ANALYSIS OF THE FACTORS OF THE INTERNATIONAL TEA MARKET CONDITIONS

Abstract

This article explores the international tea market, a vital segment of the global economy, and examines the main factors influencing it, such as economic changes, political instability, and climate-related challenges. Tea production and pricing are shown to be deeply affected by these factors, creating volatility in global markets. A special focus is placed on Ukraine, where the tea market is highly dependent on imports, particularly from Sri Lanka. This dependence poses significant risks for supply stability, especially in the context of disruptions caused by external factors such as price fluctuations or geopolitical issues in exporting countries. The study analyzes major tea producers, including China and India, which lead the market with their large-scale production capacities and extensive plantations, as well as Kenya and Sri Lanka, which maintain strong positions due to their high-quality products. The article also addresses the rising popularity of organic and herbal teas, driven by consumer interest in health and wellness, alongside the growing trend toward sustainable and environmentally friendly production practices. Additionally, the study reviews broader challenges faced by the tea market, such as the effects of climate change, which include unpredictable weather patterns, droughts, and heavy rainfall that disrupt production in key tea-growing regions. At the same time, there is a concerning global trend where tea prices are rising due to growing production costs and increased demand, while production volumes are declining. This imbalance not only puts additional pressure on supply chains but also creates a risk of reduced market accessibility, especially in price-sensitive regions. Lower production volumes are linked to reduced yields in tea plantations caused by soil degradation, lack of modern farming techniques, and climate-driven shifts in agricultural conditions. As a result, many tea-producing countries face challenges in maintaining export levels, which exacerbates market instability and makes it harder for importing nations like Ukraine to secure affordable and stable supplies. The role of political instability in some producing regions is also discussed, highlighting its impact on supply chains and market stability. While the article does not provide specific recommendations for businesses, it offers valuable insights into the complexities of the tea market, identifying the main trends and challenges that companies need to consider. This information can be used by industry stakeholders to better understand market dynamics and explore strategies for adapting to a rapidly changing global environment, ensuring their competitiveness and sustainability in the long term.