Understanding Tea

The Global Tea Trade: Trends, Exports, Imports, and Tariffs

Tea, a beloved beverage consumed by millions around the world, plays a significant role in global trade. In 2021, tea ranked as the 406th most traded product, with a total trade value of $8.13 billion. Over the course of a year, from 2020 to 2021, tea exports experienced a growth rate of 5.06%, rising from $7.74 billion to $8.13 billion. Despite its popularity, tea trade accounted for a relatively small portion, representing only 0.039% of the total world trade.

Tea Imports Exports

Tea is categorized under the broader classification of “Coffee, tea, mate & spices.” It encompasses different types of tea products, including black tea (fermented or partially fermented) packaged in quantities greater than 3 kg, black tea packaged in quantities less than 3 kg, green tea (unfermented) packaged in quantities less than 3 kg, and green tea packaged in quantities greater than 3 kg.

HS2 IDHS2HS4 IDHS4HS6 IDHS6Trade Value
209Coffee, tea, mate & spices20902Tea2090210Tea, green (unfermented) in packages < 3 kg1,285,475,236
209Coffee, tea, mate & spices20902Tea2090220Tea, green (unfermented) in packages > 3 kg1,047,988,859
209Coffee, tea, mate & spices20902Tea2090230Tea, black (fermented or partly) in packages < 3 kg2,074,084,278
209Coffee, tea, mate & spices20902Tea2090240Tea, black (fermented or partly) in packages > 3 kg3,722,355,052
Table: Disaggregation (2021)

Product Complexity and Export Leaders

When considering the complexity of tea as a product, it ranks at 994th on the Product Complexity Index (PCI). This indicates that while tea is a widely traded commodity, it does not require a highly specialized production process compared to other goods.

China emerged as the leading exporter of tea in 2021, with a total export value of $1.97 billion. Following closely were Sri Lanka with $1.34 billion, Kenya with $1.2 billion, India with $709 million, and the United Arab Emirates with $316 million.

Notably, between 2020 and 2021, China experienced the fastest export growth, with an increase of $220 million. Sri Lanka, Japan, Germany, and Spain also demonstrated notable export growth during this period.

