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The development direction of China's tea industry under the current epidemic situation

  • Categories:Company news
  • Author:
  • Origin:
  • Time of issue:2020-02-12 17:18
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(Summary description)For most tea companies, the year starts with spring, which accounts for the bulk of tea revenue. Due to the novel Coronavirus pneumonia epidemic prevention and control pressure, many parts of the country have started the first-level emergency response to major public health emergencies, which will bring adverse impact on the tea production in the spring of 2020.

The development direction of China's tea industry under the current epidemic situation

(Summary description)For most tea companies, the year starts with spring, which accounts for the bulk of tea revenue.

Due to the novel Coronavirus pneumonia epidemic prevention and control pressure, many parts of the country have started the first-level emergency response to major public health emergencies, which will bring adverse impact on the tea production in the spring of 2020.

  • Categories:Company news
  • Author:
  • Origin:
  • Time of issue:2020-02-12 17:18
  • Views:
Information

For most tea companies, the year starts with spring, which accounts for the bulk of tea revenue.

Due to the novel Coronavirus pneumonia epidemic prevention and control pressure, many parts of the country have started the first-level emergency response to major public health emergencies, which will bring adverse impact on the tea production in the spring of 2020.

At present,novel Coronavirus infection pneumonia inflection point has not yet appeared, and spring tea has not yet reached the season of large-scale picking.

Therefore, the extent of the restriction on tea production and marketing in the spring of 2020 is unknown, and specific suggestions on tea production and marketing during the Spring Festival are still to be discussed. The author will first discuss how novel Coronavirus pneumonia affects the development direction of tea industry.

01 Industrial division of labor accelerated

Spring tea sales encountered resistance, coupled with small and medium-sized enterprises weak anti-risk ability, lack of financing channels.

Some small and medium-sized enterprises without characteristics will collapse, the tea industry, downstream related enterprises will accelerate the integration.

1. Upstream supply chain is intensive

Upstream, scattered soldiers, workshop - style extensive tea production model will be phased out.

In the near future, the upstream will be specialized in the tea industry supply chain enterprises (Foxconn of the tea industry).

Tea industry development, only the scale, there is behind the standardization and intensification.

At present, the scale has been excessive (domestic tea plantation area is about 45 million mu), and the standardization and intensification will be accelerated.

2. Downstream terminal branding

Downstream, branded tea enterprises will become the general trend.

On the one hand, some "master tea", "ecological tea" and "private house tea" will gradually withdraw from the market.

On the other hand, in the past, enterprises in the downstream consumer market when doing everything is not desirable, it is difficult to break the circle. In particular, small and medium-sized tea enterprises should find their own positioning, and differentiation in product, service and experience may be the way to survive.

However, the rare characteristic tea can be digested by circle layer and is not affected by the overall environment.

In addition, as a downstream enterprise, its positioning is not dead, and it should pay attention to the large tea industry (especially the emerging business forms such as tea drinking, tea deep processing and tea travel integration).

Otherwise, you can't see the forest for the trees.

The short-term influence of tea export is great

In the early hours of January 31, the World Health Organization declared the new pneumonia outbreak in China a "public health emergencies of international concern, known as PHEIC.

Note: Director-general of the World Health Organization, Tedros Adhanom Ghebrest, pictured right

1.PHEIC

PHEIC is the world Health Organization's response decision to a public health emergency on a global scale and has the force of international law. The target is an infectious disease or other public health event that endangers other countries and requires transnational action.

So far, the Chinese government and all sectors of society have enough confidence in controlling the epidemic.

However, in the short term, it will inevitably affect the confidence of foreign customers, thus affecting the amount of tea export trade.

2. Overview of tea exports last year

According to data from China Customs, China's tea exports from January to December 2019 totaled 366,600 tons, up by 0.1,800 tons or 0.50% year-on-year. Exports totaled US $2.02 billion, a year-on-year increase of US $242 million, a year-on-year increase of 13.60%. The average export price was US $5.51 / kg, up US $0.64 / kg or 13.04% year on year.

From the perspective of tea export classification, in the whole year of 2019, China's green tea export volume was 303,900 tons, accounting for 82.9% of the total export volume. The export volume of black tea was 35,200 tons, accounting for 9.6% of the total export volume. The export volume of Oolong tea was 18,100 tons, accounting for 4.9% of the total export volume. The export volume of scented tea was 6,490 tons, accounting for 1.8% of the total export volume. The export volume of Pu 'er tea was 2,786 tons, accounting for 0.8% of the total export volume.

In general, tea exports in 2019 totaled about 12 billion yuan, accounting for 4% of China's tea output (based on the total amount of 300 billion yuan in 2019). Moreover, the export of tea is about 16 yuan a catty, mostly for late spring tea and summer tea.

Tea enterprises in export trade need to pay attention to the following three points:

1) As long as the country can control the epidemic within one month, it will not affect the overall tea export trade in 2020.

2) Most exported tea leaves are grain tea with excellent cost performance. It is difficult for foreign markets to replace China's market position in the short term. More positive signals should be sent to customers and relevant work related to tea safety production should be done well.

3) For exporting tea enterprises, they should try to export to the domestic market. Guosheng tea prosperity, opportunities are many.

Health and deep processing of tea

The first attribute of tea is health, which has been proved for thousands of years.

After the epidemic, ordinary people will pay more attention to health care, and it is a good opportunity to develop "tea" concept health products.

So how to integrate "tea" products into ordinary People's Daily life?

Enterprises in the tea processing level, can develop delicious, convenient, healthy products.

At present, the tea (bottled tea, now made in stores) has been thriving.

Tea food, tea cosmetics, tea health products and other fields of tea deep processing has great potential, and has not yet seen the national layout of large-scale enterprises.

It is worth noting that although the deep processing of tea is a trend, the investment is large and the risk is high, and a slight mistake may cause huge losses.

If you choose to enter the field of tea deep processing, you must make adequate preparations.

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