DMCCTHE FUTUREOF TRADESPECIAL TEA EDITIONSERIESTABLE OFCONTENTS04Introduction06Executive Summary08 Section 1:Market snapshot18 Section 2:Market-specific challengesand op portunities24chain dynamics32 Section 4:Dubai as a trade nexus36 Section 5:Future outlook,innovations andinvestment trends40 Key recommendationsINTRODUCTIONEvery day,more than fivebillion cups of tea areconsumed worldwide,making it the most populardrink after water.and re-export.EXECUTIVERegulatory andSUMMARYsustainability pressuresClimate squeezeFinance goes digital00From black to bubblesStrategic trade hubsSECTION 1PRODUCTIONLANDSCAPEMARKETSNAPSHOTGlobal tea production amounts toaround $18 billion annually,while thevalue of total tea trade is estimatedat around $9.8 billion.24"When we talk about pricing,it's the"Every production centre is beingsingle biggest problem associated withaffected by global warming.So,theretea.There's a perception that it's not aare fundamental changes that arehigh value product,.”driving supply."Dan BoltonDilhan C.Fernandorising costs and stagnant auction70%plantation-wage hilke that1n2024,ConsumerGREEN IS THEconsumersdemand is tiltingNEW BLACKworldwide spenttoward premium,an estimated $282organic andbillion on tea in allfunctional teas-major formats andvalued for benefitschannels.Roughlysuch as boosting70%of this wasimmunity orin-home retailaiding sleep.purchases,ledby packaged hottea and ready-to-drink teas.Global tea market5Matcha,a Japanese powdered greenMatcha'stea that is traditionally whisked intoantioxidants andhot water to form a frothy drink,hassteady,lower-moved from niche ceremonial usecaffeine energyboost are toutedas a cleanerit notch robust growth The globalalternative tocoffee.Gen Zforecast to expand by more than 50%and millennials,by 2029.according to the Businessdrawn by wellnessResearch Company.Asia accountstrends and digitalfor over 40%of consumption withmatcha featuring in ice cream.influencers,arebiscuits and mochi rice cakes as welldriving demand.as beverages Ceremorial-gradepowders are prized for their vividGlobal tea marketcolour and fine texture while matcha'strends and digital influencers.aredriving demand.The boom facesJapan's tea acreage shrinks.farmersretire and input costs rise.driving2220ConvenienceBubble teaNEWis a key drivercontinues toOCCASIONS,of demand,thrive.Once aNEWMicholin-starred restaurants as a refinodTaiwanese niche,CONSUMERSyounger consumersit has grownwho favour ready-into one of themade formatsfastest-expandingover ritual.segments of theglobal beveragemarket,withsales forecast torise nearly 9%annually through2030.SECTION 2CLIMATECHANGEMARKET-SPECIFICProducersexperimentingCHALLENGESwith drought-resistantANDclones,shiftingplantations toOPPORTUNITIEShigher altitudesor diversifyinginto shade-grownand organic linesare finding thatsustainability canfetch premiums.LIFTING UP THESMALLHOLDEREmpoweringgrowers withdigital tools such asmobile platformsfor price discovery,weather alerts andfarm-to-factorylogistics,canboost productivityand compliance.cost-of-production and to supportAondW0-o00-“Pricing is whereTRACEABILITY,traceability andTea growing regions of the worldREGULATIONregulation intersectAND ETHICALmost sharply.SUPPLYCertified tea canfetch premiums ofup to 23%in someproducing countries,creating opportunitiesfor reinvestmentat origin."Mr BotonSECTION 3TEA FIELDSTO TEACUPKEY PLAYERSAND VALUECHAINDYNAMICSand agondles-such as the Kenya TaseAone-a-o31-ooo中"You have the added complication oflogistics.It can take an unpredictably longtime to traverse several parts of the world,with volatility in some areas,affectingshipment lead times whether you arepacking overseas or at source,that hasaffected inventory and cost."Roles of different actors in the tea value chainlong time to traverse several parts4a42027“China and"India's tea market has long beenGLOBALIndia embodydominated by traditional CTC(Crush,TearSHIFTSthe paradox ofand Curl)tea,but over the past five or sixbeing exportyears,we've seen a lot of green shoots andpowerhousesmovement in the herbal wellness market.and increasinglyThat shift is driven by millennials withvoracious domestichigher disposable incomes who are farof gravity.Asia-Padfc,home to thetea consumers.”more conscious about health.""The UK's onceunassailableposition as theheartland of blacktea now faceserosion.Yet inraady-to-drink formats.Germany andFrance the marketis skewing towardsherbal andmatcha and functional infusions,carvingspecialty teas."