Loose Leaf Tea Monthly Update 2026-02

Arafa Tea, led by Ifah Syarifah, has successfully expanded its premium tea production since 2014, leveraging 30 hectares of plantation land in Ciwidey. The company produces 36 tea variants, including white, green, matcha, and innovative blends with local fruits, spices, and cacao nibs, emphasizing natural ingredients and environmentally friendly cultivation at 1,500 meters altitude. Arafa Tea exports to markets such as Singapore, Malaysia, Brunei, and the Middle East, with each region favoring different tea variants. The company maintains high quality through hand-picking, low-temperature processing, and strict quality controls, while supporting fair wages for workers. Collaboration with local farmers and continuous innovation underpin Arafa Tea's growth and international success.

In January 2026, Sri Lanka's tea exports increased by 7% year-on-year to 20.71 million kilograms, generating approximately $121.7 million in revenue, an 8% rise compared to January 2025. The average FOB price rose 5.6% to 1,821.71 rupees per kilogram ($5.88), reflecting simultaneous growth in volume and price. All major product categories, including bulk tea, bagged tea, tea bags, instant tea, and green tea, saw year-on-year increases. Iraq remained the largest export market with 2.95 million kilograms, while Turkey's imports surged 118% to 2.36 million kilograms, becoming the second-largest market. Russia also showed a 17% increase, importing 2.02 million kilograms, whereas UAE's imports declined by 17%.

The weekly tea auction in Chattogram on February 23, 2026, experienced strong demand, particularly from blenders, supporting firm to slightly higher prices for good liquoring varieties. A total of 22,299 packages of CTC leaf tea were offered, with good liquoring Brokens and Fannings maintaining strong markets and firm prices, while medium varieties were mostly firm to slightly dearer. Plainer types saw reduced demand and more withdrawals. Dust tea, with 4,216 packages on offer, met fair demand; good liquoring dusts sold near last levels, mediums were easier by Tk. 5 to Tk. 8, and plain and BLF dusts faced weaker demand and higher withdrawals. Overall, blender support remained robust, complemented by some interest from loose tea buyers.

The global tea industry is experiencing strong growth driven by increasing consumer awareness of health benefits and rising quality of life. Key tea types include green, black, oolong, white, and Pu-erh, each distinguished by specific processing methods such as fermentation and drying. Major production steps involve careful tea garden management, timely picking, deactivation, rolling, fermentation, and drying to ensure quality. Market trends highlight growing demand for health-beneficial teas like herbal and organic varieties, alongside ready-to-drink, milk, and fruit teas favored by younger consumers. Challenges such as reduced planting areas and labor shortages due to urbanization persist, but e-commerce and cultural promotion through tea ceremonies and events are expanding market access and consumer engagement.

Tanganda Tea Company Limited is progressing well with its proposed $8 million capital raise through a renounceable rights offer to restore liquidity amid a $6.36 million cash deficit and $7.1 million in bank borrowings. The company faces liquidity pressures due to post-pandemic disruptions, rising input costs, subdued export prices, climate-related setbacks, and extended working-capital cycles. Despite these challenges, Tanganda's first-quarter revenue increased by 5% to $4.65 million, with bulk tea production up 5% and exports rising 3%. Packed tea sales surged 37%, supported by better packaging availability and informal market growth. The firm also plans to start avocado and macadamia harvesting in the second quarter, while maintaining a cautiously positive outlook on the macroeconomic environment amid ongoing risks from climate variability and external shocks.

The global yerba mate market is rapidly expanding, with exports to Syria, the US, and Europe fueling growth and the market projected to reach $3.46 billion by 2035, up from $2.03 billion in 2025. Ready-to-drink (RTD) yerba mate products are driving momentum with a 65% growth rate, appealing to health-conscious consumers seeking natural energy alternatives. Argentina remains the leading producer, with major companies increasing processing capacity by 30% since 2023 to meet rising demand, particularly for organic-certified products which now represent 70% of leading brands. Key growth regions include the Middle East, North America, Europe, and the Asia-Pacific, where imports have surged up to 50%. Product innovation, including flavored and functional ingredient variants, alongside expanding e-commerce and subscription sales, are reshaping market dynamics and consumer access worldwide.

Tanganda Tea Company Limited posted a 5% increase in first-quarter revenue to US$4.65 million in the current financial year, driven by a 5% rise in bulk tea production to 1,530 tonnes and a 37% surge in packed tea sales to 453 tonnes. The company also narrowed its pre-tax loss to US$538,497 from US$853,917 in the same period last year, attributing improvements to operational efficiencies and stable macroeconomic conditions. Bulk tea exports grew by 3% to 1,170 tonnes, while the avocado and macadamia harvests are expected to begin in the second quarter, offering new revenue streams. Despite a cautiously positive outlook supported by projected national economic growth of 6.6%, Tanganda highlighted ongoing risks from climate variability and external shocks, implementing mitigation strategies to enhance resilience.

The Show Rural Coopavel 2026 in Paraná is emphasizing rural tourism as a key avenue for income diversification among family farmers, showcasing gastronomy, lodging, and thematic tourist routes such as the Lavender, Paraná Cheese, and Strawberry Routes. The event promotes innovation and quality assurance, highlighted by the official inclusion of two cheese factories into the Paraná Cheese Route, which now includes around 30 inspected producers ensuring product safety and consumer confidence. State officials underscored rural tourism’s role in strengthening family agriculture, retaining youth in rural areas, and generating additional income through immersive experiences and local product promotion. Exhibitors like Erva-Mate Taquaraus benefit from the fair’s platform to present specialty products, including those with Geographical Indication seals, reflecting the growing market demand for authentic regional agri-food products.

Kakuzi Plc has introduced Kakuzi Pure Black Tea, a packaged loose-leaf black tea brand for the Kenyan market, sourced from its Kaboswa Tea Estate in Nandi County. This marks the company's first foray into local tea sales, aiming to diversify its product portfolio and reduce reliance on volatile international tea markets. The tea, grown at nearly 2,000 meters altitude, is processed and packaged locally in 250g and 500g packs. The launch complements Kakuzi's existing consumer products like macadamia nuts and blueberry items and aligns with its strategy to expand value-added offerings. For the six months ended June 30, 2025, Kakuzi reported revenue growth to Kes 1.511 billion, driven by macadamia and blueberry divisions, despite a profit decline due to lower avocado crop valuation.

Kenyan agribusiness firm Kakuzi Plc has launched Kakuzi Pure Black Tea, its first locally targeted tea brand, available in 250g and 500g loose-leaf packs. This move aligns with the company's strategy to diversify and add value, reducing dependence on subdued global tea prices by focusing on the domestic market. The launch complements Kakuzi's existing range of value-added products, including macadamia nuts, cold-pressed macadamia oil, and blueberries, sold through select retail outlets and online. The company also operates one of Kenya's largest macadamia processing plants and plans to nearly double its avocado production and exports from 3 million to 5 million cartons, while increasing macadamia kernel output from 900 to 1,500 tonnes over the next decade.