Sri Lanka's tea industry is projected to experience cautious growth in 2025, according to an analysis by Forbes and Walker Tea Brokers. This outlook comes after several years of declining production, with expectations of a tight supply of Orthodox Large Leaf teas due to a production shortfall in India in 2024.

For the year 2024, Sri Lanka's tea production is estimated to be around 260 million kilograms, marking a 2% increase from the previous year. Tea export volumes are expected to rise by approximately 0.75% to 1.25%, with export earnings projected to grow by 0.1% to 0.3%

The global tea market is anticipated to reach $37.5 billion in 2025, up from $24.3 billion in 2016. This growth presents opportunities for Sri Lanka to expand its market share.

Despite the positive outlook, the industry faces challenges such as climate change, fluctuating global demand, and competition from other tea-producing nations. Addressing these issues will be crucial for sustaining growth and profitability.

While the Sri Lankan tea industry anticipates modest growth in 2025, strategic efforts are necessary to navigate challenges and capitalize on emerging opportunities in the global market.