2025年贸易的未来：茶叶特别版报告（英文版）-DMCC

AGRI

COMMODITIESSERIES

TABLEOFCONTENTS

04Introduction

06ExecutiveSummary

08Section1:Marketsnapshot

18Section2:Market-specificchallengesandopportunities

24Section3:Keyplayersvaluechaindynamics

32Section4:Dubaiasatradenexus

36Section5:Futureoutlook,innovationsandinvestmenttrends

40Keyrecommendations

Introduction

Introduction

INTRODUCTION

Everyday,morethanfivebillioncupsofteaareconsumedworldwide,makingitthemostpopulardrinkafterwater1.

FromdelicatelybrewedbreakfastteainLondontoamber-huedTurkishteainIstanbulorabubbleteainTaipei,this

singleleafcutsacrosscultures,classesandcontinents.

Cultivatedinmorethan60countries,globalproductionnowtopssixmilliontonnesannually,sustainingthelivelihoodsofmillionsofsmallholderfarmers.

Yetbehinditscalmingimage,teaisarestlesscommodity.

ClimatechangeisalteringyieldsinIndiaandKenya,while

shiftingconsumertastesarefuellingdemandforpremium,functionalandready-to-drinkformats.Traderoutesarealsoevolving.Oncedominatedbycolonial-eraflows,theynowpivotthroughmodernhubslikeDubai,wheretheUAEhaspositioneditselfasaglobalcentreforblending,packagingandre-export.

Thisreportexploreshowtea’sfuturewillbeshapedby

climateresilience,changingconsumerpalates,regulatory

pressuresanddigitalinnovation.Italsoexamineshownewtradeecosystemsandfinancialmodelscanensurethatoneoftheworld’soldestcommoditiesadaptstothenewest

challengesofglobalcommerce.

Everyday,morethanfivebillioncupsofteaare

consumedworldwide,

makingitthemostpopulardrinkafterwater.

1

https://www.tea.co.uk/news/article/tea-loved-by-brits-and-5-billion-cups-of-tea-are-drunk-globally-each-day

5

4

ExecutiveSummary

EXECUTIVESUMMARY

Climatesqueeze

Globalsupplyremainsconcentratedinahandfulof

producersincludingChina,India,KenyaandSriLanka.Thesecountriesarehighlyexposedtorisingtemperatures,erraticrainfallandcropdisease.Withoutinvestmentinclimate-

resilientvarietiesanddiversificationtoemergingproducerssuchasRwandaandVietnam,thereliabilityofsupplychainsandtradestabilitywillbeatrisk.

Fromblacktobubbles

Traditionalblackteaconsumptionisstagnatinginmature

markets,whilegrowthissurginginpremium,organicand

health-positionedproducts.Youngerconsumersaredrivingdemandforflavouredandsparklingteas,bubbleteaand

6

ready-to-drinkformats,turningteafromahouseholdstapleintoalifestylebeveragewithnewvaluepropositions.

ExecutiveSummary

Regulatoryand

sustainabilitypressures

Marketaccessisincreasinglytiedtosustainabilitycredentials.

TheEuropeanUnion’sdeforestationregulationandrising

consumerdemandforcertifiedethicalteaarepushingproducerstoadopttraceabilitysystemsandmeetstricterenvironmental

standards.Compliancecostswillreshapetradeflows,whilecarbonintensitycouldbecomeafactorunderfuturebordermeasures.

Financegoesdigital

Tea’srelianceonsmallholdersmakesaccesstocreditaperennial

challenge.Newmodelssuchassupplychainfinancelinkedto

sustainabilitydata,alongwithdigitaltradingplatformsand

blockchain-basedtraceability,areexpandingaccesstomarketsandimprovingpricetransparency.Digitalauctionsande-marketplacesaredisruptingtraditionaltradinghubs.

