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Written by: Manuja Peiris Executive Chairman of the International Tea Committee
Translator: Yu Yingjie
In 2020, while battling the new crown pneumonia epidemic , some major tea-producing countries also have to face other challenges, such as shipping logistics and cost control issues in China , tea industry regulatory issues in Kenya , heavy rainfall in India and tea plantation workers in Sri Lanka.
salary issue
.
Fortunately, however, the tea industry in all tea-producing countries continues to function as a basic service industry
.
salary issue
.
Fortunately, however, the tea industry in all tea-producing countries continues to function as a basic service industry
.
Whilst battling with the challenges brought upon by the Covid-19 pandemic, several major tea producing countries also had to encounter battles with various non-COVID- 19 related issues through 2020, such as shipping logistics and costs related challenges in China, regulatory matters in Kenya, heavier rainfall experienced in India and plantation worker wage issues in Sri Lanka.
However, all tea countries producing commendably continued to function as essential services, which in turn made sure that the global tea industry suffered less than most other industries.
However, all tea countries producing commendably continued to function as essential services, which in turn made sure that the global tea industry suffered less than most other industries.
Global tea production grew by 1.
8% in 2020, as tea production in two tea-producing countries, China and Kenya, reached record highs
.
Annual tea production in China and Kenya increased by 6.
7% and 25% respectively
.
8% in 2020, as tea production in two tea-producing countries, China and Kenya, reached record highs
.
Annual tea production in China and Kenya increased by 6.
7% and 25% respectively
.
In China, large stocks of tea remained at the end of the year due to increased production
.
The same is true in India, where both wholesalers and producers have a huge backlog of tea
.
Kenyan exporters, who used to buy more low-priced tea through auctions, also had tea in stock at the end of the year
.
.
The same is true in India, where both wholesalers and producers have a huge backlog of tea
.
Kenyan exporters, who used to buy more low-priced tea through auctions, also had tea in stock at the end of the year
.
Boosted by increased production in China and Kenya that resulted in historical highs in these two producing countries, global production in 2020 grew by 1.
8%.
Annual production of tea in China and Kenya grew by 6.
7% and 25%, respectively.
Generally, most producers benefitted from a much-needed price correction that was long overdue to keep their respective industries viable in the face of
8%.
Annual production of tea in China and Kenya grew by 6.
7% and 25%, respectively.
Generally, most producers benefitted from a much-needed price correction that was long overdue to keep their respective industries viable in the face of
increased input costs.
In China, large stocks of tea remained at the end of the year due to increased production
.
The same is true in India, where both wholesalers and producers have a huge backlog of tea
.
Kenyan exporters, who used to buy more low-priced tea through auctions, also had tea in stock at the end of the year
.
.
The same is true in India, where both wholesalers and producers have a huge backlog of tea
.
Kenyan exporters, who used to buy more low-priced tea through auctions, also had tea in stock at the end of the year
.
However, it is believed that this increased production has resulted in a significant quantity of tea remaining in stock with producers in China at end of the year.
In India too, a large quantity of tea is known to be held asstock in the pipeline by wholesalers as well as blenders.
Exporters in Kenya who had purchased more teas at the auctions to benefit from lower prices that prevailed during the year are also known to have carried over stocks at end of the year.
In India too, a large quantity of tea is known to be held asstock in the pipeline by wholesalers as well as blenders.
Exporters in Kenya who had purchased more teas at the auctions to benefit from lower prices that prevailed during the year are also known to have carried over stocks at end of the year.
It must be pointed out that in 2019, China, which has become the third largest producer of black tea in the world, saw an astonishing increase in black tea production in 2020, increasing to 404,265 metric tons, an annual growth rate of 32%
.
Global annual exports fell by 4% (80 million kg) despite higher production in China and Kenya
.
Annual exports from China, India, Sri Lanka and Argentina all declined
.
.
Global annual exports fell by 4% (80 million kg) despite higher production in China and Kenya
.
Annual exports from China, India, Sri Lanka and Argentina all declined
.
It must be noted that having become world's third largest Black Tea producing country in 2019, Black Tea production in 2020 in China grew to a staggering 404,265 mt.
, recording a staggering annual growth of 32%.
