china forum tea production & consumption may 12-13, 2008 joseph p. simrany, president tea...
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China ForumChina ForumTea Production & ConsumptionTea Production & Consumption
May 12-13, 2008May 12-13, 2008
Joseph P. Simrany, PresidentJoseph P. Simrany, PresidentTea Association of the USATea Association of the USA
Tea Consumption Trends in the Tea Consumption Trends in the USAUSA
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Introductory CommentsIntroductory CommentsGrateful to the China Tea Science Society Grateful to the China Tea Science Society & the International Tea Culture Institute & the International Tea Culture Institute for inviting me to this meetingfor inviting me to this meeting
Tea Consumption in the USA has long Tea Consumption in the USA has long been a little unusualbeen a little unusual
The USA is now one of the fastest growing The USA is now one of the fastest growing markets for teamarkets for tea
The role of Tea & HealthThe role of Tea & Health
Other Important Consumer TrendsOther Important Consumer Trends
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A New Spirit of CooperationA New Spirit of Cooperation
Communications between our two Communications between our two countries has not always been opencountries has not always been open
Times have changed and to succeed Times have changed and to succeed today we need to talk openly about today we need to talk openly about challenges and opportunitieschallenges and opportunities
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Time for Closer Ties BetweenTime for Closer Ties Between China & the USA China & the USA
The USA is learning The USA is learning to appreciate to appreciate Specialty TeaSpecialty TeaChina is one of the China is one of the leading producers of leading producers of Specialty TeaSpecialty TeaTrade cooperation Trade cooperation between China and between China and the USA has never the USA has never been betterbeen betterLet’s make it Let’s make it happen!happen!
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The Time for Tea is Now!The Time for Tea is Now!
Tea is China’s gift to the world, a gift Tea is China’s gift to the world, a gift for which we are eternally gratefulfor which we are eternally grateful
Tea’s appeal is immenseTea’s appeal is immense
The appeal of tea in USA is diverseThe appeal of tea in USA is diverse
Tea consumers in the USA are not Tea consumers in the USA are not traditionaltraditional
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The Versatility of TeaThe Versatility of TeaTea is one of the most versatile Tea is one of the most versatile beverages in the worldbeverages in the world– Tea:Tea:
Relaxes someRelaxes someInvigorates othersInvigorates othersSatiates thirstSatiates thirstSome like it hotSome like it hotOthers coldOthers coldMost like the tasteMost like the tasteOthers like the health benefitsOthers like the health benefits
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Tea Imports into the USA (Kilos)Tea Imports into the USA (Kilos)
1996-19981996-1998 2005-20072005-2007 % Inc/ % Inc/ decdec
Black Black TeaTea
85,875,28885,875,288 88,729,40088,729,400 3.33.3
Green Green TeaTea
5,424,2075,424,207 16,891,10016,891,100 211.4211.4
Total TeaTotal Tea 91,299,49591,299,495 105,620,500105,620,500 15.715.7
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Tea Imports into the USA in 2007Tea Imports into the USA in 2007
The USA imported over 241 million The USA imported over 241 million pounds of tea or 109+ million Kg.pounds of tea or 109+ million Kg.
