Rebirth of the Japanese Black Tea Market: Challenges for Entrepreneurial Green Tea Farmers

Typography

In Japan, tea farms are found in warm areas, whose northern limit is Ibaraki prefecture, where green tea has been produced. 

[Background]
In Japan, tea farms are found in warm areas, whose northern limit is Ibaraki prefecture, where green tea has been produced. However, black tea was also manufactured from the mid-19th century and, at one time, Japan exported more than 5,000 tons of black tea of Japanese origin. With Japan’s economic growth in the second half of the 20th century, Japanese black tea lost its economic competitiveness and finally disappeared. Nonetheless, from the dawn of the 21st century, black tea manufacturing has been revitalized and production has grown. In 2007, the black tea manufactured by Satsuma Eikokukan in Kagoshima prefecture won a gold medal in the Great Taste Awards in the UK.

In general, a new industry and its market are not created by gradual changes in existing markets. Signs of opportunities for new products are very small and must be sought carefully. Here, the manufacture of black tea in Japan is seen as the creation of a new market. We studied the history of black tea in Japan, tea species, technological innovation and other factors. In addition, as a case study, black tea production in Sashima, Ibaraki prefecture, is elaborated.


[Results]
In mid-19th century, the Japanese black tea industry was born from the government’s encouragement to tea producers to engage in black tea manufacturing. Black tea manufacturing suitable for the Japanese climate was sought and production increased. Improvements were made by using varieties of tea plant and in 1951 the quality of Japanese black tea was highly appreciated in the London tea market. The export reached its peak in 1954, contributing to the acquisition of foreign currency. However, due to the subsequent economic growth of Japan, labor shortages and higher wages made the cost of Japanese black tea manufacturing much higher, which led to loss of international competitiveness. On the other hand, black tea imports expanded rapidly from 1964 to 1974, of which 65% was in the form of tea bags. In 1986, black tea was first sold in bottles. Consumption and imports increased sharply and in 1997 black tea imports reached nearly 20,000 tons (Figure 1).

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