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!

1. Trend Analysis of the
Chinese Tea Industry
2012-2013
By L.M. of Zhejiang Tea Group, Firsd Tea

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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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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
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mechanization

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.
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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
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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. Thanks!
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