The German. TEA Market. Tea statistics, 2018 edition. The tea trend continues

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1 The German TEA Market Tea statistics, 2018 edition The tea trend continues

2 02 The German Tea Market 2017 Photo: istock/monticelllo Tea-Import 53,544 tons from 63 countries Tea-Export 25,021 tons to more than 100 countries Germany Source: Federal Statistical Office, Wiesbaden, Germany TOP SUPPLIER FOR THE GERMAN MARKET India 14,517 tons Source: ITC, London, United Kingdom Photo: istock/monticelllo WORLD S LARGEST TEA PRODUCER Kenya 402,883 tons China 2,550,000 tons Source: ITC, London, United Kingdom WORLD S LARGEST TEA EXPORTER Source: AFA Tea Directorate, Nairobi, Kenya Photo Titel: 123RF/Dmitriy Shironosov

3 The German Tea Market In brief Tea statistics 2017 in a nutshell Tea is a top favourite Tea is a hot number in Germany Tea consumption in Germany maintains the record level of previous years. On average, each person in Germany drinks 27.5 litres of black tea and green tea per annum that is almost as much as in Strong results 2017 was another successful business year for the German tea trade. Germany imported 53,544 tonnes of tea from 63 countries about the same record level as in Black tea is the favourite, green tea remains popular Black tea remains the favourite of German tea drinkers, even more than the previous year. The market share ratio of black tea was 73:27, compared with 72:28 in Tea bags for convenience, loose leaf tea for individual brewing Consumer taste remains unchanged in choice of loose leaf tea versus tea bags tea bags retain their 40% share of the market, while loose tea still is more popular, with a share of 60%. Organic tea in demand There is a clear positive trend in organic tea more and more tea drinkers in Germany are enjoying tea from certified organic sources. Organic tea increased its share of total consumption by nearly two percentage points to a total of 9.4%. Out-of-home tea trend continues Most people in Germany buy their tea at food retailers or discount stores this is still the major distribution channel, accounting for 51.5%. Tea specialty shops make up 18%, while caterers and out-of-home purchasing account for 5.2%. India tops Germany s tea charts again More than half of Germany s tea imports came from India and China; for the second time in succession, India was ahead of China in tea sales to Germany. Africa and Sri Lanka followed, each with a little less than 14%. Kenya leads global tea exports Kenya was the world s top tea exporter again in 2017, with 402,883 tonnes. Domestic consumption is up While total exports from the tea growing countries were slightly down (by 1.2 percentage points to 31.2%), their domestic consumption rose by a nominal 6% year-on-year. World star in a cup Globally, more tea was produced in 2017 than ever before. Tea production hit a new high of just under 5.7 million tonnes, up nearly 4% versus Following water, tea is by far the most popular and most consumed beverage in the world. Facts and figures The facts and figures were collected by the German Tea Association, Hamburg, based on its own surveys. Other information used came from the Federal Statistical Office, Wiesbaden, and from the International Tea Committee (Annual Bulletin of Statistics), London (UK). Unless otherwise indicated, the figures refer to tea in the proper sense of the word (Camellia sinensis). That includes black tea and green tea.

4 04 The German Tea Market 2017 Photo: gettyimages/richard Kátal/ EyeEm Development of the German tea market in 2017 Tea is a hot number in Germany Strong results 2017 was another successful business year for the German tea trade. Despite the relatively warm weather in the first third of the year, tea consumption remained nearly unaffected. Germany imported a total of 53,544 tonnes of tea from 63 countries world wide about the same as the record figures of Processed in Germany, enjoyed worldwide The tea processed in Germany continues to be very much in demand worldwide. Export sales were just 1.54% short of the outstanding results in All in all, German companies exported 25,021 tonnes of tea specialities to more than 100 countries around the globe, including all the EU countries and 76 third countries. Tea trend reflected in per capita consumption Tea consumption in Germany continues at the record level of previous years. Germany s tea drinkers consumed nearly 18 billion cups of tea in 2017 that is a good 49 million cups per day. On average, each person in Germany consumed 27.5 litres of black tea and green tea that is nearly as much as in The upward trend continues per capita consumption in 1990 was around 22 litres only, rising to 25 litres in 2000 and 26 litres in 2010, to set a new record of 28 litres in German consumption of imported tea was 19,066 tonnes (versus 19,220 tonnes in 2016). East Frisia leads the tea consumption ratings For decades now, East Frisia has been the world record holder in tea drinking with believe it or not amazing 300 litres per capita per annum on average; more than ten times as much as the rest of Germany. That eclipses even Britain as a tea drinking nation British consumption is a third lower, at 200 litres per capita. The East Frisians cherish and protect their national beverage East Frisian Teetied (tea time) is now inscribed in the UNESCO intangible cultural heritage list. German Tea Assocation, Hamburg, Germany Source: Federal Statistical Office, Wiesbaden, Germany

