PACK EXPO International organiser, PMMI (The Association for Packaging and Processing Technologies) announced that the show featured 2,700 exhibitors providing solutions in more than 40 vertical markets and welcomed 48,000 attendees. 

Amid continuing global economic pressures, PMMI reported that the packaging machinery industry has shown resilience and adaptability. According to its newly released State of the Industry: US Packaging Machinery report, which Jorge Izquierdo, vice president, market develop at PMMI, discussed at the Media Briefing during the show, the US packaging machinery market is projected to reach USD $11.1 billion in 2024, driven by automation and sustainability. Industry growth is expected to peak in 2027, with a continued focus on innovative solutions to meet evolving consumer and regulatory demands. 

According to the report, growth for the first half of 2024 was bolstered by the “clearing of remaining backlogs from the pandemic, the continued adoption of automated solutions, and the increasing demand for new machines to accommodate new packaging styles.” However, as the year continued, backlogs largely dried up as new orders slowed. The softened demand resulted in lower growth for the year overall, with a growth of 5.8%, reaching a value of USD $10.9 billion of new machines shipped, per the report. 

The lighter demand for new machinery continued into 2024. The report reveals that the packaging machinery sector is expected to experience its slowest growth year compared to the last three years in the industry. PMMI noted that the Federal Reserve’s decision to hold interest rates high and the uncertainty surrounding the US election contributed to the slowdown. 

PMMI expects sales of new machinery to begin rising again in the second half of 2024 “as the wait-and-see mentality dissipates.” Furthermore, PMMI believes that there will likely be more requests for end-of-line automation as many companies continue to struggle with retaining labour for production lines. Growth is expected to peak again in 2027, “in line with the three-year peak-to-trough cycle that we have come to expect in this market.” 

The report finds that the beverage industry proved resilient with a steady demand for drinks of all kinds. Recent trends include diversification of drink sizes — as evidenced by the displays at many exhibitor’s booths at the show, such as Tetra Pak, whose ready-to-drink packaging sizes ranged from 200ml to 1000ml.

Sustainability is one of the most significant topics in the packaging industry today. And while the US has less stringent regulations compared to the EU, major players are increasingly shifting towards more sustainable packaging solutions. The PMMI report reveals that many companies are moving away from single-use plastics (SUPs) in favour of paperboard and other eco-friendly materials. This trend is driven by both regulatory pressure and of course, consumer demand for greener alternatives. 

In addition to Tetra Pak’s aseptic paperboard, aluminum, and polyethylene packaging, Graphic Packaging was showcasing its Boardio packaging. Boardio is a fiber-based canister that can be tailored from low to high barrier protection, making it suitable for different applications. Folgers debuted its 1850 coffee brand in Boardio packaging in Walmart and Costco stores earlier this year, and both Walmart and Target rolled out their store-branded coffees in Boardio packaging in September and October. 

A significant trend to watch is the shift in packaging materials, with glass and cans gaining popularity as the industry seeks more alternatives to plastic. However, aluminum is also growing in popularity given that it is infinitely recyclable. GEA Processing was showcasing its new Uni Bloc Flex aseptic filling machine, which is a bottle sterilizer, rinser, filler and capper all in one as there has been a movement toward consolidation of machines within the filling and packaging sector. 

Tucker Scofield, packaging sales manager, liquids and powders, noted that GEA’s machine is the only one on the market doing aseptic aluminum. “It’s not a new technology –it’s been around for 25 years – but it’s new for aluminum bottles,” he said. “Aseptic is really becoming popular now because technology is making it easier to do.” Scofield added that there has been a lot of interest from coffee, tea and water brands. The Uni Bloc Flex can also fill glass and PET bottles. 

 New packaging regulations coming to the US was also a major topic of discussion, but I’ll save that for a future blog. 

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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In the UK, it is estimated that consumers use between 2.5 to 5 billion disposable paper cups per year, with few of those reported as being recycled. With 76% of people who purchase hot beverages to go relying on single-use equivalents, the research reveals that more work needs to be done in order to shift consumers away from their reliance on disposable hot beverage cups.

There is a huge opportunity for takeaway hot drinks outlets to adopt simple practices to reduce the significant single-use waste produced. In the US, for example, many cafés and coffee shops offer reusable cups for sale, a discount to customers that use one, or have a cost-effective returnable cup program. Furthermore, many outlets offer seasonal reusable cups to entice consumers to buy and use them, particularly in the fourth-quarter (e.g., Starbucks signature red reusable annual holiday cup) and Earth Day (bright green cups are ubiquitous).

In 2023, to help reduce single-use waste and alter attitudes towards disposable items, more than a dozen cafés in Stirling, Scotland offer customers the option of reusable cup for to-go drinks in return for a £1 deposit. The deposit could be reclaimed at any café participating in the Ditching Disposables Stirling scheme. (Click here for the full story.)

The flexibility of returnable and reusables allow outlets to establish a concept that best suits its operations. By purchasing a given number of returnable cups, organisations can either collect a small deposit from customers, which is then refunded on return of the cup, or implement a borrow charge if the cup is not returned within a set period. According to the survey, some programs are even simpler, by trusting customers to return the cups and ensure a circular economy of reusables within the outlet.

“This survey clearly shows the opportunity on offer to forward-thinking catering outlets as they look to reduce their reliance on single-use packaging,” said Dan Dicker, CEO and founder at Circular&Co. “There’s a clear appetite for more returnable cup schemes and reusables among those buying takeaway hot drinks regularly, which gives businesses the opportunity to make significant commercial and environmental savings, all while improving their appeal to the growing number of environmentally conscious customers.”

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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The study, FMCG flexible packaging: accelerating the move from plastic to paper, based on research conducted by PureProfile this past March with 100 UK packaging experts responsible for packaging R&D, technology, design and sustainability for FMCG brands reveals that the majority (92%) plan to stop using plastic in their consumer packaging altogether. The report, which launched at the Rethinking Materials Innovation and Investment Summit in London earlier this year, shows that paper and paperboard are the replacement materials of choice, followed by new polymers, bioplastics, and multi-materials.

According to the research, the shift to paper packaging comes ahead of improving the energy efficiency of operations, biodiversity and reducing the carbon footprint of logistics and reducing water use and waste. Reducing or abolishing plastic use altogether ranked last.

Most respondents said that there is a significant threat to their business if the environmental performance of the packaging used is not improved, with two thirds describing it as high and 31% said it was ‘average’. About 3% said the threat was low. Nearly three quarters (70%) of respondents said that their business faced the risk of reputational damage if they did not improve the environmental performance of their packaging, 67% said they could miss ESG and sustainability targets, and 60% said they would see a drop in market share to competitors.

The research highlighted the risks FMCG brands businesses face if they do not move away from plastic to sustainable materials in their consumer packaging, ranked in order of importance:

The majority (87%) of respondents want the switch to alternative materials to replace conventional plastics to take place faster. However, despite the commitment to move away from plastic, the timeframe for transition is still considerable, with 27% of packaging experts expecting this to happen by 2027, 35% by 2028 and 28% by 2029. Just under one third (30%) described the move to new packaging materials in their business as too slow, 58% labelled it as ‘moderate’ and only 11% said it was fast.

The study finds that currently, the main barriers to using more environmentally friendly options are the higher cost of alternative packaging, which was cited by 53% of respondents, the availability of alternative materials (50%) and ensuring the functionality and product protection remains the same (46%).

When asked what key drivers would help the FMCG sector speed up new material development and implementation, the research showed that 70% of respondents believed that more ambitious recycling targets were key, 62% wanted to see increased investment in new materials, and 54% said greater collaboration to accelerate R&D was needed. Half said that an industry-wide commitment to move away from conventional plastic was necessary, while a further 47% cited tighter environmental regulation through taxation of materials with poor environmental performance was important.

Commenting on the results, Dr John Williams, chief technical officer at Aquapak, said, “It is really encouraging to see that moving to sustainable packaging materials such as paper is the top priority for FMCG brands and a board-level decision when it comes to improving their environmental credentials and mitigating reputational and financial risks of not doing so. Abolishing the wrong sort of plastic use is important and is a long-term target, the change must be balanced as they assess alternative materials and wait for greater clarity around targets and regulation.”

To download the report, click here.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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A new survey reveals that the best way to encourage employees to work from the office rather than from home is to offer free beverages.