Strategictradehubs

Dubaihasemergedasakeyglobalre-exporthubthroughtheblending,packagingandwarehousingofmillionsofkilosofteaannually.Suchhubsareevolvingfromlogisticsgatewaysinto

7

value-addingnodesthatconnectproducerstonewconsumermarketsandanchorglobalsupplyresilience.Stabilityiskeyinacurrentlytumultuoustradinglandscape.

SECTION1:MarketsnapshotSECTION1:Marketsnapshot

8

9

SECTION1

MARKET

SNAPSHOT

PRODUCTIONLANDSCAPE

Teaproductionishighlyconcentrated,withChinaandIndiadominatingthe

field(figure1).Togethertheyaccount

forroughlytwo-thirdsofglobaloutput,withChinaaloneproducingnearlyhalf.KenyaandSriLanka,thoughfarsmallerinvolume,arecentraltointernational

tradeastopblackteaexporters.

Mostteaisconsumedathomeand

aboutthree-quartersnevercrossesa

border.2Nevertheless,exportsremain

alifelineforforeignexchangeearnings

inkeyproducingcountries.Globaltea

productionamountstoaround$18billionannually,whilethevalueoftotaltea

tradeisestimatedataround$9.8billion.3

Globalteaproductionamountsto

around$18billionannually,whilethevalueoftotalteatradeisestimatedataround$9.8billion.

Toptenteaproducingcountriesglobally(MMT),2023–24

2.4

0.9

0.3

0.2

0.2

0.1

0.1

0.1

0.1

0.3

ChinaIndiaKenya

Source:ExpertMarketResearch

SriLanka

Turkey

IndonesiaVietnamJapanIranArgentina

Production(MMT)

2Dufrêne,Barbara.2024.“TheGlobalTeaReport2024.”Tea&CoffeeTradeJournal.

/feature/34254/the-global-tea-report-2024/

3“25thIntergovernmentalGrouponTea–Changesintheglobalteatradenetwork-CCP:TE24/3.”2024.FAOKnowledgeRepository.

/

server/api/core/bitstreams/fab54287-d6dc-4e94-8efb-869a60ad8fa6/content

SECTION1:MarketsnapshotSECTION1:Marketsnapshot

10

“Whenwetalkaboutpricing,it’sthe

singlebiggestproblemassociatedwithtea.There’saperceptionthatit’snotahighvalueproduct.”

“Everyproductioncentreisbeing

affectedbyglobalwarming.So,therearefundamentalchangesthatare

drivingsupply.”

DanBolton

Publisher,TeaJourney

andTeaBizbeverageexpert

Morerecentlyin2024–2025,conditionsgrewharsher.India’soutputdropped

nearly8%asextremeheatandfloodsbatteredAssam’speakharvest,

liftingdomesticprices.4SriLanka’srecoveryfromits2022slumphasbeentemperedbyamandated

70%plantation-wagehikethat

producerssaysqueezesmargins

andcompetitiveness.5InKenya,

governmentreserve-pricepoliciesandauctiondynamicscontinuetoshape

earningsforfarmersandsetthetoneforEastAfricanexports.

Pricingremainsthecentralweakness

intheglobalteatrade.“Whenwetalkaboutpricing,it’sthesinglebiggest

problemassociatedwithtea,”saysDan

Bolton,PublisheratTeaJourneyand

abeverageexpertatTeaBiz,“there’s

aperceptionthatit’snotahighvalue

product.”Itisthisperceptionthatis

leavingproducerssqueezedbetween

risingcostsandstagnantauction

prices.Thisundervaluationhasbeen

compoundedbyrecenttariffhikesbytheU.S.thatMrBoltondescribesas“brutal.”TheU.S.doubledtariffsongoodsfrom

Indiato50%,whichinSeptember,

theIndianTeaAssociationsaidina

statement,“cannotbeabsorbedbythesupplychain,giventhattheproducers

arealreadyoperatingonverythin

margins.”6Entrenchedlowvaluations

coupledwithtariff-drivenmarketaccessbarriersthreatentohollowouttraditionalproducingeconomies.

