Tea Market Watch: Can Fuding White Tea Become a Hit?

　　White tea? White tea! While traditionally considered one of the six major tea categories alongside black and green teas, white tea has long remained relatively low-key—and even somewhat overlooked—within the domestic market. However, in the spring of 2012, the white tea scene suddenly came alive as capital from across China began pouring into Fuding, known as "China’s Home of White Tea." As a result, the purchase price for fresh tea leaves soared past the 100-yuan mark for the first time, reaching over 100 yuan per 0.5 kilogram.

　　"White tea investments are starting to heat up." Li Buquan, president of the Strait Tea Industry Exchange Association in Ningde City—and a long-time observer of the white tea industry—admits that white tea, once overlooked by the market, has seen a significant price surge this spring, soaring by more than 30% alongside the overall rise in tea prices. This unexpected development has left the industry "quite surprised." He notes that the once-forgotten white tea is now stepping into the spotlight.

　　Capital surges in wave after wave.

　　On the eve of Qingming Festival, Ji Xiangbing, who has been running a tea business in Tianjin for years, hurried back to Fuding to join the local rush to purchase fresh tea leaves.

　　This is the fifth time Ji Xiangbing has traveled back and forth between Fuding and Tianjin since the Spring Festival. As the General Manager of Jishengyuan (Tianjin) Tea Co., Ltd., Ji Xiangbing left his hometown of Fuding nearly 20 years ago to build a thriving tea business in Tianjin. Each time he makes the journey, he’s not alone—though the identities of his companions vary from trip to trip. "We’re all heading home to inspect our production facilities," Ji Xiangbing explains, adding that this is the first time he’s witnessed such a "grand scene" in Fuding.

　　As a friend of Ji Xiangbing, Yang Chengxi has been actively involved in real estate development projects in Tianjin and is now preparing to invest over 70 million yuan to focus on the white tea market. In his view, while black tea currently dominates the domestic tea industry with an exceptionally strong presence, once the "red" phase fades, which brand—or product—will truly stand out next? That’s precisely why white tea, often referred to as the "blue ocean" of the tea market, has become his investment target.

　　Since the start of spring tea harvesting, Li Jun, Executive President of UK-based Yingruiqi Management Co., Ltd., and his five-member team have been stationed at Jishengyuan Tea Company's Diandou base for nearly a week—they’re here to conduct a feasibility study on potential investments in white tea. Yingruiqi’s primary investment focus is in the real estate sector. Li Jun openly admits that, in his view, white tea is still in the early stages of development and investment. He emphasizes that his white tea investment strategy will initially target the UK market, while also exploring opportunities in China’s domestic market.

　　A representative from a sizable local white tea enterprise revealed that he has already received invitations from multiple investors based in cities like Shanghai, Shenyang, and Beijing, all eager to collaborate with him and enter the white tea industry. Meanwhile, investors such as Wang Chenglong from Beijing’s renowned Malian Dao Tea Street are actively preparing to establish a comprehensive white tea industrial park. The first phase of the park is planned to span 2,000 mu, and so far, 10 companies have expressed interest in setting up operations there, with total investments expected to reach 2 billion yuan. This is just one snapshot of the growing enthusiasm for investing in the white tea sector.

　　Mei Chuanshan, chairman of the Fuding City Diandou Town Tea Industry Association, told reporters that years ago, Beijing Zhang Yiyuan Tea Co., Ltd.—a century-old "Time-Honored Chinese Brand" in the industry—established a base in Fuding and later set up the Zhang Yiyuan Research Center in 2004. "This truly reflects the fervor for investment," Mei Chuanshan remarked.

　　Flowers bloom within the wall, yet their fragrance spreads beyond.

　　In the industry, white tea has never been the main player.

　　Although Ji Xiangbing is the 10th-generation heir to the Ji family’s white tea tradition, he initially focused on teas other than white tea when first starting his business. He explains that, prior to this, white tea was virtually unknown in the domestic market—his main offerings at the time were green tea, floral teas, and other varieties. It wasn’t until recent years that he gradually began expanding his selection to include white tea.

　　Chen Xinghua, Director of the Standing Committee of the Fuding Municipal People's Congress and Head of the Fuding Tea Development Leading Group, explained that Fuding produces a variety of teas. While locals are familiar with the name "Bai Hao Yin Zhen," they remain unaware of what exactly white tea is. During the planned economy era, 95% of Fuding’s white tea was exported via foreign trade channels to Europe and the Americas. "In the past," Chen said, "when we offered white tea as gifts to guests, they often politely declined." He added that, at the time, the overall price hovered around just a few yuan per kilogram—so low, in fact, that no one felt comfortable presenting it as a gift.

