The global tea market is currently shaped by intense competition, price pressures, sustainability imperatives, and increasingly brand-driven value chains -- where leadership is determined not only by production volumes, but by technology adoption, marketing sophistication, and access to global distribution networks. Within this evolving landscape, Bangladesh -- once a pioneer of the subcontinent's tea industry-now occupies a relatively marginal position in global trade, emerging as a growing concern for policymakers and researchers alike.
Tea remains one of Bangladesh's most significant agricultural sectors: labour-intensive, import-substituting, export-oriented, and environmentally sustainable. The industry directly employs nearly 150,000 workers, and together with their dependents supports the livelihoods of around half a million people. When linked services, marketing activities, and small and medium enterprises are considered, the sector underpins employment for nearly two million people nationwide. Notably, women constitute approximately 51 per cent of the tea workforce, receiving equal wages to men under ILO conventions since 1967 -- making the sector a distinctive case of long-standing gender wage parity in plantation agriculture.
Tea cultivation in Bangladesh began in Chattogram in 1840, followed by its first commercial production in 1854 at the Malnicherra Tea Estate in Sylhet. Since then, the industry has evolved into a symbol of national economic heritage and cultural identity. Production reached approximately 100.6 million kilograms in fiscal year 2023-24, reflecting a strong domestic production base. Yet this quantitative growth has not translated into global competitiveness or leadership.
Today, nearly 60 per cent of global tea trade is dominated by China, India, and Kenya -- countries that have strategically invested in technological upgrading, branding, and market integration. Bangladesh, despite possessing distinctive advantages such as highland, climatic diversity, and region-specific flavour profiles, continues to face structural constraints. Limited production efficiency, outdated processing infrastructure, and weak international brand management have prevented Bangladeshi tea from securing a foothold in high-value global market segments.
Against this backdrop, reassessing Bangladesh's position in the global tea economy is no longer optional -- it is a timely policy and research imperative. The challenge ahead is not one of production capacity alone, but of strategic transformation: from volume to value, from anonymity to origin-based branding, and from domestic sufficiency to global relevance.
Structure of the Global Tea Market: Power, Value, and the Place of Bangladesh
The structure of the global tea market is shaped by a small group of dominants producing and exporting countries. China, India, Kenya, Sri Lanka, and Vietnam currently form the core of global tea production and trade, each occupying a distinct strategic position within the international value chain.
China leads the market both in volume and export value, driven by its strong emphasis on green, white, and other specialty teas, combined with Geographical Indication (GI)-based branding and origin narratives that command premium prices. India, while remaining one of the world's largest producers, consumes a substantial share of its output domestically. Even so, it sustains high unit export values through premium segments such as Darjeeling and Assam, where quality differentiation and regulatory protection outweigh sheer volume. Kenya, by contrast, has built global dominance in bulk CTC tea through large-scale production, high labour productivity, and an efficient export and auction system. This model delivers strong volumes and market reach, though with comparatively moderate value per unit.
Against this backdrop, Bangladesh represents a contrasting reality. In recent years, national tea production has surpassed 100 million kilograms, yet both export volumes and export earnings remain modest by global standards. While leading tea-exporting nations are able to extract high value from relatively limited production through branding, quality assurance, and assured market access, Bangladesh remains largely locked into a volume-oriented production structure. This has created a visible imbalance between rising production and low export value, highlighting deeper structural weaknesses within the sector.
The global tea market is increasingly shaped by a set of powerful trends: growing demand for specialty and premium teas; rising importance of sustainability, ethical production, and certification (including organic, fair trade, and environmentally responsible practices); and consumer-facing branding that links product value to origin, narrative, and social responsibility. Countries that successfully integrate these elements into their production and marketing strategies are moving up the value chain, even without large increases in output.
In this international context, Bangladesh's tea industry stands as a paradox. Despite its long history, distinctive highland terroir, regional flavour diversity, and compliance with ILO-aligned labour standards, the country has yet to secure a visible position in high-value global tea markets. This disconnect between inherent potential and market performance underscores Bangladesh's limited integration into the upper tiers of the global tea economy -- and reinforces the urgency of rethinking its strategic role within an increasingly competitive, value-driven global market.