Although the survey was conducted OnePoll on behalf of multi-beverage system manufacturer Flavia, which provides machines to many offices, it does yield some interesting and valuable results for businesses. For example, the average person spends nearly 50 hours a year purchasing beverages at a café during the workday.

According to the 2023 survey of 2,000-plus employees who work onsite or in an office, it takes about 16 minutes to leave one’s desk, buy a drink and return, but with three such trips a week, employees end up losing an entire work week per year (16.4 minutes per café visit x 3.42 visits to the café per week = 56.088 minutes a week, x 52 weeks in a year = 2,916.576 minutes or 48.61 hours a year). This can impact productivity considerably, whether the company is large, medium or small-sized (in terms of the number of employees.

The survey found that to jumpstart their workday, people usually get organised (60%), sip their favourite beverage (59%) and check their emails (55%). Their first drink of the day? A hot cup of coffee (66%), followed by iced coffee (47%), water (45%), or tea (42%).

The survey also shows that there may be a link between drink preference and productivity. Approximately 77% of coffee drinkers need two or more cups of coffee to feel productive on a workday, with nearly a quarter (24%) noting Mondays were the day of the week they needed the most coffee.

Six in 10 (60%) turn to a hot cup of coffee to improve their mood at work, as well. Nearly two-thirds (64%) “always” or “often” vary the type of drink they consume as the hours go by. Aside from hot coffee (77%), employees also drink water (70%), iced coffee (64%), tea (62%), juice (55%) and flavoured water (51%) while they work, among other beverages.

“Over a third (37%) of those surveyed would like the ability to brew hot and cold beverages and more than a quarter (26%) want to be able to brew different kinds of beverages at work,” said Camille Vareille, vice president, head of marketing Americas, Lavazza Group, which owns Flavia, in a statement.

The survey revealed that nearly 87% of respondents were going into the office between two to three days a week. “Over eight in 10 employees said having free beverages as a workplace perk would make them feel valued, and offering free beverages was the most requested perk to encourage employees to work from an office,” Vareielle added. “Investing in an array of beverages on-site can not only save employees time and money but also help with bringing them back into the office.”

According to the survey, the leading “perks” to encourage employees to work from their onsite office are:

• Free beverages — 46%
• Required breaks — 45%
• Free food — 45%
• On-site gym — 43%
• Office lounge/social area — 42%
• Ability to bring pets to work — 36%
• Ability to bring kid to work — 29%
• On-site games — 22%
• In-person employee clubs — 14%

The fact that the survey may seem a bit self-serving and was conducted only in the United States, doesn’t negate the information or the value to businesses globally (replace ‘coffee break’ with ‘smoke break’, which happens multiple times per day, every day – based on a five-day work week – and the impact to productivity is even greater). And looking at the list of perks noted by the poll participants, installing a multi-beverage system (formerly ‘office coffee system’) may be the most cost-effective option (it’s certainly less than building a gym!).

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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Coffeeness reports that the most popular iced coffee beverage globally is the frappe, with 35 countries naming it their most preferred iced coffee drink. According to Coffeeness, frappe was the most searched-for iced coffee drink in Africa, Europe, Asia and South America. The frappe is a French coffee drink (originating from lait frappe, ‘milkshake’) that is made of espresso shots mixed with cold water, cold milk, sugar and ice cubes. Instead of being stirred, the mixture is beaten, shaken or blended to combine the ingredients and produce a creamy, frothy and icy drink.

Iced coffee latte, frappuccino, cold brew coffee (although cold brew is actually a brewing method and not technically ‘iced’ coffee) and Spanish latte rounded out the top five spots for the most popular iced coffee beverages around the world. [For the full report by Coffeeness click here.]

Emerging second on the list is the iced vanilla latte, which is loved in 14 countries across the globe. These include Australia, Bulgaria, Canada, Luxembourg, Iceland, New Zealand, the United Kingdom, and the United States. Iced vanilla lattes are made by mixing milk, espresso and vanilla syrup, which is then served over ice cubes.

Although often confused for a frappe, the third most popular iced coffee beverage – the frappuccino – is different from a frappe. A frappuccino is made using strong brewed coffee or espresso, which is then blended with milk, sweeteners, ice, syrups, sugar and any other flavor of choice. Whipped cream and chocolate shavings are also added as garnishes. Frappuccinos are sweeter than frappes, have more calories and come in a variety of flavours. They are popular in 12 countries including Belgium, Chile, Egypt, Jamaica, Jordan, Lebanon, Morocco and Trinidad and Tobago.

The fourth most popular iced coffee beverage is cold brew, which again, is not actually iced coffee because as the name implies, ‘cold brew’ is a brewing method. Cold brew is achieved by steeping coffee grounds in cold water for 12-24 hours. This brewing method allows the coffee grounds to slowly release their flavour, aroma and essential oils, resulting in an aromatic, chocolatey, low-acidity flavour profile. Cold brew is the preferred coffee drink in countries like Brazil, the Czech Republic, Hong Kong, Indonesia, Poland, Norway and Singapore. It is also popular in Turkey, outdoing the famous Turkish coffee on its home ground, according to Coffeeness. [Side note, cold brew is extremely popular in the US and is drunk year round by many consumers not just in summer months.]

The Spanish latte rounds out Coffeeness’s list of the top five most popular iced coffees globally. It is a creamy drink made of an espresso shot mixed with sweetened condensed milk and milk. It is popular in six countries, including Malaysia, Oman, Singapore, Qatar, Saudi Arabia and the United Arab Emirates. Spanish lattes are sweeter than regular lattes but aren’t as sweet as the common flavoured lattes, Coffeeness notes.

Interestingly, there are two additional drinks Coffeeness referenced that I had never heard of before: eiskaffee and mazagran. Per the website, eiskaffee is a coffee variation made using vanilla ice cream, chilled coffee and topped with whipped cream, which is popular in Austria and Germany.

Mazagran originated in Algeria and is a tart and tangy drink that’s diluted and served cold in a glass. It is popular in France and Portugal, per Coffeeness.

Of course, no matter the country or time of year, it is always fun to be adventurous to try a new type or different style of coffee — hot or cold/iced. Although, since we’re in the midst of our third heat wave of summer in New York City (averaging 32°C/94°F excluding the humidity!), I’m definitely opting for a cold coffee when I head out this afternoon, and perhaps try something new…

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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Companies are often introducing new products or brands or displaying their recent launches at the Fancy Food Show (which took place between 23-25 June this year), so it is also the perfect opportunity to sample new coffee and tea SKUs. Most companies exhibiting at the show look to gain or expand their retail distribution in the United States. Whittard, for example, is a well-known and highly regarded English tea brand –established in 1886 – but it began to expand its presence in the US only recently so the show is an ideal place to meet retailers. Some companies exhibit hoping to find distributors to launch their products in US stores. For example, Shun Tea, from Japan, which was promoting its Camellia sinensis stem-based matcha called ‘bowcha’ and Brewix from India, which offers black, green and herbal and botanical teas in plastic-free, sugarcane-based packaging, were both hoping to find distributors to help bring their products in the US market.

On the coffee side, licensed brands were strong with many of the established companies (those already available at retail but looking to expand their distribution). White Coffee has long offered an array of licensed brands in its coffee assortment such as Harry & David, Entenmann’s, Jim Bean, Bailey’s and Peanuts. Two of its newest licensed ground coffee products are M&M’s and Snickers branded coffee, which join Twix and Dove.

Two Rivers Coffee from New Jersey also offers several licensed coffee products including ice cream brands Friendly’s and Cold Stone Creamery. Its newest item is Kellogg’s Eggo-branded coffee. According to Sam Blaney, vice president of sales and marketing, this is the first time Kellogg’s has licensed the Eggo name to another F&B product. Flavours for the single-serve coffee line include vanilla, maple syrup, cinnamon toast, chocolate chip and blueberry. When I asked who they are targeting with the Eggo coffee line, Blaney said it’s a nostalgia brand so he believes the line will appeal to anyone who grew up eating Eggo waffles, and of course, Gen Z, because that demo tends to enjoy sweet flavours.

