International tea market: market situation, prospects and emerging issues

Year of publication2022

AuthorFAO

PublisherFAO

AbstractIn many developing countries, the tea sector contributes significantly to rural development, poverty reduction and food security, representing, in several cases, a major source of income and employment for millions of poor families. The global tea production amounts annually to over USD 17 billion, while world tea trade is valued at about USD 9.5 billion, accounting for an important source of export earnings. One key characteristic about tea is that smallholders are responsible for 60 percent of world production. Importantly, tea provides productive jobs in rural areas, which empowers households and communities to meet their food security needs and improve their nutritional status. World tea per capita consumption increased by 2.5 percent over the last decade, with marked expansions in tea producing countries. Developing and emerging economies have been driving the growth in demand, with East Asia, Africa, Latin America and the Caribbean, and the Near East leading the expansion Several factors influence demand for tea, including prices and income variables, demographics such as age, education, occupation, and cultural background. Growing consumption of tea in producing countries, driven by population and income growth, has translated in a decrease of exportable production over the past two decades. Nevertheless, per capita consumption remains low in these countries compared to importing markets, and greater efforts should be directed at expanding demand to explore prevailing market opportunities.

 

Product typeBrochure (factsheet; flyer/leaflet; Poster; banner)

Areas of workGlobal Commodity Markets

CommodityTea

Keywordstea industry; production data; smallholders; income generation; sales promotion; food security