The Organic Trade Association reports that US sales of organic food and beverages set a record in 2020, growing 12.4% to $62 billion. The total includes organic food, which grew by 12.8% to $56.4 billion. Import values for green tea also spiked, increasing 28% compared to 2019. Organic certified foods now account for almost 6% of total US food sales.
Green Tea Import Values Jump as Much as 40%
The pandemic caused consumer dollars to shift almost overnight from restaurants and carry-out to groceries, with traditional staples and pantry and freezer items flying off the shelves, according to OTA, “the only thing that constrained growth in the organic food sector was supply.”
“Across all the organic categories, growth was limited by supply, causing producers, distributors, retailers and brands to wonder where numbers would have peaked if supply could have been met!” said Angela Jagiello, Director of OTA Education & Insights.
In 2020 the declared value of organic green tea, shipped in packages of less than three kilos, spiked 40% to $24.5 million. The declared value for organic green shipped in bulk increased 21% compared to 2019. The declared value of all categories of green tea, when combined, rose 28%, according to USDA, FAS data.
Organic green tea volume increased 11% to 2.1 million kilos. Sales of organic black tea in teabags grew 19% to 879,100 kilos.
Grocers benefited overall during the pandemic as food sales in restaurants declined. In almost every organic food aisle, demand jumped by near-record levels, according to OTA.
Organic’s reputation of being better for you and the planet positioned it for dramatic growth, according to the association. OTA’s annual survey, conducted January through March 2021, confirms the trend toward premium offerings and more practical comfort. Sales of frozen and canned fruits and vegetables grew by 28%. Fresh organic produce sales rose by nearly 11% $18.2 billion.
Pantry stocking was overwhelmingly the main growth driver in 2020. As bread making and cookie baking took kitchens across the country by storm, sales of organic flours and baked goods grew by 30%.
“Good, healthy food has never been more important, and consumers have increasingly sought out the Organic label. Organic purchases have skyrocketed as shoppers choose high-quality organic to feed and nourish their families,” said Laura Batcha, CEO and Executive Director of the Organic Trade Association.
“We’ve seen a great many changes during the pandemic, and some of them are here to stay,” said Batcha. “What’s come out of COVID is a renewed awareness of the importance of maintaining our health, and the important role of nutritious food. For more and more consumers, that means organic. We’ll be eating in restaurants again, but many of us will also be eating and cooking more at home. We’ll see more organic everywhere – in the stores and on our plates.”
Organic food sales are not expected to continue at 2020’s fast rate but it’s anticipated that the grocery channel will get a lasting lift from the pandemic for the foreseeable future as many consumers continue to cook more at home.
Live tea expositions, seminars, and tradeshows are returning with vigor in China. The five-day China International Tea Expo (CTE) that opened in Hangzhou on International Tea Day (May 21) drew a crowd of 152,000 mainly domestic tea buyers. In aggregate they spent RMB6.4 billion purchasing 254 million tons of tea, a 14% increase compared to the previous event. The average value of transactions was up 20% to RMB223 million and orders topped 13,000.
Opening ceremonies
China International Tea Expo
By Dan Bolton
Live tea expositions, seminars, and tradeshows are returning with vigor in China. The China International Tea Expo (CTE) that opened May 21 is the largest live tea industry event since lockdowns force show organizers to cancel in May 2020.
CTE is the largest tea exposition in China. Buyers collectively spent RMB6.4 billion purchasing 254 million tons of tea, a 14% increase compared to the previous event. The average value of transactions was up 20% to RMB223 million and the number of on-site orders topped 13,000. In 2019 there were 10,787 transactions, suggesting pent up demand.
An estimated 152,000 attended, down 18% from the May 2019 third edition of the show which drew a crowd of 185,200. The 2019 expo attracted 3,425 foreign buyers from 46 countries. In addition, there were nearly 200 foreign VIPs from 42 countries and international organizations. In 2021 only a few in-country foreign buyers attended as travel restrictions apply.
In 2019 on-site transactions during the five-day event averaged RMB186 million. Sales totaled RMB5.4 billion for 222.9 tons of tea.
Chinese buyers purchase direct instead of at tea auctions. The largest tea order was valued at $188 million (RMB1.2 billion), according to the Expo and reports in the China Daily newspaper.