New English Teas Ltd has also specialised in licensed products such as Beatrix Potter and tea sporting the Royals such as Queen Elizabeth II, King Charles, and Prince William and Princess Kate (technically, it may be Kate, the Princess of Wales). At the Fancy Food Show, New English Teas was highlighting its new Harry Potter line, which ranged from small decorative tins to beautiful large canisters and included a variety of flavours in both loose leaf tea and tea bags.

Unsurprisingly, the most innovation was in the ready-to-drink segment. Boba/bubble tea was ubiquitous, offering a variety of flavours (mango, passionfruit green tea; peach oolong tea; mixed berry hibiscus, etc.) including new tapioca and juice-based boba flavours, and instant bubble tea and instant popping boba kits. There were myriad companies offering new coffee and RTD drinks from cold brewed, to lightly sweetened and unsweetened, those with plant-based additives, and of course, new flavours, such as a lavender and maple oat milk latte from Dripdash, but the real innovation was in functional RTD coffee and tea.

Frujava won the Sofi Gold Award from the Specialty Food Association in the Energy Drink Waters & Functional Beverages category for its coffee bean and green coffee extract-based Cherry Vanilla Energy Drink. Frujava is targeting those consumers who would like the ‘energy’ benefits that energy drinks provide – each can contains 80mg of caffeine – but naturally, as the caffeine is derived from coffee. The drink tasted more like a semi-sparkling juice so it will appeal to those who may not want a soda but do want caffeine yet not necessarily a cup of coffee or a typical energy drink, both of which have much higher levels of caffeine.

Monatea, from South Africa – which was also looking for a distributor – was promoting its cold-brew sparkling rooibos drink (a subtle sparkling tea) that is caffeine-free, organic, has no sugar and only one calorie in distinct flavours such as ginger/peach/African olive leaf, sage/lime/Cape Mint, and hibiscus/berry/buchu. For those who prefer a sweetened beverage, Monatea also offers lightly sweetened versions. Many of the ingredients are native to only the Cape Floral Kingdom of South Africa, which adds to the uniqueness and originality of the drinks.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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In her article, “Gendered Teas: A Marketing Strategy or Women’s Reprieve?”, our associate editor, Kathryn Brand, discusses how the ‘wellness economy’ is still surging post Covid-19. Kathryn writes: “As this movement has matured, it has, by extension, expanded and brought to the forefront wellness teas specifically catered towards women. This, combined with a growing feeling of disempowerment of women’s health needs, has resulted in a strong market demand in the women’s wellness tea category.” 

But the question remains, are these teas legitimately offering women relief or are they gimmicks? 

The words ‘disempowerment of women’s health needs’ is a frustrating but oft-true reality that has been happening for far too long, and yet continues today. Not too long ago – when I was a reporter covering the retail industry – ‘PMS’ (premenstrual syndrome) was not a ‘real’ syndrome or even an ‘ailment’, it was something ‘in women’s heads’, scoffed at and therefore not legitimised (at the time there was one, maybe two PMS pain relievers on the market). But then (in my opinion) the pharmaceutical industry seemingly ‘did the math’ and acknowledged that nearly half the global population are women (today that number is 49.6%) and might suffer from PMS not only monthly, but for many years — and the money bells started ringing. Suddenly ‘PMS-relieving’ products started flooding the market coupled with major advertising campaigns. Forward to 2022 and the global PMS and menstrual health supplements market size was valued at USD $22.6 billion per Grand View Research. So, despite its auspicious beginning, PMS was eventually realised as a ‘syndrome’ most likely because of its strong revenue potential but a new category was created that does offer relief for a specifically female-related problem. 

Years later, women’s health claims and needs are still often discounted by doctors, leading them to often look for alternative methods for care and treatment, such as holistic medicine. However, there are also women who prefer natural solutions rather than medicinal when available. Women’s wellness teas go beyond the core functional areas of energy, concentration, relaxation, gut health, skin health, etc., to target needs of women during various life stages. Thus, there are products to support women during reproductive life – from menstruation, pregnancy, nursing – to perimenopause to menopause. But are these teas offering women relief or simply catering to women’s purchasing power in a previously untapped market? Perhaps a bit of both. 

While some brands may see the category as a new potentially strong revenue stream. Some of the brands highlighted in the story, are founded by women because they saw a problem and created a product to solve it. Bethan Thomas, co-founder of HotTea Mama, and a tea scientist, told T&CTJ the motivation for establishing the brand, “It wasn’t until I got pregnant that I realised the majority of the herbal blends that I was creating, weren’t suitable for pregnancy due to many of the ingredients inside. This triggered the idea for HotTea Mama, as my best friend [and I] went through motherhood and suffered with morning sickness, struggles breastfeeding and sleeping… We wanted to make teas that were suitable for this life stage, to be both delicious and supportive.” HotTea Mama has expanded its tea line to offer teas during women’s various life stages. 

Traditional Medicinals, the herbal and botanical tea company that is celebrating its 50th anniversary this year, says it is prioritising women’s health. In the article, Kristel Corson, chief marketing officer at Traditional Medicinals, said, “We believe in providing natural and effective support for women’s health concerns, from menstrual health to pregnancy and lactation support.” 

While I truly hope none of these are simply marketing ploys, there is nothing wrong with exploring a new avenue for revenue (as brands, companies and individuals have done for decades, even centuries), as long as they are legitimately offering some type of relief or support. Support is a key word as none of these women’s wellness teas are panaceas, they are supplementary products aiming to offer holistic solutions for women. And if, in fact, they are offering support, and the more accessible and reasonably priced they are, then female consumers will benefit, and kudos to the brands. 

I recommend reading Kathryn’s article, “Gendered Teas: A Marketing Strategy or Women’s Reprieve?”, which begins on page 30 in our June issue and is the highlighted feature in this week’s newsletter to learn more about this intriguing new category.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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Amcor, a Zurich, Switzerland-based packaging solutions company conducted a study on European consumers’ preferences and the factors shaping their coffee purchasing decisions. Their research reveals that European coffee consumers prioritise taste, aroma, brand, and price when selecting coffee.

Approximately, 70% of respondents consider brand trust to be ‘very important’ in their purchasing decisions. Additionally, packaging size and convenience are essential factors. Country-specific preferences indicate that UK respondents are particularly sensitive to the ‘premium aspect’ of coffee packaging, with 52% rating this criterion as ‘very important’.

The research also finds that convenience, robustness, and packaging material are key considerations in assessing the premium quality of coffee packaging.

“These insights underscore the positive correlation between packaging and fostering brand trust,” stated Giorgio Dini, coffee marketing manager at Amcor. “Well-designed packaging can align with consumer preferences and significantly influence their purchasing decisions.”

Nearly 70% of the shoppers polled have, at least sometimes, based their coffee choices solely on packaging. The research found that packaging proves to be particularly important for Gen Zers and millennials (18–34-year-olds).

Convenience is vital, as 50% of respondents see it as a key feature, and 33% said that they would not repurchase a pack if it was not easy to use. The research finds that when it comes to packaging functionality, “consumers rate ‘easy to open and reclose’ as second most appealing, after ‘preserves coffee aroma’.”

Sustainable packaging is important to European coffee consumers, with 44% of respondents affirming its positive influence on repurchasing decisions. This is top of mind with the two leading demographic groups – Gen Z and millennials – with 46% prioritising social and environmental factors.

According to the study, one in five consumers indicated they would forgo purchasing a coffee brand perceived as unsustainable, and 35% said they would be deterred by overpackaging. The research also revealed that consumers prioritise ‘less plastic’ and ‘recyclable’ claims in coffee packaging. Notably, 73% of UK respondents rated ‘recyclability’ as the most important claim.

The primary research conducted by Amcor, surveyed 1,655 grocery shoppers across the UK, Germany, France, Spain, and Italy. Consumers questioned have purchased coffee products in the last six months.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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“The new super survey of over 1,000 adults in Britain reveals some fascinating insights into the nation’s particular preferences for their ideal brew, from habits around adding milk and sugar to some of our peculiarities when brewing up,” said Dr Sharon Hall, chief executive of the UKTIA. The 2024 Tea Census Study was conducted in March 2024 on behalf of the UK Tea & Infusions Association (UKTIA) in advance of International Tea Day on 21 May.

There’s a clear favourite format of tea that Brits use for their daily brew, and it’s the tea bag. “With nearly two thirds (64%) stating they need a cuppa before they can even begin to tackle the day ahead, it’s no surprise that 84% pick the option of a tea bag to make their black tea, with 16% opting for loose leaf,” said Dr Hall.

