Tea Drops Bus Station

Indian Tea Exports Reach Record High

Fri, 04 Sep 2026 10:28:00 +0800

As Indian orthodox black tea exports increase, so do government restrictions on foreign tea imports. Photo credit: Thomas Armeli

India’s tea trade delivered a masterclass in economic resilience in 2025, resulting in an all-time high in exports. Yet, beneath this flavor of global success lies a deeper narrative of self-preservation. As international demand for premium Indian leaves skyrocketed, domestic regulators quietly but firmly tightened the screws on the quality of imports entering the country. Together, these dual forces signal a sector that is not only chasing rapid expansion but is also actively fortifying its reputation as it navigates 2026.

Record Exports Signal Global Demand Shift

India's tea exports reached a record 280.40 million kg in 2025, up from 256.17 million kg the year before, according to provisional Tea Board data. Export earnings climbed to Rs 8,488.43 ($88.55) crore from Rs 7,167.41 crore in 2024. Tea Board Deputy Chairperson C Murugan called it the highest export level ever recorded by India. Industry voices credited orthodox tea, not Crush, Tear, Curl (CTC), for driving the gain, with Assam orthodox leading the charge into new markets.

However, the real story isn't just the sheer volume; it is a fundamental shift in what the world is drinking. While standard CTC teas traditionally dominate domestic teacups, it was the artisanal, whole-leaf orthodox tea, led by Assam’s rich, malty profile, that spearheaded the global conquest. Sophisticated foreign markets are moving away from mass-produced blends in search of authentic, terroir-driven flavors, and Indian estates successfully capitalized on this premiumization trend.

Geopolitical Realignments and New Fronts

The geopolitical map of Indian tea underwent a dramatic transformation in 2025. The Middle East solidified its position as India's primary export destination. Shipments to Iraq surged to 52.59 million kg (up from 40.47 million kg), while the UAE climbed to 50.71 million kg. Notably, Iran’s appetite grew to 11.25 million kg, circumventing direct trade barriers by flowing through the UAE’s bustling re-export hubs.

The most stunning victory, however, occurred farther east. China, traditionally more interested in its own tea, emerged as a major growth engine, with imports of Indian tea jumping to 16.13 million kg in 2025, up from a meager 6.24 million kg in 2024. This massive breakthrough in East Asia provided a crucial buffer, gracefully offsetting a dip in US shipments caused by lingering tariff disruptions.

Drawing the Line: Protecting the Indian Origin Label

However, a booming export market creates a dangerous temptation: the dilution of quality. To prevent cheaper foreign leaves from being blended into the mix, the Tea Board enacted a strict Standard Operating Procedure (SOP). Spurred by the Parliamentary Standing Committee on Commerce’s 194th report, laboratory testing is now mandatory for every single imported tea consignment meant for re-export. For years, regulators harbored an open secret: Duty-free teas imported for re-export (particularly from Nepal) were quietly leaking into the domestic market, occasionally being mislabeled and sold under protected Geographic Indications (GI) such as the world-renowned Darjeeling. Physical testing had lapsed since 2018, relying heavily on easily forged paper trails.

Under the new mandate, importers must declare every shipment and warehouse detail via the Tea Council Portal. Furthermore, blended re-exports must now prove a minimum 50% value addition calculated against FOB and CIF prices. These blended batches must be physically isolated in warehouses, explicitly declared on all packaging certificates, and frozen in place until rigorous chemical clearances are issued.

India’s message is super clear: paperwork alone will no longer suffice, and absolute traceability from port to packing house is the new cost of doing business. By aggressively protecting the integrity of its origin label while satisfying a thirsty global market, India is ensuring that its current export boom isn't just a fleeting high but a sustainable, premium legacy.

Sri Lanka Rapidly Shifts Toward RTD Tea and Re-Exports

Fri, 04 Sep 2026 10:27:58 +0800

Sri Lankan RTD beverage exports, supported by Dilmah’s popular iced tea products, grew by 540% in 2025, making the country a new leading player in the re-export market. Photo credit: Dilmah

The Sri Lankan tea export sector is undergoing a structural transformation. While traditional bulk and packet tea volumes have generally softened, the remarkable rise in re-exports and the emergence of RTD tea suggest that Sri Lanka is evolving from primarily being a tea-producing country into a broader regional hub for tea processing, blending, branding, and export.

