Georgia's Tea Industry Brews Renaissance in Luxury Market

Once a significant agricultural sector during the Soviet era, Georgia's tea industry suffered a major collapse following the dissolution of the Soviet Union due to economic hardships and civil war. The sector, which once supplied 95% of the Soviet Union's tea needs and was the fourth-largest tea producer globally by weight, saw its production plummet from a peak of 152,000 tons in 1985 to just 1,800 tons in 2014. However, in recent years, particularly since the 2010s, abandoned tea plantations are being brought back to life, and Georgian tea is experiencing a renaissance by focusing on a quality-driven approach and targeting luxury and specialty tea markets.

During the Soviet period, Georgian tea focused on quantity and its quality declined due to mechanized harvesting methods, making it uncompetitive in the free market. However, a new generation of producers and entrepreneurs began to change this trajectory. Individuals like Tbilisi engineer Shota Bitadze helped to revitalize the sector by rediscovering abandoned tea fields. The Georgian government also launched a tea plantation rehabilitation program in 2016, aiming to bring 7,000 hectares back into production and covering 60-90% of investment costs for private farmers and cooperatives, respectively. Financial support from the European Union has also contributed to this revival. Private investment has increased in recent years, with local farmers concentrating on high-quality production. Organizations such as the Georgian Organic Tea Producers Association, founded by the Bitadze family in 2006, and the Nagomari Tea Cooperative, established in 2015, are among the pioneers of this transformation.

This restructuring process is repositioning Georgian tea in global markets. The industry is now focusing on specialty categories such as organic, artisanal, and high-altitude teas. Specialty tea shops like Palais des Thés in Paris and importers such as Royal Cathay in New York are adding Georgian tea to their product ranges, thereby boosting demand. Export data also reflects this positive shift; in January 2025, tea exports generated $257,222 from 92 tons, a significant value increase compared to $143,870 from 107 tons in January 2024, indicating a move towards higher-priced, quality products despite a volume decrease. Despite these gains, Georgia still imports more tea than it exports, with $783,150 spent on 227 tons of tea imports in January 2025, and local production remains insufficient to fully meet domestic demand.

This economic resurgence should be viewed within the broader context of Georgia's post-Soviet economic transition and its inherent challenges. The country's subtropical climate, with cold winters that naturally eliminate pests, and its suitability for organic farming, provide a significant advantage in this transformation. The rebirth of the tea industry holds substantial potential for creating employment and fostering economic growth, especially in rural regions.

Analysts and market observers suggest that the future success of Georgia's tea industry hinges on a continued focus on quality over quantity. There is an emphasized need for market diversification beyond traditional Commonwealth of Independent States (CIS) markets to gain a foothold in Western markets. The development of tea tourism is also seen as a new revenue stream and promotional tool for the sector. While continued private and government investments are anticipated in the coming period, several significant obstacles, such as underdeveloped infrastructure and difficulties for small producers in accessing markets, need to be overcome. Georgia aims to become a key player in the regional tea market once again, leveraging a modern model aligned with contemporary consumer demands.