With 1.4 billion people and 128 million hectares of arable land, China faces the daunting task of producing nearly half of the world’s tea while also providing food security for 20 percent of the world’s population. The Peoples Republic of China has been able to attain its current level of success in part due to the application of pesticides and fertilisers. However, over reliance and misapplication of these agrochemicals has raised production costs, contributed to environmental pollution, and created instances of agricultural products with unacceptably high levels of chemical residues. Chinese officials have put a strategy in place that has already begun to curtail the over dependence on conventional agrochemicals by using bio-pesticides that are seen as safer alternatives.

China has become the world’s largest consumer of agrochemicals, at one time using about 30 percent of total fertilisers and pesticides. These pesticides include herbicides, insecticides, and fungicides. In order to combat agricultural production costs while also reducing environmental damage and impacts on human health, China initiated the “Action Plan to Realize Zero Growth in Pesticide Use by 2020” in 2015. Pesticide use in China peaked around 2014 and has been declining since 2016. As a result, goals for curbing growth in pesticide use were achieved ahead of schedule. In fact, some projections estimate that China may be able to completely eliminate its use of chemical pesticides by 2050.

When it comes to China’s tea industry, attaining chemical pesticide-free agriculture may be an especially important goal. About 60 percent of the world’s tea is grown by smallholders. China tea farms do not operate on the plantation models found in places like Sri Lanka and India, so smallholder farms of two hectares or less are very common. In fact, joint research from the Universities of Melbourne, Zhejiang, Fudan, Wuhan, and Stanford have found that smallholder farms in China tend to use agrochemicals less efficiently. This not only results in greater financial costs for the farmer, but also contributes to increased pollution of the soil and water.

China’s tea industry has likewise been shifting away from chemical pesticides towards bio-pesticides. Examples of bio-pesticides that are gaining more widespread use include:

• Beauveria bassiana: B. bassiana is a fungus that naturally occurs in soils and is a parasite in various insects. The spores enter the insect’s body and spread into a fungus, thereby killing the insect. B. bassiana is used against moths and caterpillars that feed on tea leaves. Current studies have not shown any harmful impacts of B. bassiana applications on animals or humans, so there are few regulations or MRL (maximum residue level) guidelines in place when it is properly used.
• Metarhizium anisopliae is another fungus-based insecticide found in soils around the world that is also parasitic in insects. M. anisopliae has been shown to be harmful to reptiles in some conditions. There are also a few regulations or MRL guidelines when M. anisopliae is properly applied.
• Pyrethrins are compounds found in chrysanthemum and have been known to kill or drive off insects since the Chinese began spreading chrysanthemum powders as a bug deterrent as far back as 1000 BC. Pyrethrins are considered safer insecticides when they are applied locally to tea and other crops because UV light and changes in pH break pyrethrins down into harmless chemicals within a relatively short time frame. Studies of variations of pyrethrin, including higher concentrations, exposure to synthetic pyrethroids (like cypermethrin) and pyrethrins combined with piperonyl butoxide (PBO) have shown potential harm to humans and animals. Effects included allergic reactions and potential carcinogenic effects. As such, pyrethrins are regulated and MRLs exist.
• Matrine is an insecticide derived from the Sophora flavescens plant that is native to various countries, including China, India, Japan, and Russia. Sophora flavescens is used in some Traditional Chinese Medicine (TCM) applications. Matrine breaks down relatively quickly in nature. It can be toxic to aquatic animals and should not be used during flowering in order to protect bees. Some MRLs (Maximum Residue Level) are in place for matrine in tea and in some botanicals.

China pesticide
consumption levels from 1991 to 2021. Graph credit: Frontiers in Plant Science (frontiersin.org)

Challenges to bio-pesticides

While bio-pesticides do offer a potentially safer, more sustainable alternative to harmful chemical pesticides, challenges do remain. One of the first of these challenges is cost. Some insecticides, like pyrethrins and matrine can begin to break down within days of application. This may make multiple applications necessary to sufficiently control a pest outbreak.

Successful chemical pesticides often have a track record of remaining active for longer periods of time. Access to, and consistent quality of bio-pesticides has also been a concern for researchers measuring the effectiveness of bio-pesticides on Chinese tea production. In some cases, bio-pesticides need to be combined with chemical pesticides to provide sufficient potency.

Bio-pesticides can also be combined with other green forms of pest control, including:

• Pheromone traps: These traps contain synthesised sex pheromones of targeted insects, thereby attracting and killing tea pests like moths and caterpillars. Pheromone traps have been studied on a small scale of tea production, but results have shown potential for combining pheromone traps with other pest control methods. Pheromone traps provide the benefit of targeting the intended insect without harming beneficial insects.
• Light traps: Seasonal use of light traps has also shown potential as a supporting practice of pest control. Solar-powered lights can be activated after sunset during the growing season to attract moths like the tea looper.
• Sticky traps: The placement of improved sticky traps after spring pruning was shown to capture leafhoppers while trapping fewer beneficial predators, like spiders and wasps.
• Traps and green pest control, along with the proper and timely application of bio-pesticides represent aspects of the pedestals of integrated pest management, namely prevention, monitoring, and intervention.

China’s advance towards reducing its dependence on chemical pesticides and adoption of safer, greener bio-pesticides shows potential for the tea industry at large. Smallholder tea farmers across the globe now have increased options to more efficiently use chemical pesticides while also testing better and safer bio-pesticides that benefit human health, the environment, and economic growth.

• Jason Walker is marketing director of Firsd Tea North America. Prior to his work with Firsd Tea, Walker served in a variety of roles in tea and beverage business capacities. His experience includes business services for small tea companies, a top-ranked online destination for tea consumer education and co-founding a coffee business. His insights draw upon his diverse range of experience in sales, operations and management in the tea world. He may be reached at: jason.walker@firsdtea.com.

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Producing just over one half of the world’s tea in 2023, China remains the world’s dominant tea producer. Global tea production rose by 3.2 percent over the previous year, from 6.4 to 6.6 million metric tonnes (mmt) and the Middle Kingdom accounted for 50.6 percent, or 3.3 mmt while increasing its production by 5 percent over the previous year. India took second place with 20.7 percent of global production, having increased its yield by 2 percent.

Kenya rounds out the top three producers with 8.6 percent of the world’s annual production. Taken together, these three producers accounted for 80 percent of global production in 2023.

The top four tea-producing countries saw gains in production, including Sri Lanka. Ceylon tea production increased by 1.8 percent after having experienced a tumultuous period of economic struggle and agricultural policies that stymied tea production levels. Argentina, a significant source of black teas for the US market, has seen steady production declines for several years. Argentine tea production decreased by 4.5 percent over 2022 levels. Given historic trends and that the major producers continue to increase their production, overall global tea production levels are expected to continue rising.

All graphs courtesy of FirsdTea

Unlike the other main tea-growing countries, China is primarily a green tea producer: 57.9 percent, or 1.9 mmt of its 2023 production was green tea, followed by 0.49 mmt of black tea. This green tea alone accounts for just under 30 percent of 2023 global tea volume. The remainder of China’s tea is dark (hei) at 13.7 percent, wulong at 10 percent, white at 3 percent, and yellow tea at 0.7 percent. In 2019, black tea surpassed dark tea as the second-largest segment of tea production. Since then, production volumes of the two have remained fairly close. The broader popularity of black tea, along with growing domestic demand for ready-to-drink (RTD) teas and black tea’s relatively high average export price speaks in favour of further gains in black tea production share.

China’s top four tea-producing provinces – Fujian, Yunnan, Sichuan, and Guizhou – accounted for half of China’s tea production, and they each showed increases in production of between 1 and 5 percent. Double-digit gains in production were exhibited by Hubei, the fifth largest producer with a 10.6 percent gain, and Anhui, the eighth largest producer with a 12.4 percent gain. While Fujian may be the single largest tea-producing province, the greatest share of tea is still grown in the Western Belt (35.3 percent from Yunnan, Sichuan, and Guizhou provinces combined) followed by the Eastern Belt (25.7 percent from Fujian, Anhui, and Zhejiang). The Central Belt (Hubei, Hunan, and Shaanxi provinces) follows close behind with 22.2 percent of production.

Fujian may also be China’s top yielding tea province in terms of tons per hectare, but it is only fifth in terms of growing area. Yunnan province leads the pack with over 0.51 million hectares (mha) of tea fields, followed by Guizhou (0.47 mha), Sichuan (0.40 mha) and Hubei (0.38 mha). Fujian’s advantages lie in its warmer climate and more established production areas.

The Chinese government has encouraged the establishment of tea fields in the more poverty-impacted counties of the Central and Western Belts as a means of promoting rural development and strengthening local incomes. Efforts appear to have made progress, as the central government declared victory in eradicating poverty and now aims towards securing more infrastructure development and economic stability. For tea production, however, training these less-experienced workers continues. Outputs are expected to improve along with the maturity of young tea plants and the advancement of tea workers in the areas.

A notable exception is Guangdong province, which has the second highest yield per ha. The province does produce some well-known teas, like yingde black tea and dan cong wulong, but it is generally better known for its industrial output and commercial trade. Guangdong ranks ninth in overall tea production and thirteenth in hectares planted. It shows little sign of dedicating more land to future tea production.

China’s exports dip slightly

Global tea exports from producing countries declined by about 5 percent over the previous year, with China exports dipping by about 2 percent. China, however, maintained its place as the producing country with the second highest volume of exports. Kenya took the top position, having increased its exports by 14.7 percent over 2022 levels. Kenya accounted for 30.1 percent of global exports from producing countries. China’s 0.37 mmt of exports accounted for 21.2 percent of global exports from producing countries, and 11 percent of China’s annual production.

In terms of volume, 84.2 percent of China’s tea export was green tea and the next highest volume was black tea with 7.9 percent. Green tea exports remained relatively steady compared with 2022 levels, but black tea dropped by 12.6 percent over the previous year. This rise and fall in black export volumes coincided with a few factors. Supply of Ceylon black tea dropped in 2022. When this occurred, Pakistan and other major black tea-importing countries turned to China and others to meet their black tea demands. This surge stands in contrast with what occurred in other parts of the world, where tea imports increased in 2022 as buyers re-stocked after Covid, created supply chain woes, and then decreased their import levels in 2023 as they worked through excess inventory.

