Consumer demand for specialty tea is expected to increase at a rate of 5-6 % per annum and it is one of the growing sectors of the USA tea market, according to the Sri Lanka Tea Board (SLTB). In a press release, the SLTB has launched the Specialty Estate Tea of the Year competition in the USA along with industry stake-holders. It is described as a novel project to popularize straight line garden marks from Sri Lanka to the US end-users.

This special promotion mainly targeting tea houses, tea saloons and tea rooms, tea bars, etc in the US will directly benefit the producers and the Green leaf suppliers of Sri Lanka to fetch higher prices. A historical Charity Auction coincided with this competition and the proceedings will be donated to the education of tsunami-affected children in Sri Lanka.

The SLTB said the US is the most unique tea market in the world as they consume more iced tea than hot tea. The Ready-to-Drink (RTD) ice tea sector, in pet bottles, cans or tetra packs, account for about 80 % of retail sales. Tea imports to USA have shown a significant growth during the last 6-year period, up from 96,668 metric tones (mt) in 2001 to 113,651 mt by 2007, registering a growth rate of almost 18 % during the 6-year period. At the current pace of growth, tea sales in USA will certainly exceed US$ 10 billion in about three years time from the current level of US$ 6 billion.

The enhanced demand for Green tea, due to its health benefits, Ready-to-Drink tea and specialty tea products have been the driving force behind this impressive growth in the US tea market. The exports of Ceylon Tea to the US is around 3,500 mt per annum generating a revenue of Rs. 2 billion and the potential for future expansion is extremely promising.

"The tea industry in Sri Lanka reached a historical milestone end of last year when the revenue exceeded US$ 1 billion and we hope to increase the revenue significantly with special projects of this nature adding more value to our teas," says Lalith Hettiarachchi, Chairman, Sri Lanka Tea Board. According to him, the promotional venture in the US is an ideal example of a successful public sector/private sector joint partnership and highlighted that, green leaf suppliers are today being paid more than Rs.70 per kg by many factories when the green leaf only realized about Rs.30 per kg few years back.