4Jadhav,Rajendra,andBernadetteBaum.2025.“India’s2024teaoutputdrops7.8%,liftsaverageprices.”Reuters.

/markets/commodities/

indias-2024-tea-output-drops-78-lifts-average-prices-2025-02-06/.

5Jayasinghe,Uditha,andMarkPotter.2024.“SriLanka’steaproducerswarn70%wagehikewillhitindustry.”Reuters.

/markets/asia/sri

-lankas-tea-producers-warn-70-wage-hike-will-hit-industry-2024-05-27/

6Jendoubi,Diana.2025.“USandIndianTeaBusinessesCryOutAgainst50%Tariffs.”STiRCoffeeandTeaMagazine.

/tea-coffee-news/

us-and-indian-tea-businesses-cry-out-against-50-tariffs/

DilhanC.Fernando

Chairman,DilmahCeylonTeaCompanyandKahawattePlantations

Tradeandpricesarelikelytostay

choppybutnotone-way.TheWorld

Bankexpectsteapricestodipin2025asSouthAsianandEastAfricansupplyrecovers,beforepartiallyrebounding

in2026.7Muchdependsonweathershocksandpolicyinterventionsin

leadingorigins.Climatechangeloomsasthebiggestsupply-sideconstraint,shrinkingoptimalgrowingareasin

keyoriginsandthreateningthelongtermresilienceofthesector.“Every

productioncentreisincreasingly

affectedbyglobalwarming.So,therearefundamentalchangesthatare

affectingsupply,”saysDilhanC.

Fernando,chairmanofDilmahCeylonTeaCompanyand

KahawattePlantations.

11

7

/en/opendata/beverage-prices

-soften-but-risks-are-brewing

SECTION1:MarketsnapshotSECTION1:Marketsnapshot

12

13

GREENISTHENEWBLACK

Overthepastdecades,theglobaltea

industryhasseenrapidgrowth,with

aremarkableriseinthenumberof

consumersglobally,particularlyamong

emergingeconomiesandlowandmiddle-incomecountries.In2024,consumers

worldwidespentanestimated$282billiononteainallmajorformatsandchannels.Roughly70%ofthiswasin-homeretail

purchases,ledbypackagedhottea($121billion)andready-to-drinkteas($74

billion),accordingtomarketdataanalysisbyMrBolton(figure2).

In2024,

consumers

worldwidespent

anestimated$282billiononteainallmajorformatsandchannels.Roughly70%ofthiswas

in-homeretail

purchases,led

bypackagedhotteaandready-to-drinkteas.

FIGURE2

Globalteamarket

200

175

150

125

100

75

50

25

0

209.7GrandTotal

197.4

2024

2025e

2024:$282.0billion

2025:$299.4billion(est)

128.2

120.8

74.378.6

89.7

84.6

48.551.6

32.534.2

2.22.8

0.60.7

3.03.2

RTDtea

(non-alc)

Hardtea

(retail)

In-home

(retail/off-

trade

Bubbletea

ex-China

Hardtea

(on-premise)

Packaged

hottea

Other

foodservice

tea

Out-of-homeChinanew-

(foodservice/style/bubble/

on-trade)milktea

Source:DanBolton,TeaBizmarketanalysis

Out-of-homeconsumptionaccountedforapproximately$85billion,driven

byChina’srapidlygrowingnew-styleteashops($48.5billion)andother

foodserviceteasales.In2025,totalspendisprojectedtoriseto$299

billion,withgrowthacrossbothretailandfoodservicesegments.

