Updated Sep 26, 2022 01:34

Extracts Of Tea Market in China

Market Overview
In , after four years of growth, there was decline in the Chinese extracts of tea market, when its value decreased by -% to $. In general, consumption, however, posted a prominent increase. Over the period under review, the market reached the peak level at $ in , and then contracted in the following year.

In value terms, extracts of tea production stood at $ in estimated in export price. Over the period under review, production, however, showed a prominent expansion. The most prominent rate of growth was recorded in 2013 with an increase of %. Over the period under review, production reached the peak level at $ in 2019; afterwards, it flattened through to .


Consumption
In , the amount of extracts, essences and concentrates of tea or mate consumed in China was estimated at tons, with an increase of % on the year before. The total consumption volume increased at an average annual rate of +% from 2007 to ; the trend pattern remained consistent, with only minor fluctuations being recorded in certain years. As a result, consumption reached the peak volume of tons. From 2015 to , the growth of the consumption remained at a lower figure.

The value of the extracts of tea market in China expanded slightly to $ in , increasing by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, the total consumption indicated a strong expansion from 2007 to : its value increased at an average annual rate of +% over the last fifteen-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Over the period under review, the market reached the peak level in and is likely to see gradual growth in the immediate term.


Market Forecast
Driven by increasing demand for extracts, essences and concentrates of tea or mate in China, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to tons by the end of .

In value terms, the market is forecast to increase with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Over the period under review, imports of extracts of tea in China were negligibly small compared to the production volumes. Therefore, the share of imports in the total market was practically nonexistent, both in volume and in value terms. This situation has remained constant over the period under review, which means that domestic producers entirely meet the domestic demand for extracts of tea. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports remained relatively constant over the period under review. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately (- percentage point) over the period under review.


Trade Balance
China remains a net exporter of extracts of tea; in physical and value terms, exports consistently exceeded imports from 2007 to . In , there was a significant trade surplus of tons, which was equal to $. This tangible trade surplus reflects the fact that the market remains buoyed by domestic production, and the industry is highly incorporated into the global market, which is likely to continue in the medium term.