Curiously, the age group most likely to prefer loose-leaf black tea was the 30-44-year-olds (27%), compared with 16% of 18-29-year-olds, 12% of 45-59-year-olds, and only one in ten (10%) of those aged 60+. “When it comes to other types of tea, it may also come as a surprise that the age group most likely to mainly drink loose leaf varieties were the youngest (18-29-year-old) adults,” Dr Hall shared. She added that for both herbal infusions and green tea, more than a quarter (28%) of this age group said they predominantly chose loose leaf over tea bags. This compares to only 5% of the older adults.

The UKTIA Census Tea Study also covered the steps Brits take to make a cuppa, and it turns out that while Britain is known as a nation that likes a strong builders brew, of the respondents, just a few are brewing their tea for the appropriate times. “Only 7% said they brewed their tea for the optimal three to four minutes for most types of tea, especially black teas,” said Dr Hall. A quarter of survey participants (26%) said they left the bag or leaves in for only one to two minutes while nearly a fifth (18%) brew their tea for less than a minute.

When asked which order they add the items needed for making a brew, Brits most commonly put in the tea bag first followed by water, milk and sugar/sweetener. Nearly a quarter (24%) of respondents said they drank their black tea without any milk.

While adding milk to black tea is common in the UK, tea experts and enthusiasts frown upon adding it to green tea, white tea and herbal/botanical infusions, which are all more delicate and can be overpowered by the addition of milk (whether it is dairy milk or plant-based milk). However, it seems Brits like adding milk to all tea varieties. The survey revealed that a third (35%) of Brits add milk to green tea, and nearly a third (32%) add milk to their herbal infusions.

“An interesting revelation from the data was [how many] of us add milk to our green tea, which many tea connoisseurs would argue ruins the flavour, but people should have tea just how they like it!” Dr Hall remarked.

Of those respondents who did add milk, the most popular choice by far was semi-skimmed – 40% – with 18% choosing skimmed, 13% opting for the full fat variety, and just 5% preferring plant-based milk in their brew, despite the trend for plant-based diets.

“For those adding an accompaniment to their teatime, the most popular snack pairing for Brits was by far and away a sweet biscuit (48%),” shard Dr Hall. Other popular tea-time accompaniments include a chocolate biscuit (36%), cake (32%), a sandwich (24%) and chocolate (18%). Around a fifth (22%) said they preferred to enjoy their brew without any snacks or treats.

Of course, no matter which type of tea is used, the best way to ensure a ‘perfect cuppa’ is to always use quality tea and filtered water for boiling. The UKTIA suggests that the optimal temperature for green tea is 80C (176F) while it is 90C (194F) to 98C (208.4F) for black tea, but it is important to always follow the instructions on the packaging for the perfect brew.

And when preparing tea, Dr Hall urges tea drinkers to ‘Smart Boil’. “Measure out the number of cups of water you need for each cup you are making, this will save time, money and energy. Add one tea bag or one rounded teaspoon of loose leaf per cup.”

Whether you brew your tea strong or weak, take your tea with or without milk, and enjoy it with or without a savoury or sweet treat, I hope tea drinkers enjoyed their ‘perfect cuppa’ on International Tea Day and every day! And as International Tea Day has passed, I will wish everyone a happy International Tea ‘Week’ instead!

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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A new study by Aquapak, ‘FMCG flexible packaging: accelerating the move from plastic to paper’, reveals that 92% of FMCG (Fast Moving Consumer Goods) companies plan to stop using plastic in their consumer packaging altogether. The report, launched on 14 May at the Rethinking Materials Innovation and Investment Summit in London, shows that paper and paperboard are the replacement materials of choice, followed by new polymers, bioplastics, and multi-materials.

However, the study, which is based on research with 100 UK packaging experts responsible for packaging R&D, technology, design and sustainability for FMCG brands, finds that despite the commitment to move away from plastic, the timeframe for transition is still sizable, with 27% of packaging experts expecting this to happen by 2027, 35% by 2028, and 28% by 2029. Just under one third (30%) of respondents described the move to new packaging materials in their business as too slow, 58% described it as ‘moderate’ and only 11% said it was fast. The majority (87%) want the switch to alternative materials to replace conventional plastics to take place more quickly.

According to the study, currently, the main barriers to using more environmentally friendly options are the higher cost of alternative packaging, which was cited by 53% of respondents, the availability of alternative materials (50%) and ensuring the functionality and product protection remains the same (46%).

When asked about the key drivers that would help the FMCG sector speed up new material development and implementation, the research showed that 70% of respondents believed that more ambitious recycling targets were key, while 62% wanted to see increased investment in new materials, and 54% said greater collaboration to accelerate R&D was needed. Respondents do believe that switching to more sustainable packaging solutions is important, with half saying that an industry-wide commitment to move away from conventional plastic was necessary, while a further 47% cited tighter environmental regulation through taxation of materials with poor environmental performance was important.

“Our study shows that the FMCG sector is highly cognisant of the need to move away from conventional plastics to more environmentally friendly materials which offer better end-of-life outcomes, be it improved recyclability or biodegradation to make life easier for their customers and other stakeholders,” said Dr John Williams, chief technical officer at Birmingham, England-based Aquapak, which develops and manufactures a range of adaptive polymer-based material technologies. “There is undoubtedly some confusion in the market by the number of ‘new’ materials which all offer some potential, but all too often exaggerate the properties and availability of the material, causing delays in the use of genuine solutions by using valuable time in the packaging development process. It is important that there is an acceleration in the use of materials which are available at scale, offer the required functionality, run down existing conversion lines, and have a viable end-of-life solution to the consumer. These solutions are available now and, in the market, but only in low numbers.

Dr Williams added that Aquapak’s research also suggests that the sector needs to be bolder in its commitment to new packaging materials. While 37% say they are more focused on switching to innovative, environmentally friendly materials, 25% are developing existing materials, and 38% are placing equal importance on both. “Is this really embracing innovation and change or sitting on the fence until regulation forces the industry’s hand?” he asked. “New materials already exist and can facilitate the move from plastic to solutions which are functional, provide the product protection needed but do not harm the environment when they come to the end of their useful life.”

The research for the study was conducted by PureProfile with 100 packaging experts working for FMCG brands in the UK, in March 2024. To download the report, visit aquapakpolymers.com/fmcg-report-download.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

The post The timeframe for transitioning away from plastic is still considerable appeared first on Tea & Coffee Trade Journal.

The 2024 Specialty Coffee Expo also debuted the Green Coffee Connect programme, which provided interactive programming for anyone selling or buying green coffee, and the Retail Buyers Lounge, which offered coffee retail buyers an area to network, conduct meetings, and cultivate potential business partnerships with exhibitors.

The Specialty Coffee Expo always offers a dynamic roster of lectures and workshops, and this year was no different. However, I was, perhaps, most impressed by the session on Robusta. Although specialty Robusta cuppings have taken place at the SCA Expo, as well as other lectures, I believe ‘Exploring Quality Focused Robusta: A Conversation with Producers and Roasters’ was the first panel discussion focused on Robusta featuring leading specialty coffee roasters.

Moderated by David Pohl of Pohl Consulting, panellists included: Shaun Puklavitz, coffee sourcing and relationship manager, Blue Bottle Coffee; Amaris Gutierrez-Ray, senior director of coffee and roasting, Joe Coffee/founder of the Women in Coffee Project; Sahra Nguyen, founder and CEO Nguyen Coffee Supply (a specialty Robusta coffee roaster); Lucus Venturim, a fifth generation coffee producer from Espirito Santo, Brazil and a Q processing/Robusta instructor; Luis Carlos Sotillo, head of quality control and experimental processing at the Kiva Estate in Cocie, Panama; and Nafessa Esmail, and conservationist and coffee producer from the Asisi Estate in Uganda.

The panellists agreed that nature has played a huge role in the growth of Robusta, but there is untapped potential.

“Most people never gave Robusta a second thought and would treat it poorly,” said Luis Carlos Sotillo, “but there is a great opportunity to innovate.”

Amaris Gutierrez-Ray said Joe Coffee first started to experiment with Robusta in 2018 when a wholesale customer requested a “nostalgic, traditional Roman style expresso.” She explained that when roasting to a dark level, characteristics of the coffee are removed, Robusta worked best because it didn’t lose those qualities. “We need to get over this prejudice with Robusta because it’s old.”