Structuralshiftsarealsoreshaping

thesector.Consumerdemandis

tiltingtowardpremium,organicand

functionalteas—valuedforbenefits

suchasboostingimmunityoraiding

sleep—pushingproducersandbuyers

toadaptprocurementmodelsand

managethehighercostsofproduction.“Healthconcernsarethemainfactor

thathasshiftedbeverageconsumptionfromsugary,artificiallycoloured

andpreserveddrinkstonaturaland

healthierbotanicalsandtea,”says

MrBolton.TheEuropeanorganictea

market,forinstance,isforecasttogrowat8.4%annuallyto2026,reaching

nearlyatenthoftotalconsumption.8

Consumer

demandistiltingtowardpremium,organicand

functionalteas—

valuedforbenefitssuchasboostingimmunityor

aidingsleep.

8“GlobalMarketReport:Teapricesandsustainability.”2024.InternationalInstituteforSustainableDevelopment.

/system/files/2024-

01/2024-global-market-report-tea.pdf

15

14

Globalblackteaproductionis

projectedtoexpandmodestly,rising1.6%annuallyto4.42milliontonnes

by2032.Greentea,bycontrast,is

setforfastergrowthof6.3%ayear,

reaching4.25milliontonnesby2032,drivenlargelybyChina,whereoutputisexpectedtonearlydoublethankstohigher-yieldingvarietiesandimprovedfarmingpractices(figure3).9Health-drivenconsumersarefuellingdemandforgreenteawhichisknownforits

potentialhealthbenefits.

RidingthistrendisTetleyGreenTea,abrandunderTataConsumerProducts,whichannouncedthelaunchoftwo

greenteavariantsearlierthisyear:

TetleyGreenTeaSlimCarewithaddedl-carnitine,saidtoimproveexercise

performance;andTetleyGreenTeaBeautyCarewithaddedbiotin,tosupportskinandhair.

FIGURE2

thousandtonnes

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

BlackTea

GreenTea

Globalteamarket

20222032

Source:FAOIGG/TeaSecretariat

9“Currentglobalmarketsituationandmedium-termoutlook.”2024.FAOKnowledgeRepository.

/server/api/core/bitstreams/

c1cad039-4e40-4888-bc74-3073d3ed7963/content

Matcha,aJapanesepowderedgreenteathatistraditionallywhiskedinto

hotwatertoformafrothydrink,has

movedfromnicheceremonialuse

intomainstreamcafésandready-

to-drinklines,itsantioxidanthalo

andInstagrammablecolourhelping

itnotchrobustgrowth.10Theglobal

market,valuedat$4.24billion,is

forecasttoexpandbymorethan50%by2029,accordingtotheBusiness

ResearchCompany.Asiaaccounts

forover40%ofconsumptionwith

matchafeaturinginicecream,

biscuitsandmochiricecakesaswell

asbeverages.Ceremonial-grade

powdersareprizedfortheirvivid

colourandfinetexture,whilematcha’santioxidantsandsteady,lower-

caffeineenergyboostaretoutedasacleaneralternativetocoffee.GenZandmillennials,drawnbywellnesstrendsanddigitalinfluencers,are

drivingdemand.Theboomfaces

supply-sidestrains,however,as

Japan’steaacreageshrinks,farmersretireandinputcostsrise,driving

onemajorJapaneseteaproducertodoublepricesinSeptember2025.11

Matcha’s

antioxidantsandsteady,lower-

caffeineenergy

boostaretoutedasacleaner

alternativeto

coffee.GenZ

andmillennials,

drawnbywellnesstrendsanddigitalinfluencers,are

drivingdemand.

10Niemeyer,Kenneth.2024.“TikTok’sObsessionWithMatchaCreatedaReportedShortageoftheTea.”BusinessInsider.

/tiktoks

-obsession-matcha-created-shortage-tea-japan-social-media-2024-11

11Duan,Eddy.2025.“GlobalThirstforMatchaDrivesTopJapaneseTeaBrandtoDoublePrices.”B.

