Southern Asia: Tea Market 2024

Tea Market Size in Southern Asia

The South Asian tea market declined to $X in 2022, falling by -11% against the previous year. The total consumption indicated a prominent increase from 2012 to 2022: its value increased at an average annual rate of +5.5% 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 +7.1% against 2020 indices. The level of consumption peaked at $X in 2021, and then dropped in the following year.

Tea Production in Southern Asia

In value terms, tea production fell modestly to $X in 2022 estimated in export price. The total output value increased at an average annual rate of +1.1% over the period from 2012 to 2022; the trend pattern remained relatively stable, with only minor fluctuations throughout the analyzed period. The pace of growth was the most pronounced in 2017 with an increase of 11% against the previous year. Over the period under review, production reached the peak level at $X in 2021, and then declined modestly in the following year.

The countries with the highest volumes of production in 2022 were Sri Lanka (X tons), India (X tons) and Nepal (X tons), with a combined 99% share of total production.

From 2012 to 2022, the biggest increases were recorded for India (with a CAGR of +0.9%), while production for the other leaders experienced more modest paces of growth.

Tea Exports

Exports in Southern Asia

In 2022, approx. X tons of tea were exported in Southern Asia; picking up by 13% against the year before. Overall, exports, however, saw a slight slump. The growth pace was the most rapid in 2014 when exports increased by 19%. Over the period under review, the exports attained the peak figure at X tons in 2017; however, from 2018 to 2022, the exports stood at a somewhat lower figure.

In value terms, tea exports rose notably to $X in 2022. Over the period under review, exports, however, continue to indicate a slight descent. The pace of growth appeared the most rapid in 2014 with an increase of 27%. Over the period under review, the exports hit record highs at $X in 2017; however, from 2018 to 2022, the exports remained at a lower figure.

Exports by Country

Sri Lanka (X tons) and India (X tons) prevails in exports structure, together achieving 97% of total exports. Nepal (X tons) followed a long way behind the leaders.

From 2012 to 2022, the biggest increases were recorded for Nepal (with a CAGR of +2.3%), while shipments for the other leaders experienced a decline in the exports figures.

In value terms, the largest tea supplying countries in Southern Asia were Sri Lanka ($X), India ($X) and Nepal ($X), together accounting for 99% of total exports.

Nepal, with a CAGR of +3.6%, recorded the highest growth rate of the value of exports, among the main exporting countries over the period under review, while shipments for the other leaders experienced a decline in the exports figures.

Export Prices by Country

In 2022, the export price in Southern Asia amounted to $X per ton, declining by -3.9% against the previous year. Over the period under review, the export price, however, saw a relatively flat trend pattern. The most prominent rate of growth was recorded in 2017 an increase of 12% against the previous year. The level of export peaked at $X per ton in 2014; however, from 2015 to 2022, the export prices failed to regain momentum.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Sri Lanka ($X per ton), while Nepal ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Nepal (+1.2%), while the other leaders experienced mixed trends in the export price figures.

Tea Imports

Imports in Southern Asia

In 2022, supplies from abroad of tea decreased by -4.5% to X tons for the first time since 2017, thus ending a four-year rising trend. The total import volume increased at an average annual rate of +3.6% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The growth pace was the most rapid in 2020 when imports increased by 16%. Over the period under review, imports hit record highs at X tons in 2021, and then reduced modestly in the following year.

In value terms, tea imports rose to $X in 2022. The total import value increased at an average annual rate of +2.1% over the period from 2012 to 2022; however, the trend pattern remained relatively stable, with only minor fluctuations in certain years. The most prominent rate of growth was recorded in 2015 when imports increased by 20% against the previous year. Over the period under review, imports reached the peak figure in 2022 and are expected to retain growth in the near future.

Imports by Country

Pakistan dominates imports structure, reaching X tons, which was approx. 82% of total imports in 2022. India (X tons) took the second position in the ranking, followed by Afghanistan (X tons). All these countries together took near 15% share of total imports. Sri Lanka (X tons) took a minor share of total imports.

Pakistan was also the fastest-growing in terms of the tea imports, with a CAGR of +7.5% from 2012 to 2022. At the same time, India (+3.7%) displayed positive paces of growth. Sri Lanka experienced a relatively flat trend pattern. By contrast, Afghanistan (-13.2%) illustrated a downward trend over the same period. While the share of Pakistan (+25 p.p.) increased significantly in terms of the total imports from 2012-2022, the share of Afghanistan (-24.1 p.p.) displayed negative dynamics. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Pakistan ($X) constitutes the largest market for imported tea in Southern Asia, comprising 84% of total imports. The second position in the ranking was held by India ($X), with a 7.4% share of total imports. It was followed by Afghanistan, with a 5.2% share.

From 2012 to 2022, the average annual rate of growth in terms of value in Pakistan amounted to +5.8%. The remaining importing countries recorded the following average annual rates of imports growth: India (+2.0% per year) and Afghanistan (-14.1% per year).

Import Prices by Country

In 2022, the import price in Southern Asia amounted to $X per ton, rising by 8.3% against the previous year. Overall, the import price, however, continues to indicate a slight setback. The most prominent rate of growth was recorded in 2015 an increase of 18%. Over the period under review, import prices reached the peak figure at $X per ton in 2017; however, from 2018 to 2022, import prices remained at a lower figure.

Average prices varied somewhat amongst the major importing countries. In 2022, major importing countries recorded the following prices: in Afghanistan ($X per ton) and Pakistan ($X per ton), while India ($X per ton) and Sri Lanka ($X per ton) were amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Afghanistan (-1.1%), while the other leaders experienced a decline in the import price figures.

Source: IndexBox Platform

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