According to the Sri Lanka Tea Board, exports of small packets weighing 10kg or less peaked at approximately 113,800 tons, while re-export volume more than doubled from approximately 9.87 million kg in 2021 to approximately 19.9 million kg in 2025, demonstrating Sri Lanka's emergence as a global tea hub. The RTD beverage export also experienced massive growth, reaching 130,931 liters in 2025, up 540% year-on-year (YOY).

The country’s total tea export value reached a record level of $1.5 billion in 2025, up 5% year-on-year. Compared with 2021, export volume decreased, but export value increased by 14%, supported by stronger prices. In terms of export volumes, packets account for the largest share (44.2%), followed by bulk (40.4%), re-exports (7.7%), and bags (7.5%).

Iraq maintained its top import position for the third consecutive year, following 2023 and 2024, with approximately 39.4 million kg (15.3% share). This was followed by Russia (8.4%), Turkey (8.3%), Libya (7.4%), the UAE (7.1%), Chile (4.3%), China (4.0%), Iran (4.0%), Azerbaijan (3.5%), and Saudi Arabia (3.4%).

In 2025, Sri Lanka's total tea production reached approximately 264,616 tons, with Highland Quality (HGQ) accounting for 21%, Middleland Quality (MGQ) 18%, and Lowland Quality (LGQ) 61%. On the global export front, the country is the third-largest tea exporter, with approximately 50% of its tea exported in value-added form.

Sri Lankan RTD tea exporters are increasingly targeting Gulf Cooperation Council countries, Japan, South Korea, Australia, and premium retail chains in Europe. The key export players are Dilmah Ceylon Tea Company Plc, Akbar Brothers Pvt Ltd, Empire Teas, Anverally & Sons, and Stassen Group.

Today, Dilmah stands as Sri Lanka's largest foreign-exchange earner in value-added teas. Dilmah’s vertically integrated model enables the creation of unique offerings such as single-estate teas, seasonal teas, and RTD iced teas. To support the growth of its RTD segment, Dilmah partners with specialized beverage companies that possess the expertise and distribution infrastructure required for this niche.

Dilmah’s RTD tea sales showed 40% YOY growth in 2025. Dilmah Craft Iced Tea is the original iced tea produced using Ceylon tea. Since its launch in 2021, it has quickly become a leader in the global craft iced tea category and is currently available in more than 25 countries.

At the same time, the government is working to restructure its smallholder tea sector through a large-scale “Ceylon Tea Village” program aimed at boosting productivity, value addition, and export earnings, while repositioning the industry towards a $2.5 billion annual export target by 2030.

Plantations and Community Infrastructure Minister Samantha Vidyarathna said that the initiative to build 500 cluster tea villages nationwide will be key to lifting finished tea production to 400 million kg, while improving farmers' incomes and strengthening the country’s global positioning in premium tea markets.

The program, implemented through the Tea Small Holders Development Authority, Sri Lanka Tea Board, Tea Research Institute, and National Plantation Management Institute, will commence in 2026 in 144 tea villages across 14 districts, with an official launch scheduled for July 15.

It envisions creating a nationwide network of integrated agro-industrial clusters. Each cluster village would function as a dynamic local economic hub linking farmers, processors, research institutions, logistics providers, and export markets within a coordinated ecosystem.

New EU Risk List Set to Reshape Coffee and Commodity Trade Worldwide

Fri, 04 Sep 2026 10:27:54 +0800

On May 22, 2025, the European Commission published on its Green Forum platform the long-awaited country risk classifications and benchmarking system under the EU Deforestation Regulation (EUDR), marking a pivotal step in the regulation’s rollout.

The new list introduces a tiered system—low, standard, and high risk—that directly affects the compliance burden for exporters of coffee and six other regulated commodities. Low-risk countries are subject to simplified due diligence—basic information gathering without mandatory risk assessment or mitigation—while EU Member States will inspect only 1% of operations. Standard and high-risk countries must comply with full due diligence, including geolocation, legality verification, and risk mitigation, with inspection rates of 3% and 9%, respectively.