Sahra Nguyen has been championing Robusta coffee since she founded Nguyen Coffee Supply in 2018. The brand’s products are 100% Robusta and clearly labelled as such from the beginning. T&CTJ’s associate editor, Kathryn Brand, spoke with Nguyen for her feature, “Redefined Prospects for Robusta” (T&CTJ’s January/February 2024 issue), and when discussing the long-standing stigma surrounding Robusta, said, “there’s been an entire community in the coffee world that has been told you don’t deserve investment. You don’t deserve care. You don’t deserve to improve or advance your livelihoods, and that’s what we are ultimately trying to lift when we talk about Robusta.”

Nguyen is even pioneering a Robusta Pledge, which encourages producers, importers, roasters, coffee shops, etc., to sign a commitment to advance opportunities for Robusta farming communities, and for a fair and transparent Robusta market.

Even World Coffee Research, which has been actively researching, studying  and experimenting to preserve the Arabica plant by combatting threats against it (climate change, disease, pest infestation), has acknowledged Robusta by providing similar resources to its Arabica offerings. For example, in 2023, WCR introduced its Robusta Variety Catalogue along with other resources such as a Grafting Manual and Nursery videos.

I remember cupping my first ‘specialty Robustas’ at a pre-Covid SCA Expo (in Seattle I believe). In 2022, while attending International Coffee Week in Brazil, I cupped some truly lovely specialty Robustas, predominantly from the Amazon region. These Robustas were all processed with the care, concern and attention to detail that is given to Arabica, and the effort was manifested in the taste. With Arabica continually under threat, the coffee industry does need to give Robusta ‘a second look’, as well as Coffea liberica and Coffea stynophylla (T&CTJ’s January/February issue, “Climate Proof Coffee Species Recultivated in Sierra Leone”).

“We are still learning the potential for quality Robusta,” said Blue Bottle’s Shaun Puklavitz. “As we continue to find those coffees, we will [incorporate them into our product line].”

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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Total sales are above pre-pandemic levels, however, weakened consumer confidence, high inflation and lower foot traffic at traditional prime locations have contributed to slowed growth and increased uncertainty, and yet the appeal of the coffee shop culture endures. Allegra World Coffee Portal’s Project Café UK 2024 shows the UK branded coffee shop market achieved 9.2% sales growth to reach £5.3 billion over the last 12 months. The total market grew 3.6% by outlets to reach 10,199 stores.

Project Café UK also revealed that outlet growth has slowed as operators exercise caution, noting that operators are increasingly assessing underperforming sites — 25% of branded coffee businesses saw net reductions in their outlet portfolios over the last 12 months, with 29% not opening any net new outlets amid heightened industry caution. Costa Coffee remains the UK’s largest branded coffee chain, holding a 26% share of the market with 2,677 stores, after closing a net 17 sites over the last 12 months. Overall outlet growth was led by Greggs and Starbucks, which opened 73% of the 353 net new stores added to the market during the period.

Coffee shops may be weathering the difficulties but challenges remain as the cost-of-living crisis (which is affecting economies globally) continues to squeeze UK consumer disposable incomes. Project Café UK identified a negative impact on regular coffee shop visitation over the last 12 months. Amid sustained high product, labour, energy and property costs, branded coffee chains have increased coffee prices by an average of around 9% over the last 12 months (the average price of a 12oz latte rose 8.7% to reach £3.51), resulting in average spend falling 4% year-on-year, with consumers either more likely to only purchase a beverage or spend less overall on food items.

The research finds that many operators are diversifying retail and product strategies to broaden their market appeal. For example, in a bid to attract the ever-important Gen Z consumer, Costa Coffee became the first major UK branded coffee chain in the UK to offer bubble tea in 2023 and has also launched a new hot milkshake range.

Project Café UK further reported that Costa, Starbucks and Tim Hortons all grew their drive-thru presence over the last 12 months to collectively hold a 93% share of the 801-site UK drive-thru coffee market. In the food-focused segment, Greggs met its target to open circa 150 stores per year with a significant coffee offering and the chain is now trialling iced coffee at selected locations. Pret A Manger has doubled down on its in-store subscription with a 20% food discount to subscribers and has sought to cater to families by introducing a new children’s menu.

Although an improving economic outlook for 2024 is predicted, subdued growth is expected. UK inflation has more than halved over the last 12 months and high street trading conditions are likely to improve further following the Bank of England’s anticipated base rate decrease — its first since March 2020. However, World Coffee Portal reports that fierce competition in an increasingly crowded market is likely to constrain operator growth, forecasts the UK total branded coffee shop market will exceed 10,500 outlets by January 2025.

Commenting on the report, Allegra World Coffee Portal founder and CEO, Jeffrey Young said, “Despite some very strong economic headwinds, squeezed consumer spend and trading uncertainty, the UK coffee shop market – and especially branded coffee chain segment – has remained very resilient. Having achieved two decades of consistent growth only interrupted by the Covid era, we’re now looking at trading patterns well above pre-pandemic levels.” He added that “a very bright future awaits for the UK coffee shop market as operators invest in innovation through technology, capture the hearts and minds of the next generation with new product categories, including iced beverages, and focus on delivering high-quality, value-for-money experiences.”

Meanwhile, a new report from SumUp, the leading global fintech company, revealed the best cities in the UK for independent coffee shop businesses to thrive. It’s no surprise that in recent years, there has been a bigger spotlight placed on independent businesses, as consumers become more conscious of supporting their local communities.

SumUp’s research explains that the cities on its list have “buzzing independent shopping scenes, and each one boasts a range of unique boutiques, bookshops, and homeware stores. These cities are among some of the best to establish yourself as an independent business owner, and they provide the perfect environment in which you can thrive and grow.”

The research named Bristol as the top city in the UK for independent coffee shop businesses, followed by Sheffield and London. The study ranked 80 cities across the UK, taking into consideration the number of independent coffee shops in each location and their average review score.

According to SumUp, “it’s no surprise that Bristol tops the list as the best city for fostering and thriving as an independent coffee shop business. The city boasts an impressively high score of 1.26 for the number of independent coffee shop businesses the city hosts, home to 79 independent coffee shops.” Additionally, Bristol records the highest rated coffee shops on average within the coffee sector, with an average coffee shop rating of 4.64 stars.

While having less coffee shops than London, likely due to scale and population, SumUp stated that Bristol’s coffee shops perform better than those in the capital, on average, as London’s independent cafés hold an average review score of 4.43.

Sheffield, is another strong contender for independent coffee shops, per SumUp, ranking it as the second best UK city for independent coffee spots. The northern city has slightly more independent roasters than Bristol, and just ranks by just 0.01 points when it comes to average reviews.

Rounding out the top ten cities in the UK for independent coffee shop businesses, according to SumUp are: York, Glasglow, Dublin, Edinburgh, Salford, Gloucester and Newry.

For the full Project Café UK, click here. For more information on The best UK cities for independent businesses study, click here.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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The Coffeeness study reported that “cappuccino is easily the most popular coffee drink in the world,” and is preferred by 24 countries, including Albania, Austria, France, Kenya, Spain, Saudi Arabia and the Netherlands. (Fun fact: the word “cappuccino” is an Italian term derived from the word cappuccino meaning “hood.” The friars and nuns of the Capuchin order wore hoods of a similar colour, hence the name cappuccino, meaning “small hood.”)

The second most popular coffee drink, according to the survey, is espresso. Coffeeness found it to be preferred in 14 countries globally, including Canada, Pakistan, Germany, Iceland, Greece, Egypt and the United States. (Fun fact: the name is derived from the Italian word esprimere which means “squeeze out.” Apparently, the name stuck because the drink is quickly made on the spot at the customer’s request.)

My skepticism arose after reading the countries where cappuccino and espresso rank as the most popular. I’m shocked that Italy is not on the list for either cappuccino or espresso, and yet, espresso ranks as the most popular drink in the United States? “Espresso-based” or “espresso-blended” I can see, but I find it hard to believe ‘pure espresso’ is the top drink in the US (whether purchased in coffee shops or prepared at home) but fails to make the list in Italy.

