China International Capital Corporation (CICC) believes that China's tea industry has great development potential and room for brand building. In terms of scale, China ranks first in the world in tea consumption, with the industry's growth driven by the healthy attributes of tea products and new consumer scenes. In terms of the industry layout, the low level of mechanization combined with the rural revitalization industry attributes means that China's tea industry is still dominated by small family workshops and small enterprises, with low efficiency in the current industry chain and great long-term integration space. Referring to overseas experiences, CICC recommends paying more attention to brand building, product packaging, and mergers and acquisitions, to accelerate industry integration and establish brand effects.
CICC recommends paying attention to the leading companies in the tea industry: Tenfu (06868/ not covered), Lancang ancient tea (06911/ not covered), China Tea (not listed) and Bama Tea (not listed).