Africa Tea Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 5.50 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Africa Tea Market Analysis
The African tea market is projected to reach a CAGR of 5.5% during the forecast period, 2022-2027.
The tea industry in Africa is a labor-intensive industry. In Africa, Malawi alone employs a workforce of around 50,000 unskilled and semi-skilled workers. The peak seasons for tea plucking and production in Africa are from March to September, presenting a high risk of COVID-19 transmission due to the high concentration of people on the estates and in the factories. As the biggest tea exporting country in Africa, the tea sector industry in Kenya has experienced transportation disruptions from the tea-producing areas to the port of Mombasa and some consequential disruptions in cash flow. The impact on tea production itself so far seems limited. However, there was a clear increase in tea consumption during the pandemic as in-house consumption increased.
Over the medium term, increased health awareness, health benefits caused by tea, and a surge in disposable income are expected to drive the growth of the African tea market. Moreover, many market players focused on introducing additional healthy ingredients in tea, contributing to the overall market growth. Factors like introducing new flavors and varieties and rising demand for herbal tea are expected to bring more growth opportunities to the tea market.
Health and wellness are the major factors boosting the demand for smaller specialty teas in Africa, including fruit/herbal tea and green tea, which recorded strong retail volume growth in 2021, despite their higher than average unit prices.
Africa Tea Market Trends
This section covers the major market trends shaping the Africa Tea Market according to our research experts:
Increasing Tea Production in African Countries
The tea cultivation areas in Africa are scattered from the gentle hills of Cameroon in the West to the high plateaus and mountain slopes on both sides of the great rift. Based on their production and processing, the tea varieties are CTC, orthodox, herbal/flavored, and leafy (including black, green, oolong, and decaf). Black tea still holds the largest share in the South African tea market. Black CTC tea constitutes about 99%of the African tea production. Additionally, specialty tea continues to gain popularity. Herbal and fruit teas with functional benefits, such as aiding digestion, are becoming increasingly popular among health-conscious consumers.
Rising Demand for RTD Beverages
Along with an increase in the innovations at ingredient levels, increasing launches of new products such as flavored RTD tea drinks, carbonated RTD tea, and caffeine-free RTD tea are majorly driving the demand for RTD beverages in the region. In addition, the market is supported by the health and wellness trend among consumers in the region, especially in South Africa. In line with health trends, green tea and rooibos variants of RTD tea are gaining momentum, given their perceived additional health benefits, including a high concentration of antioxidants. Moreover, growing health awareness of the consumers and the ongoing wellness trends, along with convenience, are some of the other driving factors influencing enlarge the RTD black tea market in the coming years.
Africa Tea Industry Overview
The African tea market is fragmented, with intense competition between multinational, regional, and local players. Introduction of new products and flavors, mergers, and acquisitions are the major competitive strategies followed by the key players in the market. Some major players in the African tea market are Tata Tea, Dilmah, DavidsTea, Twinings, and Van Rees, among others.
Africa Tea Market Leaders
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Tata Tea
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Dilmah
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Hain Celestial
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DAVIDSsTEA
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Vanrees
*Disclaimer: Major Players sorted in no particular order
Africa Tea Market News
In April 2022, BPI and tea industry experts Teabrary International launched the new Dilmah RTD Iced Tea range. The new Dilmah Ready-To-Drink Iced Tea range comprises six refreshing artisanal green and black tea flavors.
In February 2020, Joekels, a Tata Tea subsidiary, partnered with Tata Global Beverages, the world's second-largest tea company. In addition, the company packs 95% of South Africa's private label teas. The Joekels stable includes Tetley, a global tea brand enjoyed in over 40 countries, and the children's tea brand Tea4Kidz.
In November 2020, Dilmah announced its plan to launch iced tea in partnership with Beverage Partners International (BPI). The company plans to use natural sweetness for the latest iced tea range from a combination of honey, cane sugar, and stevia to a low-calorie chilled iced tea (below 20 calories per 100ml).
Africa Tea Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Form
5.1.1 Leaf Tea
5.1.2 CTC Tea (Crushed, Teared, and Curled Tea)
5.2 By Product Type
5.2.1 Black Tea
5.2.2 Green Tea
5.2.3 Other Types (White and Oolong)
5.3 By Distribution Channel
5.3.1 Supermarkets/Hypermarkets
5.3.2 Specialist Retailers
5.3.3 Convenience Stores
5.3.4 Online Retailers
5.3.5 Other Channels
5.4 Geography
5.4.1 South Africa
5.4.2 Egypt
5.4.3 Rest of Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Tata Global Beverages
6.3.2 Chebango Tea Company
6.3.3 Unilever PLC
6.3.4 Dilmah
6.3.5 Hain Celestial
6.3.6 Van Rees
6.3.7 Twinings
6.3.8 Bigelow Tea
6.3.9 DavidsTea
6.3.10 Orientis Group (Kusmi Tea)
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
Africa Tea Industry Segmentation
Tea is an aromatic beverage made by pouring hot or boiling water into cured or fresh leaves of Camellia sinensis (Tea plant). The African tea market is segmented by form, product type, distribution channel, and geography. On the basis of form, the market is segmented into leaf tea and CTC tea (crush, tear, and curl tea). On the basis of product type, the market is segmented into black tea, green tea, and other types (white and oolong). On the basis of distribution channels, the market is segmented into supermarkets/hypermarkets, specialist retailers, convenience stores, online retailers, and other channels. Additionally, on the basis of geography, the report covers South Africa, Egypt, and Rest of Africa. The report offers market size and forecasts in value (USD million) for the above segments.
| By Form | |
| Leaf Tea | |
| CTC Tea (Crushed, Teared, and Curled Tea) |
| By Product Type | |
| Black Tea | |
| Green Tea | |
| Other Types (White and Oolong) |
| By Distribution Channel | |
| Supermarkets/Hypermarkets | |
| Specialist Retailers | |
| Convenience Stores | |
| Online Retailers | |
| Other Channels |
| Geography | |
| South Africa | |
| Egypt | |
| Rest of Africa |
Africa Tea Market Research FAQs
What is the current Africa Tea Market size?
The Africa Tea Market is projected to register a CAGR of 5.5% during the forecast period (2024-2029)
Who are the key players in Africa Tea Market?
Tata Tea, Dilmah, Hain Celestial, DAVIDSsTEA and Vanrees are the major companies operating in the Africa Tea Market.
What years does this Africa Tea Market cover?
The report covers the Africa Tea Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Africa Tea Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Tea in Africa Industry Report
Statistics for the 2024 Tea in Africa market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Tea in Africa analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