Black coffee, according to the Coffeeness study, took third place and is the most popular coffee drink in 12 countries, including Bulgaria, Israel, Jordan, South Africa and the United Arab Emirates.

The Americano is most popular in 10 countries, including Argentina, Costa Rica, Italy, South Korea and Uruguay. It is also popular in South America. (Fun fact: An americano is made by mixing an espresso shot with some hot water for a smoother, less intense cup of coffee. The drink was reportedly made famous during World War II, when American soldiers stationed in Italy would mix Italian espresso shots with water. They did this to get coffee that was similar to what they were used to.)

Per the study, mocha is the most popular choice in six countries: Bangladesh, Hong Kong, Japan, Mauritius, New Zealand and Vietnam. I am surprised that in Vietnam, the most popular drink is not Vietnamese coffee, which, served hot or cold has ample condensed milk in it.

Latte, Irish coffee, flat white, macchiato and iced coffee tied for the sixth spot. According to Coffeeness, they are all popular in four countries spanning Asia, Europe, South America and the United States.

Latte is popular in Brazil, Hong Kong, Malaysia and Vietnam.

Irish coffee is popular in Finland, Ireland (of course), Norway and Sweden. Irish coffee is not a coffee drink sold in typical coffee shops, rather in restaurants and bars as it an alcoholic beverage: coffee spiked with whiskey, sweetened with some sugar and has whipped cream on the top.

Flat white (coffee made by mixing two espresso shots with steamed milk, without adding any froth on top) is popular in the Czech Republic, Qatar, Poland and Denmark. It originated in Australia and New Zealand but has gained popularity in Europe and the Middle East.

Espresso macchiato is popular in Honduras, Australia, Albania and the United Kingdom. It is a sort of cross between espresso and cappuccino, as the espresso macchiato has a coffee-to-milk ratio of 1:2

Iced coffee – not cold brew coffee – is the preferred drink in Nicaragua, Chile, Norway and the Philippines.

Cortado, frappuccino and Turkish coffee came in at the bottom of the list, each being popular in less than three countries. According to Coffeeness, these coffee drinks are so low on the list because they are mainly associated with certain destinations and have not yet been widely embraced by the rest of the world.

I’m not sure how valid or accurate the study is given that it is based on ‘Google search volumes analysis’ and not actually based on consumer purchases whether in a coffee shop, retail store or online. Review the full study here and feel free to share your thoughts on the survey.

For now, I’m off to prepare some coffee via my French press!

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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The workshops and education sessions began with the all-day Tea Business Incubator on 18 March (a Tea Primer for true beginners was held on the 17^th), which is for anyone interested in starting a tea business or who wants more insights into the tea industry. Jeff Fuchs, founder, Puerh Procurer, opened the conference and trade show component on the 19^th with a keynote speech that discussed the history of tea, its evolution through time and cultures, and current challenges facing the tea industry. Concurrent sessions included Promotion of Tea: A Global Perspective, Clone Wars: Ten Tea Cultivars You Should Know, Driving Data Purity Through Traceability, Assamica Producers’ Collaboration, How to Navigate and Profit with Tea in E-Commerce, Essential Insights for Success in the Ready to Drink Market, Adapting to Adaptogens, and Flavoring 101: Exploring its Place in the Tea Industry. Panel discussions included Conscious Commerce: Empowering Customers Through Responsible Sourcing, Identifying Issues in Sustainability & Traceability in Tea, and Implementing Sustainability & Traceability in Tea.

Participation in the various lectures was high. I attended two of the panel discussions on sustainability, and both had large audiences who were actively engaged, taking notes, and asking questions — with the majority being first-time attendees. When asked what sustainability in tea means by one new participant, Shabnam Webber, president of the Tea and Herbal Association of Canada, noting that the tea industry is 5,000 years old, summed it up nicely saying, “We are all stewards passing through the tea industry and stewardship requires you to care about tea in order to pass it on to the next generation.”

Most education session participants with whom I spoke, found this year’s roster to be some of the strongest WTE has offered to date, noting there were diverse in content, valuable, and beneficial.

The exhibition component, which had a strong number of exhibitors and attendees, remains the weaker segment of WTE. There was a lot of turnover in terms of exhibitors from the 2023 show to this year’s show, with only a handful being repeats. There was a large pavilion of producers from China, as well as producers from Japan, India, Nepal, Vietnam and Sri Lanka (including the Sri Lanka Tea Board), among others. There were also multiple accessory exhibitors, that is, those looking to sell teapots, teaware, loose leaf tea strainers, travel mugs, etc. Brands (some of which also wholesale/private label) included SerendipiTea, Harney & Sons, Wild Orchard and Moosa, a new herbal/botanical brand, which is marketing dried fruits, herbs and spices from the Andes. The blends are placed in cups/mugs and then water is added, and rather than removing the items after steeping, the fruits, herbs and spices are designed to be eaten.

Some have said this will be their last year exhibiting – but will attend as a visitor next year – as there is no ROI given the expense of exhibiting. “The show is not generating enough potential new business for us and the leads we do have are not strong.” Multiple exhibitors echoed that sentiment. One new exhibitor, selling tea shop accessories, decided to exhibit because she was told there would be a lot of tea shop owners attending. By the second day, she shared that there had been little interest in her products but said they “were having fun.” Other exhibitors said they have typically attended WTE to connect with their customers in person, but most are no longer attending the expo.

World Tea Expo was again co-located with the Bar & Restaurant Show at the Las Vegas Convention Center. While the co-location offers increased foot traffic, energy and excitement, all exhibitors I spoke with said the joint show has not provided any benefit to them as there has been no interest from Bar & Restaurant Show attendees in tea for their businesses. In fact, the presence of the Bar & Restaurant Show negatively impacted WTE’s education segment this year as it ‘took over WTE’s space.’ That is, WTE participants interested in the lectures, after picking up their badges in the front of the South Hall, rather than going to the second floor, which has been the standard for many years, had to exit the building in the front where they had entered, go to the side of the South Hall to catch a golf cart to take them to the back of the building. The signage was not clear so the process was confusing, and honestly, convoluted. To walk the exhibition floor when it opened at 12pm, attendees could catch the golf cart back to the front or walk from the back of the hall.

Exhibitors and attendees (myself included) agree that where World Tea Expo really shines, its strength, are the workshops and education sessions/lectures. The tea industry needs WTE to not only survive, but to also grow and flourish, as it is, for the most part, the only B2B tea event in North America. Hopefully, as the show continues to evolve post-pandemic and under the ownership of Questex, a ‘happy medium’ can be found where both attendees and exhibitors can benefit.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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In his opening presentation, NCA president and CEO, Bill Murray, said that the NCA’s purpose is to ‘support the growth of the US coffee market’. This year’s theme, ‘Fueling the Future’ reflects what the NCA believes its purpose is, “working today to shape the future through education, advocacy, and collaboration so that so that the regulations, perceptions, and practices that will govern our future are informed by facts, research, and an accurate understanding of coffee.”

Murray noted that in 2023, the NCA:

• Adopted a new Strategic Plan, which included updating its bylaws, and creating values to guide the association including collegiality, sustainability, and transparency.
• Released an updated Economic Impact Report, quantifying the jobs, value, and tax contributions of the coffee sector to the U.S. Economy.
• Engaged with the US Food and Drug Administration seeking official recognition of coffee as a ‘healthy’ beverage.
• Released technical resources to support food safety, the cold brew segment, and workplace safety

Through its Economic Impact Report, the NCA revealed that the total economic impact of the coffee industry in the United States in 2022 was USD $343.2 billion – a 52.4% increase from 2015 – with consumers spending nearly $110 billion on coffee in 2022. Murray further shared that the coffee industry is responsible for more than 2.2 million U.S. jobs and generates more than $100 billion in wages.

Part of the NCA’s goal, Murray explained, is to “protect and enhance coffee’s reputation” so the association is working to educate consumers/correct misinformation about coffee and collaborating with the US government to officially declare coffee a ‘healthy beverage’ and allow ‘healthy’ labelling on coffee packaging.

Murray also noted that the NCA is now the leading destination for searches about decaffeinated coffee, and this year, it is developing new consumer-focused content on decaf.

Acknowledging that cold brew coffee represents a still untapped great opportunity, the NCA funded a $170K cold brew challenge study focused on cold brew coffee that is now available.