The classification is said to be based on the risk that the production of these commodities contributes to deforestation or forest degradation, using the latest data from the FAO's Global Forest Resources Assessment (FRA dataset).

However, a closer look raises concerns. The European Commission designated only four countries—Belarus, Myanmar, North Korea, and Russia—as high risk. Environmental groups have criticized the decision, arguing it overlooks major deforestation hotspots. For instance, Earthsight pointed out that these four countries account for just 0.07% of EU imports of relevant commodities, casting doubt on the classification’s effectiveness.

According to Reuters, “Countries including Brazil and Indonesia, which have historically had among the world's highest rates of deforestation, will be labeled as ‘standard risk’—which means they will face lighter compliance checks on goods exported to Europe.”

In Asia, low-risk coffee-producing countries include Laos, India, and Vietnam, which together accounted for 28.7% of European green coffee imports, according to the European Coffee Report 2023/2024. In Africa, Rwanda, Kenya, and Burundi are also classified as low-risk, contributing a combined 1.6% market share. In Oceania and Central America, Papua New Guinea and Costa Rica hold low-risk status, representing 0.3% and 0.5% market share, respectively.

The EUDR’s country risk classification is already reshaping how EU buyers select suppliers. Countries rated as low risk face lighter compliance requirements, making them more attractive to importers seeking to reduce regulatory costs and audit exposure. This shift is already visible. The Sustainable Trade Initiative (IDH) policy paper “EU Regulation on Deforestation-Free Products” notes increasing pressure on exporters from standard and high-risk countries to prove their products are deforestation-free.

For Asian exporters, the shift is especially tangible: buyers now demand traceability and documentation even before contracts are signed. While the Commission claims the system is designed to “streamline compliance where warranted,” it also introduces new competition based on environmental performance.

As the EUDR continues to influence global trade dynamics, it is imperative for professionals across the supply chain to stay informed and proactive. Building robust traceability systems, collaborating with technical partners, and advocating for inclusive implementation are essential steps to ensure compliance and maintain competitiveness.

By working together, stakeholders can transform regulatory challenges into opportunities for sustainable growth and equitable development.

Tea Is Betting on Regenerative Agriculture

Fri, 04 Sep 2026 10:27:50 +0800

In the face of continuing soil erosion and increasing demand for Scope 3 emissions disclosures, tea industry giants make the switch to regenerative agriculture.

Major multinational tea companies such as Unilever and Tata are rethinking sustainability from the ground up. Two forces are converging to push the sector past checkbox certification and into full-scale regenerative agriculture: mounting pressure to disclose Scope 3 supply chain emissions, and the visible degradation of the soil tea depends on.

Scope 3 emissions are indirect greenhouse gas emissions that occur across a company's value chain, both upstream and downstream, excluding direct operations (Scope 1) and purchased energy (Scope 2), and include suppliers, logistics, and product use.

Soil Health Meets Supply Chain Accountability

Tea estates across Sri Lanka, India, and Kenya are already absorbing the costs of eroding topsoil. This problem forces estates to spend more on fertilizer to enhance soil fertility and on irrigation to offset erratic rainfall. In Assam, which supplies roughly a quarter of India's tea, flooding has repeatedly washed away the nutrient-rich topsoil that tea cultivation depends on, reducing both yield and quality.

At the same time, corporate carbon accounting is catching up with agriculture. Under the EU's Corporate Sustainability Reporting Directive, Scope 3 emissions typically account for 70-90% of a company's total carbon footprint, and thousands of EU companies now face mandatory disclosure of auditable data. For food and beverage brands specifically, a large share of the total climate impact lies within the supply chain, primarily in agricultural production, placing tea estates squarely within their buyers' emissions math.

One Word, Two Philosophies

Annabel Kalmar, the founder of Tea Rebellion and RegenTea, cautions that "regenerative" does not mean one thing across the industry. She explains: "Large companies are shifting to regenerative. The caveat here is that their regenerative philosophy is different from regenerative organic. In many cases, it is conventional farming with its understanding of regenerative being mostly no-till and reduction of agrochemicals."

