According to the Agency of Foreign Trade, in the first half of 2021, tea exports reached 58.1 thousand tons, worth $94.9 million, up 0.3% in volume and 4.4% in value over the same period term 2020. This is good news for Vietnam’s tea industry, especially for export tea. In this article, Vihaba will bring a detailed analysis of critical insights about the Vietnam tea market in the current times.
Tea exports – Vietnam tea market for exporting in the first 6 months of 2021
According to preliminary statistics of the General Department of Customs, in June 2021, the whole country exported 11,110 tons of tea, equivalent to 19.57 million USD. The average price was 1,761 USD/ton, up 9.8% in volume and up 18 .7% in turnover compared to May 2021, up 8.1% in price. Compared to June 2020, it decreased by 7.8% in volume and 2.1% in turnover but increased by 5.8% in price.
In the first 6 months of 2021, the country’s tea export volume reached 58,090 tons (up 0.3% compared to the first 6 months of 2020), earning nearly US$94.86 million (up 4.4%), the price average reached 1,632.9 USD/ton (up 41%).
Main consumption market of Vietnamese exported tea
Pakistan still leads in terms of tea consumption in Vietnam, reaching over 17,274 tons, equivalent to 33.41 million USD. The average price is 1,933.9 USD/ton, up 12% in volume, up 14.4% in turnover, and 2.1% increase in price compared to the first 6 months of 2020. Accounting for 29.7% of the total volume and 35.2% of the total tea export turnover of the country.
Tea exports to Taiwan market – the second-largest market in the first 6 months of 2021 increased by 15% in volume, up 12.9% in turnover but decreased by 2% in price over the same period in 2020, reaching 8,425 tons, equivalent to 12.98 million USD, average price 1,540.8 USD/ton; accounting for 14% of the total volume and total turnover.
The Russian market ranked third with 6,501 tons, equivalent to 10.33 million USD, priced at 1,589 USD/ton, down 11.8% in volume, down 7% in turnover but up 5.5% in price over the same period, accounting for 11% of the total volume and total export turnover of tea of the country.
The notable market is China in the first 6 months of 2021 with a strong increase of 55% in volume. An increase of 59% in turnover, and a 2.6% increase in price over the same period in 2020, reaching 5,405 tons, equivalent to 8 .39 million USD, price 1,552.4 USD/ton; accounting for 9% of the total volume and total turnover.
Tea exports markets in some major countries
Kenya: In February 2021, the export value of tea in Kenya increased to some 11.7 billion Kenyan shillings (KSh), approximately 108.4 million U.S. dollars. In the previous month, the amount was measured at 11.4 billion KSh (roughly 105.7 million U.S. dollars).
According to africanews.com, Kenya’s tea industry contributes about 4% to the gross domestic product. However, tea growers in Kenya are gradually switching to other crops as climate change threatens tea cultivation in the country. Kenya is a country with good conditions for growing tea, but currently, the world’s largest exporter of black tea is experiencing the effects of climate change. Rising temperatures, floods, and droughts are threats to tea plantations.
Sri Lanka: Sri Lanka’s tea exports in the first half of 2021 reached 136.9 thousand tons, worth $650 million, up 10% in volume and 14% in value over the same period in 2020. Sri Lanka exports the most tea to the Turkish market in the first half of 2021, with a volume of 17 thousand tons. Notably, Sri Lanka’s tea exports to the Chinese market reached 7.4 thousand tons, up 47% over the same period in 2020. However, tea exports to the Iranian market only reached 6.3 thousand tons, down 29.2% over the same period in 2020
In the first four months of 2021, Russia’s tea imports showed signs of recovery, reaching 52.3 thousand tons, worth $152.2 million, up 4.8% in volume and 13.4% in value. The average tea import price of Russia reached 2,907.1 USD/ton, up 8.2% over the same period in 2020.
Russia sharply increased tea imports from many main markets in the first four months of 2021, while sharply decreasing imports from Vietnam.
Tea imports from Vietnam reached 4 thousand tons, worth US$6.7 million, down 18.9% in volume and 15.8% in value over the same period in 2020. The price of imported tea from Vietnam is at 1,684.4 USD/ton, up 3.8% over the same period in 2020. The proportion of imports from Vietnam accounted for 10.6%, down 3 percentage points over the same period in 2020.
According to worldstopexports.com, although the demand for tea imports tends to decrease sharply due to changes in consumption trends of Russians, Russia is still the world’s third-largest import market in terms of import value. In 2020, Russia’s share of tea imports accounted for 6.2% of the total value of tea imports globally.
Meanwhile, the value and volume of imports from Vietnam are still low. Therefore, there are still many opportunities for tea exporters to boost exports to the Russian market in the near future. In particular, the Free Trade Agreement between Vietnam and the EAEU will boost Vietnam’s tea export turnover to this market, when the tax rate will be reduced to 0% immediately after the Agreement comes into effect.
India, Kenya, and Sri Lanka are the three main suppliers of black tea to Russia. The proportion of three tea import markets accounted for 68.7% in volume and 71.1% in value over the same period in 2020. Next was green tea with 4.5 thousand tons, valued at 14. 0.7 million USD, up 10.7% in volume and 19.3% in value over the same period in 2020. China is the main supplier of green tea for Russia, the proportion of imports from China accounts for 84.4% of the total amount of green tea imported by Russia. These are the main competitors for Vietnamese tea exports, not only in Russia but also in many other countries around the world.
Vietnam’s tea exports are increasing in both quantity and quality. The above information is a quick summary of critical insights about the Vietnam tea market. Besides, our company – Vihaba would like to be an important part of providing the best quality tea to international customers. Vihaba is committed to giving our customers the best standard cashew tea with a variety of types.