In January 2023, the USDA published the ‘Strengthening Organic Enforcement’ Rule to strengthen oversight/enforcement. Murray said the NCA will be releasing an organic guideline this May.

The Winter 2024 NCDT Study will be released soon (in April I believe, but I will confirm), but one ‘early reveal’ that will please the coffee industry — findings show that coffee is sustaining at all-time levels, recording its highest percentage in two decades.

I will provide a review of the full convention in our April issue. The 2025 NCA Convention will be held in Houston, Texas, 6-9 March.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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It’s not ‘new news’ that caffeine can assist in weight loss (caffeine may help burn more calories and cause a decrease in body fat) and that coffee has a variety of health benefits, but according to a study by Harvard TH Chan School of Public Health (HSPH) researchers, drinking four cups of coffee daily could reduce body fat by about 4%.

The finding comes from a 24-week investigation in which 126 overweight, non-insulin sensitive adults drank daily either four cups of regular coffee or four cups of a coffee-like placebo beverage. The intent of the study was to determine if coffee consumption reduces the risk of developing type 2 diabetes.

The researchers noted that previous observational studies have linked drinking coffee with a lower risk of type 2 diabetes but coffee’s effects on blood sugar metabolism have not been well defined. With the current study, researchers did not find evidence that coffee affected the participants’ sensitivity to insulin — the hormone that regulates sugar levels in the blood.

However, the study did yield an unexpected result: drinking coffee was associated with a modest loss of body fat. Those who drank four cups of caffeinated coffee per day over six months saw a nearly 4% drop in overall body fat.

Derrick Alperet, a study co-author and research fellow in the HSPH Department of Nutrition, said in a HealthDay News article that he and colleagues think that the fat loss may be due to the caffeine in coffee increasing the drinker’s metabolism. He said it suggests that “this loss in fat mass was not likely to be due to changes in lifestyle, namely diet and physical activity.” Rather, Alperet and his colleagues think that coffee-fuelled fat loss may be the result of a ‘metabolic reaction’, in which caffeine causes the drinker’s metabolic process to ramp up. The end result, he said, is the burning of more calories and a notable drop in body fat.

The Singapore experiment lasted six months, during which time half of the study participants – who were all Chinese, Malay or Asian-Indian, per HealthDay News – were randomly instructed to drink four cups of caffeinated instant coffee on a daily basis. The other half drank a beverage that simulated coffee’s taste but was neither coffee nor caffeinated.

Alperet and his fellow researchers concluded that more research is needed, explaining that additional trials with more comprehensive assessments of body composition are needed to confirm their findings.

Some nutritionists in the HealthDay News article questioned the amount of coffee, believing the four cups daily to be “on the high side of intake.” However, scientists at the United States Food & Drug Administration (FDA), have asserted that caffeine can be part of a healthy diet for most people, For healthy adults, the FDA has cited 400 milligrams a day – that’s about four or five cups of coffee – as an amount not generally associated with dangerous, negative effects.

In December 2020, the Dietary Guidelines for Americans reaffirmed that coffee can be part of healthy diets. The National Coffee Association of the USA has long been touting the many health benefits associated with drinking coffee. For example, on the coffee and health section of its website the NCA notes that “In a review of 21 prospective studies totaling over 10 million participants, drinking one cup of coffee (whether decaf or with caffeine) per day was associated with a 3% reduced risk of death, and drinking three cups of coffee was associated with a 13% reduced risk of death.”

Additionally, per the NCA, “a study of over 500,000 people, spanning a decade, found that drinking coffee, whether caffeinated or decaffeinated, was inversely associated with mortality, including among those drinking eight or more cups per day.”

So, do not actually dump the dumbbell or abandon your cardiovascular routine, but do continue to confidently enjoy your daily cuppa Joe — and if you are not a coffee drinker, perhaps this is a good reason to become one…

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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But the rising cost of goods is not stopping Americans from drinking their daily cup of coffee—whether they prepare it at home or purchase it a coffee shop. US coffee sales at retail alone in 2023 hit US $18.9 billion – 18% of the global total – making the US the world’s largest coffee market (US #1 in coffee spend while is Brazil #1 in consumption), said Matthew Barry, insight manager food & beverage, Euromonitor International, during the National Coffee Association’s (NCA) recent ‘US Coffee Outlook 2024’ webinar.

However, the US is very tilted to foodservice coffee with Americans spending more than twice in that channel than they do at retail. The coffee shop segment continues to grow amid the turmoil, explained Barry. “A major shift is taking place towards a more tech-driven, to-go model de-emphasising the human aspect while ‘permissible indulgence’ spending cushions the sector against economic trouble.”

At retail, ready-to-drink (RTD) coffee remains the top performer in terms of growth, which has slowed but still leads. Pods is the next largest category, which Barry noted is doing well in the US but struggling in Europe, followed by standard ground and whole beans (the smallest category but a solid performer). Despite the availability of higher quality instant and pioneers of specialty coffee entering the category, soluble coffee’s performance is still subpar and sales are expected to decline in the US in 2024.

E-commerce has been a particular bright spot for the coffee industry category, with Barry saying that “a slowing segment overall has not damaged coffee. Sales were up 24% for the first three quarters of 2023 over the same period in 2022.”

Although consumers may not be able to live without their daily small indulgence, coffee is not immune to the effects of higher prices. According to Barry, steep prices are narrowing the window for premiumisation. “Americans are showing less interest in paying for virtually any sort of value-added attribute.” This is affecting areas like organic, environmentally friendly and sustainably produced products.

While American consumers may not be willing to pay for just any ‘value-added attribute’, they will for those will health claims so the most advantageous way to premiumisation is through functionality. “Health remains a spending priority even with consumer pullback,” shared Barry, adding, “functional coffees should be able to benefit from this. Energy, digestive health, and weight management should see especially interesting [growth] in 2024.”

Another growth area is digestive health as the microbiome is better understood. “Particularly important will be emerging understanding of the microbiome’s [probiotics] effect on wider health such as the ‘gut-brain axis’,” he commented.

Experts have warned that 2024 will be hottest year in history, surpassing 2023 which was the hottest to date, so climate will be top of mind with consumers. However, “consumer willingness to spend on sustainability is not increasing,” Barry explained, adding, “the pressures from years of inflation have led fewer consumers to be willing to spend on more sustainable products.”

He said that sustainability is becoming about adaptation rather than consumer appeal, that is, more of a supply chain interest area rather than a way to appeal to consumers (a focus on decreasing supply chains, water availability, etc.).

So, to sum up the coffee outlook for this year [per the NCA/Euromonitor International — I am curious if others agree or have a different opinion]: although high prices will keep consumers pessimistic thereby rendering premiumisation more difficult, the US coffee market is set to have a good 2024 particularly from growth in coffee shops spending, RTD coffee and functional coffees.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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The new report, from the Freedonia Group, a division of Marketresearch.com, focuses on the changes expected in the products and materials used in this market over the next decade. It finds that while plastic continues to maintain significant market share, alternative formats are gaining traction, driven by evolving consumer preferences and sustainability initiatives within the industry.

According to the report, “plastic packaging remains a popular choice for beverage manufacturers due to its versatility, cost-effectiveness, and established supply chain infrastructure. Its ability to accommodate various shapes and sizes, coupled with its lightweight nature, contributes to efficient transportation and distribution, reducing logistical costs.”

However, lead analyst Joseph El-Hage, said in a statement, “Though plastic remains the dominant material, it will face stronger headwinds going forward as the green movement stays strong and past efforts to improve the material’s image like light-weighting have run their course. Plastic packaging manufacturers must innovate on sustainability, either through improvements in the material itself or through commitments to plastic neutrality and circular economies through improved collection and recycling.”

As consumers –especially millennials and Gen Z – demand eco-friendly options, new containers based on paper, aluminum, and molded fiber have emerged as promising alternatives to plastic. Aseptic cartons, made primarily from renewable paperboard, offer recyclability and environmental benefits, appealing to environmentally conscious consumers. And aluminum bottles boast high recycling rates along with product differentiation and shelf appeal.

Sustainability was a major theme of the 2023 Pack Expo Las Vegas (PELV). Presenting at PELV, Pierre Pienaar, (now former) president of the World Packaging Organisation, which facilitates solutions to global challenges in all areas of packaging, said that the packaging industry is “at a crossroads where the future of packaging is in our hands. Decisions need to be made that will alter the course and map the path for future generations.”

