A Successful Quarter for Turkey’s Tea Industry

Bulk Black Tea

Turkiye

Market & Price Trends

Published Jun 2, 2022

During the first 4 months of 2022, Turkey’s tea exports recorded a YoY increase of 54% in volume and 26% in value compared to the same period last year. The majority of the tea was exported to mature markets in the European Union, Saudi Arabia, the USA, Israel and Iraq. The exports were largely driven by rising global demand for tea, lower supply from large tea-producing countries like Sri Lanka, and the depreciation of the Turkish Lira, which made purchasing tea from Turkey more profitable.

Turkey is among the world's top 5 largest producers of tea, with an average of 6–10% in the global tea production share. The majority of the tea produced in Turkey is grown along its Black Sea coastline, in the northern part of the country. The territory also stretches eastward, from the city of Rize, along the shoreline, all the way to the boundary with Georgia. The majority of these regions have a mild climate, high rainfall levels, and fertile soil, which is ideal for growing flavorful black tea. Over 50% of Turkish black tea is consumed within Turkey, making it one of the highest per capita tea consumers on the planet and followed closely by the UK. However, in recent times, Turkey has recorded a significant increase in its black tea exports due to rising global demand.

The main destinations of Turkish tea are the European Union countries, Saudi Arabia, the USA, Israel, and Iraq. Among the EU countries, Belgium, Germany, France, and Holland are the most important markets. Turkey exported 5.79 million mt of tea in 2021, which was worth USD 21 million. Both the volume and value of tea exports from Turkey recorded a YoY increase of 16% and 21%, respectively. In 2022, Turkey managed to export tea to over 90 countries in just 4 months. According to the Eastern Black Sea Exporters' Association, about 2.4 thousand mt of tea was exported during the first 4 months of 2022. The exports were worth about USD 8.21 million, resulting in a YoY increase of 54% in volume and 26% in value compared to the same period of the previous year.

Source: ITC Trade Map.

Large markets like Belgium, Germany, and the USA were the top destinations for Turkish tea exports even in 2022. The exports were driven both by rising global demand for tea and dwindling supply from large tea-producing countries like Sri Lanka. Furthermore, the depreciation of the Turkish Lira inflated the exports even more as purchasing tea from Turkey became more profitable. The low rate gave tea suppliers and traders an attractive exchange rate for global sales in USD and encouraged them to engage in more exports of Turkey’s competitively priced product. The outlook for Turkey’s tea industry remains strong given that the demand for tea is expected to rise even further, and uncertainties in Sri Lanka – a large global supplier of tea – are forecast to impact the global supply of tea.