By: Fabricio Scocco
After nearly two decades of complex negotiations, we are witnessing a historic milestone. The European Union and India have reached a comprehensive free trade agreement that is set to reshape the landscape of international commerce. By removing up to 90% of tariffs between these two regions, we are opening doors to a combined market of over 2 billion people—an economic powerhouse representing 25% of the global GDP.
For those of us operating within the specialty coffee sector, this development is more than just a policy shift; it is a critical evolution for design-driven, sustainable brands.
- Redefining the Coffee Supply Chain
The impact on coffee trade and packaging cannot be overstated. The reduction of tariffs on key imports creates a streamlined highway for goods:For India: Exporting green coffee, raw materials, and packaging into the EU will become significantly more efficient due to reduced barriers.For Europe: Companies sourcing or co-producing in India will now have access to smoother, more cost-effective trade lanes.Competitiveness: High-end roasted coffee and innovative packaging solutions will immediately become more competitive on the global stage.
- Strategic Collaboration and Innovation
We are entering a pivotal moment for strategic partnerships. Consider the existing synergy between We Brand Coffee (INDIA) and Takumi Collective (Netherlands). This agreement validates and accelerates such collaborations where design, sourcing, and packaging flow across borders.
By reducing logistic complexity, we can focus on what truly matters: co-manufacturing opportunities and creating packaging solutions that meet rigorous EU standards while celebrating India’s vibrant specialty coffee scene.
- Market Outlook and Buying Behavior
As the trade landscape shifts, we anticipate several key trends in buying behavior:Sustainability Focus: Indian packaging providers will likely see a surge in demand from EU brands that prioritize sustainable materials.Exploration of Origin: EU roasters and micro-brands can now explore Indian-origin coffee with significantly less financial risk.Creative Co-development: Branding agencies in both regions will find it easier to co-develop storytelling assets and packaging designs.
- Navigating the Risks
While the momentum is high, we must remain pragmatic. The agreement still requires official ratification from the EU Parliament and Indian authorities. Furthermore, stakeholders must stay vigilant regarding:Currency and Geopolitics: Short-term cost-benefits may be influenced by FX-driven producer shifts and geopolitical changes.
Regulatory Alignment: Close monitoring of food safety, sustainability criteria, and packaging regulations is essential.Environmental Factors: Unfavorable weather during peak harvest remains a variable that could disrupt supply levels.
- The Bottom Line
Despite these risks, our market confidence remains medium-to-high. There is a strong mutual interest in diversifying trade and moving away from US-centric dependencies.
This agreement is the foundation for a new phase of commercial and creative cooperation. For those of us building in the coffee world—from bean to brand—this is a unique opportunity to rethink how we work across borders.