83% of which was Black with most of 83% of which was Black with most of the remainder Green Teathe remainder Green Tea
Total tea imports were up nearly Total tea imports were up nearly 2.0% over the full year 20062.0% over the full year 2006
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Tea Sales ($) Forecast to Double Tea Sales ($) Forecast to Double over Next 5 Yearsover Next 5 Years
A reputable market research firm A reputable market research firm (Packaged Facts) has forecast that (Packaged Facts) has forecast that the Dollar value of tea in the United the Dollar value of tea in the United States will move from nearly $7 States will move from nearly $7 Billion in 2007 to nearly $15 billion Billion in 2007 to nearly $15 billion by the end of 2012!by the end of 2012!Green Tea is growing at a much Green Tea is growing at a much higher rate than Black Tea; up over higher rate than Black Tea; up over 200% in Kgs. Over the last ten years200% in Kgs. Over the last ten years
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Size of the Tea Market in U.S.Size of the Tea Market in U.S.1990 $Value by 1990 $Value by TypeType
Trad. $0.87Trad. $0.87
RTDRTD 0.20 0.20
Fd Srv 0.50 Fd Srv 0.50
Special 0.27Special 0.27
Total $1.84 BillionTotal $1.84 Billion
– Green $20 MillionGreen $20 Million
2007 $Value by 2007 $Value by TypeType
Trad. $1.95Trad. $1.95
RTD 2.80RTD 2.80
Fd Srv 1.0Fd Srv 1.0
SpecialSpecial 1.1 1.1
Total $6.85 BillionTotal $6.85 Billion
–Green $550+ Green $550+ MillionMillion
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Consumer Issues Driving Consumer Issues Driving TrendsTrends
Growing number of scientific studies Growing number of scientific studies suggesting tea plays a role in the inhibition of suggesting tea plays a role in the inhibition of many chronic human diseasesmany chronic human diseasesWidespread acceptance by the scientific and Widespread acceptance by the scientific and medical communities that tea is a healthy medical communities that tea is a healthy beveragebeverageWidespread awareness by the media that tea Widespread awareness by the media that tea is proven to be a healthy beverageis proven to be a healthy beverageTea enjoys positive imagery regarding its Tea enjoys positive imagery regarding its contributions to health versus alternative contributions to health versus alternative beveragesbeverages
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Tea & Health StrategyTea & Health StrategySales results from focusing on the Sales results from focusing on the health benefits of tea exceeded our health benefits of tea exceeded our most optimistic expectationsmost optimistic expectationsConsumers already believe tea is Consumers already believe tea is healthy and their perceptions are healthy and their perceptions are reinforced by scientific studiesreinforced by scientific studiesLong term trend in the USA is to eat Long term trend in the USA is to eat and drink healthier foods & and drink healthier foods & beveragesbeverages
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Green Tea Sales Prove Health Green Tea Sales Prove Health Strategy is WorkingStrategy is Working
Green Tea has moved from 3% of Green Tea has moved from 3% of total imports 15 years ago to over total imports 15 years ago to over 17% of total imports in 200717% of total imports in 2007
This is an increase of over 500%This is an increase of over 500%
The increase in popularity is almost The increase in popularity is almost entirely due to the association with entirely due to the association with health benefitshealth benefits
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Black Tea Will Benefit NextBlack Tea Will Benefit Next
As more scientific information As more scientific information emerges regarding the health emerges regarding the health benefits of Black Tea, it is entirely benefits of Black Tea, it is entirely possible that it too will surge in possible that it too will surge in popularitypopularity
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Future Health PlansFuture Health PlansThe Tea Council of the USA remains The Tea Council of the USA remains committed to the health messagecommitted to the health message
A Scientific Symposium was just held on A Scientific Symposium was just held on September 18, 2007 in Washington DCSeptember 18, 2007 in Washington DC
The Tea Council of the USA is grateful to The Tea Council of the USA is grateful to its Producing Country members (India, its Producing Country members (India, Kenya, Malawi, & Sri Lanka) whose Kenya, Malawi, & Sri Lanka) whose generous contributions make these kinds generous contributions make these kinds of events possibleof events possible
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Other Consumer Trends Driving the Other Consumer Trends Driving the Popularity of Tea in the USAPopularity of Tea in the USA
A desire for more convenienceA desire for more convenience
Ease of preparationEase of preparation
Ready availabilityReady availability
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Third Major Trend Driving the Third Major Trend Driving the Increased Popularity of TeaIncreased Popularity of Tea
Growing appeal of Specialty TeaGrowing appeal of Specialty Tea
China has a tremendous opportunity China has a tremendous opportunity in this areain this area
This is the most profitable segment This is the most profitable segment of the Tea Industryof the Tea Industry
