Tea, the most consumed beverage in the world, is poised to break its current consumption records according to market forecasts. The global tea industry is experiencing a transformation, offering consumers a wide range of choices to suit their lifestyles. In Worldwide, the tea market is projected to generate a revenue of US$127.3 billion in 2024, with an expected annual growth rate of 5.88% (CAGR 2024-2028). As a key player in the international tea market, Sri Lanka has established itself as a leading tea exporter, contributing unique tea varieties, flavors, and production techniques. Pure Ceylon Tea, known for its regional characters and distinct grades, stands out among the diverse range of teas available worldwide.
The global tea trade is influenced by various factors, including consumer preferences, geopolitical considerations, and economic shifts. The demand for specialty and premium teas, coupled with a growing awareness of health benefits, has shaped the dynamics of global tea exports. Recent trends include a rising interest in specialty and organic teas, as well as a focus on sustainability and ethical sourcing. However, challenges such as climate change and the recent political instability in Sri Lanka and fluctuating currency values remain ongoing concerns for the industry. Despite these challenges, the global tea trade continues to thrive, adapting to evolving consumer preferences and market dynamics.
Sri Lanka, like many other countries, has faced challenges due to the onset of Covid-19 and the subsequent economic setbacks. While there has been a rise in tea production, the country still has a long way to go to reach pre-pandemic levels. However, there is optimism that Sri Lanka will overcome these obstacles and surpass previous tea production records in the near future, breaking barriers set by global and local economic conditions. Despite challenges, opportunities for growth lie in diversifying product offerings, exploring niche markets, and leveraging digital platforms for marketing and sales.
To achieve the projected growth in the global tea market, all stakeholders in the industry must embrace evolution and adaptation. With increasing awareness of the health benefits associated with tea consumption and the availability of innovative blends and formats, the market is poised for growth and attracting new consumers. With support from local authorities, it is expected that Ceylon Tea will experience increased demand from around the world.