There were 3,432 booths on the 750,000 square foot (70,000 square meter) show floor. Buyers numbered 3,600. In May 2019 the expo set up 3,139 booths which included 2,793 tea and coffee related booths.
In 2019 exhibitors representing 25 domestic provinces, cities and districts, numbered 1,563 according to the Hangzhou News
The 2021 show floor was busy with high-value transactions demonstrating a return to normal. Since China is virtually virus free, precautions were not enforced. Attendees wore masks and careful attention was paid to hygiene, ventilation and crowd size.
Special thanks to Coco Xintong Lu who attended the show and provided photos and statistics. Coco is International Business Officer for the Tea Industry Committee, China Association for the Promotion of International Agricultural Cooperation.
Travel restrictions prevented foreign exhibitors from attending but local distributors displayed teas at 17 booths.
Foreign Tea Buyers Face Formidable Restrictions
Foreign guests joined the Opening Ceremony via pre-recorded videos and ambassadors to China, representing several countries, flew from Beijing to Hangzhou. On the show floor the International Pavilion featured 17 booths operated by domestic distributors of international brands.
In China COVID-19 rates are low thanks to an effective test, trace, and isolate policy. The country has reported 103,000 cases with fewer than 5,000 deaths.
China’s borders remain closed to all but residents of these 23 countries. Travelers must provide proof of receiving second of two shots at least 14 days prior to entry and they must present two negative tests PCR and antibody tests, taken within 48 hours of travel. Travelers are checked once again on arrival. Anyone failing the test will be isolated at a government facility. All others quarantine for 14 days, often at home, a approved hotel or government facility. In some regions the requirement is 14+7 (with the last seven days monitored by local community health officials).
Eligible vaccines include the World Health Organization approved Sinovac or vaccines from Pfizer-BioNTech, Moderna, and Johnson & Johnson. Foreign nationals currently in China can travel freely as long as they have the required documents including ID (usually passport) and a green health code. The green code is issued after confirmation of receiving a vaccine using any one of China’s five domestically manufactured vaccines.
Restrictions vary by region depending on community spread. In Guangzhou, the quarantine policy is currently “14+7” (14 days centralized + 7 days community health monitoring). “Some destinations will not accept travelers from medium-risk areas such as Zhangjiajie and Ningxia. Some cities will be cautious about receiving tourists from Guangdong, even if you are not from medium-risk areas,” according to China Highlights.
The government is vaccinating individuals at high rates with goal of 40% of Chinese citizens in June. As of May, 400 million have been vaccinated. China aims to vaccinate up to 80% of its population of more than one billion by the end of 2021 or mid-2022.
The government is vaccinating individuals at high rates with goal of inoculating 40% of Chinese citizens in June. As of May, 400 million have been vaccinated at a pace approaching 10 million daily. China aims to vaccinate 80% of its population of more than one billion by the end of 2021 or mid-2022.
Entry restrictions are not likely to ease until February 2022 just before the Beijing Winter Olympics. The events are scheduled for February 4-20.
William Liu is a 20-year-old sophomore at Wake Forest University so inspired by tea that he and his classmates established the World Tea Association on campus and online. The group offers tea discovery and tasting sessions weekly and hosts occasional tea panels with presentations by tea professionals, tea scholars, and tea explorers. The events bring together many who are new to tea, says William, “we aim to redefine the tea experience through an interdisciplinary approach and expose the true leaf to a greater audience.” In this segment he describes why tea appeals to young people and explains his view that tea learning is ongoing. “The tea journey has no destination,” he says, “it involves only intention and lifelong learning.”
William Liu, a student at Wake Forest University, discusses why tea appeals to young people.A joint meeting of the Anthro Club and World Tea Association at Wake Forest University.
Tea Awakening
Traveling with his mother to China awakened in William Liu a strong interest in gong fu style preparation of single-origin teas. When the 20-year-old sophomore returned to the Wake Forest University campus he discovered others were also eager to explore tea. Crawford Wheeler, who grew up in London, and Roxie Ray, who grew up in a Persian household, joined him in establishing the World Tea Association, a group that hosts weekly tastings and occasional panel discussions. William hosts a podcast on behalf of the association and continues his education in tea.
Dan Bolton: Thanks for joining us on the podcast William. Tell us the story about how you first discovered fine tea.