　　Fuding Southeast White Tea Import & Export Co., Ltd. is Fuding City’s first company primarily focused on white tea. Chairman Zhang Zhengku, who had long been based in Beijing running a tea business, returned to Fuding from Beijing in 2002 and began investing in white tea—only to be initially dismissed by locals as "mentally unstable." It wasn’t until 2009 that he finally shifted his full attention to white tea.

　　Less known is the history of white tea.

　　The Tang Dynasty's Lu Yu, in his "Tea Classic," records, "Three hundred li east (or southeast) of Yongjia County lies Mount Baicha." Meanwhile, during the Qing Dynasty, Zhou Liangong noted in "Min Xiaoji" that "Mount Taibao is home to the lush-green Snow Sprout tea." According to Ji Xiangbing, Fuding white tea has long enjoyed a reputation "beyond its walls," even though it originates from the same region. Today, the same variety of white tea fetches 1,000 yuan for just 0.5 kilograms, whereas in 1997, its domestic price was a mere 14 yuan per kilogram—leaving Fuding locals, despite their abundant natural resources, often struggling with hunger.

　　Chen Shixiong, Director of the Fuding City Tea Administration Bureau, openly admitted: "Even now, white tea hasn’t yet become the industry’s leading player. Yet, the world’s white tea is in China, and China’s white tea is in Fuding."

　　"Great tea has no taste"—an awkward moment

　　Light and subtle in flavor—this is the most immediate sensation white tea leaves in the drinker, yet it’s also the very reason why white tea can sometimes feel awkwardly hard to embrace. But in Chen Xinghua’s eyes, this embodies the profound state of "great tea having no taste."

　　"Fu Ding white tea’s biggest advantage is its ability to be stored for long periods," explained Chen Xinghua. He added that white tea is often described as "one year as tea, three years as medicine, and seven years as treasure"—meaning the longer it’s aged, the more valuable it becomes. This makes tea companies less worried about unsold stock and potential financial losses. However, he acknowledged that while "great tea has no taste" may represent an ideal state of refinement, in today’s market, consumers find it hard to get used to, which currently limits the tea’s wider adoption. In 2011, Fu Ding city was home to 381 tea processing enterprises—both large and small—producing a total annual output of 17,500 tons of tea, a 5.4% increase from the previous year. Among these, white tea accounted for 5,100 tons annually, marking a significant 13.3% rise compared to the prior year.

　　Jiang Yongwen, Deputy Director of the Tea Research Institute at the Chinese Academy of Agricultural Sciences, believes that white tea products are relatively limited in variety, failing to meet market demand. Additionally, the flavor of white tea is too one-dimensional, making it less appealing to a broad range of consumers. Meanwhile, companies themselves face limited R&D capabilities, and persistent technological bottlenecks further hinder their growth. As a result, the domestic market has continued to expand slowly, with annual domestic sales hovering around just 1,500 tons.

　　This is precisely the situation that Fujian’s tea producers are eager to change. Ji Xiangbing, the 10th-generation heir to the Ji family’s white tea tradition, has already taken over 10,000 mu of tea gardens in Diandou Town, establishing his own dedicated white tea base. "Ultimately, true white tea investors must own tea gardens of a certain scale," says Ji Xiangbing. He adds that, in addition to government policy support, he hopes strong companies from other industries will partner with tea businesses to enhance production, processing, and sales—and work together to promote the industry.

　　And this, in turn, requires collaborators to go through a process of understanding white tea.

　　How far is it from "going viral"?

　　In 2010, China's tea tree cultivation area reached 1.95 million hectares, with a total tea production of 1.45 million tons and an annual gross output value of 90 billion yuan. This highlights the steady demand in the tea market and underscores the immense growth potential of China's tea industry in the years to come. Professor Sun Weijiang, Head of the Department of Tea Science at Fujian Agriculture and Forestry University, emphasizes that Fuding white tea should prioritize increased investment in advanced processing technologies—particularly for mid- to low-grade white teas—by developing innovative products such as health-enhancing beverages and cosmetic items. These efforts will not only boost the industrial value of white tea but also help establish it as a key driver of the broader health economy. With consumers increasingly recognizing the health benefits of tea, Fuding white tea, as a flagship specialty industry of the city, is poised not only for a promising future but also for significant economic opportunities.

　　Regarding the current surge in investment interest in the white tea industry, experts from Fuding's tea community all agree that it should be approached with a rational mindset—there’s no way "overnight success" is sustainable.