Tea market still has a large market during coronavirus disease

In 2021, COVID-19 will continue to dominate the whole year, including mask policy, vaccination, booster shots, Delta mutation, Omicron mutation, vaccination certificate, travel restrictions… . In 2021, there will be no escape from COVID-19.

2021: In terms of tea

The impact of COVID-19 has been mixed

Overall, the tea market grew in 2021. Looking back at the import data of tea until September 2021, the import value of tea increased by more than 8%, among which the import value of black tea increased by more than 9% compared to 2020. Consumers consume more tea during hard times, according to a study commissioned by the Tea Association of America last year. The trend continues in 2021, with tea believed to reduce stress and provide a sense of “centralization” during these anxious times. This also shows that tea is a healthy drink from another Angle. In fact, several new research papers published in 2020 and 2021 show that tea has extraordinary effects on boosting the human immune system.

In addition, consumers are more comfortable making tea at home than they used to be. The process of preparing tea itself is known to be calming and relaxing, no matter what the occasion. This, coupled with tea’s ability to induce a “cozy yet ready” state of mind, increased feelings of peace and calm over the past year.

While the impact on tea consumption is positive, the impact of COVID-19 on businesses is the opposite.

The decline in inventories is one result of the shipping imbalance caused by our isolation. Container ships are stuck offshore, while ports struggle to get goods onto trailers for customers. Shipping companies have raised rates to unreasonable levels in some export regions, particularly In Asia. FEU (short for forty-foot Equivalent Unit) is a container whose length is Forty feet in international units of measurement. Usually used to indicate a ship’s capacity to carry containers, and an important statistical and conversion unit for container and port throughput, the cost rose from $3,000 to $17,000. Inventory recovery has also been hampered by the unavailability of containers. The situation is so bad that the Federal Maritime Commission (FMC) and even President Biden are involved in trying to get the supply chain back on track. The freight Transport coalition we joined helped us put pressure on key leaders in government and maritime agencies to act on behalf of consumers.

The Biden administration inherited the Trump administration’s trade policies with China and continued to impose tariffs on Chinese tea. We continue to argue for the removal of tariffs on Chinese tea.

We in Washington DC will continue to work on behalf of the tea industry on tariffs, labelling (origin and nutritional status), dietary guidelines and port congestion issues. We are delighted to host the 6th International Scientific Symposium on Tea and Human Health in 2022.

It is our mission to support and defend the tea industry. This support appears in many areas, such as heavy metal issues, HTS. Harmonized System of Commodity Names and Codes (HEREINAFTER referred to as harmonized System), also known as HS, refers to the commodity classification catalogue of the former Customs Cooperation Council and the international Trade Standard Classification Catalogue. Classification and modification of a multipurpose classification of internationally traded commodities developed in coordination with the international Classification of multiple commodities, Proposition 65, sustainability and nanoplastics in tea bags. Sustainability remains an important driver of the supply chain for consumers, customers and the industry. In all this work, we will ensure cross-border communication through liaison with the Tea and Herbal Tea Association of Canada and the Tea Association of the United Kingdom.

The specialty tea market continues to grow

Specialty teas are growing in both sterling and US dollars, thanks to the continued growth in delivery services and in-home consumption. While millennials and Gen Z (those born between 1995 and 2009) are leading the way, consumers of all ages enjoy tea because of its diverse sources, types and flavors. Tea is generating interest in the growing environment, flavor, provenance, from cultivation to branding and sustainability — especially when it comes to premium, high-priced teas. Artisanal tea remains the biggest area of interest and continues to grow rapidly. Consumers are very interested in the tea they buy, eager to know the origin of the tea, the process of cultivation, production and picking, how the farmers who grow the tea survive, and whether the tea is environmentally friendly. Professional tea buyers, in particular, seek to interact with the products they buy. They want to know if the money they buy can be paid to farmers, tea workers and people associated with the brand to reward them for making a high-quality product.