Morocco, China’s largest tea-export partner, showed a similar pattern. Most years, Morocco alone takes in about 20 percent of China’s exports, usually around 75,000 metric tonnes. 2020 saw a 9.6 percent decline in Chinese tea imports. The next two years saw import volumes return to usual levels, but 2023 levels declined again by about 16 percent from 75,400 metric tonnes to 59,800 metric tonnes. Ghana, which has been the third largest export destination, increased imports by 44 percent, swapping places with Uzbekistan. Taken together, these three countries import one third of China’s tea exports.

Russia and the United States took in 4 percent and 2.3 percent of China’s exports, respectively. Import volumes were down by 25.1 percent for Russia and 33.7 percent for the US. Overstocking was the main culprit for these declines, particularly for the US. Imports of Chinese teas into the US have been showing signs of rebalancing beginning early in 2024.

A strong outlook

China’s overall tea trends appear positive. Production levels are on track to increase around 4.5 to 5 percent based on average annual increases. Spring 2024 weather in most areas has cooperated, providing a healthy crop thus far. Development in tea producing areas, especially the Western and Central Belts, remains steady. Domestic consumer demand also appears to be on the uptick.

China’s tea industry has been highlighting the need for promoting demand, and recent years have seen an increase in the introduction of bottle teas and other tea-based RTD beverage products. Average export prices can be expected to stay steady between USD $5.50 to $6.00 per kg, although labour and farm inputs (fertiliser, agrochemicals) continue to rise. Export volumes are showing signs of rebounding after last year’s decline. With production and consumption rising, and exports recovering, China is poised to maintain its dominant role in global tea.

• Jason Walker is marketing director of Firsd Tea North America. Prior to his work with Firsd Tea, Walker served in a variety of roles in tea and beverage business capacities. His experience includes business services for small tea companies, a top-ranked online destination for tea consumer education and co-founding a coffee business. His insights draw upon his diverse range of experience in sales, operations and management in the tea world. He may be reached at: jason.walker@firsdtea.com.

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On 19 January 2023, the United States Department of Agriculture (USDA) National Organic Program issued the Strengthening Organic Enforcement (SOE) final rule. This new regulation aims to improve oversight of the organic supply chain and reduce fraud by increasing traceability and transparency. The final rule went into full implementation on 19 March 2024. These changes will be felt by every tea business that produces, processes and handles organic teas. The rules will apply to USDA organic Camellia sinensis products and USDA organic botanicals used in tea blends and tisanes. Since the US imports the vast majority of its teas, organic tea businesses across the globe will now have to comply with these new regulations aimed at preventing fraud in the organic supply chain.

Past issues

For years, the National Organic Program (NOP) has made strides in addressing the challenges of programme implementation. A 2010 review of the organic programme by the Office of Inspector General (OIG) found that certifying agents were not conducting regular and consistent, periodic residue testing, and in some cases were not conducting required onsite assessments of certified operations.

The USDA OIG assessment report included recommended remedies, and issues were addressed. A subsequent 2017 report concluded that overseas organic equivalency standards were not sufficiently transparent, and that NOP import documentation was not consistently verified at ports of entry.

Furthermore, some certified organic products being imported may have been fumigated with treatments that were not compliant with organic standards. This fumigation may have been necessary from a Customs and Border Protection perspective but would have rendered these products as no longer compliant with NOP organic standards. The need for fumigation occurs less frequently with Camellia sinensis products but may be necessary with certain botanical ingredients used in tea blends and herbal tea blends. As such, these past issues impacted the US organic tea industry to varying degrees.

The potential for fraud has been another significant and ongoing concern. Not only do fraudulent organic products de-value the perception of the organic brand, but high enough volumes can affect the pricing of organic products. When fraudulent organic products can be produced and sold at cheaper prices than authentic organic products, this raises the risk that legitimate organic producers get pushed out of business.

Changes in the strengthening organic enforcement (SOE) rule

Some of the major changes included in the SOE regulations that will impact the tea industry include:

• Exemptions: Under the old regulations more entities along the supply chain could be considered exempt, especially if they were handling the finished, packaged product and not coming in contact with the actual raw materials (leaf in the case of tea). Under the new regulations, organisations that sell in bulk from the farms, load/unload, store/warehouse, transport, and repackage organic products will likely need to be organic certified. To be clear, not all warehouses holding organic tea will necessarily need to be certified organic. Not all ocean container ships transporting organic tea will need to be certified. The best way to understand what exemptions are allowed under the new SOE regulations is for tea companies to contact their organic certifying agent for clarification.
• Traceability, Fraud Prevention and Inspections: Operations must include a fraud prevention plan as part of their organic system plan. During annual inspections, inspectors will conduct ‘in-out’ and ‘trace-back’ audits. These audits aim to verify that correct volumes of organic materials are accounted for coming in and out of the operator’s facilities. Inspections must also verify the organic products and organic ingredients are compliant back to the previously certified operation in the supply chain. In addition, certifying agents/organisations must also identify ‘high risk’ operations and products. High-risk products may come under greater scrutiny as they are traced throughout the supply chain.
• NOP Import Certificates (NOPIC): The NOPIC may be one of the newer and more significant changes affecting how certifier organisations in the country export get involved in the documentation of organic tea from origin. Imported organic products must be declared to the US Customs and Border Protection’s Automated Commercial Environment (ACE) system using data from a NOPIC that is to be generated by the exporter’s certifying agent/organisation.

Since the majority of the US’s organic tea is exported from a few major producing countries, the new NOPIC requirement could affect the timeliness and costs related to the import/export process. A representative of Ecocert USA, which provides selected organic, fair trade and social responsibility programs and certification services, was contacted to explore how the NOPIC may impact the flow of tea imports into the US.

Graph courtesy of Firsd Tea

Will a rise in demand for organic exports following the Spring tea harvest and the associated requests in NOPICs create delays or the need for more processing times for exports?

Ecocert spokesperson: Starting March 2024, exports to the USA shall be accompanied by a NOP Import Certificate (NOPIC). Before issuing a NOPIC, the certification agency will define specific verifications to confirm the compliance of the goods. Concerning Ecocert, the level of verifications may depend on the risk of the supply chain in question. The riskier the supply chain, the more robust the verifications before issuing the NOPIC. This administrative step to obtain the NOPIC, which was not required beforehand, will need to be anticipated by the exporter to avoid any delays.

As such, it would seem that the infrastructure and systems for processing NOPIC requests is considered robust and sufficient, but delays could be related to certifiers’ (of exporters) level of familiarity with the submission process and the varying degrees of compliance documentation that is required. Only the certifiers of exporters, not the certified organic tea exporting organisation itself, will be uploading documentation and requesting the NOPIC. Any organisation or product that has been deemed high-risk by the certifying organisations may require the certifier of export to submit more extensive documentation with the NOPIC request.

At what point in the process does the NOPIC need to be received by the exporter and/or importer? Before leaving the country of origin? On landing in the US? Other?

Ecocert spokesperson: There is no rule defined in the SOE about the reception date. The only date is about the NOPIC requesting date. Per 205.273(a) of the SOE regulations: The NOP finally indicated [in March] that the NOPIC should finally be issued ‘before departure’ which is different than what is written in the requirement. It is also mentioned that each import must ‘be associated with valid NOP Import Certificate data’ while being declared as organic to US Customs and Border Protection (on the ACE portal).

Certifying agents determine their own fees in terms of processing/verifying NOP import certificates. Is there a consensus across certifying agents in various countries as to standardizing the fees/rates?
Ecocert spokesperson: At the time of writing, there is no consensus on the fees related to the issuance of NOP Import Certificates (NOPIC) among certifying agents. Each certifying agent will communicate the fees to their clients once they are defined.

Value of SOE Regulations

As the SOE regulations go into effect, operations in the certified organic supply chain have been made aware of the changes needed to comply with the new rules. Overall, the new rules seek to improve compliance and security of the organic supply chain while imposing as little added administrative burden as possible. Operations involved in USDA organic certified tea can expect the need to process more documentation and (perhaps) an increase in surprise inspections.

It is worth noting that the SOE regulations are designed to increase traceability, but not necessarily transparency. In most cases, certified organic operations are required to document traceability back to the most recent certified upstream operation. Neither operators nor consumers can necessarily expect to have access to records that visibly trace a product through all the actors in the supply chain back to origin.

The tea industry will not be the only agricultural product affected by the roll out of these new regulations, but considering the US imports nearly all of its organic Camellia sinensis and a significant number of organic botanicals used in teas and herbal tea blends, the effects may be more widespread. Each year, about two percent of Camellia sinensis import volumes are organic, but that share rises to eight or nine percent of the total value of tea imports.

Since these imports arrive from various countries with the potential for multiple certifying agents active in those countries, some countries and tea suppliers may vary in terms of adapting to these changes. US organic tea operations that are concerned about these changes are advised to reach out to their certifying agent organization and the certified organisations in their supply chain to better understand any potential impacts to their businesses.

• Jason Walker is marketing director of Firsd Tea North America. Prior to his work with Firsd Tea, Walker served in a variety of roles in tea and beverage business capacities. His experience includes business services for small tea companies, a top-ranked online destination for tea consumer education and co-founding a coffee business. His insights draw upon his diverse range of experience in sales, operations and management in the tea world. He may be reached at: jason.walker@firsdtea.com.

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Participants convened on the campus of UC Davis for a full-day schedule of speakers. Topics included a socio-cultural comparison of tea ceremonies from East Asian cultures. Dr Shuenn-Der Yu looked at the distinctiveness of the Taiwan Tea Art Ritual. Dr Richard Bruno of Ohio State University presented findings on the role of green tea for heart health and the promising research being done in that field. Lou Thoumann shared the history and cultural impact of yaupon on North American cultures and beyond. Yaupon was used among Native American cultures and is the only known caffeinated plant native to North America. Dr Richard Chalo Muoki of the Kenya Tea Research Institute showed the work of Kenya in developing new tea varieties that can better withstand the strains of climate extremes while producing healthy yields. 

The colloquium included a panel event of tea industry members Rona Tison (Ito En), Peter Goggi (Tea Association of the USA), Michael Ham (Wild Orchard) and me [Jason Walker, Firsd Tea], who shared our perspectives on the tea industry’s work in advancing sustainability on both global and domestic levels. And while the tea industry does have its challenges, the consensus of the panel was optimism about the future of tea and the industry’s ability to rise to the occasion. 

