Summary of the Core Content
This news article focuses on the jasmine industry in Hengzhou, Guangxi: Known as the "Hometown of Jasmine in China," Hengzhou has recently been hit by floods that have affected 100,000 acres of jasmine fields, causing the price of fresh jasmine to double. However, the jasmine industry is experiencing rapid growth due to the rise of new tea beverages. Jasmine has evolved from a traditional northern beverage (such as "Xiangpian") to a key ingredient in popular new tea drinks, with Hengzhou accounting for over 70% of China's total jasmine production. Although the floods have caused short-term price fluctuations and supply chain challenges, they have also prompted the industry to optimize its supply chain (e.g., by diversifying production locations and establishing strategic reserves), leading to a more mature and stable sector.
Detailed Analysis
1. From Traditional Northern Beverage to Popular New Tea Drink Ingredient
The jasmine tea consumed by older generations is called "Xiangpian" and was a traditional northern drink (especially popular in Beijing, where the water quality is alkaline and winters are dry, making jasmine an excellent flavor enhancer). However, it has become increasingly popular in new tea beverages. Jasmine now constitutes more than 95% of all flower teas used in these beverages, with products like Xicha's "Lüyan" and jasmine milk tea relying heavily on it for their flavor.
Why is it so popular? Firstly, the taste is appealing to a wide audience; jasmine has a refreshing aroma that doesn't overpower other flavors and pairs well with milk and fruits, meeting modern consumers' preferences for light and enjoyable drinks. Secondly, the supply of jasmine is stable, as it is available throughout the year. Thirdly, new tea beverages have attracted a younger consumer base, with the southern regions becoming major markets, driving an increase in cultivation areas—cultivation areas in the four main production regions increased by 18% in 2024, and Hengzhou plans to exceed 180,000 acres by 2025.
2. Why Hengzhou is the Leader in the Jasmine Industry
Hengzhou is the heart of China's jasmine industry, producing 110,000 tons of jasmine in 2024, accounting for 71% of the total output from the four main regions (Guangxi Hengzhou, Fujian Fuzhou, Sichuan Jianwei, and Yunnan Yuanjiang). It not only serves as a major production area but also as a processing hub. Since jasmine must be processed quickly (as fresh flowers have a short shelf life), tea from all over the country is transported to Hengzhou for processing into flower tea using a specialized method called "yinzi." Hengzhou essentially controls the fate of the entire jasmine industry.
3. Floods and the Doubling of Fresh Jasmine Prices
Jasmine is particularly sensitive to waterlogging, and the recent heavy rains in Hengzhou lasted for three days and nights, damaging 100,000 acres of fields, with 50,000 acres severely affected (20,000 acres completely destroyed). The reduction in production has led to a supply-demand imbalance, causing prices to soar from 15 yuan per jin before the floods to 30-50 yuan per jin after.
However, there's no need for excessive concern: While some farmers lost all their crops, others saw increased income due to the higher prices. Processing companies face greater pressure due to the increased cost of raw materials. Leading tea brands (such as Xicha) have long-term supply agreements, so their prices remain stable, while smaller firms are more vulnerable to market fluctuations.
4. The Impact of Floods on the Industry
The floods serve as a reminder that the industry cannot rely solely on Hengzhou for production. Experts recommend that leading brands diversify their sources to avoid supply disruptions. They also suggest establishing strategic reserves (e.g., by processing fresh jasmine into semi-finished products to extend its shelf life). Additionally, the industry is moving towards higher-end products, with brands improving processing techniques to minimize flavor loss and companies producing organic jasmine for export markets. Once the floods subside and production resumes, the jasmine industry will continue to grow, becoming more resilient and mature.
5. Will Jasmine Milk Tea Prices Rise for Consumers?
In the short term, some smaller firms may raise prices or adjust their products (e.g., using less jasmine), but most brands are unlikely to see significant price increases. The cost of jasmine in milk tea is relatively low, and companies can balance this by adjusting other expenses (such as packaging and marketing). Therefore, the price of jasmine milk tea is unlikely to increase significantly.
(The entire analysis is written in plain language, avoiding technical jargon, making it easy for readers to understand the intricacies of the jasmine industry.)