She distinguishes this conventional regenerative approach, now becoming mainstream, from regenerative organic production, which she believes remains quite niche and more difficult to achieve. For producers ready to formalize either path, she points to a staged model: RegenAg certification paired with Rainforest Alliance as an accessible entry point, with a pathway leading toward the more demanding Regenerative Organic Certified standard, via the Journey to ROC Pilot Program.

Disclosure Pressure Reaches the Farm Gate

Scope 3 mandates are pushing verification requirements down to the farm level, requiring documented data on tillage, cover cropping, and fertilizer use rather than relying on industry averages. For smallholders in remote regions, this adds to existing certification burdens.

Kalmar remains measured: "We believe that it will help tea producers to access new markets, to become more resilient in terms of the shocks from climate change and biodiversity loss, and to save costs." However, she acknowledges the premium market for regenerative organic tea "is still developing."

As Scope 3 disclosure deadlines tighten and soil degradation accelerates, tea's shift toward regenerative practices looks less like a marketing trend and more like an operational necessity. Whether the industry converges on a shared standard or continues splitting between conventional and organic regenerative philosophies remains an open question, one that will likely define the next decade of sourcing decisions across the sector.

Japan Registers New Tea GI

Fri, 04 Sep 2026 10:27:47 +0800

Japan’s new geographic indicator (GI) aims to authenticate and protect Japanese green teas.

The Japanese Ministry of Agriculture, Forestry and Fisheries (MAFF) recently registered a new geographical indication (GI) for Japanese tea or nihoncha, focusing specifically on green teas. According to The Japan Times, the Japanese Tea GI, represented by a red sun shining over a stylized silhouette of Mount Fuji, aims to help further drive Japanese tea exports and protect domestically produced teas amid a global boom in the production and sale of powdered green tea and matcha.

Simona Suzuki, tea educator and co-founder of the Global Japanese Tea Association, regards the new GI as a vital step towards protecting the authenticity of teas marketed as Japanese, commenting in response to the recent announcement that, “As Japanese teas have grown in popularity, production of teas marketed under Japanese tea names in other countries has increased dramatically and, in some cases, even surpassed domestic production. The timing suggests that the government recognized an increasing need to protect Japanese tea, particularly matcha.”

The numbers seem to agree. Last year, for the first time since 1954, Japanese tea exports exceeded 10,000 tons, largely due to a weakened yen and surge in matcha production as global demand continued to skyrocket. Powdered green tea and matcha exports made up more than half of Japanese tea exports. Despite this growth, Japan’s total matcha production still trails far behind China, which is expected to contribute 70% of global matcha production this year. Smaller volumes of matcha are also being produced in Vietnam, South Korea, and Taiwan.

What the Japan Tea GI Includes

The current definition of the nihoncha GI focuses on green teas produced all around Japan, making Japanese tea the country’s second GI since sake to include production regions throughout the nation rather than designate a specific area.

Green teas account for around 95% of Japan’s annual tea production and include teas commonly associated with Japan, such as sencha, bancha, hojicha, gyokuro, and matcha, among others. However, there are a few other locally produced teas that slip through the cracks, including Japanese black, white, and oolong teas, as well as rare types of teas only found in Japan that preserve unique traditional processing methods, such as goishicha.

In a recent Specialty Matcha Podcast blog post, tea blogger Ryan Ahn expressed concerns that the GI’s exclusion of the other 5% of teas produced in Japan limits the protections that those teas would otherwise receive. “Japan’s own agriculture ministry sorts tea into six classes by fermentation,” Ahn wrote. “The GI recognizes one.”

Simona Suzuki sees this as a minor setback in the overall picture. “A GI product specification is not completely set in stone and can be amended over time,” she comments. “Using the term Japanese tea leaves room for the scope to be expanded in the future. Of course it is disappointing that producers of Japanese wakocha, oolongcha, white tea, and post-fermented teas have been left outside the initial scope of the GI. Nevertheless, the use of the term Japanese tea provides a framework within which these teas could be included in the future. I see it as a much-needed first step toward protecting Japanese tea, rather than the final word on what Japanese tea encompasses.”