Between sessions, guests enjoyed sampling teas provided by sponsoring tea companies, and board members gathered to plan for the next year, which will mark the tenth anniversary. Dr Katherine Burnett, founding director of the Global Tea Institute, closed the day’s events with appreciation for the continued success of the colloquia and the contributors who make them possible. 

For more information about the Global Tea institute or the 10th Global Tea Colloquium, visit: globaltea.ucdavis.edu/. 

• Jason Walker is marketing director of Firsd Tea North America. He may be reached at: jason.walker@firsdtea.com.

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When Firsd Tea North America and Tea & Coffee Trade Journal planned a first-of-its-kind sustainability perspectives survey in 2021, they embarked on a mission to understand how professionals within tea and related industries perceived sustainability. We discovered overwhelming apprehension about the risk of climate change on operations, cautious hope for the future, and an under-prioritisation of sustainability when selecting teas to offer consumers.

But to truly grasp industry views on sustainability, it was necessary to continue listening and tracking how collected data either yielded the same patterns or evolved into changing trends. That is why the two organisations again partnered to survey professionals in tea and related industries to understand how they currently view sustainability efforts within the sector and their outlooks for the future. The findings have been published in the 2023 Sustainability Perspectives Report and are available online here. In this two-part article series, the results of that report will be further explored in terms of the planet and people.

General impressions remain positive

On a broader scale, the results cast a positive light. In terms of overall sustainability performance, 73 percent of respondents indicated the belief that the tea industry implements sustainability very well or somewhat well. In comparison, 68 percent believed coffee performed within those same parameters. Further probing into the environmental aspects of that performance, 75 percent of respondents in tea and related industries believe the tea industry performs well or somewhat well in terms of reducing environmental impact.

Additionally, the sustainability reputations of several producing countries improved. Japan still remained No. 1 (96 percent), but remarkable differences did surface from 2022. Though every country witnessed positive increases among survey-takers, Vietnam (+37 percent), Kenya (+33 percent), China (+26 percent), and Sri Lanka (+26 percent) saw significant improvements in 2023 from the 2022 study.

Respondents also expressed general optimism in the industry’s sustainability direction. When asked to rank how the tea industry performed with sustainability ten years ago on a scale of one to ten, with one being the worst and ten being the best, the average score was 4.9. This score was 0.9 higher than last year’s average score. Rankings of how the tea industry currently performs reached 6.38, up 1.38 points over the 2022 average. Average rankings of how the tea industry will perform ten years from now also increased from 6.9 in 2022 to 7.79 in 2023.

Areas of concern

While respondents had positive outlooks on some general aspects, their answers also revealed areas of greater concern. Most professionals in tea and related industries remain aware of and concerned about the environment at a more personal level. 75 percent (versus. 80 percent in 2022) of respondents said they were worried about climate change’s effects on their business operations.

More specifically, most respondents said changing rain patterns (95 percent in 2022 versus 100 percent in 2023) and extreme heat (91 percent in 2022 versus 97 percent in 2023) were the biggest climate change risk factors with pest problems close in third (89 percent in 2022 versus 96 percent in 2023).

Climate concerns and certifications

When it came to standards and certifications that respondents in tea and related industries felt were most important to consumers, the results reinforced the previous study — 95 percent said organic certification led the way versus 85 percent in 2022. This year, non-GMO surpassed Fair Trade as the second most important standard to consumers in the eyes of tea and related industry professionals (81 percent to 68 percent, respectively). Rainforest Alliance (53 percent) remained in fourth place.

Though most respondents remain worried about climate change, they continue to rank ‘sustainability’ as a low-priority factor when selecting teas for their businesses. In 2023, respondents still listed flavour (96 percent), leaf grade (91 percent) and origin/terroir (90 percent) as the top three characteristics that contributed to their decisions to stock particular tea types.

Implications

The report paints a largely positive picture of overall tea industry sustainability progress. Respondents tend to feel that improvements are being made both overall and in the perception of particular producing countries. They also remain generally optimistic about the future. However, the report points to key areas for further action and research:

1. Continued surveys will help reveal industry trends and shifts. While corporate sustainability reports and sustainability certifications provide more of the ‘harder’ metrics on gaps and progress, the perspectives report continues to provide the ‘softer’ metrics that indicate motivations and readiness for change. As such, the survey has become a barometer for the industry to assess readiness and acceptance of change within the overall tea product ecosystem.
2. Environment and climate concerns are still tilting the wrong direction. Respondents generally believed that the tea industry’s sustainability performance would improve in the next ten years, but this was tempered against the continued concerns over the tea plant’s susceptibility to climate change, and environmental impacts on tea business operation. Respondents may feel that conditions will get worse before they get better. Alternatively, the divergence may indicate respondent’s beliefs that deep environmental damage is beyond the realm of control and may arrive in spite of marked progress in sustainability practices. The sustainability perspectives survey draws those underlying concerns to the fore so that latent worries can be exposed and addressed.
3. In addition to the ambivalence of sentiments was a potential mismatch in action. Flavour, origin, and pricing have long been seen as driving factors in tea purchase. At the same time, respondents rated organic certification and non-GMO as the certifications most important to consumers. Taken together, these findings may suggest one or more of the following:

• Respondents may believe that quality and value (price) are the ultimate factors in consumers’ purchasing decisions.
• Respondents may believe that consumers are more interested in clean/healthy products, with that concern centering on more immediate and personal impacts. Organic and non-GMO certified products are often viewed as safer, pollution-less products that more directly affect the health of the end-user. While organic practices may benefit the environment by virtue of the absence of pesticides, their potential for environmental improvement are not part of their primary agenda.
• Even if respondents believe that consumers want teas that meet quality, price, sustainability and certification standards altogether, respondents believe they are willing to make tradeoffs in the area of sustainability to get what they want in the other areas.

Each of these areas provide opportunities for further discussion and research, especially in the areas of consumer preferences and purchase decisions. Understanding the tea industry’s and retailers’ effectiveness in promoting sustainable teas will be an important factor. On the consumer side, dialogue on how consumers make tradeoffs in using their purchasing power to reflect their values is an important consideration.

Firsd Tea and the Tea & Coffee Trade Journal would like to thank all of the members of the tea, coffee, and cocoa industries who contributed to the survey. A diverse range of respondents from across the world and across the supply chains provided us with their distinctive insights. It is our hope that the survey report continues to spark change and dialog on the importance of sustainability practices as they affect the future of these global industries and their consumers.

• Jason Walker is marketing director of Firsd Tea North America. Prior to his work with Firsd Tea, Walker served in a variety of roles in tea and beverage business capacities. His experience includes business services for small tea companies, a top-ranked online destination for tea consumer education and co-founding a coffee business. His insights draw upon his diverse range of experience in sales, operations and management in the tea world. He may be reached at: jason.walker@firsdtea.com.

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Depending who and where you ask, kombucha ranges from a niche beverage that people have heard of but do not know what it is, to a beverage and lifestyle staple. However, there is no argument that, globally, it is a growing category, situated in the ready-to-drink (RTD) tea market, which is also growing. This growth is driven by four macro trends, according to London-based Momo Kombucha’s co-founder, Josh Puddle, which are “gut health, low sugar, alcohol alternatives and vegetarianism/veganism.”

Consisting of fermented tea, using a live culture of bacteria, known as a SCOBY (symbiotic culture of bacteria and yeast), fruit flavours are often then added to create a naturally low-sugar, lightly sparkling probiotic drink, sometimes with a naturally occurring ABV of around 0.5 per cent, however many manufacturers remove this alcohol content to bypass possible restrictions.

Thought to originate in China, one of the largest markets for kombucha is currently the United States. A 2015 Mintel report found that nearly one quarter of US consumers were drinking kombucha, half of which were aged 25-34. However, the market has grown significantly since then so the figures are now likely higher — and it is still growing. Future Market Insights Kombucha Market Outlook report forecasts kombucha to globally experience a CAGR of 17.4 percent from 2022 to 2033, or a rise from USD $3.4 billion to $17.1 billion.

The US is one of the most developed kombucha markets, and therefore is experiencing innovation in the category, such as Caffe Luxxe’s coffee kombucha, brewed from the company’s own coffee as a base rather than tea, to “provide the energising effects of coffee in combination with the probiotic benefit of kombucha,” said Gary Chau, co-founder of south California-based Caffe Luxxe. Kombucha is highly popular among Californians, which Chau credits to the regional trend of lifestyle wellness and holistic health.

California was also the host state of Kombucha Kon, which saw its third annual installment in April. This conference and expo is targeted specifically at the kombucha industry, offering networking across the kombucha supply chain. “Medium-large and better-distributed US brands were represented, including Brew Dr., Bambucha, Flying Embers and Local Roots,” commented Jason Walker, marketing director of Firsd Tea North America, who attended the conference.

Where the US market is reaching maturity, in Europe, in particular the UK, whilst showing strength, the category is still establishing itself and growing its popularity base, with companies mostly trying to make themselves known and educate consumers on what kombucha is and the health benefits it offers, since this is what draws most consumers to the products, and then draws them back. One company already has an advantage in this respect; Yorkshire Tea, a household name in the UK for everyday black tea, is launching a line of kombucha in collaboration with kombucha brand, HOLOS Kombucha, brewed from its own tea. It is still in its trial phase and not yet available to consumers, however, attendees  at the London Coffee Festival, which took place in April, were able to sample the new line. Several other kombucha companies also exhibited at the annual event.

Millennials drive category growth

Kombucha is heralded as the ultimate functional beverage, serving as a probiotic, which contains live microorganisms intended to contribute to healthy levels of good bacteria in the gut, supporting digestion and boosting immunity. Kombucha companies are tapping into the wellness trend that strengthened during the Covid-19 pandemic, and offering a healthy, alcohol-free beverage that also tastes good.

Momo’s Puddle said that the main consumer demographic of its kombucha are millennials, primarily 25 to 45 year olds, which concurs with Fact.MR’s report detailing millennial’s rising adoption of bottled tea. However Caffe Luxxe’s Chau shared that its kombucha is sold generally to those “interested in an overall health and wellness lifestyle.”

That statement is supported by Anna Dominey, UK general manager at Remedy Drinks, an Australia-based kombucha company that dominates in its origin country as well as in the UK market, who says that it appeals to “those who are rejecting processed foods and drinks in favour of more natural alternatives and by those who are looking to cut down on alcohol or drink more mindfully.”

