Tea Prices – Historical Graph
- The average price in the past 3 days is
- The average price in the past 7 days is
- The average price in the past 30 days is
- The average price in the past 365 days is
Popular questions about tea prices:
Tea Prices Explained
Tea prices remained hot across trading charts as supply from China and India dropped 2% and 11%, respectively. A dry spell followed by inconsistent rainfall patterns resulted in a significant production loss, narrowing the global supply.
On the demand side, despite inflation influencing consumer preferences, its value in health and wellness keeps its market profitable. It leans on the rising demand for natural refrigerated tea products, hot tea and infusions, and RTD (ready-to-drink) teas. Steady consumer spending on these products translated to a combined 20.3% increase in sales.
Why are tea prices fluctuating?
1. Weather Conditions
Most of the tea-producing countries are from the Asian continent which is a favorite hub of strong typhoons from the Pacific Ocean. Needless to say, weather conditions greatly impact tea quality, production, and prices.
2. Supply and Demand
The growing demand for tea due to health concerns and fad diets comes as a new price driver of tea. The U.S. market sees a 5% growth (particularly in the green and black tea segment) in demand for tea and this will likely increase in the coming years.
3. Input Costs
Labor, transportation, packaging, and fertilizer are the farmers’ price determiners before trading them to their suppliers. Thus, these underlying factors first steer tea prices.
4. Tea Quality
Quality is the grading price of tea in the international market. A premium-quality tea marks high prices however, low-quality tea indicates low prices.
5. Increasing Health Consciousness
Increased awareness of healthy food and beverages prompted consumers to invest in sustainable consumption. Buyers started to look for alternatives to sugary and carbonated drinks and replaced them with nutritious and lower-calorie options.
Thus, the tea market benefits from this healthy diet pattern.
Which variables impact the price of tea?
- Weather Conditions
- Supply and Demand
- Input Costs
- Tea Quality
- Increasing Health Consciousness
- Currency Exchange Rates
- Government Regulation and Taxes
Where does tea come from?
Tea originated in China over 5,000 years ago. The discovery of this refreshing delight is ”accidental and legendary” according to some Chinese scholars.
It is believed that the Chinese Emperor Shen Nong first discovered tea when tea leaves blew and settled into his boiling water while sitting under the tea tree.
The emperor tasted the brew and was happy with the result. This marked the integration of tea into Chinese culture.
Tea spread in Western soil and culture specifically in England through the establishment of the East India Company, a trading body that bought large quantities of Oriental products including tea to Europe in the 17th century.
Generally, tea plants are planted in the spring, after the last frost passed. The ideal temperature for planting tea is between 65 and 75 degrees Fahrenheit.
Normally, the required planting climate for tea is warm and humid conditions.
Tea leaves are harvested throughout the growing season. This typically lasts from March to November. Additionally, the number of harvests per year varies depending on the climate and the type of tea being grown.
For example, tea plants in tropical climates are harvested up to four times per year while tea plants in temperate climates are harvested two to three times per year.
The first harvest is the highest quality as the leaves are young and tender. The quality of the tea declines with each subsequent harvest as the leaves become older and tougher.
After harvesting, they are processed into tea. There are several different tea processing methods:
1. Withering – The tea leaves are dried, to reduce their moisture content.
2. Rolling – This involves rolling the leaves to break down the cell walls and release the tea’s flavor.
3. Oxidation – The tea leaves are fermented to develop their flavor.
4. Firing – The tea leaves are fired to stop the oxidation process and preserve the tea’s flavor.
Today, the majority of this relaxing drink comes from China, India, Kenya, Sri Lanka, and Turkey.
What is the future price of tea?
The volatile supply chain and the rising health awareness brought by tea are the top price movers of this commodity. Its weather-dependent availability is one of the determining factors of its fluidity in the global supply chain and the way consumers want easy consumption accessibility influences the tea market.
The ready-to-drink (RTD) tea products are the profit-making segment of this commodity as they appeal to consumers living in the city. This is evident in a study made by Yahoo Finance. Turkey, China, and the United Kingdom top as the most RTD consumers worldwide.
This data made Twinings, Lipton, and Honest Tea diversify their product lines, adding natural flavors and health-focused options for tea products.
Also, the increasing demand for tea extracts from the beauty industry resulted in a share value of $4.5 billion, growing at a CAGR of 5.9% in 2032.
Overall, the global tea market is expected to reach $148.16 billion by 2030, growing at a CAGR of 6.4% from 2023 to 2030 due to the increasing demand for healthy beverages, growing awareness of the health benefits of tea, and rising disposable incomes.
Therefore, based on these factors, here are the tea price estimates in 2030 per kilogram:
- Black tea: $5-$8
- Green tea: $8-$12
- Oolong tea: $12-$15
- White tea: $15-$20