Why did tea exports reach their lowest level in the past 7 years?

Vietnam is the 23rd largest tea supplier to the UK market. Tea exports in the last months of the year still lack positive signals.

The Import-Export Department (Ministry of Industry and Trade) cited data from the General Department of Customs, saying that it is estimated that in the fourth quarter of 2023, Vietnam's tea exports will reach 39.3 thousand tons, worth 70 million USD, up 16.7% in volume and 18.1% in value compared to the third quarter of 2023, down 22.1% in volume but up 1.4% in value compared to the fourth quarter of 2022.

The average export price of tea in the fourth quarter of 2023 reached 1,778.9 USD/ton, up 1.2% compared to the third quarter of 2023 and up 30.1% compared to the fourth quarter of 2022.

In general, in 2023, tea exports are estimated to reach 121 thousand tons, worth 211 million USD, down 16.9% in volume and 10.9% in value compared to 2022. The average export price of tea in 2023 is estimated to reach 1,737.3 USD/ton, up 7.3% compared to 2022. Thus, 2023 is the year with the lowest export output in 7 years.

The main factors causing Vietnam's tea exports to decline significantly in 2023 are weak market demand and increasingly strict import regulations in major tea export markets.

In addition, Vietnam's current tea exports are mainly in raw form with low processing content. Most tea export items tend to decrease in the 11 months of 2023, with green tea leading in volume and value at 52.6 thousand tons, worth 104 million USD, down 6.9% in volume and 1% in value compared to the same period in 2022; followed by black tea at 42.2 thousand tons, worth 57.2 million USD, down 16.1% in volume and 18.4% in value; scented tea reached 3.5 thousand tons, worth 7.3 million USD, down 4.7% in volume but up 6.7% in value.

Notably, oolong tea exports reached 1,100 tons, worth 3.5 million USD, up 101.8% in volume and 106.5% in value over the same period in 2022.

Most of the tea import value in major markets in the world from Vietnam accounts for a low proportion. Therefore, despite weak market demand, Vietnam's tea industry still has the opportunity to expand its market share.

However, to boost exports to major markets around the world, the Import-Export Department recommends that the Vietnamese tea industry must promote safe tea production; encourage tea production enterprises to apply high technology, biology, and organic agricultural production; support tea growers to link production with processing and product consumption; support enterprises to promote, promote trade, and find markets for tea products; diversify products, focusing on rapidly increasing the proportion of high-value products and new products...

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