/news/

articles/2025-07-31/global-thirst-for-matcha-drives-top-japanese-tea-brand-to-double-prices

17

16

NEW

OCCASIONS,NEW

CONSUMERS

Teaisnolongerconfinedanddefinedbykettlesandporcelaincupsandyounger

cohortsareshapingnewformats.“As

brandowners,there’salotofworkto

bedoneintheareasofsustainability,

ethics,agility,qualityandinnovation

tostayabreastofthisverycomplex

newconsumerenvironment,”says

MrFernando.Convenienceisakey

driverofdemand,particularlyamong

youngerconsumerswhofavourready-

madeformatsoverritual.LiptonTeas&

Infusions,forexample,hasrolledoutalineofteaconcentratesinasepticpackaging,designedforthosewhowantaccessiblequalitywithouttheclutteroftraditional

brewing.“Thedriversthatareverycriticaltoyoungpeoplearecustomisationand

convenience.They’rejustnotintostacksofteainthepantry,BrownBetty[classicBritish]teapots,hourglassteatimers,

andsilverservicescatteredalloverthe

Convenience

isakeydriver

ofdemand,

particularlyamongyoungerconsumerswhofavourready-madeformats

overritual.

house,”saysMrBolton.“Theywanttheirteainaquickerway.”

Beyondconvenience,teaismusclingintoentirelynewdrinkingoccasions.

Hardteawhichistypicallyablendof

alcohol,sweetenersandfruitflavouring,hasemergedasafast-growingcategoryonbeachesandinbars.Surfside,a

vodka-infusedicedteaandlemonade

launchedin2022,isthefastestgrowingalcoholicbeverageintheU.S.Surfside’snon-carbonated,low-calorieprofileandrelaxedbrandinghelpedsalesjump

from1.3millioncasesinitsfirstyearto

nearly5millionby2025.12NielsenIQdatashowthehardteasegmentasawhole

expandingbymorethan160%year-on-yearasofmid-2025.

12“HowSurfsideBecameTheFastest-GrowingAlcoholBrandInAmerica.”2025.Forbes.

/sites/chloesorvino/2025/07/27/how-surfside

-became-the-fastest-growing-alcohol-brand-in-america/

Meanwhile,nitro-brewteassuchas

thosefromEastForgedareedging

intonightlifevenues,andambient-

brewedteasarebeginningtoappearinMichelin-starredrestaurantsasarefinedalternativetowine.

Attheplayfulendofthespectrum,

bubbleteacontinuestothrive.Once

aTaiwaneseniche,ithasgrowninto

oneofthefastest-expandingsegmentsoftheglobalbeveragemarket,with

salesforecasttorisenearly9%annually

through2030.13Itsblackteabase,

blendedwithmilkorfruitandpaired

withchewytapiocapearls,hasproven

endlesslyadaptable.ChainsfromChinatotheU.S.havemultiplied,drivenbyyoungconsumers’appetitefornoveltyand

customisationduetoitschameleon-like

abilitytoreinventitselfthroughflavours.InChina,brandssuchasMixue14and

Guming15havebecomehouseholdnames,attractingheavyinvestmentandeven

blockbusterstocklistings.Theculturalcachetextendsbeyonddrinkscounters,withthebubblemotifnowsplashed

acrosstoys,keychainsandapparel.

Bubbletea

continuesto

thrive.Oncea

Taiwaneseniche,ithasgrown

intooneofthe

fastest-expandingsegmentsoftheglobalbeveragemarket,with

salesforecasttorisenearly9%

annuallythrough2030.

13“BubbleTeaMarketSize&Outlook,2030.”n.d.GrandViewResearch.

/horizon/outlook/bubble-tea-market-size/global

14Pacheco,Filipe,PuiG.Yeung,andLuluShen.2025.“MixueFounder,BrotherFortuneTopsStarbucks’(SBUX)HowardSchultz.”B.

https://www.bloomberg

.com/news/articles/2025-02-27/bubble-tea-chain-bigger-than-starbucks-yields-8-billion-fortune

15Pacheco,Filipe,andDianaLi.2025.“AnotherChineseBubbleTeaFounderTurnsBillionaireAfterIPOinHongKong.”B.

