Overview
The 1.4 billion populated China has the largest consumer market in the world. Many industries have boomed in the last few decades, and the tea sector is not an exception. Tea consumption levels have been increasing, and there are no signs of slowing down. Chinese people consume tea daily. It has been there since ancient times, long before the existence of Islam or Christianity. The long history of this drink and the number of generations that have witnessed its presence in the markets across Asia, Europe, and North America are testimony enough to its fame.
Tea business in China
With its wide variety of health benefits and great taste, this popular drink is gaining massive popularity across Asia and has even reached the United States. Tea from China is a major export crop in China and India. It is consumed not only as an essential staple diet but also as a source of income for the rural poor in these regions. It is no wonder then that these tea extracts are now making their way into the US, bringing back the original flavors of this legendary drink.
China is not just a consumer market for tea. Over the past few years, the tea industry in China has grown at an extraordinary rate. China’s economy grows exponentially, and along with it, the demand for tea, especially Chinese tea, increases proportionately with its growth. As a result, the industry is developing rapidly, bringing billions of dollars yearly into China’s economy. This has been one reason China is fast emerging as a significant global player in the economy.
With globalization comes significant changes, and one of the most profound changes comes in the tea industry. China’s economy is increasing, and it cannot keep up with the demand for tea in the Chinese market. This is forcing China to look for new outlets for its tea. One of the places it is looking for is Latin America. It has set its eyes on Latin America’s most prominent tea market – the Brazilian market.
The recent visit of President Obama and his entourage to China is a massive boost for the Chinese tea market. China wants to increase its share of the global market, and the way to do it is to take over every corner of the world that can provide high quality, reasonably priced product. So, it looks like the days of exporting teas from China are numbered. Consequently, the Chinese government is investing a lot of money in Latin American countries such as Brazil.
This is because China believes that Brazil will become a significant exporter of tea products. It thinks this is because China is importing many tea products from Pakistan and India. China is doing this because it wants to increase its market share in the Middle East. A recent study done by the tea industry in China showed that the growing demand for tea from Middle Eastern countries would lead to a ten percent rise in sales in China. Therefore, if you are into a business where you want to enter the growing Middle Eastern market, Brazil maybe your next-door neighbour.
How to export Tea into China?
Of course, being in the import/export business in China also has its problems to contend with. . One of them is that the Chinese currency’s recent devaluation, known as the PBOC, has significantly impacted teabags’ tea prices. This effect has been exacerbated by the fact that tea has been included in regular menus of many restaurants in China and consequently brought along to tables wherever they travel. As a result of the devaluation, the price of tea beverages in tea bags has soared. The good news is that there is a way to combat the increasing cost of tea. The answer is to either import Brazilian tea or start a home-based business importing tea beverages.
Conclusion
If you have the contacts, the know-how, and the attitude, it will not be difficult for you to establish a successful business in China. Just remember to get the contacts, know-how, and philosophy and local business trends and customs. Don’t worry; you don’t need to live in China to profit from your tea business. You can open up an account in Shanghai and sell tea there – that’s what the locals do! The key to success is understanding the tea growing and packaging process and finding a distributor that can take care of all the international shipments for you.