In the meantime, consumers searching for green teas produced in Japan can keep their eyes open for the Japanese tea or nihoncha label.

Soluble Coffee Enters Deforestation Rulebook

Fri, 04 Sep 2026 10:27:45 +0800

Instant coffee and coffee extracts are no longer exempt from the European Union Deforestation Regulations.

The European Commission has closed a long-standing gap in its flagship deforestation law. On July 13, the commission adopted two measures to support the implementation of the EU Deforestation Regulation (EUDR), including the formal addition of soluble coffee to the list of products covered by the law. For an industry segment that has largely operated outside deforestation-due-diligence requirements until now, this is a significant shift in compliance obligations.

The Soluble Loophole

Instant (or soluble) coffee, made by dehydrating brewed coffee beans into a powder or crystals, had escaped scrutiny for unclear reasons even though green, roasted, and decaffeinated coffee were already covered by the EUDR. The new Delegated Act updates Annex I of the regulation and specifically adds the customs code CN 2101 11 00, which covers coffee extracts, essences, and concentrates. According to legal analysis by Bird & Bird, this broader classification means that liquid coffee concentrates, coffee flavoring agents, coffee and espresso powders used in the food industry, and syrups and pastes now fall within the scope as well.

Why Brussels Decided the Gap Wasn't Grounds for Exemption

The commission's own delegated act explains the reasoning bluntly. The exclusion of soluble coffee from the scope of Regulation (EU) 2023/1115 created a fragmented and incoherent approach for the coffee sector, since soluble coffee could be placed on or exported from the Union market without complying with the regulation's obligations, risking the relocation rather than elimination of deforestation pressure. The European Coffee Federation had pushed for this change, arguing that soluble coffee is produced directly from green coffee, which is already covered by the EUDR, and that consistent treatment within the same product category would create a more level playing field.

A Robusta Reckoning

The timing matters for sourcing strategy. Soluble coffee is typically produced from robusta coffee, which has been associated with increased deforestation linked to full-sun monocrop cultivation. That link places instant coffee manufacturers, and the robusta supply chains feeding them, squarely in the spotlight. Companies will now need to prove geolocation traceability back to the farm plots where that robusta was grown, not just for the green beans but for every downstream extract or concentrate.

The Blend Complicates the Bill

Soluble coffee production typically relies on mass-balance blending, mixing beans from multiple origins to achieve a consistent flavor profile. Under the EUDR, every component of that blend must be individually verified as deforestation-free, which complicates traceability for large-scale instant coffee plants that have historically sourced opportunistically across markets. Roasters and manufacturers accustomed to flexible blending will need origin-level documentation for each batch going forward.

The Clock Coffee Companies Can't Ignore

Micro and small companies already covered under the old Timber Regulation must meet the EUDR obligations for timber products by December 30, 2026, the same date as larger operators. For most core coffee operators, the applicable deadlines remain December 30, 2026, for large and medium operators, and June 30, 2027, for most micro and small operators.

The draft delegated act was open for public feedback until June 1, 2026, and the commission has signaled it does not intend to delay further. For instant coffee producers, importers, and blenders selling into the EU, the message is clear: traceability systems built for green and roasted coffee now need to extend to every soluble product on the shelf.

The Global Coffee Price Paradox

Fri, 04 Sep 2026 10:27:37 +0800

Coffee prices are expected to remain high despite record harvest predictions. Photo credit: Alfribeiro

The global coffee sector is experiencing a historic paradox. Agricultural forecasts indicate that four of the world’s leading coffee exporters are expected to reach unprecedented production volumes. According to the United States Department of Agriculture, Brazil, Vietnam, Colombia, and Ethiopia are all projecting larger harvests for the current marketing cycle. In a textbook economic framework, this massive wave of new supply should drastically lower prices at the supermarket. Yet global coffee prices remain stubbornly elevated, leaving consumers wondering why their daily brew is not getting any cheaper. A complex mix of historic inventory depletion, climate anxiety, and defensive farming strategies is keeping the market highly volatile.

