Summary Sustainable Tea Market Report 2019 www.iisd.org
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One Line
Tea is the second most consumed beverage worldwide, facing challenges such as limited processing facilities and the impact of climate change.
Slides
Slide Presentation (9 slides)
Key Points
- Tea is the second most popular beverage in the world after water, with 3 billion cups consumed daily.
- China, Sri Lanka, and Kenya are the largest tea-exporting countries, while Pakistan, Russia, and the United States are the largest importers.
- Only 6.6% of tea production is potentially VSS-compliant, leaving 74% of tea as conventional.
- The tea industry faces challenges such as access to tea-processing facilities, concentrated control by a few companies, and the impact of climate change on yields.
- Demand for more sustainably produced tea is growing, driven by corporate sustainable sourcing commitments and consumer preferences.
- Efforts have been made to develop national VSSs in producing countries, such as India and Indonesia.
- The top three tea-producing Asian countries, China, India, and Sri Lanka, have the potential to increase VSS-compliant tea production.
- Multi-stakeholder initiatives and dialogues are crucial for the tea sector to become sustainable.
Summaries
25 word summary
Tea is the second most popular beverage globally, with 3 billion daily cups consumed. Challenges include limited access to processing facilities and climate change impact.
66 word summary
Tea is the second most popular beverage globally, with 3 billion cups consumed daily. In 2017, 5.98 million tonnes of tea were produced, with 35% exported and a retail value of $50 billion. Challenges in the industry include limited access to processing facilities, concentrated control by a few companies, climate change impact, labor issues, and pesticide residues. Efforts are being made to increase VSS-compliant tea production.
141 word summary
Tea is the second most popular beverage globally, with 3 billion cups consumed daily. In 2017, 5.98 million tonnes of tea were produced, with 35% exported and a retail value of $50 billion. China, Sri Lanka, and Kenya were the top tea-exporting countries, while Pakistan, Russia, and the United States were the largest importers. Voluntary Sustainability Standards (VSS)-compliant tea made up 19.4% of the global market in 2016, compared to 2.4% in 2008. Challenges in the industry include limited access to processing facilities, concentrated control by a few companies, climate change impact, labor issues, and pesticide residues. However, there is growing demand for sustainable tea, driven by corporate commitments and consumer preferences. Efforts are being made to increase VSS-compliant tea production in Asian countries and LHDCs like Burundi and Uganda. Multi-stakeholder initiatives and dialogues are crucial for a sustainable tea industry.
431 word summary
Tea is the second most popular beverage in the world after water, with 3 billion cups consumed daily. In 2017, total tea production was 5.98 million tonnes, with approximately 35% exported and a retail value of $50 billion. The top seven tea-producing countries accounted for 90% of the global tea supply. China, Sri Lanka, and Kenya were the largest tea-exporting countries, while Pakistan, Russia, and the United States were the largest importers.
In 2016, 19.4% of the global tea market was made up of tea compliant with Voluntary Sustainability Standards (VSS), compared to 2.4% in 2008. However, only 6.6% of tea production is potentially VSS-compliant, leaving 74% of tea as conventional. The global supply-demand balance of tea closed in 2018 with a small surplus, and this trend is projected to continue until 2020. The sector is expected to experience continued growth due to increasing demand primarily from Asian and Pacific countries, a growing clientele among young urban consumers, interest in the health benefits of tea, and the expansion of new products and flavorings.
The tea industry faces challenges such as access to tea-processing facilities, concentrated control by a few companies, anonymous transactions in auctions leading to price pressure, geographical limitations for tea cultivation, and the impact of climate change on yields. Other challenges include forced and child labor, poor working conditions, low wages, and pesticide residues in the final product.
Demand for more sustainably produced tea is growing, driven by corporate sustainable sourcing commitments and consumer preferences for more sustainable and healthy products. VSS-compliant tea has seen significant growth since 2008 and is expected to continue growing. European and North American countries are the main destinations for VSS-compliant tea. Efforts have been made to develop national VSSs in producing countries, such as India and Indonesia. The expansion of VSS-compliant tea production in LHDCs (Low Human Development Countries) could result in improved agricultural practices, better working conditions, and increased profitability for farmers and smallholders.
The top three tea-producing Asian countries, China, India, and Sri Lanka, have the potential to increase VSS-compliant tea production. LHDCs such as Burundi and Uganda also show promising signs of growth in VSS-compliant production. Expanding sustainable tea production in LHDCs may face competition due to labor shortages in the tea industry. It is important for VSSs to ensure that their interventions lead to a better tea sector by addressing sustainability challenges.
Efforts to bring together stakeholders through multi-stakeholder initiatives and dialogues are crucial for the tea sector to become sustainable. The future of the tea industry lies in empowering producers, restoring natural environments, and enabling resilient value chains.