5 The German Tea Market Tea culture has a cult factor Teenies love tea. Currently in the form of tea beverages that give the hottest trend in refreshment. They go for the hip variants, such as ready-to-drink tea from the bottle organically grown, directly brewed, often with fruity flavours, in sustainable packaging with original design. These beverages perfectly fit the fast lifestyle of young urban people for home drinking or out and about, for sport or chilling. Tea has a cult factor and is penetrating the market with ever new variations. What variants will the younger generation discover next? Wait and see and drink tea! Tea on Trend In 2017 every German citizen drank about 27.5 litres tea. Photo: istock/zinkevych Source: German Tea Assocation, Hamburg, Germany Tea Consumption across European Countries With a yearly average per capita consumption of 300 litres of tea the East Frisians surpass by far the so-called traditional tea drinker nations. (one tea leaf equals ten litres) Comsumption in litres Photo: fotolia/ksena Italy 22 Switzerland France Belgium/Luxemburg Sources: German Tea Assocation, Hamburg, Germany, Photo: gettyimages/ Westend61 ITC, London, United Kingdom German Tea Assocation, Hamburg, Germany Source: Federal Statistical Office, Wiesbaden, Germany Germany Czech Republic 36 Sweden 52 The Netherlands Poland Ireland United Kingdom East Frisia

6 06 The German Tea Market 2017 Black tea is the favourite, green tea remains popular Black tea remains the favourite of German tea drinkers, even more than the previous year. The market share ratio of black tea was 73:27, compared with 72:28 in That means black tea has increased its popularity, following a number of years where green tea was on the rise in keeping with Wellness and Lifestyle trends in 2004 the ratio was 81:19. Tea bags for convenience, loose leaf tea for individual brewing Consumer taste remains unchanged in choice of loose leaf tea versus tea bags. Tea bags, the convenience solution, retain their 40% share of the market, while loose tea still is more popular, with a share of 60%. A ten-year comparison shows that the ratio has remained constant at 60:40. Tea specialities for loose leaf tea and tea bags come from the same pick, contain the same valuable substances, and have the same quality, but they differ in leaf grade, that is in the defined leaf sizes. Tea bags use smaller leaf sizes, because the substances in the tea are released faster for a speedier transition into the infusion. So tea bags give more precise dosage for faster preparation. The larger the leaf size, the smaller is the surface area compared with the volume. So loose leaf tea takes longer to unfold fully; it gives tea drinkers more scope for their own combinations or styles of preparation. Organic tea in demand There is a clear positive trend in organic tea more and more tea drinkers in Germany are enjoying tea from certified organic sources. Organic tea increased its share of total consumption by nearly two percentage points to a total of 9.4%. In 2016 the share was 7.5%, compared with only 4% in In fact the share is even higher, because conventional blends often contain some organic tea without being labelled as organic. Tea sold in Germany is excellent in terms of quality and food safety. Manufacturers ensure that by setting high standards for quality and very strict inspections. Ratio Black Tea to Green Tea After black tea has further developed its popularity among Germany s tea drinkers, the current ratio of black tea to green tea is 73 to 27 percent. (data in tons) 73% Black tea Photos: istock/ninell_art, butenkow 27% Green tea German Tea Assocation, Hamburg, Germany Source: Federal Statistical Office, Wiesbaden, Germany

7 The German Tea Market Out-of-home tea trend continues Most people in Germany buy their tea at food retailers or discount stores that is still the major distribution channel, accounting for 51.5%. A considerable proportion of tea drinkers (18%) prefer tea specialty shops, because they still value personal advice and an extensive selection to choose from. 4.4% of consumers have their own fixed taste preferences and use mail order to buy their tea. 5.2% of tea in Germany is sold via caterers and out-of-home outlets trend drinks such as Tea N Tonic and Earl Grey Martini attract the attention of restaurant owners and guests. Tea has become a trend component in the bar and club scene. Market Shares of Distribution Channels In 2017, the total German tea consumption of 19,066 tons tea was purchased as shown. In addition, a significant amount of tea is attributable to the processing industry, e.g. tea drinks, cosmetics, etc.. 18,0 % Tea Specialty Shops 5,2 % Catering Hotels 4,4 % Online & Mail Order Photo: istock/eugenekeebler 20,9 % other channels, (e.g. Turkish retail stores) 51,5 % Retail & Discounter Ratio of Loose Leaf Tea to Tea Bags Tea drank in Germany whether home or abroad is consumed with an ratio of 60% loose leaf tea to 40% tea bags. 40% Tea bags 60% Loose leaf tea Photos: fotolia/winston German Tea Assocation, Hamburg, Germany Source: Federal Statistical Office, Wiesbaden, Germany