Bangladesh's Position in the Global Tea Trade: Capacity Without Conversion
Over the past decade, Bangladesh's tea industry has recorded a notable expansion in production capacity. Improvements in garden management, expansion of cultivated areas, and gradual gains in productivity have pushed national tea output beyond 100 million kilograms in recent fiscal years, positioning Bangladesh as an emerging tea-producing country. This growth is underpinned by favourable highland terroir, a suitable agro-climatic environment, and a labour force with generations of experience in tea cultivation. Yet, this expanding production base has not translated proportionately into Bangladesh's presence in global tea trade.
The primary constraint on Bangladesh's export performance lies in strong domestic demand combined with persistent structural weaknesses. A growing population and a rapidly expanding consumer market absorb a large share of domestic production, leaving a limited exportable surplus. At the same time, gaps in internationally compliant processing facilities, quality certification, logistics infrastructure, and long-term market contracts have further restricted export capacity. As a result, Bangladesh has struggled to establish itself as a consistent and reliable exporter in the global tea market.
Equally significant is Bangladesh's lack of international market visibility. While countries such as Sri Lanka, Kenya, and India have successfully aligned their tea exports with strong national identities and recognizable global brands, Bangladeshi tea has yet to secure a distinct position in the minds of international consumers. Comparative analysis shows that these competing nations often generate higher export earnings from comparable-or even lower-production volumes, largely due to effective branding, market diversification, and strategic entry into premium segments.
In this context, Bangladesh represents a clear case of volume-driven potential failing to convert into value-based competitiveness. Despite its natural endowments and rising production, the country remains marginal in high-value global tea markets. This gap between capacity and commercial impact highlights the urgent need for policy reform, institutional strengthening, and strategic repositioning if Bangladesh is to secure a more meaningful role in the global tea economy.
Bangladesh vs. Top Tea Nations: The Struggle Between Volume and Value
In the global tea market, Bangladesh remains on the sidelines despite strong production potential. In the latest data, Bangladesh earned a mere $3.75 million from tea exports, while China topped the chart with $1.42 billion, Kenya followed closely with $1.41 billion, and India earned $853.4 million. This places Bangladesh at 9th position, highlighting a significant gap between production capacity and global market performance.
Bangladesh produces an impressive average yield per hectare, yet its tea fetches only $1.57 per kilogram on the international market -- roughly half the price achieved by China, India, and Kenya. In contrast, these top nations combine high yield with value-driven strategies:
China: Dominates through specialty teas, premium branding, and GI-certified products, capturing maximum value despite competition.
Kenya: Focuses on bulk export efficiency and low production costs, leveraging mechanization, organized smallholder systems, and strong auction networks.
India: Balances mass-market CTC exports with high-value niche teas such as Darjeeling and Assam
Orthodox, supported by government-backed quality control and market segmentation.
For Bangladesh to move from volume to value, three strategic shifts are essential:
Quality over Quantity: Prioritize Orthodox, Specialty, and Organic teas for premium markets.
Branding and Certification: Develop strong "Bangladesh-Origin" labels with GI, organic, and sustainability certifications.
Value-Added Processing: Shift from raw bulk exports to processed, packaged, and branded products to increase unit value.
Without addressing the price-quality gap, Bangladesh risks remaining a peripheral player, despite favorable terroir, climatic diversity, and skilled labor. Strategic investments in technology, branding, and market networks are critical for transforming Bangladesh into a value-driven competitor in the global tea arena, rather than merely a high-volume supplier.
Production Base and Quality Potential of Bangladeshi Tea
Bangladesh's tea industry stands on a strong foundation built upon geographical diversity, unique terroir, and centuries of cultivation experience, offering a significant competitive potential in the global tea economy. The hilly slopes, acidic soils, high humidity, and ample annual rainfall of Sylhet, Moulvibazar, Chattogram, and Khagrachhari create naturally favorable conditions for tea cultivation. In particular, the high-altitude terroir of Sylhet and Moulvibazar imparts depth, aroma, and balance to the tea-qualities highly suited for internationally recognized Orthodox and Specialty teas. This natural advantage forms the strategic basis of Bangladesh's competitive potential in global markets.
Despite this strong production base, structural gaps in productivity and quality management remain significant. Most tea gardens still rely on traditional, labour-intensive manual production, limiting yields to 1,200-1,500 kg per hectare.
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