It is evident that the main driver of the kombucha category is its health benefits as well as the offering of an alcohol alternative. “Around 20 per cent of Remedy is consumed in the evening, suggesting consumers are enjoying it as a tasty and satisfying alternative to alcohol,” commented Dominey, further indicating the growing partnership between the low and no alcohol trend, and the functional/wellness beverage trend.

Beverage companies are tapping into this demand, according to Puddle, “more brands are creating products specifically for this segment, eg, kombucha in champagne-style and beer-style bottles.” An example of this is Mighty Brew, which, alongside its core range which retails at a price point of approximately £5.66 (USD $7.08) for 750ml, it offers a more premium ‘Heritage’ format at approximately £11.00 ($13.76) for 750ml which is housed in a champagne-style bottle, complete with cork and cage. Mighty Brew’s Heritage range is marketing itself as an alternative to alcoholic bubbly beverages at celebratory occasions.

Tapping into current trends

This functional/wellness and low and no category overlaps significantly with those incentivised by sustainability claims, therefore, most kombucha brands cite accolades accordingly, such as Momo achieving certified organic and B Corp status. Further, Remedy endeavours to source high quality, all natural ingredients; “This was the way Sarah and Emmet [Remedy’s founders] did it when they started on the kitchen counter, and they still take an active role in sourcing the best ingredients from trusted suppliers,” revealed Dominey. “We know where every single ingredient in our drinks comes from, right down to even our live culture,” she continued. Similarly, Caffe Luxxe builds sustainable relationships with its coffee farmer partners to provide consistent and fair prices.

Looking ahead, Future Market Insights (FMI) Kombucha Market Outlook report finds that it is “unlikely that consumer demand for fermented goods may decline anytime soon,” with the millennial generation’s focus on healthy eating fuelling the demand. However, to increase its consumer base, the kombucha market needs to actively promote its health benefits to attract the older consumer, as well as work on becoming more cost-effective, as it currently sits in the more premium category in most markets. FMI’s report also details that the category can take advantage of novel flavours to attract consumers and tap into the increasingly adventurous flavour palates of the consumer.

• Kathryn Brand is an associate editor on T&CTJ, while still writing for several of Bell’s other magazines. She joined Bell Publishing as an editorial assistant at the beginning of 2022 after graduating from the University of East Anglia with a degree in English Literature and Creative Writing. She may be reached at: kathryn@bellpublishing.com.

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Black tea still leads in terms of global production volume, but green tea has seen a slight but gradual gain in share over the last 10 years. According to the London-based International Tea Committee (ITC), the share of green tea production has increased from about 30 percent to 33 percent. Estimates put the world’s total green tea production at 2.1 million metric tonnes (mmt) in 2021.

China drives green tea production, contributing over 1.8 mmt. This makes the Middle Kingdom the provider of over 85 percent of the world’s green tea. In relation to its own production, however, green tea comprises about 60 percent of its total annual production. Green tea holds the largest share in terms of China’s output, with black tea being the next closest at about 14 percent of annual China production. It is worth noting, however, that China’s classification system for teas distinguishes between green tea and flower tea. Because of this, all forms of jasmine green tea – from specialty jasmine green pearl teas to jasmine green tea fannings – are not counted towards the green tea totals but are designated as flower teas. Depending on interpretation, this can serve to under-report the actual amount of green tea produced.

Japan is the next best-known home of green tea production, contributing about 0.8 mmt of green tea per year. The majority of Japan’s green tea comes in two forms. Sencha accounts for a little over one half, and bancha makes up more than a third. Matcha (tencha) and gyokuro each contribute less than 4 percent of the total volume but their average value in USD per kg is more than double that of sencha.

Other well-known tea-producing countries, including India, Argentina, Indonesia, Sri Lanka, Turkey, and Vietnam either do not parse out green tea production from black, or mainly focus on reporting green tea exports.

China leads in exports

As may be expected, China also dominates in green tea exports. China’s 2021 green tea exports totaled 0.31 MMT, or nearly 85 percent of China’s total exports. Value-wise, however, green tea exports represent roughly 60 percent of China’s exports. China’s average annual export rates reached USD $5.55/kg, with green tea averaging $4.44/kg compared to black tea at $10.25/kg. China’s main export partner has remained Morocco for several years now, as the country has relatively high per-capita tea consumption and a longstanding tradition of drinking green tea (eg Moroccan mint tea).

Vietnam appears to be one of the next largest green tea exporters, though nowhere close to China’s volume. In 2021, Vietnam exported 62,000 mt of green tea, or just shy of half of the nation’s total exports. Vietnam’s top tea export destinations include Pakistan, The Republic of China (ROC), and Russia. It is unclear as to the share of green tea exports among these countries, especially when Pakistan and Russia are known for purchasing significantly more black tea than green.

Japan, on the other hand, exported over 6,000 mt of predominantly green tea. As mentioned above, Japan’s production is largely divided between sencha and bancha. About one-third of Japan’s green tea exports went to the US.

Indonesia, Sri Lanka and India each exported between 5,500 and 3,000 mt of green tea. Indonesia’s major tea export partners include Malaysia, Russia, and the US. Sri Lanka’s top export destinations include Iraq, Turkey, and Russia. India’s three largest tea export countries include Russia, Iran, and the United Arab Emirates (UAE)

US imports of green tea grows

Of the world’s top three tea-importing countries (Pakistan, Russia, and the US), the US provides the clearest picture of green tea imports. Of Russia’s 135,000 mt of imported tea, at least 85 percent of it is black tea. Similarly, tea imports into the US in 2022 showed about 14 percent, or 16,618 mt was green tea. Of that total, nearly 7,000 mt originated from China. A further dissection of US green tea imports reveals that 1,800 mt was organic green tea, of which about 1,000 mt came from China.

Producing countries consume the most tea

Considering that the world’s top two producing countries (China and India) generally keep about 85 percent of their produced tea within their borders, these countries hold sway over global green tea consumption. China’s domestic sales of green tea reached 1.3 mmt. During that period, China only imported about 4,300 mt of green tea.

India’s green tea volumes also remained available for the domestic market. As with China, at least 85 percent of India’s total tea production volume didn’t leave the country. This proportion held true for green tea as well. About 15 percent of India’s green production was exported, leaving about 85 percent within its borders.

The US also held relatively steady in an 85/15 split of black-to-green tea consumption, with more emphasis placed on iced tea.

In relation to per capita consumption of tea, some of the major countries increased their consumption over the past ten years. Most notably was Morocco, a major green tea consumer, which increased an estimated 15 percent per head. China’s per capita also saw a significant rise from just shy of 1 kg per head to roughly 1.75 kg.

The outlook for green tea is positive

Compared to black tea, green tea consumption still appears modest but with positive signs for the future. The UK has seen declines in black tea consumption, while green tea has remained relatively steady. Green tea in the US also holds promise, as consumers are attracted to the reported health benefits of green tea.

The Japanese tea industry still sees potential for the further expansion of matcha exports, with matcha being viewed by international markets as a more premium and health-forward tea option. The nation has seen decreases in production of leaf tea and increases in powdered teas and teas used for RTD. The Japanese government has established initiatives to upgrade tea farms, modernize tea harvesting and processing, and promote Japanese teas in the US, Europe, and Asia Pacific.

China’s expansion of new tea fields also indicates a continued trend toward steady production of green teas. China’s internal estimates classify about one third of the nation’s current tea plants as over 30 years old and recommend removing or replacing these less-productive bushes. A gradual phasing out of old fields and the advent of new fields coming online will help keep China on top as a green tea powerhouse.

• Jason Walker is marketing director of Firsd Tea North America. Prior to his work with Firsd Tea, Walker served in a variety of roles in tea and beverage business capacities. His experience includes business services for small tea companies, a top-ranked online destination for tea consumer education and co-founding a coffee business. His insights draw upon his diverse range of experience in sales, operations and management in the tea world. He may be reached at: jason.walker@firsdtea.com.

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While to many, bubble or boba tea might seem like a new fad that has surfaced over the last couple of years, it is by no means a recent invention. Bubble tea is typically a milk- or juice-based tea drink containing soft and chewy tapioca pearls, or boba, made with flour from cassava. It originated in Taiwan in the early 1980s, from there it spread across East and Southeast Asia (in particular Singapore, Japan, Hong Kong, Vietnam, and mainland China), and was brought to the United States in the 90s to Asian American diasporic communities such as in California, the East Coast and West Coast and the Southeast.

There are myriad variations of the beverage, offering different tea varieties such as black, green or oolong as the base, fresh milk, powdered milk or juice options, as well as the boba themselves, which are sometimes added to or substituted with grass jellies, or juice filled boba known as popping boba. It is a unique product in that it is simultaneously a drink and a snack, with the flavoured tea providing the beverage, and the carbohydrate and fibre heavy boba offering a filling accompaniment.

It emerged in the mainstream in recent years and now has a market value that, according to global market research firm, Future Market Insights (FMI), is currently valued at USD $2.5 billion in 2022, and is expected to reach $5.82 billion by 2032, performing at an 8.8 percent growth rate. This ever growing success can be attributed to several factors. “Now that Asian American communities have a saturation of boba tea shops, many franchises and small business owners thought it would be best to introduce the treat to other communities, communities that have never heard of bubble tea,” explained Christine Trinidad, CMO of Milk+T, a company that began with its self-serve boba truck in 2015, and now has brick and mortar locations in Los Angeles, California and Beaverton, Oregon.

From there, it has been adopted by the Gen Z and millennial generations, to whom “the boba tea shop is in the position that the soda shop was in the 1950s,” according to Jason Walker, marketing director, Firsd Tea, which has recently expanded into the wholesale bubble tea ingredients sector. “Whenever you go into a bubble tea shop, the place is full of young people. Young parents bring their children as a fun and sweet treat. Young couples and groups of teens hang out and chat over bubble tea,” observed Walker.

Since the beverage is so popular with a younger audience, social media has inevitably played a key role. Through connecting people across the world, it allows trends to cross countries and cultures, and bubble tea appeals to this medium due to its highly visual attributes. “For the local boba tea shop, social media is a powerful force for showcasing the colourful and attractive drinks they create. Think of the brown sugar milk tea (sometimes called tiger milk tea) – this is a drink that was made to be shared on social media – once you see the rich milk caramel colour of the drink with brown sugar tiger stripes streaming down the cup – you are hooked!” said Walker. The beverage lends itself to artistic photos by food bloggers or Instagrammers on social media, broadening its audience and its cult following.

