Jul 15, 2026

Analysis Of China's Tea Export Situation in 2026

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Analysis of China's Tea Export Situation in 2026

(Updated July 2026, based on official customs data from January to May)

I. Core Overall Export Features: Declining Volume, Rising Prices & Structural Transformation

1. Key Volume and Value Statistics

2025 full-year baseline data: Total exports reached 418,800 tons worth USD 1.546 billion, featuring volume growth yet price decline, dominated by low-priced bulk raw tea.

Cumulative customs data for January–May 2026:

Total export volume: 163,300 tons, a year-on-year drop of 3.01%;

Total export value: USD 629 million, a year-on-year increase of 6.19%;

Average export unit price: USD 3.85 per kilogram, surging 9.49% year-on-year.

Core logic behind the shifts: Shipments of low-cost loose bulk tea have contracted, while high value-added specialty tea and deep-processed tea account for a larger share of exports. The industry has moved away from the volume-driven model and entered a phase focused on quality improvement and price growth.

Full-year forecast for 2026: Total annual tea exports will stand at roughly 380,000–400,000 tons (a mild decline), while total export value is expected to exceed USD 1.7 billion with unit prices maintaining an upward trend.

2. Divergent Export Performance by Tea Category

Green Tea (the absolute mainstay facing volume pressure) Green tea exports hit 143,000 tons in Jan–May, accounting for 87% of total export volume with a slight year-on-year decrease. China supplies over 80% of the world's green tea, most of which is low-priced loose raw material destined for Northwest Africa amid fierce internal competition. Morocco remains the top importer of Chinese green tea.

High-growth segments: White tea, ripe Pu'er tea and scented tea Exports of white tea, ripe Pu'er and jasmine tea all registered year-on-year increases, with ripe Pu'er leading growth at 17.9%. Global demand for wellness consumption and tea collection drives strong premiums far above those of green tea.

Declining categories: Black tea, oolong tea and traditional dark tea Black tea faces fierce competition from low-cost raw materials from Kenya and Sri Lanka, leading to reduced bulk procurement orders from overseas supermarkets. Oolong tea such as Wuyi rock tea and Tieguanyin has limited global recognition, with exports down 7.2% year-on-year; handcrafted premium oolong only makes up a small share of overseas shipments.

II. Global Export Market Layout

1. Stable Core Traditional Markets (North Africa & Central Asia)

The top ten export destinations collectively contribute over 60% of total export value: Morocco, Mauritania, Uzbekistan, Côte d'Ivoire, Senegal, Russia, Algeria, Mali, Ghana and Niger.

Morocco (largest single market): Exports reached USD 93 million in Jan–Apr, with rigid steady demand for low-grade broken bulk green tea.

Central Asia (Uzbekistan, Russia): Stable demand for mid-to-low grade green and black tea used as milk tea raw materials.

Mali (West Africa): Exports jumped 76.8% year-on-year as an emerging growth market; demand in Ghana and other West African nations shrank, with export volumes plummeting by nearly half year-on-year.

2. Fast-growing High-potential Markets (EU, US & Japan)

Though overall volumes are modest, unit prices in developed markets are markedly higher:

The EU enforces over 480 strict pesticide residue testing standards. Only organically certified and traceable tea gains market access, commanding premiums 2–3 times higher than those in African markets.

The US and Germany see explosive demand for new-style tea beverages, cold-brew tea and tea extracts, with sustained growth in orders for tea bags and instant tea.

Benefits of the RCEP take full effect: Tariffs on tea imports in Malaysia, Singapore, Thailand and other Southeast Asian nations keep falling, while acceptance of white tea, oolong and herbal scented tea rises year after year.

3. Structural Market Trends

Exports to Belt and Road Initiative countries account for nearly 40% of total shipments, forming the fundamental market base.

Market concentration is slowly decreasing, as enterprises actively diversify target markets to reduce reliance on North African buyers.

High-growth rates in premium developed markets far outpace those of traditional low-price raw material markets, forming the core profit growth engine.

III. Key Opportunities Boosting Export Growth

Diversified global tea consumption highlights China's unique differentiated advantages Global tea consumption has long centered on black tea, yet demand for green tea, white tea, Pu'er and scented tea has expanded rapidly in recent years. China is the sole producer of all six major tea categories, creating an unrivaled competitive barrier-countries like Kenya and India only produce black tea. Young overseas consumers favor sugar-free, natural functional tea products, driving rising exports of deep-processed goods including tea powder and tea extracts.

Sustained dividends from trade policies Annual tariff reductions for tea imports under the RCEP simplify customs clearance and cross-border e-commerce procedures in Southeast Asia. The China-EU Geographical Indications Agreement facilitates EU official origin certification for West Lake Longjing, Wuyi rock tea, Anhua dark tea and other famous teas, lowering barriers for brand globalization. Stable Belt and Road logistics routes via China-Europe Railway Express cut transportation costs to Central Asia and Eastern Europe.