/

news/articles/2025-02-11/another-chinese-bubble-tea-founder-turns-billionaire-after-ipo-in-hong-kong

SECTION2:Market-specificchallengesandopportunitiesSECTION2:Market-specificchallengesandopportunities

18

19

SECTION2

MARKET-

SPECIFIC

CHALLENGES

AND

OPPORTUNITIES

CLIMATECHANGE

Climatechangeisreshapingtheveryterrainoftheteatrade.Risingtemperatures,erraticrainfallandmorefrequentdroughtsare

alreadycurbingyieldsinAssaminIndia

andKenya,theworld’slargestblacktea

producers.16Studieswarnthatbymid-

century,suitablelandforteainmajororiginscouldshrinksharply.Forinstance,climate

changeisforecasttoslashKenya’soptimal

teagrowingregionsby26%by2050.17

Qualitywillalsobeaffectedasheatstress

altersflavourcompounds.Thiscreates

volatilityinauctionpricesandthreatens

thepredictabilitythatbuyersandbrands

crave.Yetadaptationalsoopensnew

marketniches.Producersexperimenting

withdrought-resistantclones,shifting

plantationstohigheraltitudesor

diversifyingintoshade-grownandorganiclinesarefindingthatsustainabilitycanfetchpremiums.However,thecostsofadaptationincludingreplanting,irrigationanddigital

monitoring,aresteepandunevenly

affordableacrossproducercountries.

Producers

experimenting

withdrought-

resistant

clones,shifting

plantationsto

higheraltitudesordiversifying

intoshade-grownandorganiclinesarefindingthat

sustainabilitycanfetchpremiums.

16Mowbray,Sean,JeremyHance,andKarlaMendes.2024.“Climatechangebrewstroubleforteaindustry,butcircularsolutionsawait.”Mongabay.

https://news

./2024/03/climate-change-brews-trouble-for-tea-industry-but-circular-solutions-await/

17“ClimatethreatbrewingforBritishcuppa–newreport.”2021.ChristianAid.

.uk/climate-threat-brewing-for-british-cuppa-new-report/

SECTION2:Market-specificchallengesandopportunitiesSECTION2:Market-specificchallengesandopportunities

20

LIFTINGUPTHESMALLHOLDER

Theteaindustryemploysanestimated

13millionpeople,witharoundnine

millionsmallholderfarmersinthefour

mainteaproducingcountries.18Yet

theirpivotalroleisoftenmatchedby

precariouseconomics.Risingfertiliser

andenergycosts,limitedaccess

tocreditandexposuretoclimate

shockssqueezemargins.Manylack

thetechnologyortrainingtomeet

tighteningrequirementsonlabour

standardsanddeforestation,threateningexclusionfrompremiummarkets.

Thesechallengesarecompounded

byvolatileauctionpricesthatgive

farmerslittleleverageinvaluechains

dominatedbylargeestates,packersandmultinationals.19

Still,thesmallholdersegmentalsorepresentsthegreatestopportunityforstructuralchange.Empoweringgrowerswithdigitaltoolssuchas

mobileplatformsforpricediscovery,

weatheralertsandfarm-to-factory

logistics,canboostproductivityand

compliance.Internationalbuyersare

increasinglyexperimentingwithlong

termcontractsandfloor-pricemodelstosecureresilient,high-qualitysupply

whileaddressingreputationalrisk.For

example,TaylorsofHarrogateoperatesmulti-year(oftenthree-year)forward

contractsandcommitstopayatleast

cost-of-productionandtosupport

supplierswhenmarketpricesfall-i.e.,

ade-factofloor.20IDH,whichaims

tomakeagriculturalmarketsmore

inclusive,isrunningpilotsin2024–25

withLiptonTeasandInfusions,TwiningsandTaylorsuseaper-kilogramme

“LivingWageDifferential”(astructuredtop-up)toraiseremunerationon

estatesinKenya,SriLankaandMalawi,formalisingbuyertop-upstostabilisesupplyconditions.21

18“25thIntergovernmentalGrouponTea–Changesintheglobalteatradenetwork-CCP:TE24/3.”2024.FAOKnowledgeRepository.

https://openknowledge.fao

.org/server/api/core/bitstreams/fab54287-d6dc-4e94-8efb-869a60ad8fa6/content

19“GlobalMarketReport:Teapricesandsustainability.”2024.InternationalInstituteforSustainableDevelopment.

