What Drives Tea Prices? Analyzing the Effects of Region, Certification, and Production Factors

Abstract

Using an administrative nationwide dataset of 1,673 tea producers, this study examines the key factors that drive tea pricing. Empirical results indicate that price levels vary across production regions, tea varieties, altitude, and certification status. On average, black tea commands higher prices, while other teas (green, Oolong, and Baozhong) are typically lower. However, as a special local tea, Oriental Beauty (and other teas) has the highest price. The cultivation altitude and organic certification are significantly associated with price premiums. In summary, this study provides strong evidence to show that regional origin, growing conditions, and certification may greatly influence tea’s market price, offering practical insights for producers and policymakers.