Why Record Harvests Fail To Cool the Market

The sheer scale of the upcoming crop is staggering. Brazil, the powerhouse of global production, is expected to harvest 71.9 million bags, fueled by a positive biennial cycle. Meanwhile, Vietnam is on track to produce 32.5 million bags of robusta, while Colombia and Ethiopia are projected to produce 13.4 million and 12.1 million bags, respectively.

However, this incoming supply is crashing into an industry starved of safety cushions. Data from the Intercontinental Exchange (ICE) indicates that certified arabica stocks fell to a 2.25-year low of just 377,465 bags, representing a massive contraction over the past 12 months. Because global warehouse reserves are hovering at all-time lows, the record harvests are not creating a surplus. Instead, the new crops are merely rushing to fill an immense supply deficit left behind by years of climate shocks and shipping bottlenecks.

Farmers Withhold Supply To Fight Volatility

Another critical factor distorting the traditional supply-and-demand dynamic is the changing behavior of agricultural producers. In the past, smallholders rushed their beans to international buyers immediately after harvest to secure quick cash flow. Today, coffee growers in South America and East Africa are acting with newfound financial caution.

Having survived severe crop losses due to extreme weather patterns over the last two years, producers are strongly resistant to selling at lower rates. Many farmers are holding onto their physical coffee stocks, storing beans in domestic warehouses rather than selling them into the global trade pipeline. By withholding supply, these growers are successfully insulating themselves against sudden market corrections and waiting out short-term price drops, hoping international futures will rebound.

Climate Change Eases Fears but Delays Shipments

Even as record yields are officially recorded on paper, getting those beans into Western roasting facilities is proving incredibly difficult. The global coffee market remains intensely sensitive to immediate weather disruptions. For instance, recent torrential downpours in Minas Gerais, the premier coffee-producing region in Brazil, unleashed rainfall that reached nearly 2,000% of the historical average for the period.

These massive storms have severely disrupted field operations and slowed down processing infrastructure. As a result, the actual pace of the Brazilian harvest has lagged significantly behind its five-year average. With weather irregularities threatening crop quality, international trading funds have increased their speculative activity, driving arabica futures toward five-month highs near $3.50 per pound.

ICE inventories of both arabica and robusta are also hitting lows, adding further pressure to the market.

Ultimately, the global coffee market has transitioned from absolute scarcity to a fragile state of volume stabilization. While the threat of a full-scale global shortage is fading, rebuilding depleted commercial inventories will take considerable time. Until global stocks are fully replenished and domestic farmers feel secure enough to unlock their private reserves, high retail prices will continue to define the industry.

Disruptions Continue for Global Coffee Logistics

Fri, 04 Sep 2026 10:27:27 +0800

A current overview of international shipping demonstrates that price spikes and container shortages are not subsiding.

Getting coffee from farm to roastery is a massively complex endeavor. A web of interconnected logistics and supply chain professionals is tasked with organizing the safe delivery of millions of containers each year.

Because of coffee’s global scope, there are always issues to contend with, from geopolitics to the impact of natural disasters. Recently, however, the challenges facing the industry have felt especially intense.

Hormuz Ripple Effects

Six months after it began, the Iran war continues to disrupt the coffee industry and global trade more generally. Since February, Iran has closed and reopened the Strait of Hormuz multiple times. This has raised shipping costs and affected petroleum supplies, which in turn have impacted the cost of fertilizer and plastic. Despite intermittent ceasefire talks, the conflict persists.

In the Red Sea, meanwhile, Houthi rebels continue to disrupt shipping. In July, a threat against vessels sailing to Saudi Arabia saw multiple ships reroute, while drone and rocket attacks caused the port of Mokha to close completely in August. Shipping insurance rates have risen in response, while some companies have withdrawn coverage altogether for shipments in the Persian Gulf.

The disruption in the Middle East has caused knock-on effects, particularly at the Panama Canal, which is also experiencing lower water levels due to the El Niño weather system. The canal is busy at the best of times, but rerouted vessels are adding to congestion — traffic is up 8% year-on-year in 2026, according to a report by Kuehne+Nagel.

