China Tea Market Status

China Tea Market Status

China Tea Market Status

Tea yield per unit area in China is still at a low level. China’s tea plantations account for nearly half of the world’s tea area, but the output is only 1/4. Indian tea plantations cover 520,000 hectares, which is half of China’s, but the output of tea is basically the same as that of China.

China’s tea market is mainly divided into domestic and export.

Domestic part

1. Tea consumption has grown rapidly. Tieguanyin (Oolong) market share point is about 70%, Pu’er is 1 in 15%, and other teas account for the remaining 15%.

2. There are many tea merchants, the industry has low barriers to entry, and the industry has low concentration and chaos.

3. There are many varieties of tea, rich in variety, and different propaganda priorities.

4. Tea is a high-cost economic crop, and local governments that produce tea pay more attention to it. There are many tea shows every year, but most of them are not very effective.

Export section

1. Green tea accounts for an absolute proportion of 90%.

2. The export volume of other teas is increasing year by year. In particular, packaged tea in fast-moving packaging has grown the fastest.

3. Even so, China’s export of tea is still mainly in bulk and raw materials supply.

The biggest problem in the domestic tea market

The tea quality and safety management system has not been well established.

A large part of the market lacks a standardized management system. Especially in the market access system, commodity quality and safety management system, dealer account system, claim ticket system, consumer complaint system, etc. are not well established, so it is impossible to establish a product traceability system, once When quality problems are discovered, the market cannot recall products and hold relevant personnel accountable.

The main reason for this situation is that the tea market does not have enough implementation of the tea quality and safety management system. Of course, there are also some external factors, such as the uneven quality of market merchants.

At present, Chinese tea is a big tea producing country in the world, but it is not a strong tea producing country.

Tea production still has the following problems:

1. Low yield of tea
China’s tea yield is still at a low level. China’s tea garden area accounts for nearly half of the world’s tea area, but the output is only 1/4. The area of ​​Indian tea gardens is 520,000 hectares, which is equivalent to half of that in China, but the tea production is basically the same as that of China. The low yield of tea leaves indicates that the benefits of tea production in China are low. The main reason for the low yield is that the tea production is insufficient, the proportion of the well-specified tea garden is small, and the production management is extensive.

2. Low labor efficiency
Tea is a labor-intensive industry that requires a lot of labor from the cultivation of tea to the picking, processing and marketing. According to statistics, there are currently 80 million tea farmers in China, and there are more than 50 million people engaged in the tertiary industry such as tea sales and teahouse services. However, on the other hand, it also reflects the low labor efficiency of tea production in China. In 2004, China’s per capita tea production was only 10.4 kg, compared with 546 kg in India, 402 kg in Sri Lanka and 649 kg in Kenya. In the southern tea producing areas, many farmers are not specialized in the production of tea, but in the production of a variety of agricultural and sideline products. Coupled with the lack of necessary skills training, there are widespread problems such as lack of professional skills. This is very different from foreign tea farmers. In India, Sri Lanka and Kenya, tea farmers are employed by farmers. Most people only work in tea production, and after good vocational training, they are able to master various professional skills.

3. Low degree of organization
After the tea was released from operation in 1984, most of the tea gardens in China have been contracted to farmers, and tea production is based on households. In India, Kenya, and Sri Lanka, most of them are mainly large-scale farms, and they are managed and operated in an enterprise. Japan and Taiwan, like us, the ownership of tea gardens are also owned by farmers, but they have established a very complete social service organization, and formed cooperatives to achieve cooperative production, and better solve the problem of tea production dispersion. After the country contracted the tea plantation to the farmers, it did not establish a social service organization that was suitable for it. The farmers were independent producers and did not form a coalition. Due to the inconsistent management level, the tea production and management were excessively dispersed.

4. Low standardization of tea
The higher the degree of commercialization of tea, the higher the standardization level and processing requirements of tea. One of the important signs is the mechanization of tea processing. At present, China’s famous tea production can not achieve the entire process of mechanized processing, most of which are still hand-made, workshop-style production. Bulk tea production is also semi-mechanized, which not only has low production efficiency, but also has low standardization of production products. In India, Sri Lanka and Kenya, tea processing has achieved full mechanized production. In Japan, whether it is the management of tea gardens or the processing of tea, it has basically achieved standardized management and mechanized production. The consistency of the products produced is very high, laying a solid foundation for tea brand management.

5. Lack of leading enterprises
At present, the domestic market is in a disorderly state of competition and disorder, and the market is scattered. Most of them are small and medium-sized enterprises. For a certain region, there are regional leading enterprises or well-known brands, but in the national market, no one company can Occupy 2% of the market share. In this situation, the effect of large-scale production cannot be exerted, which is not conducive to the optimal combination of resources, which is not conducive to the establishment of brands. In the coming period, the entire tea industry will face great integration, and competition will become increasingly fierce. A large number of tea enterprises will be purchased or eliminated, and the strong will be stronger and the weak will be eliminated.

Share this post

Leave a Reply

Your email address will not be published. Required fields are marked *