Understanding Tea

South Korea’s Tea Industry: Export Growth, Import Trends, and Tariff Dynamics

South Korea, known for its rich tea traditions, has emerged as a significant player in the global tea trade.

Tea Imports Exports

South Korea’s Tea Exports

In 2021, South Korea ranked as the 38th largest exporter of tea globally, with tea exports amounting to $16.8M. Tea occupied the 664th position among South Korea’s most exported products during the same year. The primary destinations for South Korean tea exports were Japan, accounting for a substantial share of $8.63M, followed by the United States at $3.96M, Germany at $601k, the Netherlands at $400k, and Australia at $313k.

Emerging Export Markets

South Korea witnessed notable growth in tea exports between 2020 and 2021, indicating its expanding presence in international tea markets. The fastest-growing export markets for South Korean tea during this period were Japan, with a remarkable increase of $8.19M, followed by the United States at $1.03M and Vietnam at $252k. These figures highlight South Korea’s success in diversifying its tea export destinations and capitalizing on emerging market opportunities.

Where Does South Korea Export Its Tea (2021)

ContinentCountryTrade Value
AfricaAngola1,662
AfricaAlgeria14
AfricaEgypt19
AfricaKenya206
AfricaMorocco10,937
AfricaMauritius375
AfricaRwanda248
AfricaEswatini136
AfricaSeychelles21
AfricaTanzania172
AfricaSouth Africa613
AsiaUnited Arab Emirates43,285
AsiaAzerbaijan15,555
AsiaBangladesh693
AsiaBahrain658
AsiaBrunei2,408
AsiaBhutan556
AsiaChina282,781
AsiaHong Kong197,477
AsiaIndonesia52,831
AsiaIndia8,788
AsiaIraq14,145
AsiaJapan8,627,818
AsiaKazakhstan2,362
AsiaKyrgyzstan1,040
AsiaCambodia10,883
AsiaKuwait4,488
AsiaLaos527
AsiaSri Lanka202
AsiaMacau20,505
AsiaMaldives15
AsiaBurma1,741
AsiaMongolia180,336
AsiaMalaysia105,095
AsiaNepal25
AsiaOman3,769
AsiaPhilippines99,450
AsiaQatar17,690
AsiaSaudi Arabia5,809
AsiaSingapore299,516
AsiaThailand40,128
AsiaTurkey1,339
AsiaUzbekistan5
AsiaVietnam276,597
AsiaChinese Taipei67,982
EuropeAustria10,303
EuropeBelgium13,559
EuropeBosnia and Herzegovina233
EuropeSwitzerland38,161
EuropeCzechia58,761
EuropeGermany600,852
EuropeDenmark2,208
EuropeSpain1,347
EuropeFinland4,286
EuropeFrance260,920
EuropeUnited Kingdom135,820
EuropeGreece602
EuropeHungary302
EuropeIreland50,798
EuropeIceland251
EuropeItaly1,922
EuropeLithuania97
EuropeLuxembourg6,589
EuropeLatvia622
EuropeMoldova1,085
EuropeMalta175
EuropeNetherlands399,744
EuropeNorway9,124
EuropePoland46,606
EuropePortugal4,104
EuropeRomania29
EuropeRussia58,243
EuropeSlovakia2,787
EuropeSlovenia1,450
EuropeSweden14,211
EuropeUkraine3,524
North AmericaBelize323
North AmericaCanada188,241
North AmericaCuraçao69
North AmericaDominican Republic14
North AmericaGuatemala1,522
North AmericaMexico176,075
North AmericaNicaragua991
North AmericaPanama4,413
North AmericaEl Salvador34
North AmericaTrinidad and Tobago106
North AmericaUnited States3,960,542
OceaniaAustralia312,797
OceaniaFiji689
OceaniaGuam2,144
OceaniaMarshall Islands42
OceaniaNorthern Mariana Islands576
OceaniaNew Zealand21,442
OceaniaPalau130
South AmericaArgentina2,597
South AmericaBolivia420
South AmericaBrazil7,378
South AmericaChile6,544
South AmericaEcuador5,824
South AmericaPeru475
South AmericaParaguay1,500

Tea Imports into South Korea

In 2021, South Korea became the 59th largest tea importer globally, with tea imports valued at $23.9M. Tea ranked as the 805th most imported product in South Korea during the same year. South Korea primarily sourced its tea imports from China, accounting for a significant share of $5.91M. Other notable import sources included Germany at $2.39M, Singapore at $2.2M, Sri Lanka at $1.92M, and the United States at $1.64M.

Expanding Import Markets

South Korea experienced substantial growth in tea imports between 2020 and 2021, reflecting an increasing demand for a diverse range of teas among its population. The fastest-growing import markets for tea in South Korea during this period were the United Kingdom, with an impressive increase of $833k, followed by the United States at $623k and France at $482k. These figures underscore South Korea’s efforts to diversify its tea suppliers and cater to the evolving preferences of tea enthusiasts within the country.

Tariff Landscape

In 2018, the average tariff rate for tea imports in South Korea stood at 285%. Notably, countries such as Brunei, Indonesia, Cambodia, Burma, and Malaysia imposed the highest import tariffs on tea, with a most favored nation duty rate treatment of 514%. These tariff structures have implications for importers and exporters engaged in the tea trade between South Korea and these countries.

Vietnam Tea: A Popular and Reliable Choice for South Korea’s Imports

Vietnam tea has consistently been a popular and trustworthy choice for South Korea, thanks to its premium quality and competitive pricing. In 2021, South Korea imported tea from Vietnam with a total value of $157,774, marking a 6% increase compared to the previous year. Vietnam holds a significant position as an important supplier of tea to South Korea, catering to its tea requirements effectively.

Conclusion

South Korea’s tea industry showcases promising growth, with expanding tea exports and a vibrant market for tea imports. As a notable tea exporter, South Korea’s trade relationship with Japan, the United States, and other emerging markets is flourishing. Simultaneously, its reliance on tea imports from China, Germany, and other countries highlights the country’s commitment to meeting domestic demand for a diverse range of high-quality teas. By fostering trade collaborations, promoting sustainable practices, and navigating tariff barriers, South Korea’s tea industry has the potential to make significant contributions to the global tea market. By nurturing trade relationships and exploring new market opportunities, South Korea can further enhance its standing in the tea trade industry while satisfying the preferences of tea enthusiasts within its borders.

Data: BACI

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