There are a few giant boba shop chains, but predominantly they are independents, “that mom or pop just started because they love the product,” said David Fan, co-founder and CEO of US Boba Company, which supplies a few hundred boba stores with tapioca pearls it makes in the US, as well as to its partner retail company, Boba Guys. “So, they come to the table with more ideas. That’s what I think is another driving force behind boba tea; it’s not major corporations, it is small business owners,” continued Fan. This gives more opportunities for creativity, new flavours and exciting visuals that attract the trend-seeking Gen Zs and millennials.

Boba shops generally also offer extensive options for customisation. Each consumer can not only decide their tea base, milk or juice, boba type and amount, but there are variable sweetness and ice levels, as well as the options for it to be served hot, and with toppings such as whipped cream. Its customers have been cultured by Starbucks, Fan noted; people like to be able to create their order specific to them, so they feel the drink is their own, as well as offering the opportunity to try a new combination and order every time you go.

Although, he argues that there has to be a balance, with recommended or shop specialties on offer, too. “This streamlines operations for the store for expansion and also standardisation of a drink, because sometimes with a customisation you choose well, sometimes you don’t,” commented Fan. However, the sweetness level remains a popular customisation option, especially with the health conscious.

Adapting to Changing Tastes

As well as reduced sugar options, the base of tea, particularly green tea whose health benefits have been lauded for centuries, has added attraction for functional beverage seekers. What’s more, it is readily made vegan, with dairy-free options with juice or plant-based milks. While boba tea is traditionally made with fresh dairy milk or milk powder, vegan formats are a way for the beverage to adapt within the American and Western culture, said Trinidad.

The health and sustainability credentials of the drink was something that was important to Bobba when developing its products. Bobba offers ready-to-drink (RTD) bubble teas across Canada, having also recently opened markets in France and the US. All its drinks are juice based and vegan, with only 12 or 13g of sugar per bottle, compared to boba store offerings that can reach 100g, revealed Sebastien Fiset, president of Bobba. Instead, it sweetens its drinks with oligofructose and very pure stevia. “It was really important for us, and I think it was a good move because they have been a huge success,” commented Fiset. Bobba had to develop its own kind of boba to include in its drinks, as traditional tapioca would lose all its integrity submerged in a beverage for any great length of time, but this is something that the company believes sets it apart, as its boba is flavoured to match the drink it is in, and they are all popping boba, therefore they are filled with real fruit juice syrups to complement the flavours.

boba tea offering from Milk+T,
served in one of its glass jars.
Image credit: Milk+T

Bobba also sells all its drinks in glass bottles, instead of plastic. Bubble tea is traditionally sold from boba shops in clear plastic cups, with a film lid and wide plastic straw, which is competing with the consumer’s growing intolerance for single-use plastics. While glass is expensive, Bobba is committed to sticking with this format over the cheaper and lighter plastic packaging alternatives. “That’s why we do not offer straws with our products. We don’t want to be involved with [straws] because [they are] not very good for the environment,” said Fiset.

Milk+T follows a similar mantra, having offered sustainable alternatives ever since opening its doors in 2015. “We offer glass jars with every drink to help lower the use of single-use plastics,” explained Trinidad. It is something Firsd Tea and US Boba Co have been concerned about and are currently also exploring, with Firsd Tea looking into incentivising consumers to use their own metal or reusable straws, and US Boba Co. developing its own paper cups and compostable straws without any PE coating.

“I think it’s a worldwide issue that we have to face the fact that these disposables need to go on a course of slowly diminishing,” said Fan. The challenge with switching away from plastics in the bubble tea industry is that a lot of the drink’s appeal is its visuals and the layers and colours visible through the clear cup or bottle. “We will absolutely lose a lot of remarketing effect, as people sharing and resharing your posts is very important.” However, he believes the visual appeal lost from transitioning away from the clear cup formats, will be replaced by the appeal of the product being sustainable. “What kind of posts are most shared right now? It is the organic ones by the consumer,” Fan pointed out, and fortunately, sustainability is trendy right now, so the switch away from plastics for bubble tea may not negatively impact the market after all, it remains to be seen.

Tapioca pearls being added to
make a boba tea.
Image credit: US Boba
Company

As boba shops spread and RTD formats surface, companies are having to compete with one another to be increasingly creative, whether that be with their flavours, toppings, packaging, or sustainability credentials, creating a dynamic market that FMI predicts will continue to grow.

• Kathryn Brand, associate editor, joined Bell Publishing at the beginning of 2022 after graduating from the University of East Anglia with a degree in English Literature and Creative Writing. She may be reached at: kathryn@bellpublishing.com.

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Firsd Tea recently released a first-of-its-kind Sustainability Perspectives Report in 2022 to capture the tea and coffee industry’s views on how well the tea sector performs in areas of sustainable practices. In conjunction with Tea & Coffee Trade Journal and a third-party research firm, the study was developed with guidance from industry peers and an academic research and think-tank. Respondents of the survey included a diverse spectrum of wholesalers, importers, exporters, retailers, and others based in North America, Europe, and Asia. While many studies have examined consumers’ perceptions of sustainability, this study targeted professionals in tea, coffee, and related industries to understand their concerns and views on the tea industry’s sustainability performance.

The findings of the research can generally be grouped into perspectives about three areas: environment, people, and certifications. Part three of this series focuses on sustainability and certifications.

As a quick recap from the previous coverage, the survey of tea and coffee professionals revealed:

1. Industry professionals show strong concerns about the environmental impact on their businesses — 80 per cent are worried about climate change’s effects on their operations.
2. Respondents are generally split as to the tea industry’s performance in some human welfare areas, like gender equity and poverty reduction.

The survey also revealed some surprising attitudes about sustainability and certifications. Sustainability was not a high-priority consideration for industry respondents in terms of their decisions to carry specific teas in their product offerings. Respondents ranked flavour (96 per cent), leaf grade (90 per cent), origin/terroir (88 per cent) and price (83 per cent) above sustainability (79 per cent). In addition, a significant majority of Industry respondents (85 per cent) view organic certification as the most valued certification standard among consumers. Certifications more closely associated with sustainability fared lower in perceived value, with Fair Trade at 68 per cent, non-GMO at 58 per cent, and Rainforest Alliance/UTZ at 56 per cent. Taken together, these findings suggest that sustainability is seen as lower in importance among consumers, and that sustainability-focused certifications are even lower in priority.

Then there is the obvious disconnect between concerns about environment and human welfare and the prominence of organic certification. Do consumers mistakenly view organic certification as a sustainability credential? The organic programme was never designed to serve as a mark of sustainability; its standards and compliance measures do not include any forms of evaluation of environmental or human welfare impacts. From the producers’ perspective, compliance with organic certifications does overlap with certain compliance practices of other certifications, (e.g., non-GMO and regenerative agriculture), but these are also not certifications with a dominant emphasis on the people plus planet issues of sustainability.

Mixed results concerning certifications

On the surface, the findings suggest that industry respondents see consumers as more concerned about the impact of tea purchase decisions on their immediate and local well-being: be it price, absence of pollutants (e.g., organic), and overall food quality. However, Mintel Consulting’s recently published global 2022 Sustainability Barometer showed that consumers who are more invested in sustainable purchase decisions do rely on certifications as an important guide in making those choices.

Write-in feedback from respondents reflect split attitudes toward the role of certifications. Some respondents feel more certification, and more enforcement of certification practices is needed. Others feel that certification often places too much focus on administrative paper-pushing and not enough on-the-ground support. Some commenters believe certification alone is too costly for small farmers and not transparent enough in terms of actual practices recorded and activities in the value chain. The most often repeated comments regarding certification call for more action in terms of less economic burden for growers and legal/compulsory compliance across a unified, streamlined certification scheme for organisations.

Any discrepancies in sustainability across consumer perceptions, business practices, and certifications may soon face a re-alignment. Governments across the globe have passed or are drafting legal guidance that will require businesses to further comply with sustainability practices. For example, the European Union published its Draft Corporate Sustainability Due Diligence Directive in February of 2022. If ratified in its current form, the directive would require companies to identify and seek to rectify negative impacts on the environment and human welfare that are found within the business’s value chain. In the United States, California passed the California Transparency In Supply Chains Act, with the explicit purpose of increasing awareness of human welfare issues within organisational supply chains. These are just a couple of examples of laws directed toward enforcement of corporate sustainability practices. As these laws develop, certification bodies will likely adjust their certification process to streamline the path to legal compliance or to exceed the legal standards so that their certification badge stands out as a mark of greater distinction.

When viewed as an integrated whole, the report findings indicate that sustainability certifications may be unbalanced in terms of their perceived value to tea consumers. This may be partially due to the certification’s role in environmental and human welfare aspects of sustainability, and as a factor of public sentiment towards sustainability initiatives. Additionally, industry members tend to see more of the transparency issues and economic costs associated with certification as obstacles to providing greater value in tea sustainability.

• Jason Walker is marketing director of Firsd Tea North America. Prior to his work with Firsd Tea, Walker served in a variety of roles in tea and beverage business capacities. His experience includes business services for small tea companies, a top-ranked online destination for tea consumer education and co-founding a coffee business. His insights draw upon his diverse range of experience in sales, operations and management in the tea world. He may be reached at: jason.walker@firsdtea.com.

The post Tea sustainability perspectives and certifications appeared first on Tea & Coffee Trade Journal.

Firsd Tea, in collaboration with Tea & Coffee Trade Journal and a third-party research firm, recently released a first-of-its-kind Sustainability Perspectives Report in 2022 to capture the tea and coffee industry’s views on how well the tea sector performs in areas of sustainable practices. The study was developed with guidance from industry peers and an academic research and think tank. Survey respondents included a diverse spectrum of wholesalers, importers, exporters, retailers, and others based in North America, Europe, and Asia. While many studies have examined consumers’ perceptions of sustainability, this study targeted professionals in tea, coffee, cocoa and wine sectors to understand their concerns and views on the tea industry’s sustainability performance.

The findings of the research can generally be grouped into perspectives about three areas: environment, people and certifications.

This article represents the second of three articles on the survey respondents’ perspectives on sustainability within the tea industry. The first article in the series (July/August issue) looked at perspectives on sustainability and the environment, while this one explores perspectives on the human side.

