East meets West

As the cradle of tea, China was the world's sole provider for centuries. However, the British, who formed the habit of drinking black tea in the 17th century, introduced tea trees to India and Sri Lanka in the late 19th century and then to Kenya in the early part of last century.

Partly because of their long connection with Europe, those three countries still dominate the global market for black tea, which accounts for 60 percent of all tea in the global trade. "Unlike the Chinese, Europeans and people in the US prefer black tea to green, and prefer teabags to loose-leaf teas," said Li.

"That's why we are now focusing on the development of teabags, fruit-flavored teas, and instant teas (tea in granulated form, like instant coffee)," he said, adding that the company is preparing to open its first shop in the US.

And while Chinese companies are attempting to meet the needs of the Western customers, those customers also seem to be changing their habits.

Data from the London-based International Tea Committee, which compiles and publishes statistics on the industry, show that between 2001 and 2010, the global market share of black tea fell by 10 percent to 60 percent, while green and oolong teas combined saw an increase of 8 percent to 31 percent.

"A lot of people drink tea because it's healthy, and green tea can provide lots of benefits. Increasingly, people are beginning to realize that now," said Wu Xiduan, secretary-general of the China Tea Marketing Association.

He explained that studies in the US and China suggest that green tea can help to lower the risk of contracting certain types of cancer and also illnesses such as strokes that can cause cognitive impairment, and osteoporosis in the elderly.

And it's not just the health benefits that are prompting consumers to change their habits, it's also the taste. Loose-leaf teas are now beginning to take root in places where tea bags were previously the most popular form of the beverage.

"We believe there is no comparison between premium loose-leaf teas and tea made from bags," said Diane Walden, co-founder of California Tea & Coffee Brewery in Los Angeles, which opened in 2008.

"Studies have shown that the maximum antioxidant benefits are derived from freshly brewed loose leaf tea and that tea from bags loses much of its antioxidant value once it's steeped," she said in an e-mail interview.

"The tea in bags is usually the 'dust' or 'fannings', the lowest grade of tea. Our customers are amazed at the difference in the taste of loose-leaf tea when compared with tea bags. "

A man examines Pu'er tea in a market in southern Beijing. More people are drinking Pu'er for its health benefits. [Wang Jing / China Daily]