/system/files/2024-01/2024-

global-market-report-tea.pdf

20

/sourcing-approach/our-approach

21

/news/idh-pilots-new-mechanism-to-improve-the-livelihoods-of-tea-workers

Empowering

growerswith

digitaltoolssuchasmobileplatforms

forpricediscovery,weatheralertsandfarm-to-factory

logistics,can

Ifscaled,suchinitiativescouldshiftteatradefromacommoditymodeltoonewheresmallholdersare

partnersinbuildingclimate-smart,ethicallyverifiedsupplychains

turningsystemicvulnerabilityintoacompetitiveadvantage.

21

boostproductivityandcompliance.

SECTION2:Market-specificchallengesandopportunitiesSECTION2:Market-specificchallengesandopportunities

22

23

TRACEABILITY,REGULATION

ANDETHICALSUPPLY

Likecocoaandcoffee,theteatradeisenteringaneraoftighteroversight.

ExpansionofplantationsinAsiaandEastAfricahasoftencomeattheexpense

offorests,whilemanyfactoriesstillrelyonfirewood,compoundingpressure

onfragileecosystems.22Regulators

areresponding.Forinstance,theEU’s

deforestation-freeimportruleswillsoonrequirebuyerstoprovethatshipmentsarenotlinkedtoforestloss,thoughthelaw’senforcementhasbeendelayed

untiltheendof2026.23Scrutinyisalsoextendingtolabourpractices,withlowwagesandpoorconditionsinSouth

AsiaandEastAfricaattractinggrowingattentionfrompolicymakers,investorsandconsumers.

Brandsandtradersunabletoverifycleansupplychainsfacereputationalandregulatoryrisks.Thisispushing

“Pricingiswhere

traceabilityand

regulationintersectmostsharply.

Certifiedteacan

fetchpremiumsof

upto23%insome

producingcountries,creatingopportunitiesforreinvestment

atorigin.”

thesectortowardmorerobust

traceabilitytools-fromsatellite

monitoringandblockchainledgersto

certificationschemesliketheEthicalTeaPartnership-thatcandemonstratebothenvironmentalandsocialcompliance.Forproducers,especiallysmallholders,the

costsoftraining,auditsandtechnologyadoptionaresubstantial,creatinghurdlestomarketaccess.

Pricingiswheretraceabilityandregulationintersectmostsharply.

Voluntarysustainabilitystandards(VSSs)suchasRainforestAlliance,Organicand

FIGURE4

Teagrowingregionsoftheworld

VSS-compliantteahasbeenproducedandprocessedaccordingtotheguidelinesofVoluntarySustainabilityStandards(VSS).VSS-complianttearepresentsatleastaquarteroftotalglobalproduction.

3.0

2.5

VSScompliant

Potentially

VSScompliant

2.0

Mt

Conventional

1.5

1.0

0.5

0

ChinaIndiaKenyaArgentinaSriLankaTurkeyVietnamMyanmarThailandIndonesia

Source:FAO,2022;Meieretal.,2021

Fairtradehaveshapedthesectorfor

decadesandtodayaccountforatleastaquarterofglobaloutput(figure4).

Certifiedteacanfetchpremiumsofupto23%insomeproducingcountries,

creatingopportunitiesforreinvestmentatorigin.24“Theyaremakingmore

money,theycanreinvestitattheoriginlevelandcreatevaluelongterm,”saysMrBolton.

Yetthefinancialbenefitsa