Source for both graphs: Sustainability Perspectives Report

Overall, 67 per cent of respondents in tea and related industries say the tea industry implements general sustainability practices very well or somewhat well. ‘General sustainability practices’ can be understood as including issues related to people and the environment. Looking at some of the specifics in the area of human welfare, however, suggests that the tea industry may not be as strong in those areas of practice. 61 per cent of respondents feel the tea industry performs very well or somewhat well on workers’ rights. This performance is seen as stronger than that of the coffee industry, of which only 46 per cent of respondents feel that coffee did very well or somewhat well.

Further questions indicate that the tea industry is believed to have weaker performance in fostering safe and caring communities (53 per cent), gender equity (51 per cent) and poverty reduction (46 per cent). Respondents are roughly split down the middle in these areas, although some respondents’ write-in comments mention the importance of gender equity. These remarks call for more women in management positions. Several comments also emphasise the need for fair/better wages for farmers and labourers.

This split in sentiment stands in contrast to the more widely shared environmental concerns expressed in the previous article. Those findings reveal that 80 per cent of respondents are worried about the effects of climate change on their business operations. Eighty-four per cent of respondents also feel that the environment/carbon footprint is the most important sustainability issue to consumers. This partiality toward concern for the environment appears to misalign with many of the United Nations’ Sustainable Development Goals (SDG) regarding social welfare. The SDGs include, among others: reducing poverty, ending hunger, providing quality education, improving gender equality, and promoting safe and equitable workplaces. It remains unclear as to why concerns about the environment show stronger numbers than those related to people.

Response to certification question in the tea survey

Similarly, sustainability certifications that aim to promote the welfare of tea industry workers carry less importance than other product factors. Organic certification beat out other certifications as being considered more valuable to consumers. Eighty-five per cent of respondents feel organic certification is the most important, compared to Fair Trade (68 per cent) and Rainforest Alliance (56 per cent) — certifications that exist to overtly raise awareness of the social justice aspect of sustainability.

New questions raised

The findings of this research raise further questions to explore and address within the tea industry and beyond. Some of the more pertinent questions include:

1. Is there a greater, perhaps unbalanced, emphasis in the perceptions of sustainability that prioritises the environment above human welfare?
2. To what extent are equity and social justice issues viewed as tea-industry specific versus seen as larger issues of a culture or society? Perhaps human welfare problems are perceived as beyond the tea industry’s purview, and more as widespread/inherent national or societal problems.
3. How well are sustainability certifications perceived in terms of their roles in helping people and the planet?
4. Are the human stories of sustainability being sufficiently and accurately told, so that industry members and consumers have a full and accurate understanding?

• Jason Walker is marketing director of Firsd Tea North America. Prior to his work with Secaucus, New Jersey-based Firsd Tea, Walker served in a variety of roles in tea and beverage business capacities. His experience includes business services for small tea companies, a top-ranked online destination for tea consumer education and co-founding a coffee business. His insights draw upon his diverse range of experience in sales, operations and management in the tea world. He may be reached at: jason.walker@firsdtea.com.

The post Tea sustainability perspectives & human welfare appeared first on Tea & Coffee Trade Journal.

While many studies have examined consumers’ perceptions of sustainability, this study targeted professionals in the tea, coffee, cocoa and wine sectors to understand their concerns and views on the tea industry’s sustainability performance. The findings of the research can generally be grouped into perspectives about three areas: environment, people and certifications.

This article represents the first of three articles on the survey respondents’ perspectives on sustainability within the tea industry.

Climate and Operations

A widespread concern about climate’s potential impact on the industry was one of the more glaring findings. Eighty percent of respondents expressed worry about the effects of climate change on their business operations. In fact, respondents considered the tea industry (93 percent) more sensitive to climate change than the coffee (82 percent), wine (65 percent), and cocoa (63 percent) industries.

The effects of climate change may be most obvious at the farm level. Changing rain patterns, drought, and extreme temperatures can impact early/late flushing, stunted plant growth and damage, spread of pests and blight, and disruption of harvesting. These concerns were reflected in the responses as well, with changing rain patterns (95 percent) unpredictable weather (94 percent) and extreme heat (91 percent) ranked as the biggest threats to the industry. All these can directly impact yields and the economic costs of tea production.

Additionally, unpredictable weather patterns created by climate change, like increased floods and flood damage, snow and hurricanes/typhoons can impinge upon logistics activities and delay deliveries. Longer-term shifts in average temperatures could also affect consumption patterns of hot and/or iced teas. Climate change could therefore create a snowball effect from farm to consumer.

Respondents (84 percent) also believe that consumers are concerned about the environment and carbon footprint. Further research may shed more light on the particulars of this concern, as it may include loss of flora and fauna around tea farms, welfare of workers whose local environments are impacted, and the economic costs associated with more challenging growing conditions.

Climate and Products

In spite of the seemingly widespread concerns about climate’s impact, sustainability was not a
high-priority consideration for industry respondents in terms of their decisions to carry specific teas
in their product offerings. Respondents ranked flavour (96 percent), leaf grade (90 percent), origin/terroir (88 percent) and price (83 percent) above sustainability (79 percent). The seeming contradiction between the perceived concerns over the business impact of climate change and the lower prioritisation of sustainably sourced teas invites further investigation.

Climate and Certifications

The survey results paint an unclear picture of the perceived value of some product certifications as they may relate to understandings about sustainability. A significant portion of respondents (85 percent) view organic certification as the most valued certification standard among consumers. Certifications more closely associated with sustainability fared lower in perceived value, with Fair Trade at 68 percent, non-GMO at 58 percent, and Rainforest Alliance at 56 percent.

The connection between this perception of consumers’ valuation of certifications and industry members’ prioritised criteria for carrying a tea may have a cause-effect relationship, but it remains unclear as to which one causes the other. Other factors may also be at play. Further investigation may also clarify whether consumers mistakenly view organic certification as a form of sustainability certification.

Views of the Future

Respondents did reveal a sense of optimism about the future of sustainability and the environment. On a 1-10 scale, respondents gave an average score of 4 to score the tea industry’s sustainability performance 10 years ago. That average score improved to 5.5 for current sustainability performance, and optimism about further improvement 10 years from now was indicated in an average scoring of 6.9.

Next Steps

Beyond the opportunity for further study, the Sustainability Perspectives Report points toward ways that tea industry professionals can begin to engage with pressing environmental concerns. One of the first steps would be to evaluate the data being collected, and the effective dissemination of information regarding sustainability practices and their impacts. This evaluation could uncover gaps where certain groups, be they producers, distributors or consumers, may not be receiving sufficient quality information in a timely manner to properly understand the picture of climate and environment in the tea industry.

Coinciding with an assessment of information about climate and sustainability comes an evaluation of the prioritisation of climate and environmental concerns as they shape purchase decisions along the supply and value chains. Diving into the details may indicate how supply/demand challenges, packaging, product placement and similar factors can shift concerns towards greater prioritisation of sustainability issues during buying/purchasing processes.

This initial study lays the groundwork for additional research and dialogue on next steps for the tea industry – both upstream and downstream on the supply/value chains. Meaningful changes to further improve sustainability practices that protect the environment will likely call for active participation from producers, consumers, and stakeholders in between. Dialogue on these environmental concerns will also need to consider the social and economic concerns of sustainability, which will be explored in future articles.

• Jason Walker is marketing director of Firsd Tea North America. Prior
  to his work with Secaucus, New Jersey-based Firsd Tea, Walker served in
  a variety of roles in tea and beverage business capacities. His experience
  includes business services for small tea companies, a top-ranked online
  destination for tea consumer education and co-founding a coffee business.
  He may be reached at: jason.walker@firsdtea.com.

The post Tea Sustainability Perspectives and the Environment appeared first on Tea & Coffee Trade Journal.

Sustainable practices and profitability, factors that were once perceived to be in conflict, are now recognised as being harmonious. Investing in origin, including paying higher wages and environmental initiatives, has improved the quality and yield in both the tea and coffee industries. At the same time, consumers are actively seeking and embracing companies that are doing better, providing external motivation for companies to act and communicate these initiatives to their market.

“The market research says that younger consumers are expecting sustainable practices, and as a business, you have to respond to that expectation especially because they have legitimate concerns,” said Jason Walker, Firsd Tea North America, Lyndhurst, New Jersey. “So, there is the loyalty aspect of having a sustainable brand, but there is also a profit side to it. There can be significant savings when things are done more efficiently, including a reduction or even elimination in pesticide use, and the integration of more efficient technologies.”

Firsd Tea’s parent company, Zhejiang Tea Group, based in Zhejiang Province, China, applied its knowledge of best practices when it expanded operations to the West of China. This included applying research on light and pheromone traps to reduce pesticide application and donating 15 million tea cuttings to support the new smallholder farms in Western China. Applying these best practices to these new farms, decreased the company’s environmental impact while increasing yield, and in turn, profitability.

Zhejiang Tea Group tested light and pheromone traps in its fields to reduce pesticide application. Image: Zhejiang Tea Group

Consumers and business partners are increasingly more cognisant of the values that companies embody. As a result, there is an expectation for companies to do better, whether itisenvironmentally, socially, or ethically.

“There is a growing level of interest in knowing whether you are buying something valuable for society, compared to a decade ago where no one was really asking those questions,” said Elisa Criscione, founder and CEO, Digital Coffee Future. “I do believe that this interest is expanding on a worldwide level. However, communicating sustainability values has become increasingly more challenging as sustainable initiatives expand beyond philanthropic activities and certifications.” Being authentic and transparent about business practices, shared Criscione, is vital in helping provide clarity to the consumer and aid in their decision-making process. The integration of digitisation throughout the supply chain is one strategy that can help provide consumers, and partners in the supply chain, with that transparency.

“Today, more than ever, our consumers are demanding sustainable options, not just in coffee, but across the total CPG market. It’s important to stay the course and ensure that our brands are communicating our commitments in transparent, honest, and authentic ways to make that connection with our consumer,” said Matt Swenson, director of coffee, Nestlé Coffee Partners. “This looks different in practice across our portfolio as each of our brands has its own unique consumer base and differing expectations and desires for engagement on sustainability. We will always try to honour the reasons consumers choose our brands and continue to evolve with them.”

