China's Tea: Trends and Growth 2012-2013

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It's no secret the tea industry is growing. How is China faring in all the changes? Will she be able to stay on top as a leader in the industry? Read this tend and analysis report from Firsd Tea to get the facts!

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  • recent information with the economic slow down indicates that lower end lower priced lower quality teas are gaining populariity. Also some people say that with the crackdown on lavious government spending for gifts, expensive tea sets and gifts are out of favor and market demand is falling. Anybody confirm?
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China's Tea: Trends and Growth 2012-2013

  1. 1. Trend Analysis of the Chinese Tea Industry 2012-2013 By L.M. of Zhejiang Tea Group, Firsd Tea
  2. 2. World Tea Production and Sales Overview For the past 10 years, global tea production has increased 3.75% annually. Tea consumption has increased 3.45% annually
  3. 3. China, India, Sri Lanka, Kenya and Vietnam are the leading tea producers. Tea plant area(thousand hectares) 2113 578 188 China India Sri Lanka 188 128 Kenya Vietnam China and India produce 60% of the world’s tea production. ( Data source: ITC )
  4. 4. China’s ranking in 2012 compared to the world: • • • • • Plant Area: 2,113,000 hectares Tea Output: 1,623,000 tons Tea Export: 1,623,000 Average Export Price: $1.25/lb. Consumption: 1,233,000 tons Source: ITC, Taiwan excluded • • • • • No. 1 No. 1 No. 2 No. 9 No. 1
  5. 5. With 36.8% of total world tea output and 30% of total world tea consumption, China has a huge influence over the worldwide tea industry. Tea output(thousand tons) 1623 988 378 China India 329 178 Kenya Vietnam Sri Lanka
  6. 6. Future Global Tea Trends Green tea production is forecast to increase over 7%, and shows great potential for increase in export and consumption Black tea will continue to be the most consumed tea
  7. 7. Development Strategy of China • Implement modern techniques to further develop tea extracts • Support and expand organic tea programs • Promote consumption through advocacy and encouraging research on the health benefits of drinking tea
  8. 8. 2012 Tea Production and Sales in China • Total output volume and business revenue have increased from all tea varieties produced – Black tea has grown the most • $ sales have increased in spite of the great recession – This is due to the increase in quantity and improved quality – Also, high-end tea is growing in demand
  9. 9. Tea Plantations 6% increase rate of expansion of tea plantations. However, the production yield per plantation has decreased by an annual rate of 3.8%
  10. 10. Improvement is Necessary The quality of plantations has been affected as production increases. Management of farming operations is critical – proper irrigation, soil fertility and the appropriate tea pruning and plucking times should be implemented to guarantee a high quality tea production.
  11. 11. Organic Production • Organic Tea plantation area has reached 22,330,000 mu – An increase of 8.2% from 2011 Organic Tea Plantation (million mu) 35.78 22.33 Organic Tea Production Total area ( Data source:MOA ) 15 MU = 1 HA
  12. 12. Clone Production Clone Tea Plantation 35.78 17.98 Total area Clone breed ( Data source:MOA ) • Clone tea planation area has reached 17.98 million MU – An increase of 15.7% since 2011 – Clone tea plantation area now accounts for 51% of the total tea production
  13. 13. Tea Production • The output of semi-finished dry tea reached 1.761 million tons (a 10% increase) Tea production from 2007-2012 (thousand tons) 2000 1500 1000 500 0 2007 2008 2009 2010 2011 2012 • Tea production in all provinces (expect Hainan) experienced substantial increases ( Data source:MOA )
  14. 14. Tea Varieties • The 6 major tea varieties have all increased in production. • Many plantations are making great efforts to adjust their tea production to meet the demands for black tea. Production growth of major six tea categories in 2012 32.2% 24.8% 16.3% 10% 8% 6% Average Green Oolong Black tea tea tea 6.2% Dark tea White Yellow tea tea
  15. 15. Conclusion Tea plantation expansion will slow down and the growth of future tea production will rely more on the improvement of yield per capita. Share this presentation!
  16. 16. Looking Forward • China tea production for 2013 is expected to reach 1,800,000 tons (8% greater than last year) • This is due to: – Expansion of Tea Plantations – Development of Cultivation Management – Agriculture improvement and Share this presentation! mechanization
  17. 17. Set Backs • However, there was an unexpected heat wave and drought that destroyed many plants, depleting some of the 2013 crop. • In Zhejiang Province, a 20% decrease in production is expected. Share this presentation!
  18. 18. Export will Continue to Increase • In 2012, Kenya exported the greatest amount of tea Tea export Export volume (thousand tons) Country/Area China was a close second, and continues to export large volumes each year 1 Kenya 2 China 421 3 Sri Lanka 301 190 143 4 India 5 Vietnam 323 Share this presentation!
  19. 19. Recommendations • Further expand the tea market by focusing on the advocacy of tea and public health • Moderately control the tea plantation expansion, enhance cultivation management • Strengthen tea quality safety awareness, develop and implement traceability systems to control quality, safety and sustainable development of the industry • Develop and advocate technology advances to enhance standardization management.
  20. 20. Thanks! Want more details and information on tea news and trends? Sign up for our newsletter here! Questions or comments? email us! Share this presentation!

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