Guest Contributor: Saeed Al Suwaidi, Director of Agri Commodities, Dubai Multi Commodities Center (DMCC)
Today, tea is one of the most widely traded commodities, worth close to $50 billion. Astonishingly, this figure is expected to grow by over 40% this decade, buoyed by many growth factors, especially a new generation of consumers turning to tea.
Global demand is rising on all fronts, creating the need for a greater variety of choices including new flavored teas and specialty products. As such, the tea industry is waking up to substantial opportunities.
Nonetheless, there are challenges ahead.
The pandemic has constrained shipping and other modes of transport, affecting trade and supply chains. Geopolitical tensions and inflation are causing uncertainty in the global economy. Climate change and adverse weather conditions continue to have an increasing impact on production, driving up costs and prices. Meanwhile, new technologies, innovations, and the push for greater sustainability will disrupt and reshape the tea market at all levels of the supply chain for years to come.
Now in its eighth edition, the Global Dubai Tea Forum 2023 (GDTF) will address this mix of fascinating topics head on.
Hosted by DMCC’s Tea Centre under the theme “Unpacking the Future of Tea: From consumer trends to new market opportunities,” GDTF will bring together global tea producers, suppliers, buyers, governments, and other industry stakeholders to discuss and explore the key consumer trends, market forces, and significant opportunities that will drive tea’s global growth.
In overseeing the DMCC Tea Centre, one of the main challenges that I see prospective members deal with on a daily basis, and one of the areas I am most looking forward to unpacking at the GDTF, is the significant challenge of the increasing cost and complexity of logistics.
As global trade continues to expand, the demand for efficient and cost-effective solutions has grown. Global supply chain disruptions caused by factors such as Covid-19, political instability, extreme weather events, and labor shortages have led to increased costs and delays in the transportation of tea from producing countries to consumer markets.
These challenges have a direct impact on the competitiveness and profitability of the tea industry, as higher logistics costs translate into higher prices for consumers and reduced margins for producers and traders.
Dubai has invested heavily in solving this issue, boasting world-leading trade infrastructure. Within the tea industry, the DMCC Tea Centre provides a one-stop solution for tea traders, offering blending, packaging, warehousing, and logistics services under one roof. This integrated approach helps streamline the supply chain, reduce costs, and minimize potential disruptions.
Since its inception in 2022, the DMCC Tea Centre has witnessed consistent growth, handling over 33,902 million kilos of tea last year alone. The Centre's services have proven invaluable to the tea value chain, as they allow the industry to capitalize on the growing demand for specialty and premium teas while ensuring quality and consistency.
With its strategic location, advanced infrastructure, and strong business environment, Dubai has positioned itself as a crucial link between the world's largest tea-producing countries and global markets.
Dubai's geographical location enables it to offer efficient trade routes for the tea industry. As a result, the emirate has emerged as one of the leading tea trading centers globally, connecting major tea-producing countries, such as China, India, and Kenya, with consumer markets in Europe, Africa, and the Americas.
Additionally, the emirate has become a hub for innovation and value addition in the tea sector. Dubai's emergence as a global business center has attracted international tea companies, who have set up their regional offices and distribution centers at the Tea Centre, alongside the UAE’s own home-grown tea businesses. This, in turn, has fostered collaboration and knowledge sharing among industry players, helping to drive innovation and increase competitiveness.
As the global tea industry continues to evolve, Dubai's role as a major trade hub is expected to strengthen. The emirate's ongoing investments in infrastructure, technology, and sustainability will undoubtedly attract more international tea companies, fostering further growth and innovation.
The Global Dubai Tea Forum will continue to play an essential role in cultivating a better future for the tea industry, providing a platform for collaboration, learning, and networking. Through DMCC’s content-focused agenda, the Forum will help foster a more innovative, sustainable, and prosperous industry for all.
