Green Tea Market hits $ 16 Billion in 2025

 

The globalgreen tea market just leapt by an astonishing USD 1 billion in growth year-over-year, reaching new heightsin 2025 to USD $16.01 billion and predicts a trajectory that shows no signs of slowing, with themarket expected to reach USD 29.2 billion by 2033, growing at a CAGR of 5.56% from 2025 to 2033.

 

It’s more than just health hype. Consumers are shifting from sugary beverages to functional, plant-basedhydration. Green tea, rich in catechins, L-theanine, and natural polyphenols, has emerged as the wellnessworlds’ quiet champion, touted for antioxidants properties, weight control support, and a connection to

longevity. And it is not just Western consumers driving demand. Asia’s premium tea segment is booming,with a surge in export interest from wellness brands, boutique retailers are looking for the next-generationbeverages.

 

With global demand surging, the competition for quality green tea is reaching an all-time high. The largestproducer of green tea globally is China, followed by Japan, Vietnam, Indonesia, and India are now in a raceto position themselves as the world’s top green tea origin in quality, and only a handful will make the cut.

Source: World Tea News (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

Kenyan tea exports fell by 20% in 1Q 2025

Revenue from Kenya's tea exports fell by 20 percent in the first quarter (Q1) of 2025 due to lower shipment volumes. The country earned 46.07 billion Kenyan shillings (about 356 million U.S. dollars) between January and March, down from 446 million dollars in the same period last year.

 

Export volumes declined to 157,514 tons in the quarter, down from 169,830 tons a year earlier, a 7.3 percent drop attributed to reduced production following a prolonged dry spell.

 

Thethree months were characterized by unusually dry weather.This had a significant impact on tea production,mainly in February,with output falling by 21 percent in the east of the Rift and

18 .6percent in the west.

 

Kenya is seeking to expand its tea export markets beyond traditionaldestinations such as Pakistan, the United Kingdom, Russia, andChad

Source: The peninsula Qatar (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

Kenya bans tea hawking

An immediate nationwide ban was announced on tea hawking in Kenya, citing concerns over declining quality and threats to the country’s global tea reputation. Tea factories found purchasing green leaf from hawkers in violation of regulations wouldface serious consequences, including loss of licenses.

 

Unregulated practice introduces substandard green leafinto the value chain, affecting overall quality and the prices fetched at the Mombasa tea auction. A single batch of low-grade tea can compromise entire consignments, damaging thecountry’s reputation on international markets.

Source: Africa Food Business (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

China Tea Exports 2024

Tea exports in 2024 increased to 374,100 metric tons,generating $1.42 billion in revenue —a decline of 18.4% compared to 2023, when tea exports totalled $1.74billion.

 

The average export price per kilo declined sharply by 19.8% to $3.80 per kilo in 2024. China held a 14.2% revenue share of the global tea market in 2023. That share increased slightly in 2024to 14.3%, indicating the stability of China’s position as the top tea grower and second-largest tea exporter by volume behind Kenya, which mainly exports black tea.

 

Green tea (excluding white) totalled 323,800 metric tons and generated $1.07 billion in revenue. Black tea accounted for 6.6%, or 24,758 metric tons, generating $171 million, a 35% decrease compared to the 2023 export value and 14.8% below the 2023 value of $267 million.

 

 

White tea, a type of green tea categorized separately in trade, was the most expensive tea sold by China last year, averaging $13 per kilo on a volume of 455 metric tons.


Africa remains China ’s most important tea export destination, both in terms of volume and value, withexports of 144,876 metric tons valued at $59.83 million to five nations in 2024. Prices, however, averaged$3.44 per kilo, indicating bulk sales of inexpensive green tea.

 

Tea exports to the US surged in 2024 under the threat of tariffs, accounting for 9.6% of total US tea imports, making the US China’s eighth-largest tea trading partner by volume.

 Americans prefer more expensive teas, averaging $5.20 per kilo. Green tea, organic tea, specialty oolongs, and powdered tea account for the premium.

Japan has a refined taste for Chinese tea, spending an average of $4.90 per kilo. Imports totaled 10,205 metric tons, for which the Japanese paid $5 million, down 4.7% in value compared to 2023. 

Kenya's tea industry generated US$1.93 B in 2024

Kenya’s tea production saw a notable increase in 2024, rising to 598 million kilograms, up from 570 million kilograms in the previous year.

