Tea Market Essay

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Tea market Question 1 Introduction Tea is one of the most popular beverages, it is consume among the world and by different age groups from all levels of society. Tea is produced in over 36 countries throughout the world; however there are five major producers, (Kenya, Sri Lanka, India, China and Turkey), that produce over 80% of the tea in the world. Africa, South America and the near East also produce quantities of tea. Huge populations of Asia, UK, EU, Middle East, Africa and countries of the CIS consume tea regularly and throughout the day. (Hicks 2001) In Australia tea is very popular with Saudi Arabia next then Egypt. The major countries of the world that export tea are: India, Sri Lanka, Kenya, Indonesia, China, Malawi, Argentina, Bangladesh, Mozambique and Tanzania. The largest exporters are India and Sri Lanka. India being a major tea producing country has a domestic consumption of 70 per cent of its production, as compare to Sri Lanka and Bangladesh where 15% of the produced tea is consumed in the country. Global Tea Production: In 2007, China was the largest producer of tea followed by India, Kenya, and Sri Lanka. Graph 1 shows the production volume of the world’s major tea producers. (www.russiablog.org) Global Tea Exports: In 2007, Kenya was the largest exporter of tea followed by Sri Lanka, China, and India. The following graph 2 shows the export statistics for the world’s major tea exporters. (www.russiablog.org) Highest Per Capita Consumption Markets for Tea in 2007: Turkey, Ireland, U.K., Poland, Russia, and Japan had the highest per capita consumption rates for tea in 2007. As can be seen from Graph 3 below the average per capita consumption of tea in Russia was 1.3 kg, which was far greater than the average per capita consumption of tea both globally (0.3 kg) and in India (0.7 kg).(www.russiablog.org)

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