Global Tea Consumption Rises by 3.3% Annually, Driven by Health-Conscious Preferences

Global Tea Consumption Dynamics from 2012 to 2022

During the last decade (2012-2022), tea consumption on a global scale has been determined by various factors such as prices, income levels, and demographic characteristics. The rising preference for healthier and natural beverage options has led to a demand surge for specialty and premium teas, creating new opportunities within the global tea market.

From 2012 to 2022, tea has witnessed an annual increase of 3.3% in global consumption, reaching 6.5 million metric tons (mmt) in 2022. This growth was driven by escalating per capita income levels, particularly in China, India, and other Asian and emerging economies. Noteworthy consumption growth rates were observed in China and Pakistan, expanding at annual rates of 6.5% and 8.1%, respectively. The largest tea consumer, China accounted for 46% of global consumption, reaching 3 mmt in 2022. The second-largest consumer, India held nearly 18% of the share with 1.16 mmt in 2022. Türkiye, Pakistan, and Russia followed with consumption figures of 250.02 thousand metric tons (mt), 247.49 thousand mt, and 132.54 thousand mt, respectively.

On a global scale, tea consumption increased by 2.0% in 2022 compared to the previous year, and this upward trend continued in 2023, reflecting robust market demand. However, traditional importing countries in Europe and North America experienced a decline in tea consumption due to growing competition from alternative beverages such as carbonated drinks, and coffee. Additionally, the war in Ukraine negatively impacted tea imports in Russia.

Medium-Term Projections and Dynamics of Global Tea Consumption

In their projections, the Food and Agriculture Organization (FAO) used net imports as a proxy to derive medium-term tea consumption projections for non-tea-producing countries,, while domestic consumption data was used for tea-producing nations. However, incomplete data hindered meaningful projections for green tea consumption. Forecasts indicate a 1.8% annual growth in black tea consumption, reaching 4.06 mmt by 2032. This forecasted growth is due to increased consumption in producing countries and recovery in traditional tea-importing nations. Major producing countries are expected to witness robust growth rates ranging from 1.9% to 2.8% in Asia and 1.6% to 3.4% in Africa. India projects to maintain its position as the largest black tea consumer, with a 32% market share, followed by China (14%) and Pakistan (7%).

Figure 1. Global Tea Imports from 2021 to 2023

Traditional importing markets in Europe and North America anticipate a recovery from previous declining trends, such as the economic downturn in Germany, which serves as the consuming and trading hub for Indian tea. Furthermore, Russia expects a consumption recovery of 0.3% for the next decade (2022-2032), and the Japanese tea industry plans to expand overseas sales channels due to the domestic consumption drop amid the COVID-19 pandemic. Factors driving this expansion include per-capita income growth in major tea-producing countries and increased awareness of the health benefits associated with tea. Market expansion strategies focus on innovation and quality, responding to evolving consumer preferences, particularly the growing interest in specialty and high-quality tea products, attracting a younger customer base. Notably, the surge in black tea consumption in China is due to the popularity of health-promoting brick teas, such as Pu’er tea.