Pakistan: Tea Market 2025

Tea Market Size in Pakistan

For the third year in a row, the Pakistani tea market recorded growth in sales value, which increased by 4.7% to $X in 2022. Over the period under review, the total consumption indicated a prominent increase from 2012 to 2022: its value increased at an average annual rate of +6.1% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, consumption increased by +27.8% against 2019 indices. Over the period under review, the market reached the maximum level in 2022 and is likely to see steady growth in years to come.

Tea Exports

Exports from Pakistan

In 2022, shipments abroad of tea decreased by -6.8% to X tons, falling for the second year in a row after five years of growth. Overall, exports, however, saw a remarkable increase. The growth pace was the most rapid in 2020 when exports increased by 59% against the previous year. 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 amounted to $X in 2022. Over the period under review, exports, however, posted a buoyant expansion. The growth pace was the most rapid in 2020 when exports increased by 58% against the previous year. As a result, the exports attained the peak of $X. From 2021 to 2022, the growth of the exports failed to regain momentum.

Exports by Country

The United States (X tons), Afghanistan (X tons) and Italy (X tons) were the main destinations of tea exports from Pakistan, with a combined 64% share of total exports. Canada, Saudi Arabia, Australia, the United Arab Emirates, Greece, the UK and Germany lagged somewhat behind, together accounting for a further 24%.

From 2012 to 2022, the most notable rate of growth in terms of shipments, amongst the main countries of destination, was attained by Germany (with a CAGR of +52.2%), while the other leaders experienced more modest paces of growth.

In value terms, the United States ($X) remains the key foreign market for tea exports from Pakistan, comprising 37% of total exports. The second position in the ranking was taken by Afghanistan ($X), with a 16% share of total exports. It was followed by Italy, with a 7.5% share.

From 2012 to 2022, the average annual growth rate of value to the United States totaled +13.0%. Exports to the other major destinations recorded the following average annual rates of exports growth: Afghanistan (+6.5% per year) and Italy (+22.4% per year).

Export Prices by Country

The average tea export price stood at $X per ton in 2022, rising by 8% against the previous year. Over the last decade, it increased at an average annual rate of +3.5%. The growth pace was the most rapid in 2013 when the average export price increased by 20% against the previous year. The export price peaked in 2022 and is expected to retain growth in the near future.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was the UK ($X per ton), while the average price for exports to Afghanistan ($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 (+7.3%), while the prices for the other major destinations experienced more modest paces of growth.

Tea Imports

Imports into Pakistan

In 2022, overseas purchases of tea decreased by -3.9% to X tons for the first time since 2017, thus ending a four-year rising trend. Overall, total imports indicated a strong increase from 2012 to 2022: its volume increased at an average annual rate of +7.5% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2014 when imports increased by 24%. Over the period under review, imports reached the maximum at X tons in 2021, and then dropped slightly in the following year.

In value terms, tea imports rose markedly to $X in 2022. Over the period under review, total imports indicated resilient growth from 2012 to 2022: its value increased at an average annual rate of +5.8% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +29.1% against 2019 indices. The pace of growth was the most pronounced in 2015 with an increase of 38%. Over the period under review, imports hit record highs in 2022 and are likely to see steady growth in years to come.

Imports by Country

In 2022, Kenya (X tons) constituted the largest supplier of tea to Pakistan, accounting for a 80% share of total imports. Moreover, tea imports from Kenya exceeded the figures recorded by the second-largest supplier, Rwanda (X tons), more than tenfold. Vietnam (X tons) ranked third in terms of total imports with a 3.7% share.

From 2012 to 2022, the average annual rate of growth in terms of volume from Kenya amounted to +11.6%. The remaining supplying countries recorded the following average annual rates of imports growth: Rwanda (+4.1% per year) and Vietnam (-0.2% per year).

In value terms, Kenya ($X) constituted the largest supplier of tea to Pakistan, comprising 83% of total imports. The second position in the ranking was taken by Rwanda ($X), with a 5.9% share of total imports. It was followed by Vietnam, with a 2.7% share.

From 2012 to 2022, the average annual growth rate of value from Kenya totaled +8.8%. The remaining supplying countries recorded the following average annual rates of imports growth: Rwanda (+5.5% per year) and Vietnam (-0.6% per year).

Import Prices by Country

In 2022, the average tea import price amounted to $X per ton, rising by 11% against the previous year. Overall, the import price, however, continues to indicate a mild reduction. The most prominent rate of growth was recorded in 2015 when the average import price increased by 28%. The import price peaked at $X per ton in 2017; however, from 2018 to 2022, import prices failed to regain momentum.

Prices varied noticeably by country of origin: amid the top importers, the country with the highest price was Rwanda ($X per ton), while the price for China ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Rwanda (+1.3%), while the prices for the other major suppliers experienced a decline.

Source: IndexBox Platform

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