(1) The tea industry has entered a stage of oversupply. As of 2023, the total area of tea gardens in China is 51.4976 million kilometer, and the total output of dry tea is 3.3395 million tons, an increase of 22.2476 million mu and 1.9395 million tons respectively compared to 2010, with growth rates of 76.06% and 138.54%. According to the "2023 China Tea Production and Sales Situation Report", the domestic sales of tea in 2023 were 2.404 million tons, exports were 367500 tons, and the production surplus was 568000 tons, accounting for 17.01% of the total tea production in 2023, an increase of 159700 tons or 39.11% compared to the surplus of 408300 tons in 2022. The overcapacity of tea production capacity has further intensified and will continue to maintain a state of oversupply.
(2) The shortage of labor has gradually become an important factor restricting the development of the tea industry. With the process of urbanization, there is a serious loss of rural labor force, and the age of workers engaged in planting and harvesting is gradually increasing. Young people are unwilling to return to rural areas to engage in agricultural planting, resulting in an increase in agricultural labor costs. The phenomena of extensive management, abandonment, and management of tea gardens will gradually intensify. The development of wild tea by some regions and enterprises indirectly confirms the phenomenon of abandoned tea gardens.
(3)Industrial tea has become a new growth point in the current industry. RTD tea drinks and new-style tea drinks have grown rapidly in recent years, with innovative taste combinations and convenient consumption scenarios that meet the needs of young consumers. According to data from iMedia Consulting, the size of China's tea beverage market will reach 333.38 billion yuan in 2023 and continue to grow rapidly, with enormous development potential. Both RTD tea drinks and new-style tea drinks have attracted young consumer groups, occupying the future tea consumption market. At the same time, their channel distribution and promotion capabilities are significantly stronger than traditional tea enterprises. As an important raw material, the development of the tea beverage market will become a new growth point driving the development of the tea industry. Given the serious overcapacity of tea production capacity nationwide, it is suggested that the overall policy for tea development should be "stabilizing area, improving quality, and increasing efficiency". Explore industrial transformation in areas where tea development benefits are not good.
