Interpretation and Enlightenment of “German Tea Market Annual Report”

Tea culture is an important part of Chinese traditional culture. It not only integrates national characteristics and local characteristics, but is also of great significance in promoting the “going out” of Chinese culture. Germany, which also has a long tea culture, occupies an important position in Europe and the world’s tea trade. Germany has become the gateway for Chinese tea brands to enter the European market.

The “German Tea Market Annual Report” (hereinafter referred to as the “Annual Report”) is an annual report published by the German Tea Association (German: Deutscher Teeverband). As a comprehensive industry publication, this report introduces the German tea consumption and market in detail. The report includes consumption data, category preferences and market share, import and export data, and sales status analysis.

The data and analysis of the article are mainly based on the “German Tea Market Annual Report” published in 2020, 2021 and 2022. Based on summarizing the German tea consumption and market data in the past three years, it explores consumers’ needs for tea drinking culture and changes in attitudes, providing some inspiration for our country’s tea exports to Europe.

Ⅰ. Tea consumption and market characteristics in Germany in the past three years

1. Tea consumption is increasing year by year, reaching a record high

Since the outbreak of the COVID-19 epidemic in 2020, tea consumption in Germany has increased year by year, and the market trend is good.

This is not only reflected in the tea consumption data provided in the Annual Report, but also in the title text of the Annual Report. In the past three years, Germany’s per capita tea consumption has reached a record high from 68 liters in 2020, 70 liters in 2021, and 71.5 liters in 2022, of which herbal tea and fruit tea totaled 42.7 liters, and black tea and green tea totaled 28.8 liters. Judging from the title of the annual report, the subtitle of the 2021 Annual Report is “Tea sends a positive signal (German: Tee setzt positive Zeichen)”, and the subtitle of the 2022 “Annual Report” is “The hot tea shows unprecedented strength (German: Heiss begehrt.Tee zeigt sich stark wie nie)”, and tea consumption has ushered in unprecedented opportunities.

2. Herbal tea and fruit tea dominate consumption, and the consumption of black tea and green tea has increased significantly

(1) Data from the “Annual Report” in the past three years show that herbal tea and fruit tea continue to dominate the tea consumption market.

Germans’ preference for herbal tea and fruit tea is mainly due to the tea bag machine invented by the century-old German tea company “Teekanne” in the first half of the last century. The advent of tea bag machines has enriched the combinations and packaging forms of tea, promoted the rise of herbal tea and fruit tea, and gradually changed the tea drinking habits of Germans. Herbal teas and fruit teas meet the current consumption needs of young consumers for healthy, relaxing, and diversified drinks due to their wide variety, diverse combination models, and blended and innovative flavors.

(2) Although the consumption of herbal tea and fruit tea still dominates, the annual sales volume of black and green tea has shown a steady upward trend since the outbreak of the COVID-19 epidemic.

Especially in 2022, the total consumption of black and green tea will reach 20,000 tons, accounting for 38%, which is a certain increase from 32% in 2021. Judging from feedback from sales channels, drugstores, and specialized tea sales stores such as TeeGschwendner, a German tea company with nearly 130 stores, said that consumers’ inquiries about black and green tea and its health care functions have increased significantly. At the same time, the 2022 “Annual Report” shows that Germany’s total import volume of red and green tea has increased significantly. Compared with 2021, the import volume of black and green tea has increased by 15.9%, of which the increase in green tea imports has reached a record high, with an increase of 42%.

3. The proportion of organic tea has increased significantly, and the proportion of organic tea in black and green tea is more prominent.

Organic tea has become a new favorite in the consumer market, and its proportion of consumption has shown a sustained and stable growth trend. It has been included as a keyword with annual trend characteristics in the “Annual Report” in the past three years.

The consumption proportion of organic tea will increase from 9% in 2020 to 15.9% in 2022. Among them, organic herbal tea and fruit tea accounted for 15% of the total sales, while organic black tea and organic green tea accounted for 17.8% of the total sales of black tea and green tea. The 2022 Annual Report shows that the organic share of tea is twice the organic share of the German food market. Both young and older consumers regard tea as a high-quality functional drink that is good for health. Tea has become an important drink that enriches and embellishes daily life, and even plays an increasingly important role as a fashionable drink at parties or in popular hot spots.

4. Mainly through offline retail, the online sales model is increasingly emerging.

In terms of sales channels, most tea is sold offline. Affected by the epidemic, consumption in hotels, restaurants and canteens has dropped significantly, and food retail (mainly through large supermarket chains), drugstores and specialized tea retail stores have become the focus of tea consumption.

The 2022 “Annual Report” shows that tea consumption in food retail (supermarkets) accounts for 44.23%, and drug stores account for 8.51%. Flavored teas and specialty teas are mainly sold through specialized tea retail stores. At the same time, online sales are growing rapidly, with online sales accounting for nearly 5%.

5. The share of import and export has increased steadily, and China is Germany’s largest green tea supplier.

Judging from the above three “Annual Reports”, Germany’s tea import and export share and total volume have been basically stable in the past three years, with total import volume showing a slight upward trend.