ContinentCountryTrade Value
AfricaAngola8,584
AfricaBurundi28,625,629
AfricaBenin5,207
AfricaBurkina Faso8,491
AfricaBotswana5,364
AfricaCote d’Ivoire150,677
AfricaCameroon23,739
AfricaDemocratic Republic of the Congo20,067
AfricaRepublic of the Congo572
AfricaComoros1,000
AfricaCape Verde31
AfricaDjibouti1331,698
AfricaAlgeria30,950
AfricaEgypt14,577,308
AfricaEthiopia2,708,679
AfricaGabon8
AfricaGhana46,016
AfricaGuinea1,379
AfricaGambia65
AfricaKenya1,196,873,551
AfricaLiberia2,474
AfricaLibya588
AfricaLesotho211
AfricaMorocco23,035,402
AfricaMadagascar92,746
AfricaMali5,684
AfricaMozambique7,910,844
AfricaMauritania234
AfricaMauritius823,296
AfricaMalawi64,341,886
AfricaNamibia690
AfricaNiger597,118
AfricaNigeria72,950
AfricaRwanda90,115,860
AfricaSudan635,544
AfricaSenegal1,426,517
AfricaSierra Leone239,574
AfricaSouth Sudan1,091
AfricaEswatini2,604
AfricaSeychelles42
AfricaChad38
AfricaTogo166,146
AfricaTunisia4,868
AfricaTanzania38,790,179
AfricaUganda24,704,342
AfricaSouth Africa24,243,477
AfricaZambia91,792
AfricaZimbabwe21,892,883
AsiaAfghanistan18,533
AsiaUnited Arab Emirates316,331,599
AsiaArmenia135,793
AsiaAzerbaijan8,893,661
AsiaBangladesh2,767,340
AsiaBahrain109,761
AsiaBrunei23,118
AsiaBhutan15,595
AsiaChina1,968,496,755
AsiaCyprus161,771
AsiaGeorgia4,743,275
AsiaHong Kong43,832,046
AsiaIndonesia100,892,563
AsiaIndia709,156,544
AsiaBritish Indian Ocean Territory38,872
AsiaIran12,255,835
AsiaIraq103,180
AsiaIsrael2,527,600
AsiaJordan40,094,684
AsiaJapan195,762,866
AsiaKazakhstan18,996,831
AsiaKyrgyzstan305,580
AsiaCambodia49,262
AsiaSouth Korea16,824,505
AsiaKuwait1,602,257
AsiaLaos3,443,634
AsiaLebanon626,228
AsiaSri Lanka1,342,047,483
AsiaMacau1,912,861
AsiaMaldives8,279
AsiaBurma3,317,719
AsiaMongolia37,280
AsiaMalaysia35,561,606
AsiaNepal24,293,846
AsiaOman8,616,400
AsiaPakistan23,356,990
AsiaPhilippines411,534
AsiaNorth Korea607
AsiaPalestine369,620
AsiaQatar17,097
AsiaSaudi Arabia15,903,255
AsiaSingapore18,024,101
AsiaSyria293,880
AsiaThailand25,376,267
AsiaTajikistan321
AsiaTurkey21,729,341
AsiaUzbekistan286,457
AsiaVietnam195,133,338
AsiaChinese Taipei111,124,170
AsiaYemen10,998,029
EuropeAlbania72,526
EuropeAustria11,919,967
EuropeBelgium15,958,643
EuropeBulgaria529,187
EuropeBosnia and Herzegovina62,568
EuropeBelarus3,499,703
EuropeSwitzerland29,824,836
EuropeCzechia9,031,194
EuropeGermany240,955,436
EuropeDenmark6,546,234
EuropeSpain33,510,269
EuropeEstonia775,090
EuropeFinland1,570,849
EuropeFrance59,860,680
EuropeUnited Kingdom133,221,472
EuropeGreece1,854,955
EuropeCroatia1,512,606
EuropeHungary2,362,214
EuropeIreland10,509,619
EuropeIceland10,570
EuropeItaly7,591,275
EuropeLithuania5,065,211
EuropeLuxembourg276,967
EuropeLatvia3,897,232
EuropeMoldova463,755
EuropeNorth Macedonia262,060
EuropeMalta841
EuropeMontenegro2,632
EuropeNetherlands84,721,174
EuropeNorway155,611
EuropePoland262,482,395
EuropePortugal2,305,273
EuropeRomania1,104,055
EuropeRussia115,194,034
EuropeSerbia724,976
EuropeSlovakia661,339
EuropeSlovenia508,560
EuropeSweden5,183,853
EuropeUkraine5,781,944
North AmericaAruba11,239
North AmericaAntigua and Barbuda71,051
North AmericaBahamas6,134
North AmericaSaint Barthélemy7,748
North AmericaBelize2,052
North AmericaBarbados30,926
North AmericaCanada31,362,330
North AmericaCosta Rica1,064,435
North AmericaCuba11,267
North AmericaCuraçao23,055
North AmericaCayman Islands113
North AmericaDominica2,736
North AmericaDominican Republic42,273
North AmericaGrenada7,864
North AmericaGuatemala262,780
North AmericaHonduras580,743
North AmericaHaiti36,855
North AmericaJamaica3,787,909
North AmericaSaint Kitts and Nevis1,732
North AmericaSaint Lucia3,572
North AmericaSaint Martin678
North AmericaMexico1,655,730
North AmericaNicaragua238,688
North AmericaPanama71,755
North AmericaEl Salvador79,026
North AmericaSaint Pierre and Miquelon1,174
North AmericaTurks and Caicos Islands728
North AmericaTrinidad and Tobago1,105,425
North AmericaUnited States89,505,902
North AmericaSaint Vincent and the Grenadines140
North AmericaBritish Virgin Islands791
OceaniaAustralia8,163,416
OceaniaFiji550,488
OceaniaKiribati6,201
OceaniaNew Caledonia6
OceaniaNew Zealand6,672,796
OceaniaPitcairn Islands28,195
OceaniaPapua New Guinea468,119
OceaniaFrench Polynesia4,018
OceaniaTokelau153
OceaniaTuvalu3
OceaniaSamoa1,290
South AmericaArgentina78,692,825
South AmericaBolivia6,298
South AmericaBrazil1,226,984
South AmericaChile4,434,295
South AmericaColombia2,971,787
South AmericaEcuador1,521,294
South AmericaFalkland Islands17
South AmericaGuyana5,805
South AmericaPeru4,286,782
South AmericaParaguay33,433
South AmericaSuriname208,271
South AmericaUruguay6,498
South AmericaVenezuela17,531
Table: Exporters of Tea (2021)

Major Importing Nations

Pakistan emerged as the largest importer of tea in 2021, with imports valued at $622 million. The United States followed closely with $526 million, while Hong Kong imported $511 million worth of tea. Russia and the United Kingdom also demonstrated significant import volumes, with values of $414 million and $294 million, respectively.

Among the fastest-growing importers of tea between 2020 and 2021 were Hong Kong, the United Arab Emirates, the United States, Malaysia, and Germany. These countries experienced notable increases in tea imports during this period.