Despite the large production increases in China and Kenya, global annual exports declined by 4% (80 million kgs.
)
.
Lower exports made during the year by China, India, Sri Lanka and Argentina, contributed to this decline.
, recording a staggering annual growth of 32%.
Despite the large production increases in China and Kenya, global annual exports declined by 4% (80 million kgs.
)
.
Lower exports made during the year by China, India, Sri Lanka and Argentina, contributed to this decline.
Global tea imports also fell by 4% (77 million kilograms) as exports from tea-producing countries declined, as seen in the chart below
.
.
In accordance with this reduction in exports from producer countries, global imports
(Graph below) also recorded a 4% (77 million kgs.
) decline during the year.
) decline during the year.
In this case, Pakistan's annual tea imports increased significantly by 22% (46 million kilograms)
.
In recent years, unofficial trade in Pakistan's northwest border region has not been smooth, resulting in more tea imports through transparent official channels
.
Pakistan's imports reached 252 million kilograms
.
A 100% increase over the past ten years
.
.
In recent years, unofficial trade in Pakistan's northwest border region has not been smooth, resulting in more tea imports through transparent official channels
.
Pakistan's imports reached 252 million kilograms
.
A 100% increase over the past ten years
.
With this reality, the huge annual increase by 22% (46 m kgs.
) of imports by Pakistan is significant.
A less conducive trading environment experienced by unofficial traders in the North West Frontier province in recent years has led to the import of more goods into the country through transparent, official channels.
imports into Pakistan reached 252 million kgs.
during the year, recording a stupendous growth of 100% within the last ten years.
) of imports by Pakistan is significant.
A less conducive trading environment experienced by unofficial traders in the North West Frontier province in recent years has led to the import of more goods into the country through transparent, official channels.
imports into Pakistan reached 252 million kgs.
during the year, recording a stupendous growth of 100% within the last ten years.
After several years of decline in the UK tea market, its tea imports increased by 6%, with a net increase of 9%, thanks to the increase in consumption of tea at home in 2020
.
Tea imports into the UK have been declining for the last 50 years, as tea bags, blends become more widely accepted, and there are more competitors for tea and a variety of other beverages from the tea's country of origin
.
Teabags were originally 90% loved, but this seems to have dropped slightly as there is a renewed interest in loose teas and there is still a small group of people who prefer organic, fruit teas, spices, herbs and greens
.
In recent years, the UK has been importing more cheap tea from other tea-originating countries besides Kenya, including Indonesia, Vietnam and South India
.
Because Kenya's tea has been oversupplied and the world is full of tea priced below $2/kg, tea packers and supermarket retailers have no worries about sourcing
.
.
Tea imports into the UK have been declining for the last 50 years, as tea bags, blends become more widely accepted, and there are more competitors for tea and a variety of other beverages from the tea's country of origin
.
Teabags were originally 90% loved, but this seems to have dropped slightly as there is a renewed interest in loose teas and there is still a small group of people who prefer organic, fruit teas, spices, herbs and greens
.
In recent years, the UK has been importing more cheap tea from other tea-originating countries besides Kenya, including Indonesia, Vietnam and South India
.
Because Kenya's tea has been oversupplied and the world is full of tea priced below $2/kg, tea packers and supermarket retailers have no worries about sourcing
.
After several years of decline or stagnancy of the market, United Kingdom imports grew by 6% with net-imports reflecting an increase of 9% as a direct result of higher in-home consumption during 2020.
import volumes into UK have kept declining over a 50-year period, following the wider acceptance of tea bags, multi-origin blends, dilution of country of origin and a wider choice of beverages competing for a share of the throat been some of the factors .
Having touched a percentage share as high as above 90% of tea bag penetration, this seems to have declined marginally more recently with a revived interest in loose teas that still remains very much a niche segment along-with organic, fruit and flavours, herbal and Green.
In recent times, UK imports from other origins have been increasing in a clear sign of some packers opting to source relatively cheaper tea from Indonesia, Vietnam and South India, adjusting their intake from Kenya.
With the continuing over-supply situation in Kenya and with plenty of teas available around the globe at sub-US$2 prices, both packers and supermarkets are spoilt for choice.
import volumes into UK have kept declining over a 50-year period, following the wider acceptance of tea bags, multi-origin blends, dilution of country of origin and a wider choice of beverages competing for a share of the throat been some of the factors .
