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 India’s productions of important agri-commodities like tea. Tea 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 2023’s 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

Japan to promote Matcha Tea

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

Global Pyramid Tea Bags Market to Reach USD 400.2 Million by 2033

Global Pyramid Tea Bags Market to Reach USD 400.2 Million by 2033

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

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

India's tea exports up over 23 pc in January-July period

India's tea exports up over 23 pc in January-July period

Tea exports from India saw a healthy 23.79 per cent growth (year-on-year) to reach 144.50 million kilogramsin the January-July period this year.

The country exported 116.73 million kg in the same period in the year2023. The export of tea increased by 27.77 million kilograms this year compared to the same period last year. However, the single unit price during the first seven months of 2024 has remained at Rs 256.37 per kg. Itwas Rs 264.96 per kg in the same period last year.

Meanwhile, a scheme of Rs 664.09 crore was approved forthe development and promotion of the tea industry.The development of tea industry includes plantation development and quality improvement, promotion andmarket support, technical intervention, research and development and welfare and capacity buildingmeasures.

According to the 2023 data, India is the second largest tea producer with production

of about 1350 million kg.India consumes about 18 per cent of the world's total tea

consumption.

Source: Daiji world.com/IANS (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

Nepal tea exports rise in 1Q

Nepal tea exports rise in 1Q

The export of tea in the first quarter of the current fiscal year increased by 36 per cent compared with theyear on year and 6,426 metric tons of tea was exported in the first three months of the current fiscal year.

The export of tea, in terms of price,increased by more than 50 per cent compared to the same period last year and totaled Rs 1.71 billion.

The export of Nepali tea increaseddue to a decline in production in India.

Source: Nepali live today (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

ource: Vietnam News (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

Vietnam Producers ask to improve tea quality

Vietnam Producers ask to improve tea quality

Domestic companies are being encouraged to produce high-quality tea products, such as specialty teas, toserve local consumption and service demand for exports.

In the 2018-23 period, Việt Nam exported between 125,000 and 140,000 tons of tea each year, bringing in aturnover of US$220-240 million per year. During the period, some enterprises provided high-end tea products with prices ranging from $15,000to over $50,000 per ton, much higher than the average export price of Vietnamese tea at only $1,700-1,800per ton. However, the ratio of these quality tea products remained low.

Over the past eight months of this year, Việt Nam shipped 92,280 tons of tea for over $162 million, up 30per cent in both volume and value. Among some export markets that saw a sudden growth were Iran, up 2,720 per cent, and China, up 240 per cent. The global tea market is expected to reach $37.5 billion in2025, up from $24.3 billion in 2016.

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

General Instruction for Exporters

The lnland Revenue Department has taken steps to streamline and expedite the VAT refund

process, effective from April 1, 2025. All eligible exporters for VAT refunds are requested to pay special attention to the following points: 

1.All exporters are required to submit their VAT returns on monthly basis.

2.VAT returns are expected to be filed on time through the online facility provided.

3.All schedules related to VAT returns are expected to be correctly upload in the given  format to the RAIVIIS system.

 (All VAT schedule formats and filling instructions are available in the IRD web site under Downloads)

https://www.ird.gov.lklen/Downloads/SitePaees/Schedules.aspx?menuid=1604

4.As the VAT refunds would be directly deposited in to the taxpayers' bank account,Exporters are advised to update their bank details in the RAMIS system.

5.Taxpayers are required to update their profiles in the RAMIS system. Keeping the taxpayer profile up to date will help to minimize delays in the refund process.

6.Site inspection is a mandatory requirement for refunds. Therefore, exporters must facilitate the site inspection process by providing the required information promptly.

7.As required by the law; exporters are advised to take necessary steps to have foreign exchange (export proceeds) remitted through the Bank within 6 month period from the end of the taxable period on which the export occurred.  Your prompt attention to these matters is crucial for expediting the refund process. For any queries regarding this notice, please contact the following officers:

Mrs. P.G.C.Wasanthika (Senior Deputy Commissioner) T.P - 011-2134760

Mrs. R.A. L. Ranasinghe (Deputy Commissioner) T.P. - 011-2134767

Mr.  B.C. Rohitha (Deputy Commissioner) T.P. - 011-2134764

Commissioner

Export Refund Unit

lnland Revenue Department

Climate-smart tea seed variety introduced – India

To combat the ill effects of climate change, a climate-smart new seed variety ‘TSS 2’ which can withstand high temperatures and yield quality crops has been introduced.

This new seed variety has been introduced at a time when tea production is down by 80 million kg till now in 2024 due to extreme heat and climatic factors.

Extreme heat is making a significant impact on tea plantations in Assam and north Bengal, the two largest tea-producing regions in the country.

The traditional tea-growing calendar is being disrupted due to erratic weather patterns. Tea plants require a balance of warmth and moisture, but prolonged heat can dry out the soil, stressing the plants and stunting their growth.

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