price stood at $X per ton in 2022, with a decrease of -15.4% against the previous year. Over the period under review, the import price, however, saw moderate growth. The most prominent rate of growth was recorded in 2018 an increase of 58% against the previous year. As a result, import price reached the peak level of $X per ton. From 2019 to 2022, the average import prices failed to regain momentum.

There were significant differences in the average prices amongst the major supplying countries. In 2022, amid the top importers, the country with the highest price was Poland ($X per ton), while the price for Italy ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by South Africa (+16.2%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform