STiR coffee and tea magazine

STiR coffee and tea 13 Kenya Launches Orthodox Tea Auction Kenya, the world's largest exporter of black cut tear curl (CTC) teas, officially enters a new era with the launch of its first dedicated Orthodox Tea Trading Window at the Mombasa Tea Auction. The historic initiative aims to diversify the country's tea exports, capture premium global markets, and increase farmers' incomes. "Today, as we launch the auction of orthodox teas, we are not just selling tea; we are making history," Cabinet Secretary for Agriculture Mutahi Kagwe declared. "Kenya is no longer just a CTC powerhouse — we are now a serious and competitive player in the global orthodox tea market." George Omuga, managing director of EATTA — which organized the event — noted that the introduction of orthodox teas marks a milestone for African producers seeking to diversify both products and markets. Overreli- ance on CTC production has created an imbalance between supply and demand, resulting in depressed returns for farmers. "The diversification into orthodox and other specialty teas is done with the objective of creating supply-demand equilibrium for black CTC, diversifying export markets, mitigating risks, and improving farmer in- comes," Omuga explained. While Kenya's dominance in CTC teas is unmatched — it exports more than 450 million kilos annually — the orthodox segment remains relatively small. In 2024, orthodox production fell to 7.51 million kilos from 12.34 million the previous year, primarily due to disruptions in the Iranian market, once a major buyer. Of this, around 5 million kilos were exported. Yet the price advantage is clear. Orthodox teas averaged $3.70 per kilo in 2024, compared to just $2.28 per kilo for bulk CTC teas sold in Mombasa. For farmers, the higher returns highlight the potential of orthodox teas to provide stability against volatile CTC markets. Kenya aims to boost farmer incomes by expanding orthodox tea production and increasing its presence in the global orthodox black tea market. Photo credit: Tea Board of Kenya The government is betting heavily on this shift. Installed orthodox capacity is projected to expand from 15 million kilos in 2024 to 200 million kilos by 2030. TBK has already licensed 22 orthodox manufacturers and plans to double the number to 42 by 2027. The inaugural auction featured 2,925 packages — equivalent to nearly 92,000 kilos — marking what Kagwe described as "the first of many consignments that will connect farmers directly to premium buyers." By Roopak Goswami Chinese Iced Tea Market Shifts to Reduced Sugar/Sugar-Free Labels China is the largest consumer of iced tea in the Asia Pacific. Following its early start, rapid expansion, and the emergence of new trends, the Chinese iced tea industry is now entering a phase of health upgrades, with sugar-free and reduced-sugar products dominating the market. According to the "2025 China Bottled Iced Black Tea Beverage Industry White Paper," 71% of consumers pay close attention to reduced sugar/ sugar-free labels when purchasing iced tea, and 82.9% prefer reduced sugar formulas. Taste and flavor (83%), value for money (61%), and nutrition and health (53%) are the top three factors influencing purchasing decisions. Customers demonstrate strict preferences for sweetness (75%), tea flavor (56%), and tea aroma (53%), preferring tea that is not too sweet and has authentic ingredients. For the market, Master Kong maintains a leading position with a 68.6% sales share, followed by Unif Ice Tea (10.8%) and Vita Lemon Tea (5.5%). Major iced tea brands have actively responded to the "sugar reduction" policy call, innovating and upgrading their healthier products to capture the iced tea market. Master Kong's new iced black tea has reduced sugar by 50% and increased dietary fiber (≥15g/bottle). Nongfu Spring launched its carbonated "Iced Tea," featuring zero potassium sorbate, zero tea powder, and a cold- filled packaging process, while also reinforcing its reduced-sugar labeling. Among emerging players, Yuanqi Forest Iced Tea has rapidly risen through its differentiated strategies, achieving a 2.7% sales share. Yuanqi Forest, with its "sugar reduction >25%," was the first to break through the fierce market competition and become a pioneer in the "new health track." Yuanqi Forest has restructured its formula, using Sri Lankan black tea and Chinese RTD iced tea giants like Master Kong (above) are experiencing fierce competition from market newcomers focusing on healthier, reduced sugar options. whole lemons, with the slogan "reduce sugar without sacrificing flavor." In terms of repurchase frequency, Yuanqi Forest ranked second with 63% after Master Kong Iced Tea (69.6%) in 2025. The following perform- ers were Nongfu Spring Tea (40.6%) and Unif Ice Tea (29%). Yuanqi Forest achieved a 460% growth rate in sales for lower-tier markets in 2024. By Mainbayar Badarch Tea Report

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