Georgian Tea – New Opportunities in the Global Market

Tea has long been one of Georgia’s most historic and traditional agricultural sectors, and in recent years, it has gradually regained significance in both local and global markets. As of January 2025, Georgian tea exports have grown significantly. In the past month, 92 tons of Georgian tea were exported, generating $257,222 in revenue. Comparatively, in January 2024, exports reached 107 tons, but their total value was only $143,870.

Key Export Destinations and Market Trends

In 2025, Turkey remains Georgia’s top tea export market, with:

• 51 tons exported in January ($192,690 in revenue)
• Turkmenistan ranked second, importing 16 tons ($31,270)
• Armenia took third place, purchasing 23 tons ($18,000)

In 2024, Georgia exported 1,690 tons of tea, worth $2.8 million, an increase from 2023, when 1,522 tons were exported for $2.2 million. However, exports remain below 2022 levels, when Georgia exported 2,229 tons of tea worth $4.3 million.

The main tea export destinations—Turkey, Mongolia, Kazakhstan, and Russia—have remained relatively stable in recent years. However, the need for market diversification is becoming evident, as Georgian tea has the potential to reach a much broader international audience.

Tea Imports and Local Production Challenges

Despite the growth in exports, Georgia still imports more tea than it exports. In January 2025, the country imported 227 tons of tea, valued at $783,150. In January 2024, 220 tons were imported ($703,820), indicating a slight increase in imports.

Georgia’s main tea import sources are:

• Azerbaijan
• Russia
• Sri Lanka

This demonstrates that local production is still insufficient to fully meet domestic demand.

The Global Tea Market and Georgia’s Position

The global tea market has undergone significant changes in recent years, with demand steadily increasing, particularly for green and organic tea.

• In 2024, the global tea market exceeded $93 billion, and in 2025, further growth is expected.
• The top tea-producing countries remain:
  • China (45% of global production)
  • India (leader in black tea production)
  • Sri Lanka (dominates premium Ceylon tea exports)
  • Kenya (fastest-growing producer, supplying Europe and the Middle East)

Georgia’s Competitive Advantage and Growth Potential

Although Georgia is a relatively small player in the global market, it has niche opportunities with strong potential.

• Rising demand for organic and eco-friendly products presents a major opportunity for Georgia.
• Georgia’s tea industry gained recognition during the Soviet era, and with modern branding and technology, it can regain its international reputation.

Challenges in Georgia’s Tea Industry

Despite export growth, overall production remains low due to several key factors:

• Underdeveloped tea production infrastructure
• Abandoned plantations following the collapse of the Soviet Union
• Lack of large-scale investment in modernization and expansion

Investment and Modernization Efforts

In recent years, private investment in Georgian tea production has increased, with local farmers focusing on high-quality production. This shift is crucial to re-establishing Georgia’s presence in the international market.

Georgia’s biggest opportunities lie in specialty tea categories, such as:

• Tea from high-altitude regions with unique flavors
• Premium, organic, and artisanal teas

These specialty teas have gained popularity in high-end markets, such as Japan and Western Europe, where consumers seek unique, region-specific teas.

Key Steps for Growth

1. Expanding production and improving quality standards

   • Georgia must increase its production scale and improve processing technology.
   • Certifying bio-organic production will enhance competitiveness in premium markets.

2. Diversifying export markets

   • Currently, Turkey, Turkmenistan, and Armenia dominate exports.
   • Georgian tea must enter European and North American markets, where demand for organic products is rising.

Long-Term Potential

If Georgia effectively utilizes its geographical and climatic advantages, it has the potential to become a niche tea producer in the global market.

Key factors for success include:

• Attracting investment
• Restoring abandoned plantations
• Enhancing international branding

While the growth in tea exports is a positive sign, Georgia must continue strengthening its presence in the global market. Despite recent improvements, exports still lag behind 2022 levels, when $4.3 million worth of tea was exported.

To maximize its potential, Georgia must focus on building a globally recognized tea industry, not just within the region but on a worldwide scale. If successful, Georgia could transform its tea sector into a key driver of economic growth, increasing both local production and international trade.