Based out of Oakville, Ontario, Reunion Coffee has been actively involved in sustainability initiatives for the past 16 years. “We’ve tried to be a part of redefining what sustainability in coffee is, including adopting a more holistic approach,” said Adam Pesce, president, Reunion Coffee. Nine years ago, Reunion Coffee became B Corp certified; since then, the business has doubled, and sustainability played a significant role in that growth. “When I first became involved in the business, I thought that growth would mean that I was a sell-out; but I’ve discovered that it actually means more impact,” said Pesce. “Because of the nature of our business model, the more we grow, the bigger the impact that we have; it kind of puts sustainability on autopilot.”By placing sustainability in the blueprint of their business, Reunion Coffee has discovered that growth, translates to an increase in positive actions, including more land being set aside for conservation and more employees being treated equitably.

“Sustainability has become table stakes; it is no longer a nice thing that some companies do; it’s become a necessary thing that all companies have to do,” said Pesce. “It has opened a lot of doors for us because we are committed to sustainable practices, but you have to pay attention to the quality, or the sustainability piece will fall apart.”

Traditional Medicinals is one of a growing number of companies that are investing in B Corp certification. Image: The Narrative Group

Traditional Medicinals, Sebastopol, California, invested in B Corp certification to aid with transparency and accurately track their sustainability aspirations against their progress and challenges. These sustainability initiatives have also helped protect its supply chain. “To continue providing accessible botanical wellness, we need to maintain a supply of high-quality herbs. This requires investing in the ecosystems where these plants thrive—and the people that steward them,” said Jamie Horst, chief purpose officer, Traditional Medicinals. In this last year, their production facility became Zero Waste certified and are in the process of launching their first compostable overwrap. “There is no specific point where we will have done enough,” said Horst. “Our goal is to invite our consumers and stakeholders on a journey with us, maintaining transparency about what worked and what didn’t.”

The transition to sustainable practices

“To implement sustainable practices, the first step is surprisingly inward, the company has to look within and consider if its genuinely ready to implement sustainable values throughout its organisation,” said Robert Bird, professor of business law and Eversource Energy Chair in Business Ethics, University of Connecticut, Mansfield, Connecticut. “If companies do not authentically believe in the values of sustainability, they will not be able to optimise the return on the business case. “Adopting the sustainability mindset requires accepting that the results will not be immediate and that there is always more that can be done.

“It’s an ideology, you are continually thinking can I get closer to zero, knowing that you will most likely never get there,” said Noah Bleich, CEO, The Tea Book, Los Angeles, California “But for us, it was about changing our mindset from being perfect, to continually try to be just a little bit better.” One shift that he implemented was adding the concepts of rot and rethink to the traditional three ‘Rs’: reduce, reuse and recycle pyramid. “The first step to rethinking is that you need to think you’re wrong, because if you think you’re right, you will go back to your old ways.” Bleich emphasised that this mindset shift could aid businesses in adopting solutions that are centred on sustainability, instead of performance and profit.

Blue Coffee Box, Canterbury, England, is an ethical coffee subscription that uses direct trade to source quality coffee for its subscribers. When developing a packaging to ship their coffee, Blue Coffee Box wanted to ensure that it was fully compostable. During their research, co-founder Jon Butt, discovered that the bag was not readily available in the market, so they developed their own. “In the end, we found all of the components, the lining, the ziplock, the valve, and then we arranged to have it all put together by a manufacturer to create a fully compostable coffee bag,” he said.

Integrating the principles of sustainability into the blueprint of a business lends itself to a holistic approach to business, one that considers the entire supply chain. Conversely, failing to have these practices may result in both parties getting want they want out of the relationship and moving on. “Sustainability creates a stickiness to their relationship because now the relationship is not only instrumental, based on revenue, but intrinsic, based on values,” said Bird.

Native Root Coffee sample box. Image: Native Root Coffee

Native Root Coffee developed with the goal of rectifying the wage struggle that existed for indigenous small holder farmers in rural Colombia. Founder Ervin Liz, a third-generation native farmer, witnessed farmers in his community, including his parents, leave coffee due to it being unsustainable. The creation of Native Root Coffee helped resolve some of these challenges by paying the farmers 10 to 15 per cent above market value. The company is also actively engaged in the sustainability conversation, using social media to connect with their consumers.

“There are so many other ways to keep your business growing long-term than just the environmental sustainability,” said Braden Mosley, brand strategist, Native Root Coffee. “At the root of coffee, there is a lot of human connection, so that is something that we are trying to focus on and bring back to coffee.”

Nestlé remains focused on climate change and its impact on coffee farming, continuously seeking strategic partnerships with their supply chain to ensure that the industry is not just successful today, but the next ten to twenty years. This year is the third year, for the Chameleon Coffee Community and Anacafé partner programme in Guatemala, which is centred around the health of farmer families, including distributing clean drinking water filters, drip irrigation systems for organic gardens and education on food safety. “We’ve also funded educational farm plots to share agricultural best practices and distribution of climate adaptive varieties,” said Swenson. “We’ve already seen double-digit production volume increases on a percentage basis from the partners that are engaged in this programme.”

The integration of sustainability requires collaboration, including recognising that value of each component on the supply chain. Roaster, Luis Fernando Velez of Amor Perfecto in Bogotá, Colombia, emphasised the importance of shifting the relationship between buyers and producers to one that is a partnership. “We as roasters, need to recognise that we are not coming to the farm to help out poor people. Coffee growers are our partners, and providing that level of respect, which includes paying the farmer for their investment and labour, is how you cultivate sustainability.” Sustainability, according to Velez, must begin with the price of coffee. “As long as you have a good price, then you can start to work on all of the other projects, organic farming, certifications, water conservation, biodiversity.”

• Anne-Marie Hardie is a freelance writer, professor and speaker based in Barrie, Ontario. She may be reached at: annemariehardie1@gmail.com.

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Sustainability and all its pillars – economic, environmental and social – is also core area of coverage for Tea & Coffee Trade Journal. The coffee industry has been aggressive in its sustainability efforts from farm to consumer, not just in initiatives being undertaken globally, but in promoting these endeavors. The tea industry, while just as passionate and committed, has been less overt in highlighting its sustainability efforts. As such, T&CTJ and Firsd Tea have collaborated to create what we believe is the ‘first of its kind’ tea survey to gauge perceptions of sustainability in the global tea industry among business leaders in the tea, coffee, cocoa, and wine sectors.

“Firsd Tea believes it is important to understand how the tea industry sees itself in terms of sustainability. To better move us forward, this survey will reveal the conversations and steps we can take together in a united effort for the betterment of all people, the planet, and the tea plant that is so dear to each of us,” said Jason Walker, marketing director, Firsd Tea North America.

The survey – which takes about 10 minutes to complete – launched today on our website and responses will be accepted through 13 January 2022.

For every completed response, a contribution will be donated to 1% for the Planet, an international organisation whose members contribute at least one percent of their annual sales to environmental causes. Their mission is to “build, support and activate an alliance of businesses financially committed to creating a healthy planet.”

Access the survey here. We hope you will take time to share your thoughts on tea sustainability. Thank you!

• 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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Private label and store brand teas continue to grow by captivating consumers with better quality, great taste and improved value. Private brands and store brand teas maintain their rise because of their ability to capitalise on the:

• Right Selection – successful private brands combine the best-in-class in flavour and function from across top-selling national brands;
• Right Fit – private label tea brands maintain consistency with other branded product lines and meet customer expectations for quality and convenience (eg, organic, Fair Trade, “free-from,” non-GMO, etc);
• Right Value – whether your private brand is premium or discount-focused, the tea brand is competitively and attractively positioned.

Before diving into the weeds, there are a few key numbers to keep in mind about the growth and size of the tea market in the United States:

• $10 billion tea market by 2020
• 80 percent of households buy tea
• 50 percent of Americans drink tea daily, with room to grow.

Room to Grow

The US tea market is nowhere near reaching its full potential. When you look at the per capita consumption levels across countries, there is plenty of room for many countries, including the US, to drink more tea. As it stands, about half of Americans drink tea daily, and at an average of less than a cup a day. Each person in the US consumes about 0.5 pounds worth of tea each year, compared to Turkey (a famous coffee-drinking culture), which consumes about seven pounds of tea per person per year.

American consumers have the spending power necessary to upgrade their tea. Per capita disposable income continues to rise so higher quality and functional teas are becoming preferred over lower-grade, commodity-based teas.

Americans are starting to prefer tea to coffee. Many consumers understand the health benefits related to tea drinking, and they seek the diversity of flavours and variety that teas offer. Millennials, now the largest age demographic in the US, make up 26 percent of all households in America. They are as likely to order a cup of tea as a cup of coffee. In fact, 87 percent of millennials drink tea, but (as consumption levels indicate) they can certainly drink more.

Creating a successful line of teas may start with simple imitation of national brands, but sustained success will require tapping into unmet needs. One of those unfulfilled desires is for green tea.

Zig When Others Zag

The popularity of green tea may appear surprising at first as black tea often claims the lion’s share of the overall tea market. However, recent reports on US market trends (see blog.firsdtea.com/posts/us-tea-market-forecast-tariffs-and-trends) and China’s Increased Green Tea Production (see blog.firsdtea.com/posts/chinas-growing-green-tea-production) point to the rise in green tea capacity and imports into the US. The tide may be turning. It is unclear whether black tea dominates due to consumer preference, or insufficient supply of green tea options — especially for iced tea.

It is inadvisable to put all your chips on the table for green. A better course of action is to create functional blends with a range of base teas, including black, green, oolong, and herbal ingredients. Green tea easily stands at the crossroads of consumer taste preference and functional value — tea drinkers enjoy the taste and appreciate green tea as a health-promoting beverage.

Other types of tea need not be ignored. Oolongs were once over-hyped as a fat-blasting tea that would melt away the pounds. A more moderate message combining oolong tea, healthy metabolism and active lifestyle can leverage the “skinny” associations of oolong without flogging a dead horse.

So, where is private label is moving? Depending on the setting, private and store brand teas face a range of helps and hindrances. The main settings showing private brand tea developments include:

• Grocery and supermarket store brands
• On-premise (eg coffee shops).

Private Brands: Grocery

Store brand and private brand teas are on the rise for several good reasons. Store brands are the most important area for the development of private tea brands: some 80 percent of consumers purchase tea from the grocery store. Grocery and supermarkets possess the opportunity to take the greatest advantage of private brand tea because they are best positioned to offer:

1. Value – quality-for-price
2. Convenience – community presence, overall access to range of items
3. Trust – dependable products across segments.

