Introduction:In 2021, global tea production and sales experienced significant fluctuations due to the pandemic. As major black tea exporting countries, Kenya and Sri Lanka saw notable changes in auction prices, output, and trade policies. This article provides an in-depth analysis of the black tea market trends in these two nations, explores the reasons behind price increases, evaluates whether Taiwan’s Bestfriend Black Tea is reasonably priced from a consumer perspective, and offers practical purchasing advice to help tea enthusiasts make informed decisions in a volatile market.
In 2021, the global tea market was profoundly impacted by the COVID-19 pandemic, with significant adjustments in supply and demand structures. Kenya and Sri Lanka, as globally important black tea exporters, became focal points of market attention due to changes in their tea auction prices, output fluctuations, and policy adjustments. This article will closely examine the market dynamics of these two major producing regions and analyze the frequently asked consumer question: “Is Bestfriend Black Tea too expensive?” while also providing practical guidance on selecting black tea that meets real needs.
Looking back to last May, although tea prices had already fallen from the historic highs seen at the beginning of the pandemic, they remained higher than the market had originally anticipated. This was primarily due to the foodservice channel—including cafés and restaurants—which previously accounted for about 20% of global tea consumption but largely suspended operations due to the pandemic, resulting in substantial tea stockpiles and further disruption to the original supply-demand balance. This shift led to generally higher auction prices for tea in India, Sri Lanka, and Kenya, with some buyers even completing transactions at record-breaking prices, clearly indicating that market supply and demand had deviated from traditional norms.
In Kenya, data provided by the East African Tea Trade Association (EATTA) showed a noticeable increase in supply at the Mombasa auction market, mainly due to favorable weather conditions in local growing areas and the relatively limited direct impact of the pandemic on production. Last week, the average price at this auction market was KES 208 (approximately USD 1.92) per kilogram, up from the previous high of KES 194 (USD 1.79). However, EATTA also pointed out that since buyers had accumulated sufficient inventory earlier in the year, recent demand has been relatively stable, which may signal that the oversupply situation is gradually easing.
Statistics show that tea supply at the Mombasa auction market increased by 970,000 kilograms last week, reaching a total of 2.1 million kilograms. Edward Mudibo, Managing Director of EATTA, told the media that prices below USD 2 would be unfavorable for tea farmers’ earnings, but he remains optimistic about a gradual market price recovery. Even so, prices for certain grades of tea have shown resilience, performing relatively well.
In the first half of 2021, Kenya’s tea output grew by 41% compared to the same period last year, with total processed volume reaching 300 million kilograms, compared to only 213 million kilograms in the same period of 2019. However, according to data from the Kenya Tea Board, the earnings of smallholder farmers in the fiscal year ending June declined by 22%, earning only KES 69.7 billion (approximately USD 644 million), the lowest in the past six years.
In the early stages of the pandemic, many buyers stockpiled heavily due to concerns over supply disruptions, delaying the procurement of new teas and further pushing prices down to a 13-year low. But over time, buyers from the Commonwealth of Independent States, Afghanistan, Iran, and even India re-entered the market and participated in auctions, stabilizing some of the demand.
Turning to Sri Lanka, tea prices there showed a strong upward trend last May, with the average auction price reaching LKR 812.18 (approximately USD 4.44) per kilogram, forming a clear contrast with Kenya’s prices during the same period. Market demand for so-called “low-grown” tea remained strong, with 6.7 million kilograms sold at recent auctions, including 2.6 million kilograms from low-altitude plantations. Although overall sales volume (excluding direct sales) was only 900,000 kilograms, the market performance of premium teas remained robust.
High-altitude, high-quality tea had an average auction price of LKR 534.03 (approximately USD 2.92) per kilogram, outperforming similar products from Kenya. Market data also showed that the most top-tier grade of tea was sold at LKR 667.82 (approximately USD 3.65) per kilogram, up by USD 0.59 from the previous period. Sri Lanka’s tea production in May 2021 also dropped sharply by 35% compared to the same period in 2019, reaching only 96 million kilograms, primarily due to adverse weather, logistics bottlenecks, and flooding, which caused severe labor shortages in producing areas.
At the same time, production in northern India also saw a significant decline, falling by 46% compared to the same period in 2019, with only 133 million kilograms produced—far below previous levels. Only some areas in southern India, such as Kerala, saw a slight increase in tea garden output, rising by about 10% to 77 million kilograms.
The rise in tea prices has also prompted the Indian industry to reconsider the feasibility of import policies. Although the government currently imposes a 100% tariff on imported tea, under the pressure of tight domestic supply and soaring prices, there has been discussion about the possibility of importing tea from Kenya or Vietnam. However, trade associations and tea farmer groups hold differing opinions, with some representatives strongly opposing tariff reductions, fearing it would undermine the competitiveness of local tea in the market.
It is worth noting that even after the imposition of high tariffs, CTC tea imported from Kenya and Vietnam remains cheaper than CTC tea produced domestically in India. For example, Kenyan tea costs approximately USD 1.84 per kilogram, Vietnamese tea around USD 1.50, while the average price of CTC tea at the Kolkata auction market in India is INR 305 (approximately USD 4.07) per kilogram, making it significantly more expensive.
For the average consumer, whether Bestfriend Black Tea is “overpriced” depends on the specific product grade and purchase channel. If you value cost-effectiveness, you might refer to the market prices of Kenyan CTC and Sri Lankan low-grown teas, and based on your flavor preferences, seek the most suitable choice amid price fluctuations. By understanding the production trends and price band distributions of various regions, you can more accurately evaluate the pricing strategies of market brands and make smart purchasing decisions.
The above content is compiled by CoffeeHunters, a coffee news website.
