FAO – Current global market situation and medium term outlook

The global tea market saw an increase in production in 2022, with green and other teas compensating for a decline in black tea due to reduced output in Sri Lanka. Consumption grew by 2.0 percent, driven by strong import demand. While tea prices fell in 2023, the market is expected to expand in the medium-term, with black tea growing slower and green tea growing faster. Diversification and value addition are important to meet consumer demand for specialty and high-quality teas. The Group is urged to consider the market situation and discuss implications, offer guidance on future market assessments, improve data quality and accessibility, and promote dialogue for sustainability in the tea sector. The shift towards specialty teas and the advent of climate variability, pandemics, and economic shocks pose challenges that require proactive measures from governments and stakeholders.