Having touched a percentage share as high as above 90% of tea bag penetration, this seems to have declined marginally more recently with a revived interest in loose teas that still remains very much a niche segment along-with organic, fruit and flavours, herbal and Green.
In recent times, UK imports from other origins have been increasing in a clear sign of some packers opting to source relatively cheaper tea from Indonesia, Vietnam and South India, adjusting their intake from Kenya.
With the continuing over-supply situation in Kenya and with plenty of teas available around the globe at sub-US$2 prices, both packers and supermarkets are spoilt for choice.
Tea imports to the Russian Federation have remained stable, with reports showing that coffee consumption in Russia exceeded tea consumption last year, accounting for more than 50% of hot beverage consumption
.
The per capita consumption of tea is 1.
1 kg, while the per capita consumption of coffee is about 1.
4 kg
.
Due to import tariffs, the tea imported to Russia is mainly loose tea
.
Tea imports to the United States and Egypt both declined during the year
.
.
The per capita consumption of tea is 1.
1 kg, while the per capita consumption of coffee is about 1.
4 kg
.
Due to import tariffs, the tea imported to Russia is mainly loose tea
.
Tea imports to the United States and Egypt both declined during the year
.
Tea imports into The Russian Federation remained steady whene reports indicate that consumption of coffee overtook consumption of tea last year to represent a share of over 50% of hot drink beverages.
Per capita consumption of Tea is 1.
1 kgs wheneas per capita consumption of coffee is approximately 1.
4 kgs.
Tea is mostly imported into the Federation in bulk form as import tariffs are in place to favour local packers.
imports into USA and Egypt declined during the year but both countries were responsible for large intakes.
Per capita consumption of Tea is 1.
1 kgs wheneas per capita consumption of coffee is approximately 1.
4 kgs.
Tea is mostly imported into the Federation in bulk form as import tariffs are in place to favour local packers.
imports into USA and Egypt declined during the year but both countries were responsible for large intakes.
Directly related to the COVID-19 outbreak, Morocco, the world's largest importer of green tea, saw its imports drop by nearly 25 percent
.
Almost all tea imported into Morocco comes from China, and it is difficult to find other sources in a short time, which may affect the supply chain
.
Because the import tariff of tea packaged under 3 kg is as high as 32.
5%, a few years ago, some Chinese companies opened tea packaging factories in Morocco
.
Currently, more than 90% of imported tea is in bulk, packed in 20-30kg cardboard boxes
.
The most popular tea consumer pack size is 200g, 100g and 500g are also available
.
.
Almost all tea imported into Morocco comes from China, and it is difficult to find other sources in a short time, which may affect the supply chain
.
Because the import tariff of tea packaged under 3 kg is as high as 32.
5%, a few years ago, some Chinese companies opened tea packaging factories in Morocco
.
Currently, more than 90% of imported tea is in bulk, packed in 20-30kg cardboard boxes
.
The most popular tea consumer pack size is 200g, 100g and 500g are also available
.
Directly related to pandemic related challenges, imports into Morocco, the largest Green Tea importing country in the world declined by nearly 25%.
With almost all tea imports into Morocco sourced from China, difficulties in seeking alternate sources at short notice is likely to have impacted the supply chain.
Following the increase of import duty for tea up to 32.
5% for tea in packages below 3 kg.
a few years ago, a few Chinese companies have opened tea packing factories in Morocco.
Currently, more than 90% of total imports are in bulk form and generally, imported tea is packed in cardboard boxes of 20-30 kgs.
each.
The most popular consumer pack size is 200 g.
whilst 100 g and 500g.
packs are also available.
With almost all tea imports into Morocco sourced from China, difficulties in seeking alternate sources at short notice is likely to have impacted the supply chain.
Following the increase of import duty for tea up to 32.
5% for tea in packages below 3 kg.
a few years ago, a few Chinese companies have opened tea packing factories in Morocco.
Currently, more than 90% of total imports are in bulk form and generally, imported tea is packed in cardboard boxes of 20-30 kgs.
each.
The most popular consumer pack size is 200 g.
whilst 100 g and 500g.
packs are also available.