 

Tea exports contributed Kes 215 billion(US$1.66B), while local sales accounted for Kes 18 billion (US$139.26M). Additionally, Kes18 billion came from committed tea sales.

 

Pakistan remains the largest importer of Kenyan tea, followed by Egypt, the U.K., and the U.A.E.

 

To address market challenges, factories were also encouraged to enhance tea quality, and directors were tasked with working closely with brokers to establish competitive pricing

strategies.

 

 

To further strengthen the tea sector, the government pledged to review levies and taxes on tea, aiming to promote value addition industries.Financialassistancewasalsocommittedtohelpolderfactoriesupgrade their operations.

Source: Africa Business News (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka 

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Kenya's tea export volumes surged 20.8 percent in the first ten months of 2024, boosted by increaseddemand in destination markets. Export volumes stood at 500.8 million kg, an increase from 414.5 million kg recorded in thesame period of 2023.

 

The East African nation earned 155 billion Kenyan shillings (about 1.19 billion U.S. dollars) from exportsduring the first 10 months, a rise from 1.09 billion dollars in a similar period in 2023.

 

With the country earning an average of 199 million dollars per month from tea, earnings in 2024 areexpected to surpass the 1.39 billion dollars earned in 2023.

 

Meanwhile, tea production also surged 7 percent in the first 10months of 2024, boosted by favorable weather conditions. Pakistan, Egypt, the United Arab Emirates, Russia and Sudanremained the main markets that shipped more tea from Kenyaduring the period.

 

Kenya is expanding its market, especially in Asia, with thegovernment recently opening a tea trade center in Fujian Provinceof China to facilitate distribution in the country.

 

 

Source: Xinhua/Africa Business News (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka


GLOBAL TEA BAGS MARKET TO REACH $12.9 BILLION BY 2031

The tea bags market was valued at $6.1 billion in 2021, and is estimated to reach $12.9 billion by 2031,growing at a CAGR of 7.6% from 2022 to 2031.

 

Players operating in the global tea bags industry have adopted various developmental strategies to expandtheir market share, increase profitability, and remain competitive in the market.

 

On the basis of type, the black tea segment was the highest contributor to the tea bags market, with $1,619.4 million in 2021, and is estimated to reach $2,673.5 million by 2031, at a CAGR of 4.9% during the forecast

period. Growth of the black tea segment is driven by rise in number of tea drinkers across the globe.

 

According to tea bags market trends, by application, the commercial segment was the significant contributorto the tea bags market size, with $2,194.9 million in 2021, and is estimated to reach $5,093.6 million by

2031, at a CAGR of 8.6% during the forecast period.

 

The totalglobal tea market is analyzed to reach a worth of US$ 20.4 billion in 2024. Worldwide sales of tea areforecasted to rise at a CAGR of 5.7% from 2024 to 2034.

 

 

Source: Yahoo.com/EIN Press wire (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka


INDIAN TEA PRICES ROSE DUE TO SUPPLY CONSTRAINTS

Adverse climatic conditions took its toll on Indias productions of important agri-commodities like teaTea witnessed buoyancy on the back of lower productions mainly due to unfavorable

climatic conditions.

 

For the just-concluded year, overall tea production is likely to be lower by more than 100 million kgscompared to 2023s output of 1,393.66 million kgs.

 

Due to increase in shipments to Iran and Iraq, the tea industry has also witnessed higher exports

despite geopolitical tensions and export of the brew could be in therange of 245-260 million kgs in 2024 compared with 231.69 million kgs last year.

 

In the last year,India was able to capture a lot of overseas markets from Sri Lankan exporters, particularlythe Iraq market. And that was a real increase in 2024. 2025 also looks promising.

 

 

 

Source: Hindu Business online (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka



 

The government is considering measures to prompt Japanese green tea farmers to shift more productionto "tencha" leaves that can be ground into matcha powder, from "sencha," commonly consumed in Japan,to boost tea exports.

 

It seeks to capitalize on the booming market abroad for matcha, often used in desserts and drink, tomake up for falling green tea consumption at home.

 

Tencha is made by steaming and drying tea leaves grown in the shade, which are then processed into afine powder when producing matcha. Sencha, by contrast, is made by steaming, kneading and drying sun-grownleaves.

 

Japan's green tea exports had surged around nine-fold to a record 29.2 billion yen ($185 million) over the15 years through 2023, lifted mainly by matcha on the back of the increased popularity for Japanese foodamong health-conscious consumers in Europe and the United States.