8 08 The German Tea Market 2017 Development of tea imports in 2017 Number one India tops Germany s tea charts again Photo: istock/f9photos Germany imported some 53,000 tonnes of tea in More than half of this came from India and China; for the second time in succession, India was ahead of China in tea sales to Germany. Africa and Sri Lanka followed, each with a little less than 14% (about 7,300 tonnes). Other countries and regions such as Indonesia, South America and Vietnam taken together exported just under 6,200 tonnes of tea to Germany. Germany takes top position in the world, with an excellent and highly varied range of teas, and at the same time it is a hub of the tea trade. The varieties and flavoured tea specialities are re-exported from here to more than 100 countries. Imports by countries of origin 2016 and 2017 Country of origin in tons in percent in tons in percent India (Assam, Darjeeling, Dooars, Nilgiri) 14, , China 13, , Africa (Kenya, Malawi, Mozambique, Ruanda, Zimbabwe, South Africa, Tanzania, Sierra Leone) 8, , Sri Lanka (Dimbula, Nuwara-Eliya, Uva) 8, , Indonesia (Java, Sumatra) 3, , South America (Argentina, Brazil) 3, , other Asia (Hong Kong, Iran, Japan, Malaysia, Nepal, South Korea, Singapore, Taiwan, Thailand, 1, , Turkey) other (re-imports for posterior exports, refinement processing) 1, , EU imports (Belgium, Denmark, France, United Kingdom, Italy, the Netherlands, Austria) 1, , Vietnam Georgia, Russia Total 57, , German Tea Assocation, Hamburg, Germany Sources: German Tea Assocation, Hamburg, Germany & Federal Statistical Office, Wiesbaden, Germany

9 Proportion of Green and Black Tea by Comparison of Countries in tons Foto: istock/danvojtech 9000 Black tea 6000 Green tea Vietnam EU import South America other Asia Indonesia Africa Sri Lanka China India Only from China and Indonesia we get more green tea than black tea. German Tea Assocation, Hamburg, Germany Sources: German Tea Assocation, Hamburg, Germany & Federal Statistical Office, Wiesbaden, Germany

10 Photo: fotolia/rudisetiawan

11 The German Tea Market Development of the international tea market in 2017 World star in a cup Record level Global tea production up again Globally, more tea was produced in 2017 than ever before. Tea production set up a new record of just under 5.7 million tonnes, up nearly 4% versus Following water, tea is by far the most popular and most consumed beverage in the world. Tea is consumed in every country in the world, in increasing quantities worldwide annual consumption of black tea and green tea is nearly 4.5 trillion cups. Kenya leads tea exports again Last year again, the global tea market was dominated by the five top growing nations China, India, Kenya, Sri Lanka and Indonesia, together accounting for some 80% of production. Kenya was top exporter again in 2017, with 402,883 tonnes. That means tea remains the most important export commodity for Kenya, which only started tea growing at the beginning of the 20 th century. China took second place, supplying 355,000 tonnes to the global market. Sri Lanka was in third place again, at 278,000 tonnes, followed by India, with an alltime export record of 241,000 tonnes in Indonesia likewise increased its tea exports, to 55,000 tonnes in Domestic consumption is up Altogether, the share of exports in the tea growing countries was slightly down (by 1.2 percentage points, to 31.2%), while their domestic consumption rose by a nominal 6% year-on-year. The Five Most Important Producing Countries 124,500 Indonesia 307,080 Sri Lanka In 2017 China, India, Kenya, Sri Lanka and Indonesia account for more than 80 percent of the world s tea production. (data in tons) 439,858 Kenya 2,550,000 China 986,119 other countries 1,278,830 India Photos: fotolia/bahram7, fotolia/123levit, fotolia/dikobrazik, fotolia/_panya_, fotolia/ksena32 German Tea Assocation, Hamburg, Germany Source: ITC, London, United Kingdom

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