William: My family on my mom’s side is from Yunnan but my mom only started drinking tea in recent years. I only started drinking tea a year ago. The inspiration was a trip back to China where I was first exposed to gongfu tea. My mom brought me to various tea shops in Chengdu and Yunnan, and it was for me personally a way to connect with my cultural roots. Growing up in Canada as a Chinese Canadian, that wasn’t something that I was really aware of and so I found a greater appreciation and I realized that tea is so much more than a drink.
I realized that this type of brewing and single-origin tea isn’t common at all in the West, at least not now. I really wanted to share with my fellows on campus and that’s what led to the creation of The World Tea Association.
Dan:What is it about tea that appeals to young people?
William: A few things really capture the attention of young people, it’s new, it’s very new for a lot of young people and also the nature of tea is that it’s very healthy and the trend with our current generation right now is that we are becoming much more aware of what we are putting into our body. In other words, we’re becoming a lot more health-conscious and we’re seeking mindful practices. Brewing tea is one of those things that provides an experience that teabags are not able to do. Quality tea allows you to really sit down and reflect on life and become more mindful with the tea.
Our society right now is growing a lot more diverse and globalized. People are seeking different cultures and people are seeking new ways to do things that might be different from what they’re accustomed to and also with COVID, especially with COVID, I’ve seen a lot more young people get into tea because with COVID everyone has been forced to reflect and isolate and pretty much contemplate our life. Tea is the perfect activity to practice mindfulness and to become much more aware of ourselves.
Dan:Are they also drinking herbals and tisanes?
William: A lot of my friends consume a lot more of the tisanes and herbal tea mainly to help them to calm down. I also noticed a lot also drink, for example, chamomile to help sleep at night to get in the mood to level down. These teas usually are a lot more floral, so people like the scent, people like the sweetness of it, and that’s what attracts them.
Dan:Talk to me about the appeal of bubble tea.
William: We don’t have a lot of bubble tea shops. I do notice that bubble tea is already really big and a lot of people do gravitate towards bubble tea because it’s accessible, it’s convenient and it’s also very sweet, and so that’sone of the things that probably attracts a lot of people. It’s also a way for them to bond and to connect together similarly to how we have gone through tea as a way to socialize and to, you know, discuss what’s going on in our lives. Tea has that same purpose with a lot of people our age.
Dan: What can tea professionals do to bring more young people into the tea community?
William: I think the best way for tea professionals to bring more young people into the community is essentially just through exposure, reaching out to universities in your local cities and establishing collaborations with various groups and student organizations.
What I see right now is that a lot of people have not been exposed to it, but once they do become exposed to tea, it’s something that a lot of people become interested in. So I would say tea professionals reach out to the young people that they know, find something to connect. For example I noticed that some local tea shops would host weekly nights playing chess and serving tea. People can come in and they will sit down and while they’re playing chess they would be exposed to the environment in the shop. The tea that they consume will be the tea from the tea shop.
The World Tea Association is committed to building community, promoting health and life long learning.
Bringing People Together Through Tea
The culture of tea today is present but faint and wrongly perceived. The World Tea Association redefines the tea experience through an interdisciplinary approach to expose the true leaf to a greater audience and community.
We believe that strong bonds are formed through intentional activities done together such as having tea. Conversations around tea are always insightful and introspective. We hope to create a community where tea is just as much the center as it is not.
Promoting the health benefits of tea is a core principle. Tea is more than a dose of caffeine. The physical and mental health benefits of consuming tea will always be felt.
Our vision extends beyond just drinking and sharing. To create a successful community with tea, the learning aspect must be continual and mutual. Advancing our knowledge of the leaf and keeping an open mind is important as it cultivates the quality of humility. Nobody at the World Tea Association knows everything about tea nor does anyone claim they are a “Tea Master.”
The tea journey has no destination, it involves only intention and lifelong learning.
William Liu, Founder and President Crawford Wheeler, Vice President & Director of Coordination Roxie Ray, Director of Marketing & Public Relations Tyler Pruitt, Faculty Advisor & Treasurer
The TO TEA TOGETHER podcast celebrates and promotes artisanal tea culture by engaging in conversations that bring diverse minds together and bridge cross-cultural gaps over a pot of quality tea. TO TEA TOGETHER shares insightful conversations from the next generation of leaders, athletes, artists, entrepreneurs, and scholars while cultivating a new era for the appreciation of artisanal tea culture.
