Overlooked and Underestimated
GERMANY
Germany is rarely mentioned in the same way as English tea. There are no international brands to rival Lipton or Twining. It is not thought of as a strong consumer market. Most US tea buyers have never come across German tea and would be surprised to know that it is one of the most dynamic players globally and distinctive domestically.
Here are some examples and figures that capture its dynamism:
Germany is the second largest importer of tea in Europe and the largest re-exporter.
The highest per capita consumption of tea in the world is in East Friesia: 300 cups a year versus 180 for Ireland and around 30 across Europe. (The national figure for Germany is 28.)
Germany is the largest buyer of Darjeeling tea and is building a Himalaya near-brand as its exporters add Nepalese teas to offset Darjeeling’s high costs, supply disruption from political turmoil, and concerns about industry financial stress. TeeKampagne is playing a leading role in funding the urgently needed restoration and reversal of soil erosion, which has been increasing at a disturbing rate. It imports only Darjeeling leaf, all organic.
It is a trading hub for tea, with Hamburg routinely described as Europe’s tea capital. It has a strong reputation for processing expertise and exports specialty teas to over 100 countries. The Port of Hamburg handles a reported 50-60% of global shipments. Half of those go to the US. German firms import bulk tea that they blend and package as finished product.
It is among the strongest markets for teas targeted to wellness, in terms of consumer demand, premiumization, and variety. The term “medicine” tea is routinely used to cover products for pregnancy and nursing mothers, children’s tea – the ubiquitous Kindertee – ginger tea for colds, etc.
While overall consumption per capita is relatively low, it is marked by preferences and willingness to pay for quality, with loose leaf teas amounting to 23% versus 5% across Europe, Russia, Iran, and other large consuming nations. It is noted for quality control, safety standards, and certification.
It has a higher percentage than other large markets for certified organic tea sales, purchases through specialty stores (18% of the total) and teas served in higher-end restaurants as a fine tea accompaniment to a meal.
Teekanne is the world’s leading company in the production of tea bags and produces 7.5 billion tea bags per year. Its subsidiary Redco produces Rose Red and Salada teas in its US facilities. Redco is the third largest tea company in the US. Teekanne is noted for its botanical blends and history of advanced technology and almost unknown for its international manufacturing expansion.
German’s tea future looks strong as premiumization rather than commoditization becomes the priority for growing nations such as Kenya, Vietnam, and Indonesia and consumers value, sustainability, safety, organic, and wellness in choosing their teas. It will be a major beneficiary of the near-inevitable disruption of the UK’s international tea trading being generated by Brexit’s uncertainty and bleak scenarios.