businesstoday24 correspondent, CHATTOGRAM: In 2024, the global tea industry witnessed a paradoxical trend: a slight decline in production caused by climate irregularities, paired with a notable surge in consumer demand and international exports. According to recent data from the International Tea Committee and the UN’s Food and Agriculture Organization (FAO), global tea production has reached approximately 6.1 million tonnes this year — a 2.3% drop from 2023. The decline is primarily attributed to droughts and unpredictable rainfall patterns in major tea-growing countries such as India, China, and Kenya.
Despite these setbacks, demand for tea, especially specialty varieties like green tea, herbal blends, and wellness infusions, has soared across Europe, North America, and the Middle East. In China, urban consumers have driven a 4.5% rise in domestic tea demand, favoring organic and health-focused options such as green and white teas. Meanwhile, in India, the world’s second-largest producer, overall tea output fell by 3.5% to 1.25 million tonnes, with droughts affecting key growing regions like Assam and Darjeeling. Nevertheless, domestic consumption in India rose by 3.8%, particularly in the southern states, where health-conscious younger consumers are opting for flavored and functional teas.
Kenya, another major exporter, also faced a decline in output due to adverse weather. However, the country recorded a 5% rise in export revenue by tapping into new markets in the Middle East. Sri Lanka, despite a 4% dip in production linked to labor shortages and erratic rains in the Central Highlands, managed to maintain the premium value of its globally recognized Ceylon Tea, bringing in $1.2 billion in export earnings this year. Domestic demand for green and herbal fusion teas in Sri Lanka also saw a 7% increase.
Bangladesh, though a relatively smaller player, reported tea production of 96.5 million kg in 2024—a 2% decline mainly caused by climate challenges in Srimangal and Panchagarh. Local consumption remains high at around 90–95 million kg, with urban areas showing a strong preference for green and lemon teas. Bangladesh’s tea exports, though limited, rose by 5% with new shipments to Middle Eastern countries and Malaysia.
Nepal’s Himalayan region, particularly Ilam district, contributed nearly 25 million kg of tea this year. The country’s export volume continues to grow steadily, with high-end “Himalayan Tea” gaining traction in Indian and European markets. Efforts are also underway in Nepal to organize small-scale producers into cooperatives to improve global branding and marketing.
On a broader scale, China, India, Kenya, and Sri Lanka continue to dominate the global tea export market. However, countries like Turkey, Iran, and Vietnam are emerging as new players, expanding their presence in international trade.
The year 2024 also marked a significant shift in tea marketing strategies. Leading global brands have increasingly moved toward digital platforms, subscription models, and health-conscious packaging to attract younger consumers, particularly Gen Z and millennials. Innovations such as tea-flavored cold brews, matcha lattes, and curated infusion boxes are now commonplace. Unilever Tea Brands, which includes popular names like Lipton and PG Tips, reported a 12% increase in online tea sales during the first three quarters of the year.
Despite production hurdles, the global tea industry appears to be riding a wave of evolving tastes, wellness trends, and digital innovation. As climate uncertainties continue to affect traditional growing regions, the sector is swiftly adapting — both in the fields and on digital shelves — to meet the world’s unrelenting thirst for tea.
