Trend Analysis of the Chinese Tea Industry 2012-2013 By L.M. of Zhejiang Tea Group, Firsd Tea
China's Tea: Trends and Growth 2012-2013
Oct 30, 2014
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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Trend Analysis of the Chinese Tea Industry
2012-2013
By L.M. of Zhejiang Tea Group, Firsd Tea
For the past 10 years, global tea production has increased 3.75% annually.
Tea consumption has increased 3.45% annually
World Tea Production and Sales Overview
China, India, Sri Lanka, Kenya and Vietnam are the leading
tea producers.
Tea plant area （ thousand hectares ）
2113
China
578
India
188
Sri Lanka
188
Kenya
128
Vietnam
（ Data source: ITC ）
China and India produce 60% of the world’s tea production.
• 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
• No. 1• No. 1• No. 2• No. 9• No. 1
China’s ranking in 2012 compared to the world:
Source: ITC, Taiwan excluded
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.
Sri Lanka
Kenya
Tea output （ thousand tons ）
1623
China
988
India
378 329178
Vietnam
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
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
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
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%
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.
Improvement is Necessary
Organic Production
• Organic Tea plantation area has reached 22,330,000 mu– An increase of 8.2%
from 2011
Organic Tea Production
35.78
Total area
22.33
Organic Tea Plantation（ million mu ）
（ Data source ： MOA ）15 MU = 1 HA
Clone Production
• 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
35.78
17.98
Clone Tea Plantation
Clone breed
Total area
（ Data source ： MOA ）
Tea Production
• The output of semi-finished dry tea reached 1.761 million tons (a 10% increase)
• Tea production in all provinces (expect Hainan) experienced substantial increases
0
500
1000
1500
2000
2007 2008 2009 2010 2011 2012
Tea production from 2007-2012（thousand tons）
（ Data source ：MOA ）
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
10%
6%8%
32.2%24.8%
16.3%
6.2%
Yellow
tea
White
tea
Dark
tea
Oolon
g
tea
Black
tea
Green
teaAverage
Conclusion
Tea plantation expansion will slow down and the growth of future tea production will rely more on the
improvement of yield per capita.
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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
mechanization
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• 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.
Set Backs
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Export will Continue to Increase
China was a close second, and continues to export large
volumes each year
Country/Area
1 Kenya2 China
3 Sri Lanka
421
323
301
Export volume（ thousand tons）
4 India
5 Vietnam
190
143
Tea export
• In 2012, Kenya exported the greatest amount of tea
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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.
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