Tea at a turning point: Why tea brands are rethinking packaging as part of the product experience

While tea remains the world's most consumed beverage after water, the way tea brands create value is changing fast. Wellness priorities, sustainability concerns, and new EU and other international regulations are fundamentally reshaping how tea is sourced, marketed, and experienced. Increasingly, packaging is no longer a secondary consideration; it is a visible and decisive part of brand perception, compliance, and differentiation at shelf.

Fibre-based packaging is emerging as the natural fit for tea's evolving requirements.

Redacción Alabrent

Market growth driven by wellness, sustainability, and brand credibility
The global tea market is projected to grow from $20.2 billion in 2023 to $33.9 billion by 2032. Health benefits are a major catalyst here, as black tea's flavonoids support cardiovascular and cognitive function, and herbal and green teas offer immune support and stress reduction.

For tea brand owners, this shift translates into higher expectations around naturalness, ingredient integrity, and credibility. Organic and natural teas are expected to grow at 16.6% annually through 2030, while in Europe, herbal tea is the fastest-growing category. Functional teas with added benefits are gaining traction among younger consumers seeking caffeine-free alternatives and ready-to-drink options.

Premiumisation is equally significant in the tea market’s growth. European shoppers value provenance, ethical sourcing, and authentic brewing experiences, with loose-leaf tea capturing 62.4% of the 2024 market. Storytelling around origin, harvest window, certifications, and sustainability credentials has become central to brand equity, and packaging is often the first place these stories are told.

EU regulation creates clarity and competitive advantage
The EU's Packaging and Packaging Waste Regulation (PPWR), applying from August 2026, requires all packaging on the EU market to be recyclable by 2030. The regulation restricts “forever chemicals” such as PFAS and mandates recyclable content in plastics, directly affecting tea bags, sachets, pouches, cartons, and ready-to-drink formats.

PPWR is more than a compliance challenge for tea brands, as it directly influences cost structures, portfolio decisions, and brand credibility. Packaging formats with poor recyclability scores may face higher extended producer responsibility fees, while unclear or non-compliant materials risk eroding consumer trust. Conversely, brands that proactively adopt compliant packaging can reduce future risk, protect margins, and signal leadership in sustainability. Clear labelling requirements further reinforce this opportunity, helping brands communicate recyclability and material choices with confidence at shelf and online.

Fibre-based solutions align brand values with performance and sustainability
Fibre-based packaging is emerging as the natural fit for tea's evolving requirements. With Europe's fibre-based paper recycling rate at 87%, fibre formats are already well understood and widely trusted by consumers, offering an immediate sustainability signal without additional explanation. Modern functional papers deliver barrier protection, heat-sealability, and premium print quality that matches or exceeds plastic and foil performance while remaining fully recyclable as mono-materials. They are engineered to run efficiently on horizontal and vertical form fill seal lines, enabling direct substitution of plastics and foil sachets. Achieving this balance between sustainability, performance, and premium brand appearance is not trivial – and requires careful material and application expertise.

For tea brands, fibre-based solutions address the full range of formats, including crimped envelopes, sealed sachets, translucent windows, tea tags, pouches, and outer cartons. They support the premium aesthetic tea brands require, such as tactile finishes, embossing, and clean typography that reinforce craftsmanship, ritual, and authenticity.

Crucially, fibre packaging meets both regulatory requirements and consumer expectations. It provides the visible sustainability cues that drive purchasing decisions while delivering the functional protection tea demands. With its long-standing experience in tea packaging applications and functional papers, Sappi supports tea brands in navigating the transition towards more sustainable packaging solutions. The complexity of switching from film to paper requires not only the right material, but also a reliable and competent partner with deep application expertise.

Packaging as a strategic differentiator
In addition to protecting product, today’s tea packaging must convey brand story, environmental responsibility, and quality commitment. As consumers continue to choose brands that make sustainable decisions feel natural and credible, packaging has become a strategic bridge between regulation, product experience, and brand trust.

The brands that succeed will be those that recognise packaging as an integral part of the product experience, where responsibility, innovation, and ritual converge to meet the expectations of modern tea drinkers.

Sappi Europe (Ibérica), S.L.

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