Nepal’s tea industry reported record sales in 2020. The fabled tea land is growing greater quantities and greater varieties of loose and broken leaf teas thanks to a government-initiated expansion of the industry to high altitude gardens in non-traditional growing areas. Rural agrarian entrepreneurs are redefining offerings for an international market thirsty for the distinct taste of Himalayan grown oolongs, white teas, and premium black whole leaf. In this segment Aravinda Anantharaman introduces Aasha Bhandari, newly named to promote trade at the Himalayan Tea Producers Cooperative, a consortium of all orthodox tea producers established in 2003.
Aasha Bhandari on the opportunities for Himalayan Tea from Nepal.Nepal is expanding tea production into high-altitude regions of the country to produce more Orthodox tea. Photo courtesy HIMCOOP/Aasha Bhandari
Himalaya Tea Opportunity
Aasha Bhandari is the International Trade and Promotion Executive at HIMCOOP, in Kathmandu, Nepal. She has taken over from John Taylor who resigned as Marketing Manager. Aasha was with the International Trade Centre working on a sustainable map project when she was invited to take over this role at HIMCOOP. In this segment she talks to us about her plans for HIMCOOP and what she sees as strengths, challenges and opportunities for Nepal’s tea industry.
Aravinda Anantharaman: You’ve recently taken charge of trade and marketing for HIMCOOP. What will you be working on in promoting Nepal’s tea industry?
Aasha Bhandari: We have good quality tea, but we need to focus more on marketing, pricing, and our strategy to promote it in the international market. Nepal has mostly SMEs, farmer-based production and strong factories. We may not be strong in terms of capacity or production but are strong in terms of the quality of tea that we make.
Aasha: Tea a growing industry and people are more focused on Orthodox tea rather than CTC. Even in Orthodox, there are varieties of tea – Nepal makes oolong, black tea and white tea. I’m seeing many young tea planters who are involved in the industry or who have started in the tea industry.
They are more focused on putting creativity in tea. One of the factories, a young factory, they are playing with the taste of tea and the processing of tea and that has actually produced a good output. I can see a lot of young people getting involved in focussing on quality.
Aravinda: What do you see as challenges and opportunities?
Aasha: I am excited about adding more SMEs. We have 20 to 26 producers at HIMCOOP, but I want to include more SMEs and go to the farmers on their field and convince them that they have potential marketing outside the country and in exports. For example, we have good teas, but the farmers are unaware about the pricing, about the packaging or invoicing even about the Exim Code (required registration for firms importing or exporting goods from Nepal).I am excited to give that information to them and teach them, or at least help them to think about export in near future. My first priority is to give SMEs the same platform that we are giving to our other producers.
I do feel the pressure that’s on my shoulder to sell the teas. To do better than last year when we had the biggest sale. This year, there is a little difficulty getting the samples to Kathmandu and sending it outside the country. DHL is expensive. Flights are also cancelled. When I started, I felt a little bit worried about not being able to match up the sales of last year or the work we were able to do last year.
I also feel that being very young, I may have to prove myself and that I can deliver.
Aravinda: How has it been so far?
Aasha Bhandari cupping
Aasha: I am in touch with our producers and they are doing well. There are difficulties but they are managing. During the first flush, there were hail stones in some places and a few of our producers were sharing that the hail destroyed their tea bushes, especially the buds. But overall, it’s been good so far. I am hopeful about a good second flush. I’m looking forward the white tea actually, because that has good price and good market value. We have specific buyers, small buyers for white tea, and they’ve been inquiring about the white tea. Producers were not able to make white tea in the first flush because of too much rain.
Aravinda: What is the framework of the Nepal tea industry?
Aasha: We are small in geography; we have small gardens and a small production. But if I have to describe the model, how it has been operated, it’s fully based on a small cooperatives, SME models where a few groups of farmers run the factory. The farmers don’t own the factory, the factory is owned by the cooperative of the farmer groups.
At HIMCOOP, member producers have their own factories and some own their own garden also. A few, 10-20% of the factories, depend on the farmers. Since last three, four years, small factories are also being built by farmers themselves.
