In this article, we will be analyzing the global tea market in America while covering the 15 biggest tea-producing countries in the world. If you wish to skip our detailed analysis, you can move directly to the 5 Biggest Tea Producing Countries In The World.
The Global Tea Market: An Overview
According to a report by Maximize Market Research, the global tea market was valued at $66.82 billion in 2022 and is expected to grow $104.52 billion at a compound annual growth rate of 6.6% from 2022 to 2029.
Region wise, Asia Pacific and Europe tend to dominate the global tea market. The factors driving the high market growth in the respective regions are their high tea production as well as tea consumption levels. The Middle East and Africa are the fastest growing regions due to rising tea consumption in countries such as Iran and Turkey, increasing disposable incomes, and changing beverage habits in the region.
Based on the product, tea is classified into various kinds such as black tea, green tea, oolong tea, and herbal tea. Black tea continues to be popular especially among health enthusiasts, as a result of its health benefits such as its high concentration of antioxidants and polyphenols. Due to the increasing health awareness, green tea is another growing tea segment.
What’s Happening in the Tea Industry?
In 2022, FAO reported that the global tea production amounts annually to over $17 billion, while world tea trade is valued at about $9.5 billion. In this global market, smallholders account for 60% of the total tea production. The per capita tea consumption has increased over the last 10 years as the tea-producing countries continue to expand. The market has been subject to several consumer trends including an inclination towards more organic blends and higher quality specialty teas with flavors. Tea also serves as an export commodity. Major tea-exporting countries include China, Vietnam, Sri Lanka, Kenya and India. While the tea industry offers numerous opportunities, it is also vulnerable to certain external challenges. Climate change in the form of adverse weather conditions affects the yield as well as the quality of the tea. The industry also needs to ensure economic stability for smallholder tea producers.
Tea leaves are processed and retailed as tea products. Companies known for offering tea products include The Hain Celestial Group, Inc. (NASDAQ:HAIN), Nestlé S.A. (OTC:NSRGY), and Starbucks Corporation (NASDAQ:SBUX).
The Hain Celestial Group, Inc. (NASDAQ:HAIN) operates Celestial Seasonings as its tea offering brand. The brand is one of the largest specialty tea manufacturers in North America and offers various teas such as herbal, wellness, green, black, and cold brew teas. 1.6 billion cups of tea are served by Celestial Seasonings every year.
Nestlé S.A.’s (OTC:NSRGY) brand of iced tea and pop beverages is Nestea. It offers a variety of tea products such as its refreshing iced tea as well as instant tea mixes in black, green, white, and red tea blends. Nestle Everyday is a known milk powder that enhances the taste and texture of tea. Nestlé S.A. (OTC:NSRGY) continues to introduce innovations across its product portfolio. On July 14, the company reported the introduction of an innovative sugar reduction technology that could also be utilized to manufacture low lactose and skimmed milk-based products. While reducing sugar, it also tends to retain the taste and increases prebiotic fibers. The technology has been tested in cocoa and malt-based ready-to-drink beverages in countries across Asia, Africa, and Latin America. Nestlé S.A. (OTC:NSRGY) also plans to utilize this technology across other categories including its dairy powders.
Starbucks Corporation (NASDAQ:SBUX) owns the Teavana brand which it acquired in 2012 to deliver a unique tea experience to its customers. However, the company closed all Teavana stores due to their declining performance in 2017. Some of the Teavana products still being sold by Starbucks include Teavana Earl Grey, Teavana Jade Citrus Mint, and Teavana Peach Tranquility. The company offers its own tea-related products as well. On November 1, the company reported the launch of its new Iced Gingerbread Oatmilk Chai which is made with a blend of oatmilk and black tea. You can also view the biggest non-alcoholic beverage companies in the US.
Now that we have navigated through the global tea industry, let’s move to the 15 biggest tea-producing countries in the world.
15 Biggest Tea Producing Countries In The World
Our Methodology:
In order to compile a list of the 15 biggest tea-producing countries in the world, we sourced data from the Food and Agriculture Organization of the United Nations (FAO). The most recent tea production data on the FAO’s crops and livestock products database is from 2021. Since tea leaves are the primary crop in this case, we have used the production quantity of tea leaves in every country as our metric. This metric has been expressed in tonnes.
Finally, we ranked the 15 biggest tea-producing countries in the world in ascending order of production quantity of tea leaves, expressed in tonnes.
