Understanding Tea

Sri Lanka’s Thriving Tea Trade: A Global Powerhouse in Exports

Renowned for its exquisite tea production, Sri Lanka has secured its position as a dominant force in the global tea trade.

Tea Imports Exports

Sri Lanka’s Tea Exports

In 2021, Sri Lanka emerged as the world’s second-largest exporter of tea, with tea exports valued at an impressive $1.34 billion. Tea took the top spot as Sri Lanka’s most exported product during the same year. The primary destinations for Sri Lanka’s tea exports were Iraq, accounting for a substantial share of $147 million, followed by Russia at $122 million, Turkey at $105 million, the United Arab Emirates at $98.4 million, and Iran at $75.8 million.

Emerging Export Markets

Sri Lanka experienced substantial growth in tea exports between 2020 and 2021, indicative of its expanding presence in international markets. The fastest-growing export markets for Sri Lankan tea during this period were the United Arab Emirates, with an impressive increase of $58.6 million, followed by Iraq at $34.7 million, and Libya at $19.1 million. These figures highlight Sri Lanka’s successful efforts to diversify its tea export destinations and capitalize on emerging market opportunities.

Where Does Sri Lanka Export Its Tea (2021)

ContinentCountryTrade Value
AfricaAngola1,682,529
AfricaBenin36,503
AfricaBurkina Faso1,430,286
AfricaBotswana15,492
AfricaCote d’Ivoire4,917,626
AfricaRepublic of the Congo2,221,353
AfricaAlgeria229,257
AfricaEgypt11,416,976
AfricaEthiopia97,409
AfricaGabon78,731
AfricaGhana13,242,714
AfricaGuinea6,392,405
AfricaGambia1,869,648
AfricaGuinea-Bissau59,102
AfricaEquatorial Guinea42,318
AfricaKenya93,251
AfricaLiberia790,477
AfricaLibya49,203,004
AfricaMorocco251,194
AfricaMadagascar9,913
AfricaMali591,357
AfricaMozambique136,811
AfricaMauritania1,218,143
AfricaMauritius29,961
AfricaNiger225,069
AfricaNigeria3,418,475
AfricaSenegal3,297,845
AfricaSierra Leone721,281
AfricaSomalia77,860
AfricaSeychelles321,924
AfricaChad23,973
AfricaTogo436,804
AfricaTunisia1,849,156
AfricaUganda34,477
AfricaSouth Africa5,225,814
AfricaZambia61,113
AsiaUnited Arab Emirates98,366,188
AsiaArmenia432,048
AsiaAzerbaijan50,065,084
AsiaBangladesh82,702
AsiaBahrain657,588
AsiaBrunei197,215
AsiaChina64,208,808
AsiaCyprus388,496
AsiaGeorgia1,862,067
AsiaHong Kong20,164,857
AsiaIndonesia1,277,323
AsiaIndia1,485,104
AsiaIran75,794,629
AsiaIraq147,137,453
AsiaIsrael6,948,526
AsiaJordan29,351,820
AsiaJapan41,422,617
AsiaKazakhstan3,988,075
AsiaKyrgyzstan3,612,321
AsiaCambodia28,062
AsiaSouth Korea1,916,580
AsiaKuwait9,568,390
AsiaLebanon14,948,747
AsiaMacau251,572
AsiaMaldives1,570,355
AsiaBurma120,649
AsiaMongolia1,198,208
AsiaMalaysia1,770,921
AsiaNepal83,190
AsiaOman547,871
AsiaPakistan370,675
AsiaPhilippines858,748
AsiaPalestine4,327,434
AsiaQatar2,689,877
AsiaSaudi Arabia48,513,727
AsiaSingapore2,982,140
AsiaSyria39,534,629
AsiaThailand662,635
AsiaTajikistan1,101,368
AsiaTurkmenistan148,369
AsiaTurkey105,054,160
AsiaUzbekistan4,588,956
AsiaVietnam1,772,840
AsiaChinese Taipei20,541,832
AsiaYemen833,476
EuropeAlbania8,186,974
EuropeAustria909,861
EuropeBelgium11,904,022
EuropeBulgaria1,360,549
EuropeBosnia and Herzegovina4,485
EuropeBelarus3,301,665
EuropeSwitzerland1,599,763
EuropeCzechia2,139,958
EuropeGermany35,999,831
EuropeDenmark2,354,736
EuropeSpain657,509
EuropeEstonia688,888
EuropeFinland2,949,449
EuropeFrance6,423,174
EuropeUnited Kingdom9,610,956
EuropeGreece2,290,392
EuropeCroatia1,574
EuropeHungary745,620
EuropeIreland77,517
EuropeIceland84,565
EuropeItaly4,745,005
EuropeLithuania1,735,904
EuropeLuxembourg27,912
EuropeLatvia1,193,444
EuropeMoldova316,090
EuropeNorth Macedonia964,517
EuropeMalta41,135
EuropeMontenegro7,609
EuropeNetherlands22,015,122
EuropeNorway1,264,392
EuropePoland24,139,592
EuropePortugal43,221
EuropeRomania339,669
EuropeRussia121,665,873
EuropeSerbia78,166
EuropeSlovakia39,715
EuropeSlovenia26,056
EuropeSweden3,002,469
EuropeUkraine22,172,434
North AmericaAntigua and Barbuda15,605
North AmericaBelize222,959
North AmericaBermuda15
North AmericaBarbados58,179
North AmericaCanada6,048,090
North AmericaCosta Rica54,466
North AmericaDominican Republic3,134
North AmericaGuatemala1,699
North AmericaHonduras231
North AmericaHaiti10
North AmericaSaint Lucia2,814
North AmericaMexico98,926
North AmericaEl Salvador25
North AmericaTrinidad and Tobago395,255
North AmericaUnited States40,697,276
North AmericaSaint Vincent and the Grenadines4,796
OceaniaAmerican Samoa185,583
OceaniaAustralia22,861,074
OceaniaFiji2,292,119
OceaniaGuam2,301
OceaniaKiribati23,590
OceaniaNew Zealand10,942,434
OceaniaPapua New Guinea72,238
OceaniaFrench Polynesia2,414
OceaniaSolomon Islands697
OceaniaSamoa113,861
South AmericaArgentina345,554
South AmericaBolivia191,732
South AmericaBrazil106,927
South AmericaChile35,667,653
South AmericaColombia188
South AmericaEcuador70,371
South AmericaGuyana253,891
South AmericaPeru148,106
South AmericaParaguay5,404
South AmericaSuriname286,033
South AmericaUruguay583,437

