Uganda: Tea Market 2024

Tea Market Size in Uganda

The Ugandan tea market plummeted to $X in 2022, reducing by -30.7% against the previous year. Overall, consumption continues to indicate a deep slump. Over the period under review, the market reached the peak level at $X in 2016; however, from 2017 to 2022, consumption stood at a somewhat lower figure.

Tea Production in Uganda

In value terms, tea production contracted modestly to $X in 2022 estimated in export price. Over the period under review, production saw a relatively flat trend pattern. The growth pace was the most rapid in 2018 when the production volume increased by 10% against the previous year. Tea production peaked at $X in 2012; however, from 2013 to 2022, production stood at a somewhat lower figure.

The average yield of tea in Uganda totaled less than X kg per ha in 2022, standing approx. at 2021 figures. In general, the yield showed 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 Uganda; almost unchanged from the previous year. Overall, the harvested area saw a relatively flat trend pattern.

Tea Exports

Exports from Uganda

In 2022, approx. X tons of tea were exported from Uganda; with an increase of 6% on the year before. Overall, exports recorded prominent growth. The pace of growth appeared the most rapid in 2013 when exports increased by 50%. Over the period under review, the exports hit record highs at X tons in 2020; however, from 2021 to 2022, the exports stood at a somewhat lower figure.

In value terms, tea exports expanded markedly to $X in 2022. Over the period under review, exports showed slight growth. The most prominent rate of growth was recorded in 2013 with an increase of 34%. As a result, the exports reached the peak of $X. From 2014 to 2022, the growth of the exports remained at a lower figure.

Exports by Country

Kenya (X tons) was the main destination for tea exports from Uganda, accounting for a 74% share of total exports. Moreover, tea exports to Kenya exceeded the volume sent to the second major destination, Pakistan (X tons), fivefold.

From 2012 to 2022, the average annual growth rate of volume to Kenya amounted to +3.2%. Exports to the other major destinations recorded the following average annual rates of exports growth: Pakistan (+18.7% per year) and South Sudan (+27.6% per year).

In value terms, Kenya ($X) remains the key foreign market for tea exports from Uganda, comprising 79% of total exports. The second position in the ranking was held by Pakistan ($X), with a 13% share of total exports.

From 2012 to 2022, the average annual rate of growth in terms of value to Kenya was relatively modest. Exports to the other major destinations recorded the following average annual rates of exports growth: Pakistan (+9.9% per year) and South Sudan (+28.3% per year).

Export Prices by Country

The average tea export price stood at $X per ton in 2022, remaining stable against the previous year. Over the period under review, the export price, however, continues to indicate a noticeable curtailment. The most prominent rate of growth was recorded in 2018 an increase of 9.1% against the previous year. Over the period under review, the average export prices attained the maximum at $X per ton in 2012; however, from 2013 to 2022, the export prices stood at a somewhat lower figure.

Average prices varied somewhat for the major export markets. In 2022, amid the top suppliers, the country with the highest price was Kenya ($X per ton), while the average price for exports to Pakistan ($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 South Sudan (+0.6%), while the prices for the other major destinations experienced a decline.

Tea Imports

Imports into Uganda

Tea imports into Uganda shrank modestly to X tons in 2022, waning by -3.6% against 2021. Overall, imports, however, recorded a tangible expansion. The most prominent rate of growth was recorded in 2013 when imports increased by 72%. Over the period under review, imports reached the maximum at X tons in 2015; however, from 2016 to 2022, imports failed to regain momentum.

In value terms, tea imports reduced to $X in 2022. In general, imports, however, recorded a resilient increase. The pace of growth was the most pronounced in 2015 when imports increased by 85%. Imports peaked at $X in 2019; however, from 2020 to 2022, imports stood at a somewhat lower figure.

Imports by Country

Kenya (X tons), China (X tons) and Rwanda (X tons) were the main suppliers of tea imports to Uganda, with a combined 72% share of total imports. The United Arab Emirates, Thailand, the UK, Malawi, Saudi Arabia, South Africa, Sri Lanka, Tanzania and Indonesia lagged somewhat behind, together accounting for a further 24%.

From 2012 to 2022, the most notable rate of growth in terms of purchases, amongst the main suppliers, was attained by Malawi (with a CAGR of +55.0%), while imports for the other leaders experienced more modest paces of growth.

In value terms, Kenya ($X) constituted the largest supplier of tea to Uganda, comprising 49% of total imports. The second position in the ranking was taken by Rwanda ($X), with a 14% share of total imports. It was followed by the United Arab Emirates, with an 8.8% share.

From 2012 to 2022, the average annual growth rate of value from Kenya amounted to +14.8%. The remaining supplying countries recorded the following average annual rates of imports growth: Rwanda (+0.8% per year) and the United Arab Emirates (+18.1% per year).

Import Prices by Country

In 2022, the average tea import price amounted to $X per ton, falling by -4.1% against the previous year. In general, the import price, however, posted a strong expansion. The pace of growth appeared the most rapid in 2019 when the average import price increased by 28% against the previous year. As a result, import price reached the peak level of $X per ton. From 2020 to 2022, the average import prices remained at a lower figure.

Prices varied noticeably by country of origin: amid the top importers, the country with the highest price was South Africa ($X per ton), while the price for Indonesia ($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 (+19.1%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform