Quarter of teas imported to world’s largest tea market is Ceylon Tea

A quarter of tea imports to the world’s largest tea market comprises Ceylon Tea, which is also the first international branding hit for Sri Lanka in modern times, said Minister of Industry and Commerce Rishad Bathiudeen on 11 September in Nanning, China.

Bathiudeen was in discussions with Vice-Chairman of Guangxi Zhuang Autonomous Region Zhang Xiulong on the sidelines of CAEXPO 13 international expo in Nanning (capital of Guangxi Zhuang Autonomous Region), China. He was leading the 23 member Sri Lankan trade and business delegation to Nanning’s CAEXPO13. Bathiudeen also addressed the Summit on Development of Liu Pao Tea Industry held at Nanning International Conference Centre.

China is the world’s largest tea market, valued at more than $ 9 billion. The second largest market, Russia, is almost half that of China’s at $ 4 billion.

Minister of Industry and Commerce Rishad Bathiudeen meets Vice-Chairman of Guangxi Zhuang Autonomous Region Zhang Xiulong on 12 September in Nanning, China

“We thank the people of China for giving the first ever tea plants to us,” said Bathiudeen. “Ceylon Tea is one of the three main exports to China from Sri Lanka. Our tea export volumes to China in the 10-year period of 2005-2015 has increased greatly. By last year more than one fourth, that is 26% of China’s tea imports, were supplied by Sri Lanka.”

Vice-Chairman Xiulong stressed of the strong and historic Chinese-Sri Lanka relations and added: “We are pleased to receive Ceylon Tea. I also stress about the variety, value and production quantity of Guangxi’s tea, the history of Loubao tea of Wuzhou city. I am also pleased to inform you that we have a new plan for Guangxi’s tea development. I invite you and Sri Lankan merchants to visit Guangxi and Wuzhou tea industry for a greater understanding with an eye to future tea industry cooperation between both countries.”

Addressing the Liu Pao tea summit, Bathiudeen said: “Tea was introduced to Sri Lanka from China in 1824. The British brought the first tea plants from China to Sri Lanka in 1824 starting our historic tea journey. Our brand of exported tea gradually became known as Ceylon Tea across the world. As a result Ceylon Tea became the first Sri Lankan commodity to create international branding success for us in modern times. Ceylon Tea is one of the three main exports to China from Sri Lanka, in 2015, it was the third largest export to China. In fact we have been fortunate enough to establish ourselves so well in China. Our tea export volumes to China in the ten year period of 2005-2015 has increased by a huge 1,400%.”

He added: “Among the main reasons for increasing demand for Ceylon Tea in China could be our quality assurance changing consumer trends here and efforts of our Government institutions such as the Tea Board. Today Ceylon Tea is a $ 1.5 billion industry. Among the reasons for Ceylon Tea to become a $1.5 billion industry is Sri Lanka being the second largest exporter and third largest producer of orthodox tea in the world. Sri Lanka is also the only tea-producing country where all tea grown is 100% ozone friendly.  Sri Lanka has established its reputation well for premium tea with strict quality control regulations. To rebrand Ceylon Tea we also launched new logos for Ceylon tea under the ‘Geographical Indicators’ international trade system. The objective is to raise Ceylon Tea to premium product levels such as French wines and Pakistani basmati rice.”

In 2015, the top three Lankan exports to China were boats, apparel and bulk tea. The $ 27 m bulk tea exports in 2015 were a strong 31% surge from 2014’s $ 18 m bulk tea exports to China from Sri Lanka.