Since nearly all teas (national and store brands) are bought in grocery and supermarkets, these stores hold the best cards to play in terms of leveraging national brands and store brands at the same time. They already move the most national brand tea into the homes of shoppers – they have the data on pricing, popularity of flavours, and tea functions that tea drinkers are seeking. Adding their own competitive store brand to the mix means phasing away shelf space from the national brands as their own store brand gains ground. And this is not an uphill battle – private brands already dominate most national tea brands.

Competition on a grocery shelf is direct and intense, but also allows for more direct comparison. The value claims and pricing are visible side-by-side, so a store brand tea can conveniently display its comparative value over national brands. Supermarkets with successful store brands in other product areas are in touch with shopper preferences so they can leverage multiple items. Their trusted products in other areas of the store give them an advantage in brand trust and familiarity. Their physical store presence in shoppers’ communities can also be an advantage.

Successful store brand teas are part of the bigger picture of a store brand initiative. A recent Information Resources Inc (IRI) report, Beyond Price, Consumers Find Value in Private Brands, points to the momentum successful brands are building with these guiding thoughts:

• Private Brands Build the Base. Store brands develop loyal shoppers. Between 45 percent and 66 percent of shoppers choose their shopping destination according to the store brand options available.
• Take Packaging Seriously. 20 percent of shoppers felt that store brand packaging made the product appear to be lower in quality than national brands. Successful packaging communicates value, environmental friendliness, and effectiveness of functional teas.
• Position for Premium. Millennials may be taking the lead, but most generations are ready and willing to level-up for improved product quality and greater sustainability impact.
• Imitate and Innovate. While imitation of national brands may get your foot in the door, consumers who turn away from national brands will look to store brands to start leading the pack. For teas, this will mean new and unique flavours and ingredients, distinctive functional benefits and greater social-environmental impact.

Private Brands: Coffee Shops

Coffee shops and other on-premise beverage providers with their own private brand see how their private brand tea creates the right fit across their tea and coffee selection. A selection of mediocre and cheap teabags look out of place beside single-origin, specialty coffees. This is an important fact when tea orders are on par with espresso and iced coffee orders across the country.

The right selection of private brand teas enables coffee shops to offer specialty tea beverages and attract customers during day-parts when coffee is less popular, and tea is a better fit.

• Jason Walker is marketing director of Firsd Tea North America. Prior to his work with Firsd Tea, Walker served in a variety of roles in tea and beverage business capacities. His experience includes business services for small tea companies, a top-ranked online destination for tea consumer education and co-founding a coffee business. His insights draw upon his diverse range of experience in sales, operations and management in the tea world. He may be reached at: jason.walker@firsdtea.com.

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Next to water, tea is the most commonly drunk beverage worldwide. For generations, black and green tea consumption levels were divided by continents. Historically, black tea was the predominant choice for the majority of Western Europe, North America, Africa and some parts of Asia. However, in East Asia, in particular China and Japan, green was the dominant tea of choice. Today, the regional divide is still in existence. However, the tea story is evolving with consumers across the globe increasingly experimenting with both varieties of tea.

In 2018, Americans consumed over 84 billion servings of tea or more than 3.8 billion gallons. About 84 per cent of all tea consumed was black tea, 15 percent was green tea, and the small remaining amount was oolong, white and dark tea. Although black tea still leads the way, the consumption of green tea in North America is steadily growing.

“There has been an overall decline in black tea consumption, in particular with CTC tea,” shared Matthew Barry, senior beverage analyst, Euromonitor International, based in London. “This could be in part because the health positioning of black tea is weaker than both herbal and green, and the fact that black teas are often consumed cold and with sugar.”

Canada is experiencing a similar trend, with a two percent decrease in black tea consumption in 2018. However, Shabnam Weber, president of the Tea & Herbal Association of Canada, shared that specialty black tea (flavoured) shows a nine percent increase in 2018. “Our changing demographic is looking for variety in both the black and green tea categories, presenting an opportunity for both flavours and blends.”

The perception of tea is continuing to shift from a milk and sugar-laden beverage consumed by the older demographic to an innovative beverage that presents a seemingly limitless variety of taste experiences. “The educated and informed tea drinker who is coming to cafés and coffee shops, wants a premium grade tea,” said Andy Byron, trade and communications sales executive, Teapigs, based in Brentford, England. He added that although mainstream tea as a whole is declining, customers are more interested in provenance, health and quality, which has resulted in a demand for premium, green and specialty tea, especially among younger consumers.

The wellness story has awakened a large portion of the Western world to green tea and its dietary benefits. Based on search history alone, green tea seems to hold first place when it comes to health attributes with regular consumption of it being positively linked to protecting against several types of cancer, type 2 diabetes, lower blood pressure and decreased risk of cognitive impairment.

“The health and well being sector will continue to grow with more people drinking functional teas,” said Byron. “Consumers are also placing more focus on sustainability so vendors need to check their product’s green credentials and remember that provenance is key!”

The core chemical difference between black and green tea are the number of catechins. The high level of catechins in green tea, including epigallocatechin 3 gallate and L-theanine, continue to support the argument of including green tea as part of a healthy diet.

In a 2017 study published in Food Research International, authors Schmidt, Garcia, Martins, Melio-Carpes, and Carpes found that green tea plays a protective role in different, neurodegenerative conditions, including the memory deficits in Alzheimer, and is the only tea that has shown to be effective in reducing the oxidative stress and damage in the hippocampus. The oxidation process which is done to create black, oolong and puer tea, convert catechins to theaflavins. It is these theaflavins that have been positively linked to cardiovascular health, reduced cholesterol and lower blood sugar levels.

“Green tea is known as healthy which has great branding potential but can be slightly misleading from a specialist perspective,” said Ashley Lim, founder, Mansa Tea, New York. “There is a huge opportunity to bring green teas forward, not just for its health attributes but taste profiles.” Per a 2017 Statista survey on Consumers Favourite Type of Tea, 30 per cent of consumers preferred green tea, while 25 percent preferred black.

“Black tea remains the dominant type of tea consumed in the US, but consumer research suggests the facts don’t tell the whole story,” said Jason Walker, marketing director, Firsd Tea, the US import office of China-based Zhejiang Tea Group (ZJT), based in Lyndhurst, New Jersey. “When interviewed, consumers actually prefer green teas, however, they may not be getting the green options they really want.”

The preparation of green tea has been one of the primary stumbling blocks that the industry has to overcome. “Keeping the category fresh and interesting has always been a challenge, as well as getting the message through to consumers that preparing tea is not difficult,” said Weber.

Steeped incorrectly, and the highest quality leaves can quickly become burnt and bitter. A push for education, including proper preparation techniques, has also helped consumers become aware of the variety of green teas that are available resulting in an increased demand for specific types of green tea including sencha, genmaicha, gunpowder and longjing. “We’ve really introduced the US market to a higher grade Japanese green tea,” said Miriam Colman, Sugimoto Tea Company, Redmond, Washington. “When it comes to consumers it’s about letting them know that green tea, can in fact, taste good.”

For both products, there is an opportunity to introduce consumers to the nuances of the beverages including highlighting single origins and unique preparation methods. “Most people are familiar with English Breakfast and Earl Grey but with black tea there is an opportunity to introduce single origins, including Japanese black tea and Chinese black tea, that consumers may not be aware of,” shared Lim. Consumers are actively exploring the unique notes of Japanese black tea, the smokiness of Lapsang Souchong, the champagne of tea Darjeeling black tea, and other terroirs including Assam, Yunnan, and Ceylon, and new entries including Taiwanese teas Ruby Black and Black Jade. One advantage with black tea, she said, is that it is easier to create different flavour profiles and tends to blend better with milk, providing the perfect template for unique beverages like boba milk tea and chai.

Overall Demand for Tea is Increasing

According to the Food and Agriculture Organization (FAO) of the United Nations, global tea production is continuing to rise with a projected annual increase of 2.2 per cent for black tea, for a total of 4.4 million tonnes by 2027, and 7.5 per cent annual increase for green tea, for a total of 3.6 million tonnes by 2027. The growth of green tea is largely driven by China.

“The last decade has seen remarkable changes in the volumes of tea produced and the amount of tea bushes planted in China,” shared Walker. As of 2018, the total combined acreage of all tea gardens in China’s Guizhou province was 7.52 million mu (5,013 square kilometres). This province has focused on the tea industry as a whole, with total tea production reaching 362,000 tonnes. This type of growth pattern is being experienced throughout the country, with Guizhou and Hubei provinces reporting the largest gains in production.

The shift towards premiumisation presents additional opportunities for growth for both black and green tea. At the same time, younger consumers are drinking fewer alcoholic beverages, shares Barry, and are more mindful of the beverages that they are consuming. These consumers may be originally turning towards tea for its health attributes, but stay with the beverage for its variety, including the option of having a tea that responds to a variety of occasions and moods. “It’s about experiencing tea in a similar way that consumers drink coffee today,” said Colman. “Coffee is very productivity focused. Tea is a lot more social, it is about taking a moment to breathe and slow down.”

From a marketing perspective, green tea may appear easier as this is what is continuing to drive the interest in tea. However, there is ample opportunity in black tea, particularly in the specialty sector where consumers can begin to appreciate the nuanced stories of the leaf. “It’s about adding on another layer to the story, by focusing on the origin and offering varieties of each (black and green tea),” said Lim.

Black and green tea do not have to be presented as enemies in a game of tug of war. Instead the two teas can work together highlighting the benefits of each, including their unique taste profiles, traditions, and health attributes. For black tea, there is an opportunity to turn the slight decline around by bringing forward specialty teas, and the range of origins available. Green tea, on the other hand, will benefit by expanding the health conversation to include taste profiles and origins.

For the industry as a whole, there are growth opportunities for both types of teas as consumers’ increasing interest in specialty teas and innovative beverage offerings paves the way for exploration and experimentation. “It doesn’t have to be a competition between teas,” said Colman. “Having both options available opens the doors to more people and provides an opportunity to bring tea into their lives more often.”

• Anne-Marie Hardie is a freelance writer, professor and speaker based in Barrie, Ontario. She may be reached at: annemariehardie1@gmail.com

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