India and China are the most important countries for German tea imports, accounting for more than half of Germany’s total tea imports. Among them, India is Germany’s most important black tea importer, and China is Germany’s most important green tea importer.

Judging from the 2022 Annual Report, Germany’s total import volume of black and green tea has increased significantly. In 2021, the total import volume of black and green tea rose to 47,501.2 tons, an increase of 15.9%. Among them, Germany’s green tea imports reached a record high, with an increase of 42%, and black tea imports increased by a steady 7.8%.

Ⅱ. Demands and characteristics of German consumers

1. Pay attention to the spiritual connotation of tea drinking and make tea drinking a conscious enjoyment.

“Affected by the COVID-19 epidemic, drinking tea is more popular than ever,” not only because of its balanced health value, but also because of the further exploration of tea’s function as a spiritual drink.

As mentioned in the 2020 Annual Report, “Think positive. Drink Tea” has become the new slogan. Consumers’ positive associations with tea itself have driven tea consumption to a record high amid the COVID-19 pandemic. Tea drinking has become a concept and lifestyle of “conscious enjoyment, self-time, moments of relaxation, nature and mindfulness.” Facing the impact of the COVID-19 epidemic on daily life, tea tasting has become an important way for German consumers to explore themselves and rest.

2. Rediscover the health properties of tea and make tea drinking a self-healing health tool.

The popularity of tea in Germany is due to the German medical community’s research on tea and its recognition of its potential health benefits. Along with the “health movement” that swept Europe in the first half of the last century and the advent of the “tea bag machine” which was regarded as the “industrial revolution” in the German tea industry, drinking a cup of natural herbal tea and fruit tea gradually became a daily routine for ordinary citizens.

Affected by the COVID-19 epidemic, consumers are paying more attention to the ingredients of tea drinks and their health functions. Since many hotels, restaurants and canteens have been closed due to the epidemic and epidemic control, the main battlefield for tea consumption has shifted to food retail, drugstores, and specialized tea retail stores. Among them, the sales of tea drinks in drugstores have increased significantly. In addition to buying traditional herbal tea, consumers often consult drugstore professionals about the health benefits of black and green tea, which has greatly promoted the increase in the consumption of black tea and green tea in Germany.

Among the herbal teas that are traditionally loved by Germans, sales of ginger tea, which can warm the lungs and relieve coughs, and mint tea, which can refresh the brain, soothe the liver and regulate qi, rank among the top in sales in 2020. According to a survey in Allenbach, Germany, 73% of German consumers choose to use natural herbal tea to treat colds and coughs, gastrointestinal conditioning, cardiovascular diseases, fatigue, and other symptoms.

In addition to exploring tea’s possible health care functions for the body, consumers also pay attention to tea’s “self-healing” function. As mentioned in the 2021 “Annual Report”, drinking tea has become a “me-Moment”, a “besinnlicher Moment” in the daily chaos and uneasiness, and a way to relax and explore oneself.

3. Pay attention to the quality of tea drinks. Drinking tea becomes a reflection of consumers’ natural view.

German consumers generally have high awareness of environmental protection. Affected by the COVID-19 epidemic, the concepts of sustainable development and ecological environmental protection have become more popular. German consumers have higher requirements for the quality of daily necessities and whether the processing process is consistent with sustainable development. Freshness, health, natural ingredients, and functions have gradually become important considerations for consumers in their food choices, which is especially reflected in tea consumption.

Data shows that the proportion of organic tea consumption in tea consumption is twice as high as the organic proportion in the consumption of ordinary daily necessities.

The 2022 Annual Report survey shows that consumers believe that organic tea drinks embody sustainability and reliability, and that tea drinks have been sublimated from daily necessities to consumers’ life attitudes and healthy views on nature. The pursuit of tea quality not only reflects German consumers’ requirements for quality of life, but is also an important measure for consumers to practice the concept of sustainable development.

4. Pay attention to the social function of tea and make tea drinking an important part of social life.

As tea’s social recognition, popularity and popularity increase, the social function of tea has been further expanded. Especially in big cities (such as Hamburg, Frankfurt, etc.), you can see German consumers or local associations regularly holding related tea-themed activities, such as market open days (Marktdate), tea tasting guides, tea science popularization and tea research sharing sessions, etc. Drinking tea and talking about tea have gradually become an important part of consumers’ social life.

The 2020 “Annual Report” pointed out: Tea is an important medium. It not only connects people and nature, connects mood and taste, life, and taste, but also connects people, families and relatives and friends, acquaintances and partners.

5. Expand the forms and flavors of tea and make tea drinking a value practice of “exploration and innovation”

The 2022 Annual Report shows that German consumers have high requirements for the diversity and innovation of tea drinking. This innovation and diversity are not only reflected in consumers’ expectations for tea taste, color, growing areas, and brewing methods, but also in consumers’ new expectations for tea forms, cups, and even marketing models.

