South Africa Tea Market Research Report, 2028

South Africa is renowned for its indigenous rooibos tea, grown primarily in the Cederberg region. The global demand for rooibos, known for its health benefits and unique flavor, drives the local tea market's growth. Consumer interest in health and wellness has fuelled the demand for functional beverages, including herbal teas. Rooibos, being caffeine-free and rich in antioxidants, is often associated with various health benefits, contributing to its popularity. Tea consumption is deeply ingrained in South African culture, not only for its taste but also for its social and ceremonial significance. The tradition of sharing tea fosters social connections and plays a vital role in daily life. South Africa's favorable climate for tea cultivation, particularly in the Western Cape, plays a significant role in the production and quality of tea, contributing to the success of the market. Shifts in consumer behaviour, including increased urbanization, busy lifestyles, and the desire for convenience, have led to a rise in the consumption of on-the-go and ready-to-drink tea products. The increase in disposable income and the expansion of the middle-class population in South Africa contribute to higher purchasing power and the willingness to spend on premium tea products. The younger demographics’ interest in health and wellness trends, along with social media influence, drives the popularity of tea, especially in unique formats and trendy offerings, shaping market trends. The rise in demand for teas with added functional benefits, such as immune-boosting properties, stress relief, or energy enhancement, is driving the creation and popularity of specialty tea blends. Ongoing research and development (R&D) in tea science lead to the discovery of new varieties, improved cultivation techniques, and better processing methods, enhancing the quality and diversity of teas available in the market. According to the research report “South Africa Tea Market Overview, 2028," published by Actual Research, the South Africa Tea market is anticipated to add more than USD 700 Million from 2023 to 2028. Innovation in tea flavors and blends captivates the market. Tea companies continuously introduce new and unique flavors, infusions, and tea blends to cater to diverse tastes and preferences, attracting a broader consumer base. Tea is increasingly finding its way into mixology and cocktail culture. Bartenders and mixologists are experimenting with tea-based cocktails, infusing teas into alcoholic and non-alcoholic beverages, creating unique and sophisticated drink options. The infusion of tea extracts in beauty and skincare products is gaining traction. Antioxidant-rich teas are being used in skincare items such as facial toners, masks, and creams, tapping into the health and wellness properties of tea. The combination of tea consumption with meditation practices or mindfulness is gaining attention. Tea ceremonies and mindfulness sessions offer a holistic approach to relaxation and self-care, promoting mental well-being. Tea-infused baked goods and desserts, such as tea-infused cakes, pastries, and ice creams, are becoming prevalent. Chefs and bakers are using tea as an ingredient to add unique flavors to sweet treats. Tea-themed travel experiences are on the rise. Tea enthusiasts can partake in travel packages that include visits to tea plantations, tasting tours, and participation in tea harvesting activities. Tea-centric events and festivals dedicated to celebrating tea culture, such as tea expos, tastings, and cultural fairs, attract enthusiasts and novices, fostering a sense of community and exploration. Incorporating tea into fitness regimes and sports nutrition, including pre-workout or recovery teas, tapping into the energy-boosting and health properties of certain tea varieties.

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Herbal teas are often perceived as a healthier alternative to traditional teas due to their natural and herbal ingredients. Consumers are increasingly health-conscious and are turning to herbal teas for their potential health benefits. There's a growing awareness among South African consumers regarding the health benefits associated with herbal teas, such as aiding digestion, relaxation, detoxification, and boosting the immune system. This awareness drives the demand for herbal teas. Herbal teas are generally natural and caffeine-free, appealing to consumers seeking organic and natural products. The segment caters to those with specific dietary preferences and lifestyles. The herbal tea segment offers a wide array of blends using various herbs, flowers, and spices, catering to different tastes and preferences. Blends such as rooibos, buchu, honeybush, and various indigenous herbs are popular choices. Herbal teas are not only consumed hot but are increasingly used in cold brews, iced teas, and as flavor infusions, making them versatile and appealing in various seasons and for different consumption preferences. The commercial segment, which includes the hospitality industry comprising hotels, restaurants, cafes, and catering services, plays a crucial role in driving tea consumption. These establishments serve tea as a fundamental beverage option to their customers, contributing significantly to the commercial tea segment. Many commercial tea providers integrate online platforms to promote and sell their products, bridging the gap between online sales and in-store consumption, enhancing accessibility and encouraging consumers to experience these offerings in physical spaces. The proliferation of internet accessibility and the growth of e-commerce platforms have facilitated the online purchasing of tea. As more consumers gain access to the internet, the convenience of online shopping becomes increasingly appealing. A shift in consumer behaviour towards online shopping, driven by convenience, time-saving benefits, and a wide variety of choices available, has propelled the growth of online tea purchases. Online platforms offer 24/7 accessibility to a broad selection of teas, allowing consumers to browse, compare, and purchase their preferred teas from the comfort of their homes or via mobile devices. Online platforms provide a vast assortment of tea varieties, brands, flavors, and international options, offering a broader selection compared to brick-and-mortar stores. Online retailers frequently offer discounts, special deals, and bundled packages, making tea purchases more economical and attractive for price-sensitive consumers. The convenience of doorstep delivery and efficient shipping options provided by online retailers eliminates the need for physical store visits, particularly appealing to busy or remote consumers. Considered in this report: • Geography: South Africa • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028

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Kripa Shah

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Aspects covered in this report: • South Africa Tea market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Tea Type • Green Tea • Black Tea • Oolong Tea • Herbal Tea • White Tea By application • Residential • Commercial

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By Distribution Channel • Supermarkets /Hyper markets • Speciality stores • Convenience stores • Online The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources. Intended audience: This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Tea industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.