DMCC Projects Global Tea Market Growth To Nearly $300 Billion By End Of 2025

The global tea market is anticipated to expand from US$282 billion to nearly US$300 billion by 2025. This growth is driven by climate-smart production, traceable supply chains, and a rise in premium, organic, functional, and ready-to-drink teas. The forecast was shared at the ninth Global Dubai Tea Forum (GDTF), where DMCC unveiled its "Future of Trade: Tea" report.

The UAE has become a significant player in the tea industry, accounting for over half of the world's tea re-exports. It has evolved from a logistics hub to a centre for value creation with advanced blending and packaging services. The DMCC Tea Centre plays a crucial role in this transformation by offering storage, flavour profiling, tax efficiency, and financial services.

Ahmed Bin Sulayem, Executive Chairman and CEO of DMCC, highlighted that global tea consumption is approaching US$300 billion annually. He noted that the UAE is central to this shift towards premium and organic formats. The focus now is on value addition through blending, branding, and ensuring traceability and climate resilience.

The GDTF serves as a vital platform for the tea industry, bringing together government leaders, producers, traders, buyers, and multinationals. This year's theme was "Tea at the Crossroads: Trade, Tariffs and Technology in an Age of Realignment," attracting hundreds of stakeholders to discuss challenges and opportunities shaping the industry's future.

Discussions at the forum addressed how climate volatility, inflation, and changing consumer behaviours are altering demand patterns and supply routes. Delegates examined direct-to-consumer models' rise and tariffs' impact on margins. They stressed the need for equitable sustainability frameworks to protect profits and livelihoods.

Abdulaziz Al Nuaimi from the UAE Ministry of Economy stated that Dubai's status as a major tea re-export hub reflects the UAE's success in building an innovative trade ecosystem. He emphasised that tea remains a catalyst for sustainable growth by connecting producers with consumers through modern value chains.

Investment in Climate Resilience

Participants at the forum called for increased investment in climate-resilient farming and expanded access to inclusive finance for growers. They also advocated for scaled digital traceability systems and reimagined product portfolios to meet growing demand for functional teas focused on wellness.

The DMCC Tea Centre supports these initiatives by providing integrated facilities for storage, tasting, blending, packaging, and re-exporting. In 2024 alone, it handled over 24,400 metric tonnes of tea from traditional origins to fast-growing markets across the Middle East, Europe, and Asia.

The forum underscored why traceability and resilience are now essential commercial imperatives as climate risks reshape origin markets like Kenya. Building on DMCC's research findings, stakeholders recognised these elements as crucial for sustaining growth in the global tea industry.

With inputs from WAM