Vietnam's US tea exports surge 36% in early 2026

Growth in US Tea Shipments

Vietnam's tea exports to the United States experienced a significant uplift in the first eight months of 2026, with customs data indicating a 36.4% year-on-year increase, reaching a total value of US$7.64 million. This expansion was a result of two primary factors: a notable rise in export volumes and an appreciation in average prices.

During this period, the volume of tea shipped to the US grew by 22% compared to the previous year. Concurrently, the average export price for Vietnamese tea destined for the US market saw a 12% increase, settling at US$1,649 per tonne.

These figures, derived from customs data for the first eight months of 2026, demonstrate a strong performance in a key export market, suggesting a favourable alignment of supply and demand dynamics for Vietnamese tea products in the United States.

Broader Export Performance and Price Trends

While exports to the United States showed strong growth, Vietnam's overall tea export landscape for the first eight months of 2026 presented a more varied picture. Total tea exports during this period amounted to 77,256 tonnes, valued at US$143.5 million, according to customs data. Interestingly, the total export volume for tea declined by 9.8% year-on-year.

However, the total value of these exports saw only a marginal decrease of 1.5%. This divergence between volume and value suggests an underlying shift towards higher-priced products or markets. The average export price across all tea shipments for the period increased by 4.5% year-on-year, reaching US$1,778 per tonne.

This overall price appreciation helped mitigate the impact of reduced volumes on total export earnings, indicating a general strengthening of pricing power for Vietnamese tea producers.

Shifting Global Demand and Market Diversification

Beyond the US market, Vietnamese tea exports demonstrated varied performance across other significant destinations in the first eight months of 2026. Shipments to Russia increased by 15%, while exports to Saudi Arabia saw an even more substantial jump of 27%.

Conversely, Pakistan, historically a major market for Vietnamese tea, experienced a decline, with shipments more than halving. This reduction was primarily attributed to recently implemented halal requirements in Pakistan, which likely affected the eligibility of certain Vietnamese tea products.

The Export-Import Department stated that the general rise in export prices reflects a broader trend in overseas demand, moving away from raw tea and towards higher-value, processed offerings. This includes products such as oolong tea, processed green tea, and various flavoured teas, which command better prices in international markets.

Fourth Quarter Outlook and Festive Demand

Looking ahead, the Export-Import Department expects a continued positive trajectory for Vietnamese tea exports in the final quarter of 2026. The department forecasts an increase in overall shipments and anticipates that prices will remain elevated during this period.

This optimistic outlook is primarily driven by the seasonal surge in festive demand across key regions, including Asia, the Middle East, and North America. As consumers in these markets prepare for holiday seasons, the demand for tea products typically intensifies.

This projected increase in both volume and value for Q4 2026 suggests that the market dynamics observed in the first eight months, particularly the preference for higher-value products, are expected to persist and potentially strengthen through the end of the year.

Implications for Vietnamese Tea Producers

The sustained increase in average export prices, particularly the 12% rise for US-bound tea and the 4.5% overall average price growth in the first eight months of 2026, presents a clear signal for Vietnamese tea producers.

The Export-Import Department's forecast of increased shipments and high prices continuing into the final quarter of 2026, driven by festive demand, indicates an immediate opportunity.

Businesses should assess their production capabilities for higher-value products such as oolong, processed green tea, and flavoured varieties, as demand for these categories is driving price appreciation. Investment in processing technology or product development to meet this shifting overseas demand could secure better margins.

Decision-makers should closely monitor Q4 2026 export data, particularly the breakdown by product type and market, to validate these trends and inform future strategic planning for the 2027 harvest and processing cycle.