15 Biggest Tea Producing Countries In The World
15. Nepal
Production Quantity of Tea Leaves: 103,000 Tonnes
Nepal is one of the biggest tea-producing countries in the world. Jhapa, Ilam, Panchthar, Dhankuta, and Terathum are prominent tea-growing areas in Nepal. The distinctive taste and aroma of Nepali tea make it known across the world. Tea is also a major export in the country.
14. Myanmar
Production Quantity of Tea Leaves: 115,848 Tonnes
Myanmar makes it to the 15 biggest tea-producing countries in the world. Tea is an important part of the local Burmese life and hence, tea shops are scattered throughout the country. Popular teas produced in Myanmar include laphet, oolong tea, green tea, and scented tea.
13. United Republic of Tanzania
Production Quantity of Tea Leaves: 120,000 Tonnes
The United Republic of Tanzania is a major tea producer in the world since tea is one of the main agricultural products in the country. East Usambara, Njombe, and Mufindi are the main tea planting areas in the United Republic of Tanzania. Tanzanian tea is also used in tea bag mixes for markets in the UK and Europe.
12. Rwanda
Production Quantity of Tea Leaves: 149,627 Tonnes
The 15 biggest tea-producing countries in the world include Rwanda as well. The country’s temperate climate makes it an attractive tea-producing destination. Tea is produced in regions such as Mulanje and Thyolo. Rwanda produces various kinds of quality teas including black tea, orthodox tea, white tea, green tea, organic tea, and spicy tea.
11. Malawi
Production Quantity of Tea Leaves: 205,351 Tonnes
Malawi is another big tea producer in Africa where tea is one of the most consumed beverages. Most of the tea produced domestically is black tea. Other tea varieties include herbal, white, and oolong teas. Tea is also exported in large volumes by Malawi.
Some of the top companies in the global tea market include The Hain Celestial Group, Inc. (NASDAQ:HAIN), Nestlé S.A. (OTC:NSRGY), and Starbucks Corporation (NASDAQ:SBUX).
10. Uganda
Production Quantity of Tea Leaves: 320,737 Tonnes
Tea is a major cash crop in Uganda. The country has allocated large land areas to tea production which makes it one of the biggest tea-producing countries in the world. Kisoro, Mbarara, Mukono, and Rukungiri are the major tea-producing areas in Uganda.
9. Argentina
Production Quantity of Tea Leaves: 339,288 Tonnes
Argentina is another significant tea-producing nation in the world. Most of the tea is produced in Misiones. Argentina also fulfills the tea needs in other markets through exports to countries such as the US, Chile, Poland, and Germany. Yerba mate is a popular tea in Argentina and is consumed countrywide.
The Hain Celestial Group, Inc. (NASDAQ:HAIN), Nestlé S.A. (OTC:NSRGY), and Starbucks Corporation (NASDAQ:SBUX) offer diverse tea products.
8. Bangladesh
Production Quantity of Tea Leaves: 393,000 Tonnes
Bangladesh is one of the 15 tea-producing countries in the world. Tea is a major cash crop in Bangladesh as evidenced by the numerous commercial tea production estates and tea gardens in the country. Types of teas produced in Bangladesh include green tea, black tea, oolong tea, instant tea, and white tea. Sylhet, Moulvibazar, Habiganj, and Chittagong are the tea-growing areas in Bangladesh.
7. Indonesia
Production Quantity of Tea Leaves: 563,000 Tonnes
Tea plants have a long cultivation history in Indonesia. Black, green, jasmine, and some specialty teas such as white tea are manufactured by Indonesian tea producers. West Java, Central Java, North Sumatra, West Sumatra, Jambi and East Java are among the prominent tea-growing provinces in the country. The tropical Indonesian climate is suitable for exotic tea types produced in Indonesia making it another big tea-producing country in the world.
6. Vietnam
Production Quantity of Tea Leaves: 1.1 Million Tonnes
Vietnam qualifies as one of the 15 biggest tea-producing countries in the world. The country hosts abundant tea plantations and established tea processing facilities. The local tea is also exported to other countries. Tea-growing regions in Vietnam include the Lam Dong Province, Phu Tho Province, Thai Nguyen Province, and Northwestern Vietnam.
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Disclosure: None. 15 Biggest Tea Producing Countries In The World is originally published on Insider Monkey.