Young consumers are eager to break through the traditional classical tea drinking mode and are keen to use bright fashion colors or mugs to pack tea. They are eager for the market to provide more canned cold drinks that are portable and travel friendly. They are also pursuing more online tea purchasing platforms. For young consumers, drinking tea has become a valuable practice for them to resist tradition, explore new things, and innovate their daily lives.

Ⅲ. Enlightenment on our country’s tea export to Europe

Although Chinese tea occupies an important position in the European tea market, especially green tea. China’s green tea exports to Europe account for two-thirds of Europe’s total green tea imports. However, the spread of Chinese tea and tea culture in Europe still faces many problems, including:

1) Europeans are generally still unfamiliar with Chinese tea, and their understanding of the extensive and profound Chinese tea culture is still very limited. Even affected by the slanted reports in the Western media, some consumers’ perception of Chinese tea still remains in the prejudice of inferior tea.

2) The tea exported from China to Europe is mainly loose tea, which does not appear as Chinese tea in the tea market. The number of famous teas and special teas that have actually entered the European market is relatively small.

3) There are still many difficulties in the tea trade between China and Europe caused by poor information and communication. For example, the failure to closely follow international consumer preferences, unclear product quality standards, and disagreements on green development concepts have affected the development of the tea trade market to a certain extent.

Therefore, how to get rid of the export dilemma of low-end raw materials and strengthen our country’s industrial production capacity of famous tea is the core issue that needs to be solved urgently when Chinese tea expands into the European market. Based on the above basic status quo and combined with the analysis of consumer demand and characteristics of the Annual Report, the following thoughts are made on tea exports to Europe.

1. Enhance cultural value: Pay attention to the spiritual connotation of tea culture and create a cultural brand with national characteristics

Given that German consumers attach great importance to the spiritual connotation of tea drinks and have a high demand for exploration of exotic teas and new tea drinks. When exporting tea, we should further explore and spread the spiritual connotation of Chinese tea culture, and improve the attractiveness and added value of tea products from the unique cultural characteristics and historical background of Chinese tea. Chinese tea culture contains the ideological spirit of Confucianism, Buddhism and Taoism, and presents the Chinese spirit of “the great road”. Chinese tea culture in the modern context can start from tea art, “reconstruct tea culture in the tension between dailyity and transcendence, aesthetics and commerciality of tea art”, and then spread our country’s tea culture.

2. Promote high-quality brands: Focus on shaping green and environmentally friendly product concepts and promote the marketing development of high-quality tea brands

Further promote the sustainable development of the tea industry, integrate green environmental protection concepts into the current tea planting system, improve quality specification requirements, improve the overall quality of our country’s tea industry, and better meet global quality standards. At the same time, relying on local regional famous teas and rare varieties of tea as features, a tea industry brand system with distinctive characteristics will be formed, and the construction of a modern tea marketing system will be promoted.

3. Expand health-care tea drinks: Return to the health-care function of tea drinks and actively expand the types of oriental health-care tea drinks

There are many intersections and integrations between tea culture and traditional Chinese medicine culture in the development process and value expression. As a traditional health-care functional drink, tea has been widely concerned and recognized since ancient times. Considering the importance that German consumers attach to the health and medical effects of tea. When exporting Chinese tea, we should do a good job in publicity and guidance, actively promote a healthy tea drinking culture, and promote the cultivation of temperament through tea tasting, to better highlight the interactive relationship between Chinese tea and health preservation concepts. We should combine the theoretical research results of traditional Chinese medicine to explore some herbal teas and fruit teas with Chinese characteristics to better meet the European market’s exploration of the health and health functions of oriental tea drinks.

4. Innovative tea product content: Give full play to the innovative function of tea technology in the industry and enrich tea product content

In view of consumers’ high demand for innovation in tea drinks, it is necessary to give full play to the innovative function of tea technology in the industry and increase the reform of the digitalization process of the tea industry. At the same time, tea product design should be innovated, focusing on the development and innovation of Chinese tea in product form, packaging, distribution channels, peripheral products, and other fields. Utilize modern communication methods and technologies such as integrated media to expand marketing methods, increase publicity efforts, actively integrate into the national “One Belt and One Road” strategy, and increase the coverage and share of Chinese tea in the international market.

5. Enrich communication forms: Use tea as a medium to actively carry out various forms of tea culture exchange activities

Based on carefully hosting the China International Tea Expo and the Chinese Tea Olympics, a stable offline tea culture exchange model will be established in individual European countries and regions, including organizing various tea parties and tea events, thereby enhancing the influence of Chinese tea in Europe.

In addition, we will conduct more social interactions with local tea associations, enterprises, and consumers, including supporting relevant local institutions and associations to organize tea events and holding various expert lectures to help them better understand and like Chinese tea. At the same time, make full use of new media resources and utilize the immediacy, openness, and global characteristics of new media to achieve breakthroughs in the scope and speed of cultural communication and promote a more comprehensive and three-dimensional display of Chinese tea and tea companies. And help Chinese culture, represented by tea culture, to move toward Europe.

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