Aravinda: How does HIMCOOP play a role in the larger Nepal industry?
Aasha: HIMCOOP was officially started in 2003 as a consortium of orthodox tea producers. It was basically established as a joint market marketing platform for the producers. It was established to promote Nepali Orthodox tea in the international market. It works on a cooperative model. We work on samples. Producers send us samples. I taste the tea, characterize its quality and taste, place a price over that and forward to buyer. So that’s how it’s been done. Members send us sample every season, we find buyers and forward the sample to the buyers.
HIMCOOP has played a very crucial role to promote the Nepal tea industry because we have a lot of buyers through this platform. Even last year, with the COVID situation, we, as an organization, did not stop. In fact, last year saw the highest sales for HIMCOOP in its entire 18-20 years existence.
Aravinda: What are the factors that have helped create the brand identity of Nepal’s tea?
Aasha: I think it’s the location and the weather, the bushes are planted at an altitude of around 7,500 feet.
Second is the innovation. At HIMCOOP, we have different types of factories. Some focus on quality in volumes while there are a few small factories where they love to play with the tea making. I think, including all other factors, it’s the innovation and the creativity. There are a few factories that have been doing really well. Others are focusing on making good quality tea, not taking risks on the creativity and innovation. But there are different markets for all these teas.
Aravinda: Is HIMCOOP primarily looking at exports or also at the domestic market?
Aasha: On that point, actually last year we were in dilemma with the lockdown and how long it would last. It was end of March, the starting point of first flush when we faced a lockdown. I asked the producers about the local market and plans to market to them. But luckily, the COVID situation was not that problematic last year and we were able to sell all the teas. I bring up this topic quite frequently. Nepal has a limited domestic market. But it’s mainly CTC that is consumed by people. There are people who love trying different types of tea. I think we’ve not marketed… we lack marketing in domestic markets.
I’m not saying we should not export but I think we should also be able to hold the domestic market. I was quite surprised to know that a few of, most of our producers have never thought about the local market. The reason is often cost. They sayit’s not cost effective for them because here people would purchase on less price. I don’t agree because I have been to tourist places like Thamel where they are selling White Tea, SF, Oolong, and silver needle tea at double the price they are exporting. Of course the quantity matters. Domestic market might not be able to consume that much of tea, at the moment, but I think we should offer a percent to domestic market.
Many factories would gift us tea. It was a lot of tea for me alone and I would give it to my friends. They didn’t know that Nepal is producing such good teas. And they’ve been asking me where, which factory. I told them that it’s not for sale and that they have to contact the factory individually if they want to buy it. So there is a gap between the producers and the consumers here in Nepal. From my own personal experience, a lot of people that I’ve given tea as a gift, they want to buy that tea again. There are a few tea shops but either they quote a high price, or it’s tea from Darjeeling, Assam, Sri Lanka. I think we need to focus on the domestic market also.
Aravinda: Would you say, Nepal tea as a brand has been established?
Aasha: I would say it’s in the process. We have a long way to go. I think for now, for the factories that we are selling, for the buyers that come to us, it has already been established, not for the whole market. Buyers do recognize Nepal as being very good. They do expect that if it’s from Nepal, it will be good. I want to take HIMCOOP, establish it as a marketing brand in the future.
Tea withering facility, 2020 was a record year for sales. Photo courtesy HIMCOOP/Aasha Bhandari
HIMCOOP (Himalayan Tea Producers Cooperative)
HIMCOOP is a joint marketing consortium of all Orthodox tea producers of Nepal. It was established in 2003 out of the need to link producers of high quality teas to buyers in the international arena. The intent is to jointly market tea by all producers on a common platform, through a one window sale outlet.
HIMCOOP forwards samples right through out the season to buyers all over the world and also provides any information required on Nepal tea and the Nepal tea industry. HIMCOOP represents estates that offer a variety of white, green, oolong, hand rolled and black whole and broken leaf tea.
HIMCOOP has respect for nature, people, social responsibility, and a commitment to maintain high standards in encompassing all aspects of cultivation and production of quality tea from Nepal.
Share this post with your colleagues. | Episode 19 | Nepal has good quality tea, but we need to focus more on marketing, pricing, and our strategy to promote “Nepal Tea Quality from the Himalaya” in the international market.
