In this article, we will take a look at the 20 countries with the highest tea consumption per capita. You can skip the detailed analysis of the tea industry and simply head to the 5 Countries With The Highest Tea Consumption Per Capita.
Tea has long been a beloved beverage worldwide, but some countries have elevated its consumption to an art form. These nations have cultivated a deep-rooted tea-drinking culture, where sipping on a warm cup of tea has become an integral part of daily life. From elegant tea ceremonies to casual gatherings over a steaming pot, these countries embrace tea as more than just a beverage — a way of life.
The global tea market was valued at $207.1 billion in 2020, with China being the most tea-producing country and consumer of tea as well on an overall basis. India and Sri Lanka also rank among the top tea-producing countries, with global tea consumption continuing to rise yearly. The three biggest tea-drinking countries Turkey, Ireland, and the United Kingdom also contribute largely to the global tea economy.
Market Analysis: Understanding the Global Tea Consumption Landscape
As a business owner, staying updated with the latest market trends and consumption patterns is essential. Understanding the global tea consumption landscape can provide valuable insights into consumer preferences and help you make informed business decisions.
Recent market research suggests that the tea market is projected to expand by $19.48 billion between 2021 and 2026, with a compounded annual growth rate (CAGR) of 5.55%. This growth is attributed to factors such as heightened consumer health awareness, a growing demand for specialty tea blends, and the increasing social appeal of tea as a beverage.
Regarding regional consumption patterns, Asia-Pacific is the largest tea market, accounting for over 60% of global consumption. Europe and North America are also significant markets for tea consumption, with increasing demand for premium and specialty tea varieties. Turkey, the largest consumer of tea in the world, on per capita basis, consumes an average of 1,300 per person every year.
As the demand for organic and sustainable tea products continues to rise, businesses have a significant opportunity to tap into this growing market trend. According to recent financial statistics, the global market for organic tea stood at $821 million in 2019 and is projected to reach $1,918.7 million by 2027, with a compound annual growth rate of 11.2%, as noted by Fortune Business Insights.
With consumers becoming more aware of the environmental and social impact of their purchases, offering such products is not only beneficial for the planet but also profitable for businesses. When it comes to the tea industry, there are a few key players that dominate the market.
One of the biggest players is Twinings, a British company that has been around since the 1700s. They offer a wide range of teas, from traditional black teas to more exotic blends like chai and green tea with jasmine.
Another major player is Lipton, a brand that was initially owned by Unilever PLC (NYSE:UL). Unilever PLC (NYSE:UL) sold Lipton to CVC Capital Partners in 2021. Lipton is known for its high-quality teas and innovative tea products, such as their ready-to-drink iced teas and their pyramid-shaped tea bags. Unilever PLC (NYSE:UL) owns many popular tea brands including PG Tips, Tazo, and Brooke Bond, among others.
Teavana, owned by Starbucks Corporation (NASDAQ:SBUX), is also another famous tea brand headquartered in Atlanta, GA. Starbucks Corporation (NASDAQ:SBUX)’s Teavana had an annual revenue of $168.1 million in 2022 and the company currently employs 475 people. By understanding the global tea consumption landscape and keeping up with changing consumer preferences, businesses can stay ahead of the competition and cater to the evolving needs of their customers.
Trade and Export: Examining the Business Implications of High Tea Consumption
The surge in the popularity of high tea consumption has unlocked significant business prospects for trade and export industries. China, which stands among the 12 countries that produce the best tea in the world, has solidified its position as the dominant global tea exporter, with tea shipments valued at approximately $2.2 billion in 2021. Sri Lanka and Kenya also emerged as notable players in the tea export market during that year.
It’s worth noting that several countries heavily rely on tea imports from China. Vietnam and Morocco are among the key importers, with Hong Kong serving as the top destination, recording an export value surpassing $500 million in 2019.
Furthermore, in 2020, Pakistan led the pack in tea imports, with a trade value approaching $590 million, followed by the United Kingdom and the United States. These statistics highlight the global appeal and demand for tea, creating a diverse and vibrant tea trade landscape that businesses can leverage to establish their presence and cater to the preferences of tea enthusiasts worldwide.
Looking ahead to 2023, the US tea market is expected to generate an impressive revenue of $15.01 billion, offering businesses an excellent opportunity to tap into the growing demand for top-notch tea products, including loose-leaf tea and tea blends.
To succeed in the tea market, companies must focus on producing high-quality products that cater to the preferences of tea enthusiasts, considering different tea types and flavor profiles. Exporters must also be mindful of regulations and standards in target markets to avoid product rejection.