 

Japan's tea production, on the other hand, dropped by over 20 percent during the same period, reflectingthe aging farm population and a nearly 40 percent drop in the average annual spending on green tea perhousehold.

 

 

 

Source: Kyodo News (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka



 

 


The Pyramid Tea Bags Market is experiencing steady growth, driven by changing consumer preferences towards premium tea products and eco-friendly packaging solutions. In 2023, the market was valued at USD 257.7 million, and by 2033, it is projected to reach USD 400.2 million. Pyramid tea bags offer several advantages over traditional tea bags, including better infusion and enhanced flavor due to their larger size and more breathable material.

 

The growing demand for premium and specialty teas, including herbal and organic blends, is further contributing to the market’s expansion. Pyramid tea bags allow for the use of whole leaves, which results in a richer tea experience, thus appealing to the increasing number of health-conscious consumers. The convenience offered by these tea bags also makes them an attractive option in today’s fast-paced lifestyle.

 

Sustainability is another key driver in the pyramid tea bags market. Many manufacturers are now offering biodegradable and compostable materials in response to growing environmental concerns.

 

 

Source: Future Market Insights (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka



 

Kenya officially abolished the minimum price for its tea


The minimum price policy, set in 2021 at US$2.34 per kilo, was originally introduced to shield farmers fromlosses.However, the regulation led to unintended consequences, including buyers avoiding Kenyan tea at theauction, causing a build-up of unsold stock.

 

In response, the industry has now reversed the decision, allowing the market to determine pricing.

 

With the abolition of the reserve price, all players in the tea value chain are urged to uphold ethicalpricing practices.

 

The Kenya Tea Development Agency (KTDA) announced plans to implement minimum qualitystandards for all Kenyan teas and this initiative is designed to enhance the globalappeal of Kenyan tea and increase export competitiveness.

 

The reintroduction of Direct Overseas Sales allows farmers to sell their produce directly from theirrespective factories, bypassing the traditional auction system.

 

 

 

Source: The Monitor (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

21st Inter-Plantation Cricket Tournament 2024

 

The 21stInter-Plantation Cricket Tournament organised by the Dimbula Athletic & Cricket Club was held on 15/16 March 2024 at the Radella Cricket Ground. This cricket ground is considered unique being situated at a height of 4,000 feet above sea level and is one of the few cricket grounds in the world situated at this altitude. The Sri Lankan national Cricket team has used the ground and club facilities in the past when in need of preparation for away games prior to touring countries like Australia, England, New Zealand and South Africa.

 

The participant teams were as follows:

 

1.     Agarapatana Plantations PLC

2.     Bogawantalawa Tea Estates PLC

3.     Chilaw Plantations Limited

4.     Elpitiya Plantations PLC

5.     Hatton Plantations PLC

6.     Horana Plantations PLC

7.     Kegalle Plantations PLC

8.     Kelani Valley Plantations PLC

9.     Kotagala Plantations PLC

10.                        Malwatte Valley Plantations PLC

11.                        Maskeliya Plantations PLC

12.                        Maturata Plantations Limited

13.                        Namunukula Plantations PLC

14.                        Pussellawa Plantations PLC

15.                        Talawakelle Tea Estate PLC

 

An Exhibition match between the Dimbula Athletic & Cricket Club (DACC) and the DickoyaMaskeliya Cricket Club (DMCC) was played prior to the Cup Final which resulted in the hosts DACC emerging victorious over the visitors DMCC.

 

The Grand Cup Final between Talawakelle Tea Estates PLC and Elpitiya Plantations PLC was played under lights for the first time in the history of the tournament.

 

The Cup champions of the 21stInter-Plantation Cricket Tournament for the 3rdconsecutive year were Elpitiya Plantations PLC and the Runner-Up, Talawakelle Tea Estate PLC.

 

Maturata Plantations Limited emerged Bowl Champions, whilst Namunukula Plantations PLC were the Runner-Up. Malwatte Valley Plantations PLC emerged as the champions in the Plate Category and Pussellawa Plantations PLC were the Runner- Up.

About F&W

Forbes & Walker was set up in 1881 as a partnership between James Forbes and Chapmen Walker. Although there is no actual record of the date on which it was established the very first cash book, still in the possession of the Finance Director, indicates the brokerages were earned from 1st August 1881. In Sir Thomas Villiers' book “Mercantile Lore” the date of establishment of Forbes & Walker has been put down      Read More...

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