STiR coffee and tea magazine

STiR coffee and tea 55 The World's #1 Free Zone Dubai is by far the world's most important waystation for tea. The UAE is now the world's largest re-exporter of tea with up to a 60% share of the market. In 2017, DMCC Tea Center handled 53 million kilos of multi-origin teas. DMCC's modern tea blending, fill, seal, and packaging facilities pro- cessed 6.33 million kilos of value-added tea stored in climate-controlled warehouses, according to Sanjeev Dutta, executive director-commodities at DMCC. "Our market share will remain consistent for the foreseeable future considering the importance of UAE's position as an export route for the majority of the tea producing nations," said Dutta. "We have been investing heavily in the DMCC Tea Center, allow- ing us to process and store almost double the capacity that we were five years ago. Dubai is at the centre of the tea-trading world, uniquely positioned between the growers to its east, and the big markets to its west, allowing us to attract leading tea brands to use the city as their trading hub," he said. The most active export partners are Saudi Arabia, Russia, Kuwait, Oman, the European Union, and Canada. Domestic market Dubai is situated in a domestic market showing strong growth. Young consumers with high disposable income are the main market influenc- ers, driving growth in tea and coffee. "We see an upmarket in tea consumption in the UAE, especially for exotic teas that are gaining prominence in the country," said Dutta. Volumes are gradually increasing with the growing number of high-end tea outlets (shops, cafes and high-end super-market ranges). As a result, tea trade and consumption, when compared year-on-year, has remained positive. The Middle East and Africa region will account for 11% of the total global retail value by 2022, growing at an impressive 5% over the same period of time – according to Euromonitor International. Euromonitor projects green tea and black tea to record compound annual growth rates of 10.3% and 6.2%, respectively through 2021. Res- taurants and fast food chains sold $9 billion (AED $33.2 billion) in 2018, a sales total expected to climb to $10.9 billion (AED $40 bilion) in five years. In the UAE alone, Euromonitor estimates that the tea market will be worth $70 million (Dh257 million) in 2018. In 2016, DMCC introduced Shai Dubai into the market DMCC's own tea brand, a signature, high-quality tea, which was announced during The Dubai Global Tea Forum. "Consumer demand is constantly evolving, and stakeholders must keep pace with customers' taste and increasingly sophisticated habits. The World Tea Directory noted a 10% annual growth in speciality teas, especially among millennials. Tea is an integral part of the UAE's culture and we see an upmarket in tea consumption in the UAE, especially for exotic teas that are gaining prominence in the country," writes Dutta. "Similarly, volumes are gradually increasing with the growing num- ber of high-end tea outlets (shops, cafes and high-end super-market ranges). As a result, tea trade and consumption, when compared year- on-year, have remained positive," he said. Adding value Dutta notes that the DMCC Tea Center is fully equipped to support the market through utilizing its state-of-the-art infrastructure and Dubai's lo- gistics, "which are unmatched anywhere else in the world. In addition, the center is improving its digital integration of its supply chain, which helps us to further diversify our product lines. These factors play a pivotal role in helping us support the ever-changing market requirements," he said. Made for trade Headquartered in Dubai, DMCC is the world's most interconnected free zone, and the leading trade and enterprise hub for commodities. Whether developing vibrant neighbourhoods with world-class property like Jumei- rah Lakes Towers and the much anticipated Uptown Dubai, or delivering high performance business services, DMCC provides everything its dy- namic community needs to live, work and thrive. Made for Trade, DMCC is proud to sustain and grow Dubai's position as the place to be for global trade today and long into the future. "The tea center provides a comprehensive platform for companies looking to set up in Dubai with immediate access to a purpose-built in- frastructure, business services, and a growing community of producers, exporters, traders, and entrepreneurs," said Dutta. nations already experiencing declining crop and disruptions due to flooding and storms," explains Fernando, who will take part in a panel discussion on sustainability during the forum. Next on the agenda will be panel debates on branding and positioning and a look at how tea compares with other bever- ages in competition for "share of throat." Tea producing countries are experiencing a multitude of sus- tainability challenges as production tops 5 million metric tons and demand continues to rise. The session to be moderated by Sanjay Sethi, managing director of Gundlach Packaging. Panel- ists include panelists from India, Sri Lanka, Kenya, Vietnam, China, Mozambique, and Indonesia. Second day topics include advances in technology and a panel discussion on the growth, challenges, and opportunities in consuming countries. Speakers include representatives from Russia and Pakistan, the world's largest tea importers, Iran, Iraq, North America, and the UK. Winners of the Golden Leaf India Awards will also be an- nounced at the closing luncheon followed by a DMCC tea cen- ter tour.

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