Ceylon cuppa captures cold brew craze

• Ceylon Tea is seen as uniquely placed to lead this premium extraction segment, an advantage that mass-origin competitors are unable to replicate
• Shift in consumption is being reinforced by rapid expansion of bubble tea franchises worldwide, many of which are increasingly turning to Ceylon Tea as a premium base ingredient 

By Shabiya Ali Ahlam

Sri Lanka is positioning itself to ride a fresh wave of premium tea consumption in 2026, as the global Ceylon Tea cuppa evolves from a traditional hot brew into a high-value ingredient for cold extraction beverages and bubble tea. 

The rising global interest in cold extraction technology, which preserves the delicate floral and aromatic notes, is emerging as a defining consumption trend for 2026, an analysis by Forbes and Walker Tea Brokers said. 

Sri Lanka, with its distinctive orthodox teas and terroir-driven flavour profiles, is seen as uniquely placed to lead this premium extraction segment, an advantage that the mass-origin competitors are unable to replicate.

The shift in consumption is being reinforced by the rapid expansion of the bubble tea franchises worldwide, many of which are increasingly turning to Ceylon Tea as a premium base ingredient. 

The industry players note that Sri Lanka’s tea heritage is now being actively leveraged as a marketing narrative, allowing the global chains to distinguish their products from the generic blends, in a market projected to grow strongly through 2026.

From a Sri Lankan perspective, as a prime supplier of orthodox tea, the country stands to benefit from a prolonged global short-supply environment. Coupled with an overall improvement in quality from the Western Slopes, now entering their traditional quality season, the market participants expect a buoyant trading period between January and March 2026, Forbes and Walker noted.

The upbeat outlook comes despite the lingering recovery efforts, following Cyclone Ditwah in late 2025, which disrupted the infrastructure and labour engagement across the High and Mid Grown regions. 

The industry’s swift evacuation protocols and rapid restoration of logistics have helped safeguard the integrity of the Ceylon Tea supply chain, reaffirming the tea’s role as a stabilising force for the national economy and a key conduit of Sri Lanka’s global goodwill.

On the global front, the supply dynamics remain supportive. The tea production data up to October-November 2025 indicate a year-on-year global deficit of about 45 million kilogrammes, driven largely by a roughly 40 million kilogramme shortfall from the African region. Additional declines have been recorded in Bangladesh and Malawi, while Sri Lanka and India are expected to post only marginal increases.

Analysts note that the global deficit is concentrated mainly in the CTC teas, limiting its direct impact on Sri Lanka’s orthodox segment. 

Sri Lanka’s own tea crop, initially forecast at 280 million kilogrammes for 2025, is now likely to end the year at around 262-263 million kilogrammes, in line with 2024, following the unfavourable weather. 

With the output still well below the 300 million kilogramme-plus levels maintained for two decades prior to 2020, the industry’s next growth phase is increasingly anchored in innovation, premiumisation and reinvention of the everyday Ceylon Tea cuppa, analysts said.