Ceylon Tea Export Market Update: Q3 2024
Global demand for Ceylon tea remained robust in Q3 2024, with Middle Eastern and Eastern European markets driving volume growth. Here is what it means for producers.
Global Demand Stays Strong
The Sri Lanka Tea Board's Q3 2024 export statistics confirm another quarter of resilient demand for Ceylon tea. Total export volumes reached 69.5 million kg, a 4.2% increase year-on-year. Export earnings in USD terms rose 7.8%, reflecting both volume growth and improved average realised prices.
Key Market Trends
Middle East remains the largest destination, absorbing 38% of total exports. Strong demand from Iraq, Turkey, and the UAE continued, with particular interest in BOP and BOPF grades for blending.
Russia and CIS markets recovered strongly after 2023 disruptions, with Russian volumes up 11% versus the same quarter last year.
Western Europe showed steady growth in specialty and single-origin segments. Germany, the UK, and the Netherlands collectively imported 8.4 million kg, with premium whole-leaf grades commanding prices 25–40% above auction averages.
China remains a small but fast-growing market for Ceylon specialties, particularly orthodox high-grown teas marketed as premium alternatives to mainstream Chinese varieties.
Price Movements
The Colombo auction average for high-grown BOP strengthened to LKR 1,420/kg in August, up from LKR 1,285 in January. Analysts attribute this to tight supply from competing origins (Kenya saw reduced output due to drought) and sustained buyer demand.
Implications for Wewelkandura
Strong auction prices and growing direct-trade interest position our estate well. We are focused on maintaining the yield gains of the 2024 season into Q4, ensuring we enter 2025 with healthy inventory across all grades.
For trade enquiries, contact trade@wewelkandura.com.