From November 5th to 10th, 2018, several countries from all over the world gather in Shanghai’s National Exhibition and Convention Centre to present their products in the first-ever China International Import Expo (CIIE). This expo provides Kenya with a promotional campaign to increase the visibility of its high premium tea and coffee.
The East African country is optimistic about increasing the amount of its tea exports to China, which currently keeps at 1 million kilograms per year. Kenyan tea is the country’s main source of foreign exchange earnings and has won international acclaim for its taste and aroma.
Edward Mudibo said, the managing director, East African Tea Trade Association, “We see China as an emerging market because the millennial that were used to taking green tea have little exposure to Black CTC tea that is primarily the type that Kenya produces.”
From the point of view of the quantity and value of tea exported to China, there has not been much growth in the past seven years. In 2011, the quantity of Kenya’s tea exports to China was 2,112,197 kg, and in 2017 it fell to 1,032,751 kg. During the same period, the value fell from $6.1 million to $3 million.
In order to increase tea exports to China, Kenyan tea exporters should establish cooperation with Chinese partners to enter the Chinese market. Participating in the exhibition is a good method to promote, in China, where e-commerce is so developed, the e-commerce platform is also an effective promotion channel. JumoreGlobal brings together many Chinese users, covering various industries such as agricultural products, food and so on. Selling products in China is no longer a problem.
At the same time, by participating in the expo, Kenya envisages enhancing its advertising campaign to tap into the vast Chinese market to promote its Arabica coffee. JumoreGlobal provides a series of trade services, such as finance, logistics, translation, etc., which saves a lot of time and energy of overseas companies and they better focuses on product quality control.
Considering that China is the most populous country in the world, there is still huge potential undeveloped. According to CBN’s latest report, China’s coffee market is currently worth about $10 billion, accounting for only 0.5% of the global market. However, with an annual growth rate of 25%, it is expected that the market will reach over $40 billion by 2020. On the other hand, instant coffee still accounts for the largest share with 84%, while fast-growing fresh ground coffee accounts for only 16%.
China is one of the emerging markets in Kenya. In 2016/2017, China imported 1,448 bags of coffee, worth $671,798; in 2017/2018, China imported 2,447 bags of coffee, worth $921,103. The increase in coffee exports to China will also benefit farmers by increasing income as a result of expanding the alternative coffee market rather than relying too much on traditional markets.