STiR coffee and tea magazine

20 STiR coffee and tea | 2025 Quarter 3 Autumn (Sep/Oct/Nov) Consumer Trends Reshaping the Market Today's consumers are more informed and envi- ronmentally conscious than ever before. A study conducted by Credence Research states that North America held 35% of the eco-friendly tea packaging market share in 2024, driven by strong demand for eco-conscious products. At the same time, Europe's sustainability initiatives and con- sumer desire for green products drove market share growth to 30%. "Consumers are more informed today. They are looking for packaging that reflects their values — minimalistic design, recyclability, and reusability are high on the list," observes Jain. Popular trends include custom-branded standee pouches, hermetic bags with valves for roasted coffee beans, and compostable coffee sampling trays. "There has been a clear shift in consumer preferences toward sustain- able and environmentally responsible packaging materials," adds Vachhani. "Customers are increasingly demanding that brands move away from single- use plastics and adopt eco-friendly alternatives, such as biodegradable or com- postable pouches, paper-based pouches, and recyclable or reusable pouches." The trend extends beyond retail packaging to foodservice applications. In 2024, several innovative packaging designs have emerged in the coffee and tea industry, including pyramid-shaped bags offering better tea leaf infusion and glass jars with wooden caps conveying premium quality. Bagless tea bags have also become immensely popular with artisanal tea makers. Regulatory Landscape: Driving Change Through Compliance Government regulations are playing a crucial role in accelerating the adoption of sustainable packaging. EU Directive 94/62/EC states that by December 31, 2025, at least 65% (by weight) of all packaging must be recycled. By the end of December 2030, the EU aims to increase that amount to 70%. The European Union Deforestation Regulation (EUDR) is particu- larly significant for coffee companies in terms of traceability, as they must prove that their products are deforestation-free. Currently, EUDR does not explicitly apply to packaging materials (unless sold as stand-alone products). However, it's only a matter of time before legislation mandating sustainably sourced packaging materials starts appearing. These regulations are creating a global ripple effect, as companies pre- pare for stricter environmental standards and traceability requirements. The Reality Check: Challenges and Limitations Despite the promising developments, sustainable packaging faces real-world limitations. The most significant barrier remains cost. "Currently, sustainable material options tend to be slightly more expensive than traditional multilayer plastic options like Code 7 pouches," admits Vachhani. "This price difference is mainly due to limited supply chains, higher raw material costs, and the ad- ditional processing required for recyclable or compostable materials." Terranova manufactures premium compostable tea bags and coffee filter paper from all-natural materials like abaca (a species of banana native to the Philippines). Photo credit: Terranova Artisanal Sri Lankan tea maker, Forest Hill, produces all-natural bagless tea rods that allow for easy removal and multiple resteeps — no paper or plastic required. Photo credit: Forest Hill

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