Tea cultivation only began in Taiwan in the mid 19th century and many teas that were produced in Fujian have been since also produced there.Since the 1970s, teas and the industry in Taiwan has developed swiftly and substantially, alongside with the emerging economy. Accordingly, the major buyers of Taiwan tea are usually in the domestic market, with very small quantity left for foreign market.

Qualities of the teas in Taiwan are usually affected by the year and season, growers and areas of production. Different areas have different weather patterns, temperatures, altitudes and soil that ultimately result in the differences of teas. In some mountain areas, teas have been cultivated at ever higher elevations to produce a unique sweet taste that fetches a price premium.

There is usually an extremely wide variation in the prices of Taiwan tea. Affordable teas usually cost around dozens of dollars per kilogram, while quality teas produced by reputed grower and superior areas can cost up to several hundreds dollars[citation needed]. Some very rare awarded teas--also called "champion tea", which are graded as best selections in official contests, may reach thousands dollars in auctions[citation needed].