Tea production worldwide

Tea is one of the most widely consumed beverages in the world, second only to water. It is produced from the tender leaves and buds of the plant Camellia sinensis and holds immense cultural, economic, and social significance across continents. The global tea industry supports millions of livelihoods, particularly in Asia and Africa, and serves as an essential export commodity for several developing countries.

Historical Background

Tea originated in China over 4,000 years ago and has since spread across the globe through trade and colonial expansion. By the 17th century, it had become a central part of global commerce, particularly through the British East India Company, which established large tea plantations in India and Sri Lanka.
Over time, different regions developed their unique tea varieties and processing techniques—ranging from green tea in East Asia to black tea in South Asia and oolong and white teas in China and Taiwan. Today, tea cultivation and consumption form an integral part of global agricultural and trade networks.

Major Tea Producing Countries

Global tea production is concentrated in a few countries, primarily in Asia and Africa, which together account for over 90% of total output. The world’s top tea producers are:

1. China:
   • The world’s largest tea producer, contributing about 40–45% of global production.
   • Produces all major types—green, black, white, oolong, and pu-erh tea.
   • Key producing provinces include Yunnan, Fujian, Zhejiang, Anhui, and Sichuan.
   • Green tea dominates domestic consumption, while black and oolong teas are major export varieties.
2. India:
   • The second-largest producer, accounting for nearly 20% of global output.
   • Major tea-growing regions include Assam, West Bengal (Darjeeling and Dooars), Tamil Nadu, and Kerala.
   • Known for distinctive varieties such as Assam tea, Darjeeling tea, and Nilgiri tea.
   • A major exporter as well as consumer, with about 80% of production consumed domestically.
3. Kenya:
   • The leading tea producer in Africa and third-largest globally, contributing around 10–12% of global output.
   • Produces high-quality CTC (Crush, Tear, Curl) black tea, primarily for export.
   • Major markets include Pakistan, Egypt, the UK, and Russia.
4. Sri Lanka (Ceylon):
   • Renowned for Ceylon tea, known for its rich flavour and aroma.
   • Contributes approximately 5–6% of global tea production.
   • Major producing regions include Nuwara Eliya, Kandy, and Uva.
   • Exports constitute a significant share of its national income.
5. Vietnam:
   • Rapidly growing producer, contributing around 4–5% of world production.
   • Produces both black and green teas, with increasing exports to Russia, Pakistan, and the Middle East.
6. Other Producers:
   • Indonesia, Bangladesh, Turkey, Japan, and Argentina are notable producers.
   • Turkey leads global tea consumption per capita, while Japan specialises in premium green teas like Sencha and Matcha.

Global Production Statistics

• Total Global Output (2023 estimates): Approximately 6.5–7 million tonnes per year.
• Leading Producers by Share:
  • China – ~45%
  • India – ~20%
  • Kenya – ~10%
  • Sri Lanka – ~6%
  • Vietnam – ~4%
  • Others (Indonesia, Turkey, Bangladesh, etc.) – ~15%

Production has grown steadily over the past two decades, driven by increasing demand in both traditional and emerging markets, as well as diversification into speciality and herbal teas.

Major Tea Types and Processing Methods

Tea varieties differ primarily in processing rather than plant species. The key types include:

1. Black Tea:
   • Fully oxidised leaves; strong flavour and dark colour.
   • Major producers: India, Kenya, Sri Lanka, and China.
2. Green Tea:
   • Unoxidised and lightly processed, retaining natural antioxidants.
   • Leading producers: China and Japan.
3. Oolong Tea:
   • Semi-oxidised tea, intermediate between black and green tea.
   • Produced mainly in China and Taiwan.
4. White Tea:
   • Made from young leaves and buds; minimally processed.
   • Produced primarily in China.
5. Pu-erh and Other Fermented Teas:
   • Specially aged and fermented teas with unique taste profiles, originating from Yunnan, China.

Global Tea Trade

Tea is a major agricultural export for several countries. The international tea market is characterised by strong demand from Asia, Europe, and the Middle East.

• Top Exporters: China, Kenya, Sri Lanka, and India.
• Top Importers: Pakistan, Russia, the United Kingdom, the United States, and Egypt.
• Global Trade Volume: Around 2 billion kilograms annually.
• Major Trading Centres: Kolkata, Mombasa, Colombo, and Dubai.

While traditional markets in Europe show stable demand, emerging markets in Africa, the Middle East, and North America are driving global consumption growth.

Tea Consumption Trends

• Asia accounts for the largest share of global consumption, with China and India together consuming over 60% of world production.
• Turkey, however, leads in per capita consumption, with over 3 kilograms per person annually.
• Rising health awareness has fuelled global demand for green, white, and herbal teas, valued for their antioxidant and therapeutic properties.
• Specialty teas, organic teas, and ready-to-drink (RTD) tea beverages are expanding rapidly in Western markets.

Economic and Social Importance

Tea cultivation and processing support livelihoods for an estimated 13 million workers globally, with many more engaged indirectly in trade and distribution. It plays a vital role in the economies of producer nations by:

• Providing employment in rural areas.
• Earning valuable foreign exchange through exports.
• Encouraging agro-based industries and tourism (e.g., tea tourism in India and Sri Lanka).
• Empowering women, who form a significant proportion of the plantation workforce.

Environmental and Sustainability Challenges

Despite its economic importance, the tea industry faces growing sustainability challenges:

• Climate Change: Irregular rainfall and rising temperatures threaten yields and quality.
• Deforestation and Soil Degradation: Expansion of tea cultivation can harm ecosystems.
• Labour Issues: Low wages and poor working conditions in some regions.
• Market Volatility: Fluctuations in global prices affect smallholders’ incomes.

To address these, initiatives such as Rainforest Alliance Certification, Fairtrade Labelling, and UN Sustainable Tea Initiative promote environmentally responsible and socially equitable tea production.

India’s Role in Global Tea Industry

India remains a cornerstone of the global tea economy due to its historical legacy, distinctive regional varieties, and strong domestic market.

• India exports over 200 million kilograms annually, with key destinations including Russia, Iran, the UK, and the UAE.
• Indian tea enjoys Geographical Indications (GI) such as Darjeeling Tea, recognised globally for its unique flavour profile.
• The Tea Board of India oversees quality control, promotion, and sustainability initiatives in the sector.

Future Outlook

Global tea production and consumption are expected to continue growing, driven by:

• Rising incomes and urbanisation in developing countries.
• Increasing consumer preference for natural, organic, and health-oriented beverages.
• Expansion of premium and speciality tea markets.
• Technological innovations in tea processing and packaging.