Abstract:
Tea is one of the oldest and most popular beverages in the world. It is considered as the cheapest beverage after water. Sri Lanka is the largest orthodox black tea producer and exporter of the world and tea contributes significantly to the national economy of Sri Lanka. Increase of the revenue from tea is lower than the increase in cost of production rise. Therefore, market penetration was identified as a method to increase the demand for Ceylon tea and increase the revenue. Main Ceylon tea export destinations are Russia/CIS and Middle East regions, but a very low quantity of Ceylon tea is exported to EU region compared to other origin teas, so it is important to pay attention on EU market. Objective was to identify the significant factors on market penetration to EU tea market and suggest recommendations to overcome those constraints.