Tea Imports into Sri Lanka

In 2021, Sri Lanka imported $17 million worth of tea, securing its position as the 72nd largest tea importer globally. Tea ranked as the 212th most imported product in Sri Lanka during the same year. Sri Lanka primarily sourced its tea imports from India, representing a significant share of $6.73 million. Other notable import sources included China at $5.73 million, Kenya at $3.33 million, Japan at $318k, and Rwanda at $309k.

Expanding Import Markets

Sri Lanka witnessed notable growth in tea imports between 2020 and 2021, showcasing the increasing demand for a diverse range of tea varieties within the country. The fastest-growing import markets for tea in Sri Lanka during this period were India, with a significant increase of $2.02 million, followed by Kenya at $914k, and Rwanda at $231k. These figures highlight Sri Lanka’s commitment to diversifying its tea suppliers and catering to the evolving preferences of tea enthusiasts in the country.

Tariff Landscape

As of 2018, the average tariff for tea in Sri Lanka stood at 29.9%. Notable countries with the highest import tariffs for tea included Angola, Burundi, Benin, Burkina Faso, and Botswana, each applying a Most Favoured Nation duty rate treatment of 30%. It is essential for Sri Lanka to navigate these tariff barriers and advocate for favorable trade agreements to ensure the continued growth and prosperity of its tea trade.

Where Does Sri Lanka Import Its Tea (2021)

ContinentCountryTrade Value
AfricaAngola5
AfricaBurundi2
AfricaBenin3
AfricaBurkina Faso3
AfricaBotswana6
AfricaCote d’Ivoire66
AfricaEgypt132
AfricaGhana41
AfricaGuinea2
AfricaGambia46
AfricaKenya3,329,853
AfricaLibya28
AfricaMorocco16
AfricaMozambique23
AfricaMalawi85
AfricaNiger11
AfricaNigeria96
AfricaRwanda308,522
AfricaSierra Leone4
AfricaTunisia30
AfricaUganda23,307
AfricaSouth Africa2301
AsiaUnited Arab Emirates115,484
AsiaAzerbaijan4
AsiaBangladesh10
AsiaBahrain6
AsiaBrunei25
AsiaChina5,731,354
AsiaHong Kong983
AsiaIndonesia129,439
AsiaIndia6,731,631
AsiaIraq184
AsiaIsrael3
AsiaJordan13
AsiaJapan317,958
AsiaKazakhstan7
AsiaSouth Korea202
AsiaKuwait112
AsiaLebanon12
AsiaMaldives51
AsiaBurma16,852
AsiaMalaysia1,322
AsiaOman9
AsiaPakistan29
AsiaSaudi Arabia215
AsiaSingapore5,036
AsiaSyria32
AsiaThailand832
AsiaTurkey9,888
AsiaVietnam30,318
AsiaChinese Taipei2,944
EuropeAustria39
EuropeBelgium75
EuropeBulgaria19
EuropeCzechia162
EuropeGermany48,440
EuropeDenmark103
EuropeSpain6,892
EuropeFrance12,696
EuropeUnited Kingdom127,977
EuropeItaly11,505
EuropeLatvia2
EuropeNorth Macedonia41
EuropeNetherlands380
EuropePoland176
EuropePortugal12
EuropeRomania19
EuropeRussia296
EuropeSerbia7
EuropeSweden83
EuropeUkraine53
North AmericaAntigua and Barbuda7
North AmericaCanada438
North AmericaMexico59
North AmericaTrinidad and Tobago97
North AmericaUnited States5,467
OceaniaAustralia2,079
OceaniaFiji81
OceaniaNew Zealand371
OceaniaPapua New Guinea40
South AmericaArgentina66
South AmericaBrazil32
South AmericaChile126

Vietnam Tea: A Popular and Reliable Choice for Sri Lanka’s Imports

Vietnam tea has consistently been a popular and trustworthy choice for Sri Lanka, thanks to its premium quality and competitive pricing. In 2021, Sri Lanka imported tea from Vietnam with a total value of $30,318, marking a 2.6% increase compared to the previous year. Vietnam holds a significant position as an important supplier of tea to Sri Lanka, catering to its tea requirements effectively.

Conclusion

Sri Lanka’s tea industry has carved out an exceptional global reputation, serving as a major exporter and importer of tea. The country’s remarkable tea exports to prominent destinations such as Iraq, Russia, Turkey, the United Arab Emirates, and Iran demonstrate Sri Lanka’s prowess in meeting international demand for high-quality teas. Simultaneously, Sri Lanka’s increasing tea imports from India, China, Kenya, Japan, and Rwanda underscore the country’s commitment to offering a diverse tea selection to its discerning consumers. As Sri Lanka continues to embrace emerging markets and address trade barriers, the nation’s tea industry is poised for continued growth, securing its position as a global powerhouse in the tea trade.

Data: BACI

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