ContinentCountryTrade Value
AfricaAngola4,081,352
AfricaBurundi24,250
AfricaBenin14,515,180
AfricaBurkina Faso10,945,997
AfricaBotswana7,696,511
AfricaCentral African Republic76,997
AfricaCote d’Ivoire23,928,103
AfricaCameroon11,397,756
AfricaDemocratic Republic of the Congo24,379,814
AfricaRepublic of the Congo3,814,424
AfricaComoros38,871
AfricaCape Verde272,918
AfricaDjibouti1,168,275
AfricaAlgeria51,801,307
AfricaEgypt231,282,217
AfricaEritrea689,986
AfricaEthiopia326,927
AfricaGabon2,021,946
AfricaGhana127,766,115
AfricaGuinea21,839,453
AfricaGambia24,452,208
AfricaGuinea-Bissau105,737
AfricaEquatorial Guinea314,059
AfricaKenya17,863,032
AfricaLiberia1,735,283
AfricaLibya67,172,481
AfricaLesotho2,601,143
AfricaMorocco223,693,419
AfricaMadagascar129,945
AfricaMali31,063,003
AfricaMozambique9,629,726
AfricaMauritania77,154,517
AfricaMauritius1,218,787
AfricaMalawi164,914
AfricaNamibia3,944,133
AfricaNiger21,465,652
AfricaNigeria19,335,590
AfricaRwanda182,004
AfricaSudan39,319,068
AfricaSenegal61,990,102
AfricaSaint Helena3,140
AfricaSierra Leone2,206,321
AfricaSomalia8,694,240
AfricaSouth Sudan1,040,842
AfricaSao Tome and Principe44,831
AfricaEswatini3,183,768
AfricaSeychelles662,456
AfricaChad3,659,567
AfricaTogo56,857,809
AfricaTunisia13,181,433
AfricaTanzania851,195
AfricaUganda422,638
AfricaSouth Africa39,802,718
AfricaZambia3,327,473
AfricaZimbabwe798,079
AntarcticaFrench South Antarctic Territory10,238
AsiaAfghanistan30,658,399
AsiaUnited Arab Emirates264,304,504
AsiaArmenia2,593,103
AsiaAzerbaijan63,349,860
AsiaBangladesh758,340
AsiaBahrain14,103,028
AsiaBrunei2,258,617
AsiaBhutan1,655,230
AsiaChina200,374,676
AsiaCyprus4,439,964
AsiaGeorgia9,786,869
AsiaHong Kong510,667,046
AsiaIndonesia23,391,045
AsiaIndia54,654,129
AsiaIran208,710,223
AsiaIraq206,924,366
AsiaIsrael14,702,969
AsiaJordan46,468,053
AsiaJapan184,256,364
AsiaKazakhstan97,640,158
AsiaKyrgyzstan20,603,899
AsiaCambodia4,072,691
AsiaSouth Korea23,850,719
AsiaKuwait52,419,920
AsiaLaos6,782,782
AsiaLebanon22,648,450
AsiaSri Lanka16,977,377
AsiaMacau4,206,011
AsiaMaldives2,825,727
AsiaBurma21,067,770
AsiaMongolia5,667,555
AsiaMalaysia226,898,763
AsiaNepal943,424
AsiaOman38,073,722
AsiaPakistan622,130,362
AsiaPhilippines13,718,155
AsiaNorth Korea867
AsiaPalestine6,644,167
AsiaQatar20,504,692
AsiaSaudi Arabia189,561,699
AsiaSingapore40,231,505
AsiaSyria40,382,540
AsiaThailand44,740,209
AsiaTajikistan16,043,352
AsiaTurkmenistan7,238,570
AsiaTimor-Leste413,048
AsiaTurkey124,828,318
AsiaUzbekistan61,407,762
AsiaVietnam182,124,430
AsiaChinese Taipei89,146,937
AsiaYemen48,519,645
EuropeAlbania8,440,408
EuropeAndorra288,893
EuropeAustria26,407,310
EuropeBelgium70,442,881
EuropeBulgaria3,647,261
EuropeBosnia and Herzegovina952,581
EuropeBelarus36,427,040
EuropeSwitzerland40,581,361
EuropeCzechia26,731,244
EuropeGermany237,463,749
EuropeDenmark20,888,687
EuropeSpain53,317,639
EuropeEstonia6,787,628
EuropeFinland13,727,602
EuropeFrance175,539,984
EuropeUnited Kingdom293,923,147
EuropeGibraltar248,326
EuropeGreece10,577,418
EuropeCroatia2,091,477
EuropeHungary10,861,923
EuropeIreland43,349,994
EuropeIceland1,491,474
EuropeItaly82,879,585
EuropeLithuania11,396,925
EuropeLuxembourg3,078,445
EuropeLatvia11,337,475
EuropeMoldova8,452,558
EuropeNorth Macedonia1,295,109
EuropeMalta2,608,396
EuropeMontenegro502,522
EuropeNetherlands134,430,134
EuropeNorway19,045,633
EuropePoland129,459,052
EuropePortugal5,707,103
EuropeRomania4,994,138
EuropeRussia413,632,818
EuropeSan Marino3,686
EuropeSerbia1,541,012
EuropeSlovakia6,196,204
EuropeSlovenia2,215,251
EuropeSweden35,899,555
EuropeUkraine70,786,136
North AmericaAruba598,210