Tea Industry Challenges: Addressing Supply Chain and Sustainability Concerns
The tea industry is grappling with significant challenges related to supply chain inefficiencies and sustainability concerns. The growing global demand for tea has exacerbated supply chain issues, leading to problems in transportation, storage, and distribution. According to the World Bank, these inefficiencies cost the tea industry billions annually.
Moreover, there is mounting pressure on tea producers to adopt sustainable practices and reduce their environmental impact. A survey conducted by the Ethical Tea Partnership revealed that sustainability is a priority for 82% of tea companies. To address these challenges, tea companies must focus on building resilient supply chains through technology adoption and collaboration with stakeholders.
Additionally, prioritizing sustainability in operations can lead to financial benefits, such as cost savings through energy efficiency measures.
wong yu liang/Shutterstock.com
Our Methodology
Our methodology involved researching data on countries with the highest tea consumption per capita. We multiplied the consumption rates per capita in pounds for each country by their current total population. Next, we divided the result by the total population of the countries to obtain updated tea consumption rates per capita for each country as of 2022.
Here is our list of the 20 countries with the highest tea consumption per capita:
20. Ukraine
Tea Consumption Per Capita: 1.28 lbs
Ukraine’s tea consumption per capita stands at 1.28 lbs, indicating that, on average, each person in Ukraine consumes approximately 0.58 kilograms of tea annually. Regarding market performance, the tea segment in Ukraine will generate a revenue of US$375.30 million in 2023. This revenue reflects the economic value of tea sales within the country.
19. Hong Kong
Tea Consumption per Capita: 1.43 lbs
Hong Kong’s tea culture is a captivating fusion of British and Chinese traditions, resulting in a unique style of enjoying black tea. With a Tea Consumption per Capita of 1.43 lbs, tea holds a special place in the hearts of Hong Kong residents.
The country offers a delightful blend of elegant afternoon tea experiences influenced by its colonial past and traditional teahouses showcasing the appreciation for Chinese tea. The tea market in Hong Kong is projected to reach US$0.68 billion in 2023, with a modest growth rate of 0.02%, which reflects the enduring popularity and steady demand for tea in the region.
18. Germany
Tea Consumption Per Capita: 1.52 lbs
Germany’s tea culture is flourishing, with a tea Consumption per Capita of 1.52 lbs and a thriving tea market. The country’s love for tea is evident, with revenue reaching US$0.86 billion in 2023 and an expected annual growth rate of 3.31% from 2023-2025. Germans embrace a diverse range of teas, from classic black teas to herbal infusions, and enjoy tea as a soothing and refreshing beverage. Teavana, by Starbucks Corporation (NASDAQ:SBUX), is highly famous in the country.
17. United Arab Emirates
Tea Consumption Per Capita: 1.59 lbs
The UAE is a prominent player in the global tea export market, with exports totaling approximately $330 million (AED1.2 billion) in 2020, as the Federal Competitiveness and Statistics Center (FCSC) reported. Household spending on tea reflects the nation’s appreciation, amounting to around AED290 million, based on a household income and expenditure survey from 2019.
Notably, Emirati-owned Feel Good Tea Co has achieved remarkable success, witnessing a more than fourfold increase in annual sales across Saudi Arabia, the UAE, and Kuwait since its establishment in 2019. Projections indicate that Emirati tea consumption will continue to grow steadily, with an anticipated volume of 7,400 metric tons by 2026, representing a 0.9% annual growth rate since 2021, when it stood at 7,000 metric tons.
16. Australia
Tea Consumption Per Capita: 1.65 lbs
Australia’s tea culture is experiencing a shift as younger generations embrace specialty teas and prioritize health and wellness. Functional blends are gaining popularity, and cafes and restaurants offer a diverse range of high-quality teas. With a tea consumption per capita of 1.65 lbs, the market is projected to generate a revenue of US$1.40 billion in 2023, reflecting steady growth.
15. Netherlands
Tea Consumption Per Capita: 1.72 lbs
The Netherlands has a thriving tea industry, with a per capita consumption rate of 1.72 lbs. This presents a lucrative business opportunity to cater to the Dutch market by offering sustainable and ethically-sourced tea products. Companies can establish a loyal customer base by targeting environmentally-conscious consumers and investing in effective marketing strategies.
The tea segment in the Netherlands is projected to generate a revenue of $1.03 billion in 2023, with an expected annual growth rate (CAGR) of 2.55% from 2023-2025, indicating a positive outlook for the Dutch tea market.
