Product Profile: Tea Industry

The global tea market has witnessed a strong and steady growth in the tea production and tea consumption from around the world over the recent decades, while the top tea producing countries are still dominating the global market with their significant tea productions year on year. Globally tea is grown in more than 48 countries. However, only top seven countries including India contributed 90% of the total world tea production.

S. No. Area Annual Production (Tonnes) Share in the Total World Production of Tea (in %)
1 China 2414802 20.2
2 India 1267400 10.6
3 Kenya 473000 4.0
4 Sri Lanka 349308 2.9
5 Turkey 243000 2.0
6 Vietnam 240000 2.0
7 Indonesia 144015 1.2
8 Myanmar 102404 0.9
9 Argentina 89609 0.7
10 Japan 80200 0.7
  Total World Production 5982334  

Source: Food and Agriculture Organization (FAO), Data as of 2016.

INDIAN TEA INDUSTRY

Indian tea is amongst the finest in the world owing to strong geographical indications, heavy investments in tea processing units, continuous innovation, augmented product mix and strategic market expansion. Production of tea reached 1,325.05 million kg in 2017-18 (according to the Tea Board India).

Year

North India South India

Total Production
(in Million Kgs)

2013

958.6 241.8

1200.4

2014

965.2 242.1

1207.3

2015

981.1 227.6

1208.7

2016

1054.5 212.9

1267.4

2017

1087.1 234.7

1321.8

Source: Tea Board India

The three prominent tea-growing regions in India are Darjeeling, Assam and Nilgiri. While Darjeeling and Assam are located in the Northeast regions, Nilgiri is a part of the southern region of the country.

Tea production is led by Assam (307.08 thousand hectares), West Bengal (140.44 thousand hectares), Tamil Nadu (69.62 thousand hectares) and Kerala (35.01 thousand hectares). According to estimates, the tea industry is India’s second largest employer. It employs over 3.5 million people across some 1,686 estates and 157,504 small holdings; most of them women.

There is a wide variety of tea offered by India; from Green Tea to CTC (crush, tear and curl) tea to the aromatic Darjeeling tea and the strong Assamese tea, the range of tea available in India is unparalleled.

India’s total export of tea in 2017-18 was worth US $784.97 Million. The top export markets in volume terms for 2017-18 were Russian Federation (48.1 million kg), Iran (31.19 million kg) and UAE (21.63 million kg). In terms of value, the top export markets were Iran (US $126.4 million), Russian Federation (US $120.8 million) and UAE (US $61.2 million).

S.No.

Country

Values in US$ Million

2016-2017

2017-2018

%Growth

1

IRAN

98.4

126.4

28.5

2

RUSSIAN FEDERATION

108.4

120.8

11.5

3

UNITED ARAB EMIRATES

50.9

61.2

20.2

4

UNITED KINGDOM

50.6

55.4

9.3

5

UNITED STATES OF AMERICA

56.8

51.2

-9.9

6

GERMANY

40.9

42.3

3.5

7

KAZAKHISTAN

34.2

27.4

-19.8

8

EGYPT

8.6

26.6

208.2

9

CHINA

17.3

23.2

34.3

10

PAKISTAN

17.1

23.1

35.0

Source: Export Import Data Bank, Department of Commerce.

Share of the top 10 export destinations in India’s total tea export basket:

SHARE OF TOP TEN EXPORT DESTINATION

Presently India ranks 4th in the list of top Tea Exporting Countries of 2017 after China. Sri Lanka and Kenya. India has posted decline of 27.5% in their exported tea sales. Also, the tea industry is going through tepid times due to the outdated government regulations and rising demand for tea substitutes which is hurting the domestic tea industry. But the ongoing global shortfall in tea production this year is expected to spell boom for the Indian tea after a below par performance in 2017. Robust domestic demand and higher exports is estimated to help in the price recovery this year.

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Unjhawala Tea
1 year ago

Thank you so much for providing this information, Unjhawala Tea is a leading processor and Exporters of Premium grain tea, Green Tea, and Powder tea. For more information, you can visit the website http://unjhawalatea.com/

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