Pienaar – who believes that the reduction of food waste can be achieved through the better use of packaging and awareness – also noted in his presentation that the material types that we use “have and will change the landscape, having a direct impact on sustainability.” He added that the technology that we design and implement, will “map the course of energy reduction that we will follow over the next 10-20 years.”

Unfortunately, challenges persist in the widespread adoption of alternatives despite strong interest. The US Beverage Packaging report explains that cartons must address limitations in their structural design, recyclability and compatibility with certain beverage types, which impact their suitability for various product categories. Additionally, the infrastructure for recycling cartons is still developing.

However, reducing plastic use may not be the beverage manufacturer’s goal. Jennifer Mapes-Christ, manager of consumer & commercial goods at Freedonia Research, stated, “Regulatory and stated corporation goals play a big role in material choice. If a company decides that less plastic is what matters most, then they will make one decision. If reducing carbon output is the goal, they may make a different decision. If they are trying to increase reusability or use less virgin material, they will make another choice.”

To access the new US Beverage Packaging report, click here.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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In fact, it was the biggest edition to date, as World of Coffee (WOC) Dubai 2024, organised by DXB Live, the integrated event management and experiential agency of the Dubai World Trade Centre, in collaboration with the Specialty Coffee Association (SCA), reported 30% growth from 2023, with more than 13,000 participants including 1,650 exhibitors from 51 countries. Participants were stakeholders from every facet of the coffee industry, ranging from farmers, traders, manufacturers, distributors, small and medium-sized companies to café owners, baristas, hotels, and of course, coffee enthusiasts. 

Commenting on the turnout, Khalid Al Hammadi, senior vice president of DXB LIVE, said in a statement, “The latest edition of the World of Coffee Dubai 2024 exhibition has generated significant interest among stakeholders and enthusiasts in the coffee industry, drawing participation from international contributors, who showcased their products and equipment. The exhibition reflected a remarkable turnout, with visitors numbering nearly four times that of the inaugural edition of the event.” 

Abdulla Bin Touq Al Marri, Minister of Economy, accompanied by Consul General of Kyrgyz Republic in Dubai and the Northern Emirates inaugurated WOC Dubai on 21 January. Organised similar to other World of Coffee shows, the Dubai event also featured lectures, workshops, cuppings, competitions and the popular Roasters Village. The show ran from 10:00 to 18:00 the first two days and was supposed to close at 16:00 on the third and final day, but after an appearance on the second day (22 January) from Sheik Mohammed bin Rashid Al Maktoum, an Emirati politician and royal who is the current ruler of Dubai, and serves as the vice president, prime minister, and minister of defense of the United Arab Emirates, ticket sales surged overnight for the last day (23 January) so exhibitors asked the organisers to extend the closing time until 18:00 because they needed more time to conduct business. 

And transactions were taking place — you could see and feel the eagerness to ‘make deals’ walking the show floor. “The show is definitely bigger than last year and the people attending are here to conduct serious business,” said a three-time exhibitor during our conversation on the second day. 

Khalid Al Mulla, the chief executive officer of the SCA’s UAE Chapter, stated that “the exhibition provides a unique opportunity to gain insights on diverse cultures and artistic approaches to coffee preparation, stay abreast of the latest industry trends, and engage in discussions on promoting sustainability in the coffee sector. Held in the UAE, World of Coffee plays a pivotal role in strengthening the bonds of cooperation and communication between international brands and their regional partners in the rapidly expanding coffee industry. The remarkable attendance at this event, coupled with the associated activities, underscores the increasing popularity of specialty coffee in both the country and the region.”

WOC Dubai was launched to meet the needs of the rapidly expanding coffee industry throughout the Middle East. Data Bridge Market Research reports that the value of the coffee and espresso drinks market in the MENA region is expected to reach around USD $1.33 billion by 2030, increasing from approximately $1.085 billion in 2022, with an anticipated compound annual growth rate (CAGR) of 2.6 percent over the specified timeframe. 

WOC Dubai’s success has caught the attention of other emirates such as Abu Dhabi, and countries like Saudi Arabia, Qatar, and Kuwait, which have all conveyed their interest in hosting future World of Coffee events. But for now, Dubai remains the venue for World of Coffee in the Middle East. The fourth edition of WOC Dubai will take place 10 to 12 February 2025. 

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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New research from the International Institute for Sustainable Development (IISD) reveals the latest consumption and production trends in the sector, explores why so many tea farmers are struggling to make a living, and examines whether VSSs make a difference to smallholder farmers’ livelihoods. 

There are 13 million people working in the global tea industry, two thirds of whom are smallholder farmers in developing countries. IISD research finds – and those in the tea industry know – that farmers are challenged with producing an affordable, quality, and more sustainable product in a highly competitive market and under increasingly harsh and unpredictable weather conditions. 

“Smallholder farmers bear the biggest brunt of low auction prices and volatility in the tea sector,” said Steffany Bermúdez, policy advisor, IISD, in a statement. “They receive meagre prices for their green leaves – prices that represent a minimal share of the price tea fetches after it has been blended and packaged – and the added unpredictability of auction prices exposes them to even greater financial uncertainty.” 

The international tea trade is unique in that three quarters of the world’s tea is traded through public auctions. Overall, tea auction prices have been declining for the past four decades, with more severe drops in recent years due to overproduction, pandemic-related disruptions, and the Russia–Ukraine conflict, among other factors. 

Similar to coffee, tea farmers also bear all the risks of extreme weather changes as well as variations in the cost and availability of necessary items like fertilisers. Furthermore, in some tea-producing countries, smallholder farmers make no profit at all, as their total production costs often exceed their earnings. Farmers can do little to change this scenario as they have no influence over tea auction prices and have limited market knowledge, therefore they continue to pay brokers steep prices to sell their tea. 

IISD’s new report examines whether voluntary sustainability standards (VSSs) such as Rainforest Alliance, Organic, and Fairtrade International make a difference to smallholder farmers’ livelihoods. 

Voluntary sustainability standards (VSSs) have been working to address sustainability challenges in the tea sector for 30 years, per the IISD. Many focus on building climate resilience while some seek to improve the prices and incomes of smallholder farmers. 

VSS-compliant tea now represents at least a quarter of total global production. However, evidence of VSSs’ impact on farmers’ incomes is limited and tends to be very context specific. “It is not clear if minimum prices, premiums, and other differentials really make a difference to tea farmers’ livelihoods—or even make up for the costs of certification,” states the IISD report. 

Farmers in some major producing countries can receive up to 23% higher prices than conventional producers when selling VSS-compliant tea. However, the IISD finds that further evidence of VSSs’ impact on farmers’ incomes is limited. “Results are context and location specific, and it is not clear if the prices they fetch even make up for the costs of certification. They certainly don’t if VSS-compliant tea is sold as conventional, which estimates suggest happens 90% of the time,” the report reveals. 

“Global demand for VSS-compliant tea climbed after the pandemic and is expected to keep on growing — with room to grow even faster,” said Vivek Voora, senior associate, IISD, said in a statement. “Challenges need to be overcome, particularly in producing countries, to make VSS-compliant tea more readily available — and more affordable.” 

In the report, IISD experts also argue that there is an urgent need to develop new approaches to recognising the social and environmental costs of conventional tea production so that farmers can be adequately rewarded for using more sustainable practices. “This is particularly challenging given that tea auctions are heavily influenced by multinational companies downstream in the value chain that hold all the power and most of the profit in the sector yet are rarely concerned with the social and environmental impacts of conventional tea production.” As a minimum, IISD experts believe the multinationals should be paying prices that cover farmers’ production costs and basic household needs. 

The report conveys the urgent need to develop new approaches to recognising the social and environmental costs of conventional tea production so that farmers can be adequately rewarded for using more sustainable practices. It further provides recommendations for how governments, private sector actors, and standard-setting bodies can better support smallholder farmers and make tea production fairer and more sustainable. These recommendations range from modernising tea auctions to place greater value on VSS-compliant tea to encouraging all standard-setting bodies to establish minimum prices and premiums — as well as strengthening those that already do. 

To read or download the IISD report, click here. To learn more about members of the global tea industry’s views on sustainability within the sector, read T&CTJ’s and Firsd Tea’s 2023 Tea Sustainability Survey. 

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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