14. South Africa
Tea Consumption Per Capita: 1.76 lbs
South Africa boasts a vibrant tea culture that combines British and indigenous traditions, with Rooibos tea being a standout choice. The local tea industry is thriving, with increasing popularity for South African tea blends and tea shops. With a tea consumption per capita of 1.76 lbs, the nation demonstrates a strong affinity for tea. Although the market is expected to experience a slight decline in revenue growth (-0.11% CAGR), the South African tea market remains captivating and full of potential.
13. Saudi Arabia
Tea Consumption Per Capita: 1.98 lbs
Saudi Arabia has a rich tea culture deeply ingrained in its history, symbolizing hospitality and warmth. With a significant role in social gatherings, the Saudi people take pride in their unique brewing methods and the quality of their tea. Tea exports of the country reached approximately $15.9 million in 2021, and the tea segment is projected to reach a revenue of US$1.29 billion in 2023, growing steadily at a rate of 4.68% from 2023-2025, which reflects the enduring popularity and promising future of Saudi Arabia’s tea market.
12. Japan
Tea Consumption Per Capita: 2.14 lbs
Tea is deeply ingrained in Japan’s culture and economy, symbolizing hospitality and respect. The herbal tea market in Japan is expected to grow steadily with a projected CAGR of 8.5% from 2023 to 2029, highlighting the enduring appeal and potential of herbal tea in the country.
11. Poland
Tea Consumption Per Capita: 2.20 lbs
Poland’s tea consumption is on the rise, driven by a preference for healthier options. Green and herbal teas are gaining popularity alongside traditional black tea. The emergence of tea shops and cafes caters to the growing demand for unique tea experiences. The tea segment in Poland’s hot drinks market is expected to steadily grow, with an estimated revenue increase of $52.5 million (+9.82 percent) by 2025, reaching a total revenue of $587.13 million. This reflects the thriving and expanding tea market in Poland.
10. Egypt
Tea Consumption Per Capita: 2.22 lbs
Egypt’s tea consumption is prominent, with tea being a beloved beverage many enjoy throughout the day. It is vital in Egyptian households and is readily available in restaurants and cafes. The tea industry in Egypt contributes significantly to the economy, with a market value of $1.5 billion. The tea segment’s revenue is projected to reach US$2.76 billion in 2023, with a steady annual growth rate of 3.64% from 2023-2025, highlighting the enduring popularity and promising future of Egypt’s tea market.
9. Chile
Tea Consumption Per Capita: 2.62 lbs
Chile has experienced a significant rise in tea consumption, driven by the appeal of its unique flavors and potential health benefits. Infusing dried chile peppers in hot water creates a spicy and flavorful drink that aids digestion and metabolism. This trend has prompted Chilean companies to offer various chile teas. With a per capita consumption of 2.62 pounds, the tea market in Chile is thriving. The revenue in the tea segment is projected to reach US$0.90 billion in 2023, with an excellent annual growth rate of 5.88%, as noted by Statista.
8. New Zealand
Tea Consumption Per Capita: 2.62 lbs
New Zealand’s tea market has experienced steady growth, presenting opportunities for businesses interested in this sector. The country boasts a diverse tea culture, offering options ranging from traditional English breakfast tea to specialty blends like matcha and chai. With a focus on health and sustainability, high-quality and organic teas are in demand. The country’s tea segment is projected to generate US$195.00 million in 2023, with an expected annual growth rate of 2.11%, based on public data with Statista.
7. Morocco
Tea Consumption Per Capita: 2.69 lbs
Morocco’s tea culture is deeply ingrained in social and business customs, symbolizing hospitality and respect. Moroccan tea, a blend of green tea, fresh mint, and sugar, is poured ceremoniously into small glasses. With a Tea Consumption Per Capita of 2.69 lbs, Morocco’s tea industry plays a vital role in the economy. The country’s tea segment’s revenue is projected to reach US$1.20 billion in 2023, with an anticipated annual growth rate of 2.46%.
6. Russia
Tea Consumption Per Capita: 3.04 lbs
Russia has a centuries-old tea tradition deeply rooted in its culture. The nation’s preference for robust black tea, often accompanied by sugar or jam, positions it as one of the world’s most tea-consuming countries. With a Tea Consumption Per Capita of 3.04 pounds, the Russian tea market is expected to generate revenue of US$3.48 billion in 2023, demonstrating a stable annual growth rate of 1.39%.
Click to see and continue reading the 5 Countries With The Highest Tea Consumption Per Capita.
Suggested Articles:
- Top 20 Countries with Highest Water Consumption.
- Fish Consumption by Country Per Capita: Top 20.
- Top 20 Countries With The Highest Coffee Consumption.
Disclosure. None: The 20 Countries With The Highest Tea Consumption Per Capita is originally published on Insider Monkey.