Ready-to-drink tea growth slowed

The ready-to-drink tea (RTD) category continues to grow. It is estimated that ready-to-drink tea sales will grow by about 3% to 4% in 2021, and the value of sales will grow by about 5% to 6%. The challenge for ready-to-drink tea remains clear: other categories such as energy drinks will challenge the ability of ready-to-drink tea to innovate and compete. While ready-to-drink tea is more expensive than packaged tea by portion size, consumers are looking for the flexibility and convenience of ready-to-drink tea, as well as being a healthier alternative to sugary drinks. The competition between premium ready-to-drink teas and fizzy drinks will not stop. Innovation, variety of tastes and healthy positioning will continue to be pillars of ready-to-drink tea growth.

Traditional teas struggle to maintain their previous gains

Traditional tea has struggled to maintain its gains since 2020. Sales of tea in bags grew by about 18 percent last year, and maintaining that growth is a priority for most companies. Communication with consumers through traditional and social media is much higher than in previous years, which speaks to profit growth and the need to reinvest in brands. With the expansion of the foodservice industry and the increase in out-of-home spending, the pressure to maintain earnings is evident. Other industries are seeing growth in per capita consumption, and purveyors of traditional tea are struggling to maintain previous growth.

The challenge for the tea industry is to continue to train consumers on the difference between real tea and herbs and other botanicals, neither of which have the same AOX (absorbable halides) levels or overall health substances as tea. All tea businesses should take note of the benefits of “real tea” emphasised by the messages we convey about various types of tea through social media.

The growing of tea in the United States continues to expand, both to meet the needs of local consumers and to provide an economic source for growers. It’s still early days for tea in the United States, and any idea of a mainstream American tea supply is at least decades away. But if margins become attractive enough, it could lead to more tea resources and an early start to see year-on-year volume growth in the US tea market.

Geographical indication

Internationally, the country of origin also protects and promotes its tea through geographical names and registers trademarks for its unique region. The use of wine-like appellation marketing and conservation helps to differentiate an area and communicate to consumers the benefits of geography, elevation and climate as key ingredients in tea quality.

Us tea industry forecast in 2022

- All segments of tea will continue to grow

♦ Whole Leaf Loose Tea/Specialty Tea — Whole leaf loose tea and natural flavored tea are popular among all ages.

COVID-19 continues to highlight the power of Tea -

Cardiovascular health, immune-boosting properties and mood improvement are the most common reasons people drink tea, according to a qualitative survey conducted by Seton University in the US. There will be a new study in 2022, but we can still get a sense of how important millennials and Gen Z think about tea.

♦ Black tea — Starting to break away from the health halo of green tea and increasingly showing off its health properties, such as:

Cardiovascular health

Physical health

Enhanced immune system

Quench thirst

refreshing

♦ Green Tea – Green tea continues to attract consumer interest. Americans appreciate the health benefits of this drink for their bodies, especially:

Emotional/mental health

Enhanced immune system

Antiphlogistic sterilization (sore throat/stomachache)

To relieve stress

- Consumers will continue to enjoy tea, and tea consumption will reach a new level, helping companies withstand the decline in revenue caused by COVID-19.

♦ The ready-to-drink tea market will continue to grow, albeit at a lower rate.

♦ Prices and sales of specialty teas will continue to grow as the unique products of tea growing “regions” become more widely known.

Peter F. Goggi is chairman of the Tea Association of America, the Tea Council of America and the Specialty Tea Research Institute. Goggi began his career at Unilever and worked with Lipton for more than 30 years as part of Royal Estates Tea Co. He was the first American-born tea critic in Lipton/Unilever history. His career at Unilever included research, planning, manufacturing and purchasing, culminating in his position as director of Merchandising, sourcing over $1.3 billion of raw materials for all operating companies in the Americas. At the TEA Association of America, Goggi implements and updates the association’s strategic plans, continues to drive the Tea Council’s tea and health message, and helps steer the U.S. tea industry on a path to growth. Goggi also serves as the U.S. representative to the Fao’s Intergovernmental Tea Working Group.

Founded in 1899 to promote and protect the interests of the TEA trade in the United States, the Tea Association of America is recognized as the authoritative, independent tea organization.