Sri Lanka: Tea Market 2024

Tea Market Size in Sri Lanka

The Sri Lankan tea market contracted to $X in 2022, waning by X% against the previous year. In general, 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 totaled $X in 2022 estimated in export price. The total output value increased at an average annual rate of X% 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 X%. Over the period under review, production reached the maximum level at $X in 2018; however, from 2019 to 2022, production stood at a somewhat lower figure.

In 2022, the average yield of tea in Sri Lanka amounted to less than X kg per ha, approximately mirroring the year before. In general, 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.

The tea harvested area in Sri Lanka stood at less than X ha in 2022, stabilizing at 2021 figures. Over the period under review, the harvested area saw a relatively flat trend pattern.

Tea Exports

Exports from Sri Lanka

In 2022, exports of tea from Sri Lanka expanded markedly to X tons, surging by X% compared with the year before. Over the period under review, exports, however, showed a slight contraction. The growth pace was the most rapid in 2014 with an increase of X% against the previous year. As a result, the exports reached the peak of X tons. From 2015 to 2022, the growth of the exports remained at a somewhat lower figure.

In value terms, tea exports expanded significantly to $X in 2022. Overall, exports, however, saw a slight downturn. The pace of growth was the most pronounced in 2014 with an increase of X%. 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 accounting for X% of total exports. Iran, Azerbaijan, China, Libya, the United Arab Emirates, Chile, Germany, Japan, the United States and Taiwan (Chinese) lagged somewhat behind, together accounting for a further X%.

From 2012 to 2022, the biggest increases were recorded for China (with a CAGR of X%), while shipments for the other leaders experienced more modest paces of growth.

In value terms, Iraq ($X), Russia ($X) and Iran ($X) were the largest markets for tea exported from Sri Lanka worldwide, with a combined X% share of total exports. Turkey, Azerbaijan, China, Germany, Japan, the United States, Libya, the United Arab Emirates, Chile and Taiwan (Chinese) lagged somewhat behind, together accounting for a further X%.

China, with a CAGR of X%, recorded the highest rates of growth with regard to the value of exports, among the main countries of destination 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, remaining constant against the previous year. In general, the export price showed a relatively flat trend pattern. The most prominent rate of growth was recorded in 2017 an increase of X% against the previous year. 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 somewhat lower figure.

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

Tea Imports

Imports into Sri Lanka

In 2022, imports of tea into Sri Lanka contracted to X tons, which is down by X% compared with the previous year. In general, imports, however, saw a relatively flat trend pattern. The growth pace was the most rapid in 2017 when imports increased by X% 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 shrank to $X in 2022. Overall, imports recorded a mild curtailment. The most prominent rate of growth was recorded in 2017 with an increase of X%. As a result, imports reached the peak of $X. From 2018 to 2022, the growth of imports remained at a somewhat lower figure.

Imports by Country

India (X tons), China (X tons) and Kenya (X tons) were the main suppliers of tea imports to Sri Lanka, together comprising X% of total imports. These countries were followed by the United Arab Emirates, which accounted for a further X%.

From 2012 to 2022, the biggest increases were recorded for the United Arab Emirates (with a CAGR of X%), while purchases for the other leaders experienced mixed trend patterns.

In value terms, the largest tea suppliers to Sri Lanka were India ($X), China ($X) and Kenya ($X), with a combined X% share of total imports. The United Arab Emirates lagged somewhat behind, accounting for a further X%.

Among the main suppliers, the United Arab Emirates, with a CAGR of X%, saw the highest rates of growth with regard to the value of imports, over the period under review, while purchases for the other leaders experienced mixed trend patterns.

Import Prices by Country

In 2022, the average tea import price amounted to $X per ton, which is down by X% against the previous year. Over the period under review, the import price recorded a pronounced slump. The pace of growth appeared the most rapid in 2019 when the average import price increased by X%. Over the period under review, average import prices hit record highs at $X per ton in 2012; however, from 2013 to 2022, import prices failed to regain momentum.

Prices varied noticeably by country of origin: amid the top importers, the country with the highest price was the United Arab Emirates ($X per ton), while the price for Kenya ($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 (X%), while the prices for the other major suppliers experienced a decline.

Source: IndexBox Platform

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