North AmericaAnguilla294
North AmericaAntigua and Barbuda202,499
North AmericaBonaire41,794
North AmericaBahamas995,357
North AmericaSaint Barthélemy207
North AmericaBelize928,624
North AmericaBermuda469,905
North AmericaBarbados2,018,903
North AmericaCanada136,351,599
North AmericaCosta Rica1,531,803
North AmericaCuba189,671
North AmericaCuraçao408,763
North AmericaCayman Islands597,167
North AmericaDominica63,945
North AmericaDominican Republic933,345
North AmericaGrenada202,878
North AmericaGreenland445,190
North AmericaGuatemala2,376,338
North AmericaHonduras559,950
North AmericaHaiti15,018
North AmericaJamaica1,470,822
North AmericaSaint Kitts and Nevis35,989
North AmericaSaint Lucia367,987
North AmericaSaint Martin87,204
North AmericaMexico10,411,812
North AmericaMontserrat929
North AmericaNicaragua747,553
North AmericaPanama3,079,644
North AmericaEl Salvador660,631
North AmericaSaint Pierre and Miquelon32,576
North AmericaTurks and Caicos Islands22,457
North AmericaTrinidad and Tobago2,714,539
North AmericaUnited States525,784,461
North AmericaSaint Vincent and the Grenadines185,057
North AmericaBritish Virgin Islands34,628
OceaniaAmerican Samoa185,885
OceaniaAustralia119,594,995
OceaniaCook Islands162,726
OceaniaFiji3,400,685
OceaniaMicronesia14,826
OceaniaGuam53,462
OceaniaKiribati162,570
OceaniaMarshall Islands50,044
OceaniaNorthern Mariana Islands1,306
OceaniaNew Caledonia891,531
OceaniaNorfolk Island5,544
OceaniaNiue14,796
OceaniaNauru25,214
OceaniaNew Zealand23,387,868
OceaniaPalau5,183
OceaniaPapua New Guinea334,295
OceaniaFrench Polynesia474,650
OceaniaSolomon Islands139,117
OceaniaTokelau271
OceaniaTonga47,394
OceaniaTuvalu13,936
OceaniaVanuatu73,498
OceaniaWallis and Futuna49,981
OceaniaSamoa613,961
South AmericaArgentina2,767,582
South AmericaBolivia1,448,505
South AmericaBrazil3,435,448
South AmericaChile59,911,421
South AmericaColombia2,857,506
South AmericaEcuador572,219
South AmericaFalkland Islands3,716
South AmericaGuyana1,508,136
South AmericaPeru6,319,671
South AmericaParaguay1,181,580
South AmericaSuriname1,282,182
South AmericaUruguay1,863,221
South AmericaVenezuela109,026
Table: Importers of Tea (2021)

Tariff Landscape

In 2018, the average tariff for tea was 10.2%, placing it among the products with relatively moderate tariff rates. The tea industry faced tariffs that were higher than average, ranking as the 408th lowest tariff using the HS4 product classification. Tariffs play a crucial role in shaping trade dynamics, impacting the competitiveness and profitability of tea exporters and importers.

Net Trade Balance

Examining the net trade balance, several countries showcased a larger trade value in tea exports than imports in 2021. China, Sri Lanka, Kenya, India, and Poland recorded higher export values, indicating their strength in tea production and distribution. On the other hand, Pakistan, Hong Kong, the United States, Russia, and Egypt had larger import values than exports, reflecting their demand for tea.

Conclusion

The global tea trade demonstrates its resilience and significance as a widely consumed and traded commodity. While China dominates as the leading exporter, other countries like Sri Lanka, Kenya, and India play vital roles in tea production and export. Importing nations such as Pakistan, Hong Kong, and the United States showcase their demand for tea from diverse sources. As the tea industry continues to navigate tariffs and trade dynamics, it remains an essential element of global commerce, connecting tea producers and consumers around the world.

Data: BACI

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