All of this has “created a scenario where global shipping is more expensive and delayed than any time I've seen since Covid-19 and its associated shipping container shortages,” says coffee consultant Christopher Feran.

Local Crises, Global Impact

There have also been more localized disruptions to coffee shipping. The earthquake in Colombia on August 10 shut down the Pacific coast port of Buenaventura for several days, impacting exports. Around 60% of Colombia’s coffee flows through the port, and even once it reopened, the backlog of trucks meant traffic was “intermittent and limited,” according to the head of Asoexport. The closure also caused the coffee futures market to rise.

In the United States, meanwhile, Feran says that labor shortages and fuel costs have disrupted domestic freight, while President Donald Trump imposed another set of tariffs in July. Coffee is exempt from these latest levies, but there are plenty of other items that companies import from China, such as equipment or takeaway cups. The new tariffs have already faced legal challenges, although experts say they may be “more durable” than those that threw the coffee industry into chaos in 2025. In response, many companies rushed to import goods into the US before the new tariffs came into effect.

With uncertainty surrounding so many aspects of global coffee freight, Feran says it is hard to predict whether things will improve in the short term. One small recent glimmer of good news came from Uganda, where the country’s national railway company restarted transporting coffee after an eight-year hiatus. The Uganda Railways Corporation recently moved 29 containers from Kampala to the Port of Uganda, a move officials said saved more than $60,000 compared with truck freight.

China Expands Coffee Processing and Free Trade Zones

Fri, 04 Sep 2026 10:27:23 +0800

China seeks to become an international coffee capital by establishing several new industrial processing, roasting, and storage facilities, as well as additional free trade zones.

China continues to increase its investment in the coffee sector by opening several new processing facilities and coffee trade zones. On March 27, the Qingdao area of the China (Shandong) Pilot Free Trade Zone hosted an exchange event for Chinese and Brazilian coffee enterprises. This event marked the inauguration of two key facilities: the Brazilian Specialty Coffee China (Qingdao) Promotion Base and the Qingdao Free Trade Zone Coffee Industry International Expansion Base.

The event, sponsored by the Brazilian Export and Investment Promotion Agency (ApexBrasil), focused on promoting specialty coffee and industry matchmaking, attracting representatives from the Brazilian Specialty Coffee Association, 12 leading Brazilian coffee companies, and over 40 domestic industry organizations.

These facilities serve as a hub for the display, distribution, and cultural promotion of Brazilian specialty coffee and help Chinese coffee companies expand into the Brazilian market, thereby promoting the development of the coffee industry in China and Brazil.

In January 2026, the International Coffee Industry Park project in the Daxing area of Beijing's Airport Economic Zone was selected for implementation. The Lingkong International Coffee Industrial Park aims to become Northern China's first international coffee transshipment and distribution center, a hub for exhibition, trade, and consumption, and Beijing's first specialty coffee industry cluster.

This project has a planned construction area of approximately 22,000 square meters, fully leveraging the policy functions of the comprehensive bonded zone to build a full-chain service platform encompassing roasting and processing, bonded warehousing, R&D, and innovation. Phase I includes a 2,000-square-meter specialized roasting and processing center, with 20,000 square meters reserved for expansion in Phase II.

Also, Kunshan city in Jiangsu province released an ambitious three-year action plan to position itself as the “Capital of the International Coffee Industry” from 2025 to 2027, targeting a trillion-yuan scale and a strong cultural brand identity by leveraging its proximity to Shanghai.

In its ninth year of deep cultivation in the coffee industry, Kunshan managed to carve out nearly 50,000 square meters from almost saturated space to build the nation's most professional green coffee bean distribution center, attracting numerous well-known companies engaged in green coffee bean trading, including Louis Dreyfus of France and Mitsui & Co. of Japan.

The city’s professional temperature and humidity-controlled green coffee bean warehouse, proposed by several local coffee companies in Kunshan to meet the shared needs of green bean storage, can store 50,000 tons of green beans at the same time; the second phase of the project, currently under construction, will add another 40,000 tons of storage capacity.

