India: Tea Market 2024

Tea Market Size in India

After three years of growth, the Indian tea market decreased by -22.4% to $X in 2022. In general, consumption, however, enjoyed a remarkable increase. Over the period under review, the market reached the maximum level at $X in 2021, and then dropped notably in the following year.

Tea Production in India

In value terms, tea production reduced to $X in 2022 estimated in export price. Over the period under review, production, however, saw a modest increase. The most prominent rate of growth was recorded in 2019 with an increase of 7.3% against the previous year. Tea production peaked at $X in 2021, and then fell slightly in the following year.

In 2022, the average tea yield in India was estimated at less than X kg per ha, almost unchanged from 2021 figures. Overall, the yield saw 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.

The tea harvested area in India amounted to less than X ha in 2022, approximately equating the year before. In general, the harvested area saw a relatively flat trend pattern.

Tea Exports

Exports from India

In 2022, after three years of decline, there was significant growth in shipments abroad of tea, when their volume increased by 22% to X tons. In general, exports, however, showed a relatively flat trend pattern. The exports peaked at X tons in 2018; however, from 2019 to 2022, the exports stood at a somewhat lower figure.

In value terms, tea exports expanded sharply to $X in 2022. Over the period under review, exports, however, continue to indicate a slight reduction. The most prominent rate of growth was recorded in 2013 with an increase of 14% against the previous year. As a result, the exports attained the peak of $X. From 2014 to 2022, the growth of the exports failed to regain momentum.

Exports by Country

Russia (X tons), Iran (X tons) and Iraq (X tons) were the main destinations of tea exports from India, together comprising 46% of total exports.

From 2012 to 2022, the most notable rate of growth in terms of shipments, amongst the main countries of destination, was attained by Iraq (with a CAGR of +64.6%), while the other leaders experienced more modest paces of growth.

In value terms, Russia ($X), Iran ($X) and the UK ($X) were the largest markets for tea exported from India worldwide, together accounting for 42% of total exports. Germany, the United States, Iraq, Kazakhstan, Poland, Japan, China, Sri Lanka, Taiwan (Chinese) and Tunisia lagged somewhat behind, together accounting for a further 33%.

Among the main countries of destination, Iraq, with a CAGR of +63.8%, 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

The average tea export price stood at $X per ton in 2022, reducing by -8.4% against the previous year. Overall, the export price showed a relatively flat trend pattern. The growth pace was the most rapid in 2019 when the average export price increased by 7.3%. Over the period under review, the average export prices hit record highs at $X per ton in 2013; however, from 2014 to 2022, the export prices stood at a somewhat lower figure.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was Japan ($X per ton), while the average price for exports to Tunisia ($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 the UK (+1.4%), while the prices for the other major destinations experienced mixed trend patterns.

Tea Imports

Imports into India

In 2022, overseas purchases of tea decreased by -0.6% to X tons, falling for the second consecutive year after two years of growth. In general, imports, however, recorded notable growth. The most prominent rate of growth was recorded in 2019 with an increase of 72%. Over the period under review, imports hit record highs at X tons in 2020; however, from 2021 to 2022, imports stood at a somewhat lower figure.

In value terms, tea imports dropped to $X in 2022. Over the period under review, total imports indicated a moderate increase from 2012 to 2022: its value increased at an average annual rate of +2.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports decreased by -16.3% against 2020 indices. The pace of growth was the most pronounced in 2019 when imports increased by 101% against the previous year. Over the period under review, imports reached the maximum at $X in 2020; however, from 2021 to 2022, imports stood at a somewhat lower figure.

Imports by Country

In 2022, Nepal (X tons) constituted the largest tea supplier to India, with a 55% share of total imports. Moreover, tea imports from Nepal exceeded the figures recorded by the second-largest supplier, Kenya (X tons), threefold. The third position in this ranking was taken by Vietnam (X tons), with a 10% share.

From 2012 to 2022, the average annual growth rate of volume from Nepal amounted to +6.5%. The remaining supplying countries recorded the following average annual rates of imports growth: Kenya (+4.8% per year) and Vietnam (+13.7% per year).

In value terms, Nepal ($X) constituted the largest supplier of tea to India, comprising 51% of total imports. The second position in the ranking was taken by Kenya ($X), with a 21% share of total imports. It was followed by Vietnam, with a 6.2% share.

From 2012 to 2022, the average annual rate of growth in terms of value from Nepal stood at +4.9%. The remaining supplying countries recorded the following average annual rates of imports growth: Kenya (+1.7% per year) and Vietnam (+12.0% per year).

Import Prices by Country

In 2022, the average tea import price amounted to $X per ton, dropping by -4.4% against the previous year. Over the period under review, the import price saw a mild contraction. The growth pace was the most rapid in 2015 when the average import price increased by 24% against the previous year. As a result, import price attained the peak level of $X per ton. From 2016 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 Sri Lanka ($X per ton), while the price for Iran ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by China (+2.3%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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