Sri Lanka: Tea Market 2024

Tea Market Size in Sri Lanka

The Sri Lankan tea market dropped to $X in 2022, with a decrease of -14.4% against the previous year. Overall, consumption, however, showed buoyant growth. Tea consumption peaked at $X in 2018; however, from 2019 to 2022, consumption stood at a somewhat lower figure.

Tea Production in Sri Lanka

In value terms, tea production reached $X in 2022 estimated in export price. The total output value increased at an average annual rate of +1.2% over the period from 2012 to 2022; the trend pattern remained consistent, with only minor fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2017 with an increase of 18%. Tea production peaked at $X in 2018; however, from 2019 to 2022, production remained at a lower figure.

The average yield of tea in Sri Lanka amounted to less than X kg per ha in 2022, stabilizing at 2021 figures. 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, the total area harvested in terms of tea production in Sri Lanka was estimated at less than X ha, standing approx. at the previous year. Overall, the harvested area showed a relatively flat trend pattern.

Tea Exports

Exports from Sri Lanka

In 2022, approx. X tons of tea were exported from Sri Lanka; picking up by 6% on 2021. In general, exports, however, showed a mild reduction. The growth pace was the most rapid in 2014 with an increase of 68% against the previous year. As a result, the exports attained the peak of X tons. From 2015 to 2022, the growth of the exports failed to regain momentum.

In value terms, tea exports rose notably to $X in 2022. Over the period under review, exports, however, showed a slight slump. The growth pace was the most rapid in 2014 when exports increased by 70%. As a result, the exports reached the peak of $X. From 2015 to 2022, the growth of the exports remained at a lower figure.

Exports by Country

Iraq (X tons), Russia (X tons) and Turkey (X tons) were the main destinations of tea exports from Sri Lanka, together comprising 38% of total exports. Iran, Azerbaijan, China, Libya, Chile, Germany, Japan, the United States, Taiwan (Chinese) and Saudi Arabia lagged somewhat behind, together accounting for a further 40%.

From 2012 to 2022, the most notable rate of growth in terms of shipments, amongst the main countries of destination, was attained by China (with a CAGR of +16.2%), while the other leaders experienced more modest paces of growth.

In value terms, the largest markets for tea exported from Sri Lanka were Iraq ($X), Russia ($X) and Iran ($X), together comprising 32% of total exports. Turkey, Azerbaijan, China, Germany, Saudi Arabia, Japan, the United States, Libya, Chile and Taiwan (Chinese) lagged somewhat behind, together comprising a further 41%.

In terms of the main countries of destination, China, with a CAGR of +14.6%, 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. Overall, the export price showed a relatively flat trend pattern. The growth pace was the most rapid in 2017 an increase of 22%. As a result, the export price reached the peak level of $X per ton. From 2018 to 2022, the average export prices remained at a lower figure.

There were significant differences in the average prices for the major overseas markets. In 2022, amid the top suppliers, the country with the highest price was Saudi Arabia ($X per ton), while the average price for exports to Iraq ($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 Saudi Arabia (+4.2%), while the prices for the other major destinations experienced more modest paces of growth.

Tea Imports

Imports into Sri Lanka

In 2022, the amount of tea imported into Sri Lanka fell to X tons, reducing by -2.9% compared with the previous year's figure. Overall, imports, however, continue to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2017 when imports increased by 111% against the previous year. As a result, imports reached the peak of X tons. From 2018 to 2022, the growth of imports remained at a somewhat lower figure.

In value terms, tea imports contracted to $X in 2022. In general, imports continue to indicate a mild downturn. The most prominent rate of growth was recorded in 2017 when imports increased by 108%. As a result, imports attained the peak of $X. From 2018 to 2022, the growth of imports failed to regain momentum.

Imports by Country

India (X tons), China (X tons) and Kenya (X tons) were the main suppliers of tea imports to Sri Lanka, with a combined 98% share of total imports.

From 2012 to 2022, the biggest increases were recorded for India (with a CAGR of +5.6%), while purchases for the other leaders experienced a decline.

In value terms, the largest tea suppliers to Sri Lanka were India ($X), China ($X) and Kenya ($X), with a combined 95% share of total imports.

Among the main suppliers, India, with a CAGR of +3.0%, recorded the highest rates of growth with regard to the value of imports, over the period under review, while purchases for the other leaders experienced a decline.

Import Prices by Country

The average tea import price stood at $X per ton in 2022, reducing by -2.6% against the previous year. In general, the import price showed a noticeable decrease. The pace of growth appeared the most rapid in 2019 when the average import price increased by 6.9% against the previous year. The import price peaked at $X per ton in 2012; however, from 2013 to 2022, import prices remained at a lower figure.

Average prices varied somewhat amongst the major supplying countries. In 2022, amid the top importers, the country with the highest price was China ($X per ton), while the price for Kenya ($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 (-1.1%), while the prices for the other major suppliers experienced a decline.

Source: IndexBox Platform

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