Why does good tea always hold its value?

  In the tea market, prices can fluctuate from week to week. Just a few weeks of heavy rainfall, a poorer harvest or an increased supply can push prices down. Despite this, one thing remains constant – the highest prices are consistently paid for teas of exceptional quality. This is confirmed by an analysis of the dried tea market in the first half of 2026.

    The most important hub for the East African tea trade is Mombasa. Producers and buyers from around the world gather there and the auction results serve as one of the best barometers of the African tea market.

    The first six months of the year were marked by relative stability. The beginning of the year saw a rise in prices in Kenya, the region’s largest tea producer. However, with the onset of the long rainy season, the quality of the leaves naturally deteriorated, causing prices to fall in May. Once weather conditions returned to normal, the market quickly recovered its losses. Interestingly, this happened despite a large volume of tea being brought to auction. This suggests that the price declines were primarily due to the seasonal nature of the harvest rather than a decline in buyer interest.

    An even more interesting example is Rwanda. For many years, tea from this country has fetched higher prices than Kenyan tea. This was also the case in the first half of 2026, thanks to highly consistent production practices. The plantations are located high in the mountains, harvesting is conducted according to rigorous standards and production volumes are relatively small and predictable. The market clearly rewards this consistency. Buyers know what to expect and are willing to pay more for consistent quality.

    The situation is different in Uganda and Malawi. Higher supply and lower-quality raw materials have led to lower prices. At the same time, it is clear how closely the entire region is tied to the situation in Kenya. When prices weaken there, a similar trend quickly emerges in other markets as well.

    Regulations are also having an increasing influence on producers’ decisions. The European Union has announced a further tightening of standards regarding pesticide residues. This means that exporters will need to implement even stricter quality control and full product traceability. For buyers, however, this is good news, as high standards will become increasingly important in international trade.

    The outlook for the coming months remains stable. Unless there are any major surprises in weather conditions, the market should maintain current price levels. However, this does not mean that all market participants will be in the same situation. As recent years have shown, the producers who fare best are those who do not try to compete solely on price.

    The tea market once again demonstrates that a brand built over the years offers greater security than short-term cost advantages. Quality, consistency and customer trust are currencies that retain their value, even when weather or global market conditions change.