Upgraded domestic industrial supply supports higher export premiums In 2026, China restricts blind expansion of tea plantations and widely promotes ecological, organic tea gardens with comprehensive full-process traceability systems. Pesticide residue control standards for export tea align with EU regulations, while deep-processing capacity grows 15% year-on-year. Instant tea, cold-brew tea, tea polyphenols and other finished products escape low-end raw material competition and deliver greatly improved added value.

Cross-border e-commerce opens channels for packaged branded tea Traditional exports are dominated by bulk tea in packages of 3kg or above. Cross-border e-commerce platforms enable direct supply of small-packaged gift tea to overseas end consumers, breaking monopolies held by foreign middlemen and accelerating branded exports for small and medium Chinese tea enterprises.

IV. Prominent Challenges Facing the Industry

1. Low-price competition from international rivals squeezing bulk market share

Black and green tea raw materials from Kenya, Sri Lanka and Vietnam carry lower production costs supported by favorable exchange rates, continuously capturing low-price raw material orders in West Asia and the Middle East. Low-cost Vietnamese green tea diverts demand for China's traditional low-end green tea, resulting in shrinking bulk green tea export volumes.

2. Rigorous overseas green trade barriers

The EU, Japan and the US continuously update standards for pesticide residues, heavy metals and contaminants with an increasing number of testing items. Tea without organic or Rainforest Alliance certification is locked out of premium overseas supermarkets, pushing up certification and quality control costs and creating heavy pressure on small and medium export manufacturers.

3. Long-standing low value chain and lack of independent brands

Exports still mainly consist of loose raw tea, with independent Chinese brands accounting for less than 10% of end-market sales. Overseas consumers only have a vague impression of "Chinese green tea", with limited awareness of Pu'er, rock tea and white tea culture, making brand premiums hard to achieve. Internationally renowned tea brands sell products 3–5 times more expensive than loose Chinese tea of equivalent quality.

4. Dual pressure from production costs and exchange rate fluctuations

Domestic labor costs for tea picking and processing rise year on year, while organic fertilizer and eco-friendly processing equipment push up factory prices. Volatile US dollar exchange rates squeeze profit margins for tea traders, and North African buyers are extremely price-sensitive-even mild price hikes risk lost orders.

5. Geopolitical risks disrupting regional logistics

Political unrest and armed conflicts in West African nations including Niger and Mali create unstable sea transportation and customs clearance, leading to cargo seizures and extended payment cycles. Shipping disruptions in the Red Sea push up long-distance freight charges and raise export costs for North African markets.

V. Full-year Forecast of Industry Trends for 2026

Total export volume will edge down while export value keeps rising Shipments of low-cost bulk green tea will continue to contract, yet exports of white tea, Pu'er, deep-processed tea and organic specialty tea will drive up total export value, completing the industry's shift from volume-oriented to value-oriented development.

Dual shift in market focus Enterprises will consolidate stable demand in traditional North African and Central Asian markets while expanding presence in high-end markets across the EU, North America and Southeast Asia, adopting a dual-track layout to hedge risks of over-reliance on single markets.

Two major product development lines ① Industrial raw material line: Tea bags, cold-brew tea, tea extracts and concentrated tea supplied to overseas new-style tea beverage manufacturers; ② Specialty consumer goods line: Small-packaged white tea, aged Pu'er, GI-certified premium tea and flavored scented tea targeting retail end markets for higher premiums.

Intensified stratification among competing enterprises Leading large tea enterprises with organic certifications, overseas brand assets and deep-processing capacity will maintain robust profit growth. Small and medium manufacturers lacking quality control and international certifications that only trade loose raw tea will face shrinking orders, accelerating industrial consolidation and capacity elimination.

Accelerated rollout of international standardization Full-scale popularization of domestic tea export traceability systems will continue. Industry associations will push for the formulation of international flavor standards covering China's six major tea categories, gradually overturning the global stereotype that Chinese tea equals low-cost raw materials.

VI. Strategic Recommendations for Tea Export Enterprises

Diversify product portfolios: Reduce production of pure loose bulk green tea, develop organically certified specialty tea and deep-processed tea to capture premiums in high-end markets.

Diversify target markets: Cut reliance on Morocco as a single major buyer and explore emerging consumer markets in Southeast Asia, Latin America and Central Eastern Europe.

Upgrade sales channels: Deploy cross-border e-commerce and local overseas distributors to launch independent small-packaged brands and bypass raw material middlemen.

Prioritize compliance: Preemptively align production with EU and Japanese pesticide residue standards, and obtain international organic and Fair Trade certifications to avoid trade barriers.

Leverage cultural communication: Promote white tea, Pu'er and oolong tea through wellness and Chinese tea-drinking scenarios to cultivate overseas consumption habits for China's unique specialty teas.

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