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Forth Trend Responsible for the Forth Trend Responsible for the Popularity of Tea in the USAPopularity of Tea in the USA
Promise of high profitability is Promise of high profitability is drawing thousands of entrepreneurs drawing thousands of entrepreneurs to sell various forms of teato sell various forms of teaThe number of tea rooms has grown The number of tea rooms has grown from 200 to 2200 over the last 10 from 200 to 2200 over the last 10 years in Americayears in AmericaThousands of Coffee Houses have Thousands of Coffee Houses have added Specialty Teaadded Specialty TeaAffordability to consumersAffordability to consumers
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USA Market is ExcitingUSA Market is Exciting
Market is Vibrant & one of the few in Market is Vibrant & one of the few in the world where tea sales are the world where tea sales are growinggrowing
The market forces in place are strong The market forces in place are strong and long termand long term
The health message will drive The health message will drive increased consumption for many increased consumption for many years to comeyears to come
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Tea is Finding its Way into Many Tea is Finding its Way into Many Other ProductsOther Products
CosmeticsCosmeticsMedicinesMedicinesBlends with JuiceBlends with JuiceFood PreparationFood PreparationPet FoodsPet FoodsCandies & gumsCandies & gumsToothpasteToothpasteAlcoholic Alcoholic BeveragesBeverages
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China Has Tremendous Tea China Has Tremendous Tea PotentialPotential
It is only a matter of It is only a matter of time before China time before China realizes its true tea realizes its true tea potential in the USA potential in the USA & the rest of the & the rest of the worldworld
China discovered China discovered tea and produces tea and produces some of the best some of the best tasting tea in the tasting tea in the world.world.
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China Has Tremendous Tea China Has Tremendous Tea PotentialPotential
The primary thing The primary thing constraining China’s constraining China’s emergence as a tea emergence as a tea leader is the lack of a leader is the lack of a centralized direction in centralized direction in the areas of process the areas of process and promotionand promotionPerhaps this will soon Perhaps this will soon change as strong change as strong entities such as the entities such as the China Chamber of China Chamber of Commerce for Import Commerce for Import and export of foodstuffs and export of foodstuffs emerge onto the sceneemerge onto the scene
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China has Tremendous PotentialChina has Tremendous Potential
More branding needs to be done in More branding needs to be done in important tea growing regionsimportant tea growing regions
Should capitalize on the rich heritage Should capitalize on the rich heritage and romance of tea from Chinaand romance of tea from China
Take advantage of White Tea, Green Take advantage of White Tea, Green Tea, and China’s vast number of Tea, and China’s vast number of Specialty TeasSpecialty Teas
The role of tea in Chinese medicineThe role of tea in Chinese medicine
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Strategies for SuccessStrategies for Success
Adopt A Universal Code of ConductAdopt A Universal Code of Conduct
Support the Global Initiative on Support the Global Initiative on PesticidesPesticides
Join cooperative consuming country Join cooperative consuming country promotional effortspromotional efforts
Attend International Trade ShowsAttend International Trade Shows
Share your Knowledge through Share your Knowledge through Seminars and Tea ClassesSeminars and Tea Classes
Contribute to Scientific SymposiaContribute to Scientific Symposia
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Strategies for SuccessStrategies for Success
Talk to your customersTalk to your customers
Understand their needs and modify Understand their needs and modify your business to satisfy those needsyour business to satisfy those needs
Exhibit at International Trade Shows Exhibit at International Trade Shows especially the World Tea Expo in the especially the World Tea Expo in the United StatesUnited States
Engage in cooperative promotional Engage in cooperative promotional programsprograms
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China Has Tremendous Tea China Has Tremendous Tea PotentialPotential
The Tea Association The Tea Association of the USA and each of the USA and each of its divisions stand of its divisions stand ready to assist ready to assist China to realize this China to realize this potentialpotential
Thank you for the Thank you for the opportunity to opportunity to spend some time spend some time with you.with you.
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Sincere Gratitude to the OrganizersSincere Gratitude to the Organizers
Special thanks to the Conference Special thanks to the Conference Organizers for inviting me to speak Organizers for inviting me to speak at this important meetingat this important meeting
I am truly honored to be here and I am truly honored to be here and look forward to establishing long look forward to establishing long term friendships with youterm friendships with you