China produced 53% of global tea in 2024; India retained its No. 2 position
Global tea output reached 7.05 million metric tons in 2024. China produced 3.74 million tons, while India contributed 1.29 million tons, or 18% of supply; Kenya ranked third with 599,000 tons.
What happened
India tea sector · India was the world’s second-largest tea producer in 2024, producing 1.29 million metric tons or 18% of global supply. China led with 3.74
Key facts
- Global tea production: 7.05 million metric tons in 2024
- China: 3.74 million metric tons, 53% of global output
- India: 1.29 million metric tons, 18% of global output
- China and India combined: 71% of global output
- Kenya: 599,000 metric tons, 8% of global output
- Top eight producers: 93% of global output
Why this matters
Strategic buyers may find value in securing minority supply partnerships or acquisitions in alternative origins such as Kenya to reduce dependence on China and India.
What to watch
- Monsoon and drought conditions in India and China tea-growing regions.
- Chinese or Indian export restrictions, food-safety rules, labor disruptions, and changes in agricultural support policy.
- Auction prices and export-price trends for Indian, Chinese, Kenyan, and Sri Lankan teas.
- Currency movements in the yuan, rupee, Kenyan shilling, and key importing-market currencies.
- Freight rates and transit reliability on Asia-to-Europe and Asia-to-North America lanes.
- Retail tea shelf-price changes, private-label penetration, and promotional intensity.
- Audit tea sourcing by origin, supplier, port, and contract duration; quantify China-and-India concentration exposure for private label and branded assortments.
- Lock in forward volume or price corridors for core high-velocity SKUs while retaining flexible sourcing for premium and seasonal lines.
- Develop substitute blends and dual-origin specifications that preserve flavor profiles if a major producing region faces disruption.
- Use stable mainstream input availability to expand private-label tea, multipacks, and price-led promotional events.
- Differentiate premium assortments with provenance, functional benefits, and specialty formats rather than competing solely on commodity tea price.