Global Market Report: Tea

This report by the International Institute for Sustainable Development analyzes the global tea market, focusing on the growth of Voluntary Sustainability Standards (VSS) and the potential for expanding sustainable production in Low Human Development Countries (LHDCs). It examines production trends, trade flows, and the systemic challenges facing the tea industry, such as climate change and inequitable wealth distribution.

• The global tea market is growing, with total production in 2017 reaching 5.98 million tonnes and a retail value of approximately USD 50 billion. The sector is projected to grow at a compound annual growth rate (CAGR) of 4 to 5.5 per cent from 2017 to 2024, potentially reaching a retail value of USD 73 billion by 2024.
• Tea production is highly concentrated, with the top seven growing countries providing 90 per cent of the global supply in 2015. In 2017, the largest exporters were China (USD 1.6 billion), Sri Lanka (USD 1.5 billion), and Kenya (USD 1.4 billion), while the largest importers were Pakistan (USD 550 million), Russia (USD 525 million), and the United States (USD 487 million).
• The tea industry is characterized by high vertical and horizontal integration, with approximately 85 per cent of tea sold by a few multinational companies and the three largest companies controlling 20 per cent of the global market. Additionally, 70 per cent of global production is sold through anonymous auctions, which can reduce margins for farmers.
• The sector faces significant sustainability and human rights challenges, including forced and child labour, poor working conditions, low wages, and pesticide residues. Environmental threats include climate change, which is causing heavier rains and longer dry seasons, leading to increased soil erosion and a higher reliance on fertilizers and irrigation.
• VSS-compliant tea production grew significantly from 2.4 per cent of the market in 2008 to 19.4 per cent in 2016, with a CAGR of about 35 per cent. In 2016, VSS-compliant tea volume was 1.15 million tonnes, valued at USD 2 billion. The primary standards by production size are Rainforest Alliance, Fairtrade International, UTZ Certified, and Organic.
• There is a significant gap in VSS adoption among the largest producers: China, India, and Sri Lanka account for nearly 70 per cent of global production but only 26 per cent of VSS-compliant production. Conversely, nearly all of Kenya's production (approximately 99 per cent) is VSS-compliant.
• Low Human Development Countries (LHDCs) represent a strategic area for VSS expansion. In 2016, 12 LHDCs grew tea, and 6 of them produced VSS-compliant tea, accounting for 12 per cent of total global VSS-compliant production. Tanzania showed notable growth, with VSS-compliant production increasing at a CAGR of approximately 79 per cent between 2008 and 2016.

APA

International Institute for Sustainable Development (n.d.). Global Market Report: Tea. https://www.iisd.org/system/files/publications/ssi-global-market-report-tea.pdf

Chicago

International Institute for Sustainable Development. Global Market Report: Tea. n.d. https://www.iisd.org/system/files/publications/ssi-global-market-report-tea.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=Global Market Report: Tea |url=https://www.iisd.org/system/files/publications/ssi-global-market-report-tea.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopmentndglobal, author = {{International Institute for Sustainable Development}}, title = {{Global Market Report: Tea}}, institution = {International Institute for Sustainable Development}, url = {https://www.iisd.org/system/files/publications/ssi-global-market-report-tea.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }