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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 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

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