On a larger scale, Yizheng Foods is building its second-phase factory in Kunshan, which is expected to increase roasting capacity by nearly 50,000 tons annually; Luckin Coffee has invested $120 million in Kunshan to build a second fully automated, intelligent roasting facility to match its Fujian center. To date, Kunshan accounts for nearly 60% of the nation's green bean roasting volume, with an annual roasting capacity of 63,000 tons.

From introducing the first coffee company to attracting more than 40 leading coffee companies — including Vietnam's Trung Nguyen Coffee and Salim Group, Indonesia's largest integrated food company that recently announced a significant expansion of its green coffee bean trading strategy in Kunshan — to building the nation's first coffee culture museum, Kunshan has developed coffee into not only a billion-dollar industrial chain but also a cultural IP and lifestyle shaped by the deep integration of industry and urban culture.

FDA Considers Stricter Caffeine Labeling

Fri, 04 Sep 2026 10:27:20 +0800

As more coffee brands put out energy drinks, FDA asks how much caffeine is too much.

In late June, the US Food and Drug Administration (FDA) added caffeine labeling to its 2026 regulatory priority list. The move, while preliminary, signals that the agency is considering updating guidance on how companies disclose caffeine content. At the moment, companies only need to list caffeine as an ingredient when it’s added separately — products such as coffee and chocolate, in which caffeine occurs naturally, are exempt from this requirement. And there is currently also no legal obligation to disclose how much caffeine a product contains.

But energy drinks are becoming more popular, and FDA has called dietary supplements containing pure or highly concentrated caffeine, another emerging product category, “a significant public health threat” after they contributed to at least two deaths in the US. There has also been growing controversy and scrutiny around the levels of caffeine in some beverages, especially energy drinks marketed to teenagers.

As coffee brands introduce new beverages with added caffeine, such as Starbucks’ refreshers or Caribou Coffee’s energy drinks, any FDA update on labeling guidelines will be closely watched.

“Highlight Industry Best Practices”

FDA’s Human Foods Program (HFP), which is coordinating the 2026 priority agenda, was established in 2024 following a restructuring and consolidation of certain FDA functions. According to its website, HFP oversees FDA activities related to food safety and nutrition, and is a key element of US Health and Human Services (HHS) Secretary Robert F. Kennedy Jr.’s Make America Healthy Again movement.

Alongside a focus on Kennedy’s priorities such as ultra-processed foods and sugar reduction, HFP’s 2026 agenda includes looking more closely at caffeine labeling rules. “With the growing consumption of caffeinated beverages and foods,” the priority document reads, “HFP will highlight industry best practices for labeling added caffeine content in foods in connection with both packaged foods and beverages and at retail and restaurant settings.”

Suzy Badaracco, president of the food industry trend forecasting firm Culinary Tides, sees FDA’s caffeine labeling prioritization as a push for greater transparency by the agency. “It’s also part of a broader shift in how HHS under Secretary Kennedy is approaching food policy,” Badaracco says. “We’re seeing a willingness to reexamine labeling, ingredients, and the information consumers receive about the foods and beverages they consume.”

Caffeine and Controversy

There have been several high-profile deaths linked to highly caffeinated beverages in recent years. The parents of a Texas teenager who died of an enlarged heart in 2025 filed a lawsuit against the maker of the energy drink Alani Nu, which they claim contributed to their daughter’s death. Panera also stopped selling its controversial Charged Lemonade in 2024 after it was linked to several fatalities.

Many energy drinks, including Alani Nu, voluntarily disclose their caffeine content on the can, but it isn’t currently a requirement. FDA currently considers 400mg of caffeine per day to be safe for most healthy adults—that’s roughly two or three 12-ounce cups of coffee.

Public health experts and advocates have long called for stricter regulation of highly caffeinated beverages and better labeling. At the same time, research has linked moderate caffeine intake to a host of health benefits, from fighting dementia to boosting exercise performance.

FDA’s stricter caffeine labeling proposal is preliminary for now, and whether coffee is included in any revamped guidance remains to be seen. Even if coffee itself continues to be exempt, companies that also sell products with added caffeine, including ready-to-drink products, energy drinks, or cafe beverages, may need to pay attention.