China’s Competitive Edge in Food Globalization: Tea
Both tea and tea culture originated in China, giving the country a uniquely strong position in global consumer perception — what can be described as a leading “mental resource.”
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According to the Global Strategic Positioning Report: Trillion-Dollar Opportunities in National Mental Resources published by Ries & Fortune:
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China is undeniably a major producer and consumer of tea, accounting for over 30% of global tea production and consumption. In the global tea export market, China also plays a vital role. It is currently the world’s top tea exporter by value and second by volume — with its global share continuing to grow. As early as 2019, China’s tea exports had already reached USD 2 billion, representing 26.5% of total global tea export value.
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Globally recognized tea brands today include Lipton and Twinings from the UK, TWG Tea from Singapore, and Tetley — which now belongs to India’s Tata Group and is the leading tea brand in both the UK and Canada, as well as the second-largest in the U.S.
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Despite China’s leadership in tea heritage and production, there is still a glaring absence of globally recognized Chinese tea brands. The phrase “70,000 Chinese tea companies combined still can’t match one Lipton” continues to ring true.
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On June 25, 2024, Jan-Benedict Steenkamp — Distinguished Professor of Marketing and Leadership at the University of North Carolina at Chapel Hill and a renowned author — gave a keynote titled “Building Global Brands from China” at the Marketing Innovation Forum of FBIF2024. He noted:
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“China has a unique advantage that few countries can rival — its ancient culture. The country's long history and cultural depth are incredibly attractive in the global imagination. This heritage can and should be leveraged in brand storytelling. Even countries like France would struggle to match China’s cultural depth…
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What surprises me is that I haven’t seen a Chinese tea brand truly make its mark globally. While such brands surely exist in the domestic market, I haven’t come across one strong enough to catch my attention abroad.”
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As the birthplace of tea, China is inherently intertwined with tea culture. Yet, there is still no globally dominant Chinese tea brand — a fact that remains puzzling. Some teas are sold internationally for as much as USD 100 per 30 grams, which shows that the global market is willing to pay for premium tea, and that China's tea industry holds massive untapped potential.
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However, most domestic Chinese tea brands still fall short of being “fashionable.” Their packaging, pricing, and positioning remain overly traditional, failing to resonate with younger consumers — even within China, let alone internationally. A tea brand that struggles to appeal to the local youth is unlikely to succeed in broader global markets.
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In contrast, China’s new tea drinks have emerged as a vibrant, fashion-forward force. These new tea brands are now leading the way in international expansion, introducing Chinese tea to the world in fresh, modern forms. While the focus may be shifting toward ready-to-drink innovations, China’s traditional tea — backed by its deep-rooted cultural and mental resources — still holds significant global opportunities waiting to be realized.