Trade & Business

Bangladesh Tea Industry in 2020: Sylhet Production and Export Market Analysis

Overview of Bangladesh Tea Industry

Bangladesh is among the world's top tea-producing countries, with a cultivation history of more than 150 years. In 2020, tea production was about 86,000 tons, primarily from Sylhet (Srimangal and Habiganj), Chattogram (Rangamati), and Panchagarh. However, with domestic consumption rising in a population of 170 million, Bangladesh is gradually shifting from a traditional export-led profile toward a net importer profile. In 2020, tea exports fell to roughly $25 million.

86,000 tons
Production
2020
167
Plantation count
registered
60,000 ha
Cultivation area
nationwide
$25M
Export value
declining trend
95,000 tons
Domestic consumption
exceeds output
3.0M
Employment
plantation labor

Regional Analysis of Tea Production

Bangladesh Tea Growing Regions (2020)
RegionProductionSharePlantationsCharacteristics
Sylhet (Moulvibazar)48,000 tons56%92CTC-dominant, largest cluster
Sylhet (Habiganj)15,000 tons17%22CTC with some Orthodox
Chattogram (Rangamati)12,000 tons14%23CTC, small estate scale
Panchagarh (north)8,000 tons9%25New expansion, small holders
Others3,000 tons4%5Pilot expansion plots

Sylhet accounts for 73% of total output, and the Moulvibazar area of Sylhet is widely known as the "tea capital" of Bangladesh. The northern district of Panchagarh is seeing active estate expansion, and participation from smallholders has increased rapidly.

CTC vs. Orthodox Tea Comparison

CTC (Crush, Tear, Curl)
Share95% (most of total)
FeatureStrong liquor, quick infusion
UsageMilk tea and daily consumption
PriceLow to mid-range ($2-4/kg)
Orthodox (Traditional)
Share5% (niche)
FeatureDelicate aroma and blended grades
UsagePremium export channels
PriceHigher range ($8-20/kg)
01
Export Decline and Domestic Reorientation
Tea exports fell from over $40 million in the 1990s to around $25 million by 2020. The shift is driven by: (1) rising per-capita tea intake from 600g to 850g; (2) domestic consumption outpacing production, increasing import dependence; (3) 2020 tea imports of about $50 million, mainly from India and Sri Lanka; (4) exports now concentrating in Pakistan, Afghanistan, and the Middle East. Bangladesh is moving from a net exporter to a net importer profile.
02
COVID-19 and the Tea Sector
The pandemic had mixed effects in 2020. (1) Harvest disruption: movement limits on estate labor during lockdown reduced first-flush production by around 15%; (2) auction interruptions: the Chittagong tea auction was suspended for three months; (3) price inflation: tighter supply and home consumption pushed wholesale prices up by around 15%; (4) logistics constraints suppressed exports by roughly 20%.
03
Collaboration Opportunities for Korean Firms
(1) Premium tea import: Korea can target Srimangal Orthodox lots for specialty tea channels; (2) plantation machinery: leaf pickers, withering units, rolling machines, and dryers can be introduced through project-based exports; (3) packaging technology: tea bag, capsule, and nitrogen-filled pouch systems; (4) tourism cooperation: co-developing tea tourism around Srimangal; (5) R&D: joint work with Korean tea research institutes on varietals and organic certification.
04
Market Outlook
(1) Scale expansion: a target of 100,000 tons by 2025 through new estates and higher yields; (2) premiumization: higher share of Orthodox, Green Tea, and White Tea; (3) expansion in the north via Panchagarh acreage growth; (4) branding: organic producers such as Kazi & Kazi moving into global channels; (5) constraints: climate shifts (rainfall volatility), rising plantation wages, and modernization needs for aging processing facilities.

Tea Production and Export Trends

2015
67,000 tons / $35M
2016
85,000 tons / $30M
2017
79,000 tons / $32M
2018
82,000 tons / $28M
2019
96,000 tons / $30M
2020
86,000 tons / $25M
Bangladesh Agro-Processing 2020Food-processing industry outlook
Bangladesh Frozen Food Export 2020Comparative agricultural and fisheries exports

Bangladesh's tea sector has a 150-year legacy, but it is now transitioning from a net-export model toward net import as local demand strengthens. Korean firms can identify opportunities in premium tea imports from Srimangal, estate machinery and packaging technology exports, and organic tea R&D collaboration.

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Bangladesh Tea Industry in 2020: Sylhet Production and Export Market Analysis | Dhaka Trade Portal