Kenya Tea Market- Trend Analysis & Forecasts

Kenya Tea Market Overview:
Kenya is the third-largest tea producer and the leading exporter of black tea globally, contributing over **% to global tea exports. In 2023, Kenya produced ** million kilograms of tea, of which **% was exported, generating US$ ** billion in export earnings. The Kenya Tea Development Agency (KTDA), which represents smallholder farmers, plays a pivotal role, managing over **% of the national output. Tea is grown predominantly in the highland areas of Kericho, Nandi, and Nyeri, where favorable agro-climatic conditions contribute to year-round cultivation and high-quality CTC (crush-tear-curl) tea.

Primary Areas/ Elements of Research & Analysis
The report provides comprehensive and valuable insights into the supply and demand dynamics of the Kenya tea market. Below are the variables considered and analyzed in the report:
• Supply-demand trends, market growth, and trade
• Market structure, conduct, and performance analysis
• Historical and forecasted market size (volume & value)
• Trade analysis (export & import), including key partners, quantities, values, and price trends
• Supply chain mapping, pricing, and regulatory framework
• Competitive landscape profiling of key players
• Factors influencing market performance, including sustainability trends

Market Growth Factors
The market is expected to grow at a CAGR of **% from 2024 to 2030, driven by increasing global demand for Kenyan orthodox and specialty teas. In 2023, exports to Pakistan, the UAE, and Egypt saw a **% increase, aided by competitive pricing and superior flavor profiles. Domestically, value-added tea segments such as flavored, herbal, and iced teas grew by **% YoY, particularly among younger consumers in Nairobi and Mombasa. Government investments in irrigation infrastructure and seedling distribution under the Tea Reforms Initiative have helped boost yields by **% in select regions.

Market Restraints & Challenges
The industry faces pricing volatility due to oversupply in global markets, which led to a **% drop in average auction prices in 2022. Climate change continues to disrupt harvest cycles, with erratic rainfall in the Rift Valley region reducing output by **% during the first half of 2023. Smallholder farmers face challenges in accessing credit and modern farm inputs, limiting productivity. Furthermore, the overdependence on bulk tea exports—about **% of Kenya’s shipments—undermines potential revenue from higher-value branded products.

Market Segmentation
Kenya’s tea market is segmented into CTC tea (**%), orthodox tea (**%), and specialty/herbal teas (**%). By end-use, **% of tea is exported in bulk, **% sold as loose-leaf and packaged brands, and the remainder consumed domestically. The retail segment is evolving, with a **% rise in demand for flavored teas in urban centers. Export segmentation reveals that Pakistan (**%), Egypt (**%), and the UK (**%) are top destinations. Orthodox and green teas are increasingly targeting premium export markets in Europe and North America.

Competitive Landscape
Key players include KTDA-affiliated factories, Unilever Kenya, and Kericho Gold, which dominate both domestic sales and export volumes. Multinationals such as James Finlay and Ekaterra (formerly Lipton) operate large plantations with integrated processing facilities. Recent years have seen a rise in local SMEs focusing on value-added packaging and branding, with niche players like Emrok Tea expanding to gourmet and organic segments. KTDA’s recent digitization drive has linked over 600,000 smallholders to mobile-based payment and training systems.

Outlook
The Kenyan tea market is projected to reach ** million kilograms in output by 2030, supported by replanting initiatives, irrigation expansion, and promotion of orthodox tea. Value-added tea products could contribute **% to export revenues by 2030, up from the current **%. Diversification into organic and climate-resilient tea varieties will be crucial. Trade agreements with the UAE, China, and Russia are expected to open new markets for premium Kenyan teas, ensuring long-term growth despite global price fluctuations.

Scope of the Report:
• Historical Years: 2018-2023
• Base Year: 2024
• Forecast Period: 2025-2030
• Units: Value (US$ Million) and Volume (Thousand Tonnes)
• Report Coverage: Production, Consumption, Export, and Import
• Segments Covered:
By Type (Green Tea and Black Tea)
By Category (CTC Tea, Orthodox Tea, and Specialty/Herbal Teas)
By Sales (Domestic Consumption and Exports)
• Companies Profiled: The market players include, Kenya Tea Development Agency Holdings Ltd., James Finlay Kenya Ltd., Williamson Tea Kenya Ltd., Sasini PLC, Unilever Tea Kenya Ltd., Eastern Produce Kenya Ltd., Kericho Gold Ltd., Kaimosi Tea Estates Ltd., Mabroukie Tea Estat, KETEPA (Kenya Tea Packers Ltd.), Melvin Marsh International Ltd., Kangaita Tea Factory., and Others.

Please note: It will take 4-5 business days to deliver the report upon receipt the order.