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Global Trends in Tea Supply and Demand: Insights from 1986 to 2005

This report analyzes global consumer behavior and the interplay between tea supply and demand from 1986 to 2005. The last decade saw a 26% growth in supply, with significant contributions from India and China, which together produced 53% of the total tea output. Despite rising supply, prices remained dismal, influenced by weaker currencies in producer nations and changing consumer preferences. The demand landscape highlighted a consumption shift, especially in the Middle East, where preferences are evolving toward higher-quality teas as disposable incomes rise.

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Global Trends in Tea Supply and Demand: Insights from 1986 to 2005

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  1. GLOBAL CONSUMER BEHAVIOUR – SUPPLY & DEMAND www.inttea.com

  2. WORLD PRODUCTION OF TEA 1986 - 2005

  3. WORLD PRODUCTION OF TEA IN 2005In Million Kgs

  4. WORLDPRICE OF TEA EX-AUCTION 1986 – 2005

  5. APPARENT CONSUMPTION OF TEA IN 2005 BY COUNTRIES

  6. DEMAND FOR TEA IN IMPORTING NATIONS

  7. SUPPLY & PRICES • SUPPLY GROWTH OF 26% OVER LAST 10 YEARS • TIGHTER SUPPLY FOLLOWED BY HIGHER PRICE • COMBINED CROP OF INDIA & CHINA 53% OF TOTAL • SUPPLY EXPECTED TO TOP 4 M. mt BY 2016 • PRICES DISMAL AT AROUND US $ 1.50 PER KG • WEAKER CURRENCIES OF TEA PRODUCERS

  8. DEMAND • INDIA & CHINA CONSUME 40% OF WORLD SUPPLY • GROWTH AMONGST PRODUCERS NOT MATCHED BY IMPORTERS • WIDER CHOICE OF BEVERAGES • STAGNANT POPULATION • HIGHER DISPOSABLE INCOMES • STABLE ECONOMIES & LOW INFLATION • IMPENDING CHANGES IN CONSUMER PREFERENCES IN THE MIDDLE EAST

  9. SUPPLY & ABSORPTION • SUPPLY OVER DEMAND GAP WIDENING • DEMAND FOR LOWER PRICES CREATING OPENINGS FOR POORER TEAS • TO DEMAND BETTER QUALITY PAYING IMPROVED PRICES • EXPLORE POSSIBILITIES OF CURTAILING CROP

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