In 2013, tea production volume in the Russian Federation amounted to 120,637 tonnes, and since then output has been declining annually. In 2016, 102,915 tonnes of tea were produced in the country (over the time span of 3 years, output dropped by 17,722 tonnes). In 2017, slight growth was achieved, production reaching 103,341 tonnes.
A comparison of production volumes for loose green and black tea reveals that the latter is the leading category. The volume of loose black tea produced in 2016 exceeded that of loose green tea by 58,479 tonnes. The volume of green tea production has been stable: no significant changes have been observed for said indicator, which is far from being the case for black tea. Starting with 2014, output of the latter has been declining (by 11 and 7% in 2015 and 2016 respectively), and in 2016 it amounted to 79,374 tonnes.
Indirectly, retail sales rates reflect the dynamics of tea market development. Data for 2015 indicates that the monetary volume of tea retail sales in Russia amounted to 150 million rubles. Sales have been growing in monetary terms year on year, which is largely caused by growing prices for said product. For instance, a rapid jump in sales volumes was recorded in 2015 and equaled 19%. In the following 2 years, growth continued, and by 2017 the indicator had reached 178.8 million rubles.
Around 36% of all tea retail sales fall on the Central Federal District, whereas 20% are accounted for by the Northwestern Federal District.
Annually, analysts at “Step by Step” perform a survey of tea consumers. The results of the survey reveal that respondents tend to opt for loose tea: it is preferred by 77% of survey participants, against 23% preferring tea bags.
Let us examine the dynamics of retail prices for tea across these two tea categories. First, let us focus on the price dynamics for black tea in tea bags (per 25 bags) in 2017 – early 2018. In early 2017, prices within the segment were at 62.99 rubles, and during the year the price was decreasing. By the end of the year it had reached 61.62 rubles, having declined by 1.37 rubles. In 2018, the price continued to fall, and in June it equaled 61.11 rubles.
The situation concerning the price for loose black tea is completely different. In 2017, a kilogram of said product cost 760.11 rubles. During the year, prices for tea in the segment were rapidly growing at first, and later declined. This was followed by subsequent growth, and by the end of the year the price amounted to 767.43 rubles per kilogram. In early 2018, prices for the tea category in question were fluctuating as well but had become more stable by July, amounting to 772.69 rubles. Over the past year and a half, growth in prices equaled 12.58 rubles.
Imports of goods in the category of “green tea in primary packaging with the net weight of up to 3 kilograms” into Russia in the period from 2015 to 2017 amounted to $ 30.5 million and 5.06 thousand tonnes. Sri Lanka was the leader in the structure of imports within the category, occupying the share of 42%*. China was second, with the share of 20%.
Total supplies of tea within the “other green tea varieties, flavored and non-flavored” group in 2015–2017 amounted to 37.8 thousand tonnes, valued at $ 123 million. China was first in the structure of imports of said products and has the share of 85%. Germany ranked second and accounted for 4% in the structure.
Imports of goods in the category of “black tea in primary packaging with the net weight of up to 3 kilograms” into Russia during the aforementioned time period reached $ 183 million, or 36.1 thousand tonnes. Sri Lanka and the UAE were the leaders in supplies within the category, accounting for the shares of 58 and 16% respectively.
In 2015–2017, Russia purchased 430 thousand tonnes of goods within the category of “other black tea varieties, flavored and non-flavored”, valued at $ 1.39 billion. Sri Lanka and India were leading in the structure of imports in the category and had the shares of 30 and 28% respectively in supplies.
Regarding exports, in 2015–2017, Russia exported $ 30.9 million worth of goods in the “green tea in primary packaging with the net weight of up to 3 kilograms” category, at the total volume of 5.05 thousand tonnes. Belarus was first in the structure of exports and occupied the share of 29%, whereas Kazakhstan was second, accounting for 19%**.
Exports of “other green tea varieties, flavored and non-flavored” amounted to 270 tonnes valued at $ 1.3 million. Russian tea was mainly supplied to Ukraine and Belarus, which received 45 and 33% of the total export volume within the category respectively.
Exports of products in the group of “black tea in primary packaging with the net weight of up to 3 kilograms” during the period from 2015 to 2017 reached $ 194 million and 36.5 thousand tonnes. Among countries purchasing said products, Belarus and Kazakhstan were the leaders, having the shares of 27 and 23% respectively.
In 2015–2017, Russia exported 1.39 thousand tonnes of goods within the category of “other black tea varieties, flavored and non-flavored”, valued at $ 5.6 million. Belarus and Ukraine were leading in the structure of exports for this category and accounted for the shares of 38 and 32% respectively.
* Hereinafter, the countries mentioned lead in terms of total imports in 2015–2017.
** Hereinafter, the countries mentioned lead in terms of total exports in 2015–2017.
Public Relations Specialist
“Step by Step” Group