In many tea-growing regions, the plants are currently dormant, waiting until spring to bud out and yield the growing season’s most valued tea leaves. So, during this off-season, where does the industry currently stand? Here’s a quick look at just a few tea-producing regions. I’ve recently looked at the sobering state of the industry in … Continue reading Tea Industry Snapshots, January 2026
In many tea-growing regions, the plants are currently dormant, waiting until spring to bud out and yield the growing season’s most valued tea leaves. So, during this off-season, where does the industry currently stand?
Here’s a quick look at just a few tea-producing regions.
I’ve recently looked at the sobering state of the industry in Assam, and Darjeeling faces its own challenges, but overall, India continues to rank as the second-largest producer globally.
In a comprehensive assessment of the Indian tea industry, S. Singhania, president of the Tea Association of India, notes some of the current problems:
- Currently, 90% of the tea India produces is CTC—in a world in which consumers increasingly prefer orthodox teas.
- Although India produces 19% of the world’s tea, they export only 13%.
- India imports cheap tea from other countries. These imports weaken the market for domestic tea, and have been blended with Indian tea for re-export, degrading quality.
- Tea prices aren’t offsetting increased production costs, in part because of lowered tea quality.
- Climate instability has brought higher temperatures and a greater pest load, changes that weaken tea plants.
Solutions include shifting more production to orthodox tea of high quality, restricting cheap imports, improving agricultural practices, and so on. And solutions require an influx of money, new legislation, and perhaps a paradigm shift in moving from CTC to orthodox teas.
Of course, the idea that higher-quality teas will increase tea consumption works only when there’s a market for those pricier teas. But high-quality items also create their own demand. Think first-flush Darjeelings, matcha, high-grown oolongs.
In the Yunnan Province of China, there was an experiment of sorts.
In the Jingmai Mountain region, the Blang people historically grew tea in the ancient forest. However, in the 1990s, they tried using cleared terrace plantations—and tea quality suffered. Turns out that ancient forests contribute myriad qualities to tea plants, which can’t be replicated when tea plants are divorced from that forest.
Today, with a return to (more labor intensive) forest-grown tea, a kilogram can command $1000 (CGTN 11/11/25).
Leaning on cultural heritage doesn’t always equate with the production of premium teas—but it just might sell a product. The South Korean company Dongwon F&B teamed up with the Korea Heritage Agency for its current venture:
The Boseong Hongcha iced tea lineups reinterpret tea leaves from Boseong — once presented as royal tribute during the Joseon Dynasty — by blending traditional tea flavors with the modern zero-calorie trend. (Lee 11/3/25)
As iced tea, the leaves may not be the highest quality—but the historical reference, the story behind the tea, can be compelling. And perhaps profitable.
Vietnam is also pulling its culture strings, having launched its first ever World Tea Fest in late 2025, focused partly on “cultural heritage [and] production traditions” (VOV 11/11/25). The end goal, of course, is that tea sales will increase. Or, as a diplomatic Voice of Vietnam article puts it: with “hope that . . . Vietnamese tea will serve as a symbol of peace and friendship to boost broader cultural and economic cooperation.”
This celebration of heritage has merit. The Tea Fest was held in the country’s oldest—and still operational—tea-processing factory, built in 1927. Tea art, tastings, displays of ancient tea plants, and more, illustrated the far reach of tea and how it’s embedded in culture.
But will this be enough to move Vietnam’s tea industry in the right direction? Lack of money, inadequate education, poor agricultural practices, and other drawbacks continue to result in sub-par tea that often fails purity tests. This, in an era where more consumers are looking for high-quality, organic tea. Statistics from January through October of 2025 reported that tea exports decreased in both volume and year-on-year value (VietnamPlus 9/11.25), a trend that the Tea Fest surely hopes to reverse.
But bringing awareness to Vietnam’s long history of tea won’t be enough to bring buyers. Rather, money and education must be invested in the industry so that it can meet today’s consumer demands with a better product. As illustrated by China’s Blang people, high-quality tea brings in far better prices and therefore is worth the investment.
Seeking additional ways to bolster tea consumption, countries are rolling out new products or are advertising them to a different audience.
For example, China is bringing more of its fruity bubble teas to the U.S. market, riding on the ready-to-drink market trend. Harking back to traditional roots, Nanping, a city in Fujian Province, is promoting tea tourism. China is where it all began, so where better to experience a tea garden? The city is taking its message internationally, using marketing centers, competitions for foreign students, expos, and the like (Xinhua Silk Road 11/4/25).
Kenya, which produces primarily black CTC tea, is seeking to break into the Moroccan market. That seems both daunting and baffling as Moroccans drink green tea, imported from China. But there have been negotiations.
Meanwhile, there still isn’t enough matcha in the world. Genuine matcha is highly labor intensive and expensive (see my post about the ongoing matcha shortage), so Japan is unlikely to ever produce enough to meet the current craze for all-things-matcha.
Despite setbacks for particular countries or specific regions, the tea industry as a whole is expected to continue to grow. At November’s Global Dubai Tea Forum, the Dubai Multi Commodities Centre predicted that the market would continue to grow through 2025.
And I’m confident that tea producers and tea consumers alike hope that 2026 brings a robust supply of excellent teas that are both profitable and delicious.
Sources:
–CGTN, “How Jingmai produces some of the world’s most luxurious teas,” 11/11/25.
–Ecofin Agency, “Kenya targets a new tea market, challenging China in Morocco,” 11/10/25.
–Lee, M., “Dongwon F&B accelerates global expansion with hallabong iced tea,” The Korea Times, 11/3/25.
–Nippon.com, “Matcha in short supply amid global boom,” 1/4/26.
–Singhania, S., “Tea industry need [sic] to focus on increasing orthodox production to meet rising global demand,” The Shillong Times, 1/3/26.
–VietnamNet Global, “Four records set as Vietnam hosts first-ever world tea fest 2025,” 11/11/25.
–VietnamPlus, “Vietnam’s tea exports hit nearly 12,000 tonnes in October,” 9/11/25.
–Voice of Vietnam, “Lam Dong launches first world tea fest to promote Vietnamese tea culture,” 11/11/25.
–Xinhua Silk Road, “Xinhua Silk Road: SE. China city leverages ecology friendly industries to boost global presence,” CISION PR Newswire, 11/4/25.
