Africa Ready to Drink Tea - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2030)
The Africa Ready to Drink Tea Market size is estimated at 216.3 million USD in 2024, and is expected to reach 364.5 million USD by 2030, growing at a CAGR of 9.09% during the forecast period (2024-2030).
Rising health concerns and increasing demand for herbal products propelling RTD tea sales across Africa
From 2021 to 2023, the value of RTD tea sales surged by 15.99%. This growth can be attributed to a rising preference for healthier beverages over carbonated drinks. The distribution of RTD tea has also expanded across various channels, including supermarkets, hypermarkets, grocery stores, specialist stores, and convenience stores. Among these, grocery stores stand out, offering a diverse range of RTD tea options, such as iced tea and green tea from different brands, catering to consumer preferences. This trend is expected to fuel further market growth.
The rise in consumer spending, coupled with the convenience of purchasing from supermarkets, presents a promising opportunity for RTD tea manufacturers, especially in developing nations. Notably, Kenya is Africa's largest tea producer owing to its favorable equatorial location, enabling year-round harvesting. The country boasts 11 distinct tea regions, spanning the high plains on both sides of the Eastern Rift Valley. Notably, the majority of tea production, about two-thirds, comes from smallholders and is processed in 66 factories.
Between 2024 and 2030, both herbal tea and green tea are projected to exhibit the highest CAGRs of 9.64% each. This surge is expected to be driven by the rising awareness of the fat-burning properties of herbal and green teas, aligning with heightened health concerns. To cater to the growing demand for premium brands, companies are crafting targeted social media campaigns, particularly aimed at tech-savvy young consumers. These campaigns emphasize value for money, personalization, and seamless digital integration. Notably, there has been a significant rise in the number of internet users, reflecting the expanding internet penetration across Africa.
The market is witnessing growth, driven by a rising consumer preference for ready-to-drink (RTD) teas with reduced sugar content
The sales value of RTD (ready-to-drink) tea in Africa experienced a significant increase of 15.99% in 2023, compared to 2021. This surge can be largely attributed to rising consumer awareness of the myriad health benefits linked to RTD tea. These advantages span from aiding weight management and alleviating body and headache discomfort to reducing cholesterol levels and even mitigating the risk of heart attacks.
South Africa stands out as the leading market for ready-to-drink (RTD) tea in Africa. In 2023, the sales value of RTD tea in South Africa increased by 27.04% from 2020. A discernible trend in the country is the growing preference for health-conscious RTD teas, emphasizing lower sugar levels, natural sweeteners, and added antioxidants. Key industry players, including The Coca-Cola Company, BOS brands, San Benedetto SpA, and Unilever, are actively catering to this demand. Companies are introducing sugar-free options in their ready-to-drink (RTD) tea lineup, favoring natural sweeteners like Sucrose, Stevia, and Fructose.
Egypt leads the pack among African nations in the RTD tea market, with a projected value CAGR of 10.25% from 2023 to 2030. The surge in urbanization and the expanding middle class in Egypt are driving the demand for convenient food and beverages, including RTD teas. As the market matures, Egyptian consumers are expected to display a growing interest in innovative RTD tea offerings, whether infused with functional ingredients or brewed using unique methods.
Africa Ready to Drink Tea Market Trends
Growing healthconsiousness among consumers and innovations in flavor profile is impacting the market positively
In East Africa, Chai is a popular blend of black tea, milk, and spices. In Southern Africa, Red Bush tea, also known as Rooibos, is a popular herbal tea. In West and North Africa, Bisap, or Kirkade, a hibiscus-based tea, is a popular beverage. In North and West Africa, Mint tea is a popular choice.
Under the product attributes, African consumers appreciate RTD tea because it provides them with the variety of tea flavors, including classic choices such as black, green, and herbal blends.
In 2022, Nigeria has observed an inflation of 25.80%. Inflation in Africa has had a detrimental impact on the CIP rate, leading to an increase in the cost of food products, including RTD tea beverages, in various nations. However, players in the region are cutting their profit margins to avail products at a reasonable price to the consumers.
Under RTD tea beverages, black tea beverages are highly popularized and enjoyed by consumers. Induvial dealing with diabetes are consideration these beverages for its health benefits and other functional benefits.
Africa RTD Tea Industry Overview
The Africa Ready to Drink Tea Market is fairly consolidated, with the top five companies occupying 81.76%. The major players in this market are BOS Brands (Pty) Ltd, Clover S.A. (Pty) Ltd, PepsiCo, Inc., Tata Consumer Products Ltd and The Coca-Cola Company (sorted alphabetically).
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Rising health concerns and increasing demand for herbal products propelling RTD tea sales across Africa
From 2021 to 2023, the value of RTD tea sales surged by 15.99%. This growth can be attributed to a rising preference for healthier beverages over carbonated drinks. The distribution of RTD tea has also expanded across various channels, including supermarkets, hypermarkets, grocery stores, specialist stores, and convenience stores. Among these, grocery stores stand out, offering a diverse range of RTD tea options, such as iced tea and green tea from different brands, catering to consumer preferences. This trend is expected to fuel further market growth.
The rise in consumer spending, coupled with the convenience of purchasing from supermarkets, presents a promising opportunity for RTD tea manufacturers, especially in developing nations. Notably, Kenya is Africa's largest tea producer owing to its favorable equatorial location, enabling year-round harvesting. The country boasts 11 distinct tea regions, spanning the high plains on both sides of the Eastern Rift Valley. Notably, the majority of tea production, about two-thirds, comes from smallholders and is processed in 66 factories.
Between 2024 and 2030, both herbal tea and green tea are projected to exhibit the highest CAGRs of 9.64% each. This surge is expected to be driven by the rising awareness of the fat-burning properties of herbal and green teas, aligning with heightened health concerns. To cater to the growing demand for premium brands, companies are crafting targeted social media campaigns, particularly aimed at tech-savvy young consumers. These campaigns emphasize value for money, personalization, and seamless digital integration. Notably, there has been a significant rise in the number of internet users, reflecting the expanding internet penetration across Africa.
The market is witnessing growth, driven by a rising consumer preference for ready-to-drink (RTD) teas with reduced sugar content
The sales value of RTD (ready-to-drink) tea in Africa experienced a significant increase of 15.99% in 2023, compared to 2021. This surge can be largely attributed to rising consumer awareness of the myriad health benefits linked to RTD tea. These advantages span from aiding weight management and alleviating body and headache discomfort to reducing cholesterol levels and even mitigating the risk of heart attacks.
South Africa stands out as the leading market for ready-to-drink (RTD) tea in Africa. In 2023, the sales value of RTD tea in South Africa increased by 27.04% from 2020. A discernible trend in the country is the growing preference for health-conscious RTD teas, emphasizing lower sugar levels, natural sweeteners, and added antioxidants. Key industry players, including The Coca-Cola Company, BOS brands, San Benedetto SpA, and Unilever, are actively catering to this demand. Companies are introducing sugar-free options in their ready-to-drink (RTD) tea lineup, favoring natural sweeteners like Sucrose, Stevia, and Fructose.
Egypt leads the pack among African nations in the RTD tea market, with a projected value CAGR of 10.25% from 2023 to 2030. The surge in urbanization and the expanding middle class in Egypt are driving the demand for convenient food and beverages, including RTD teas. As the market matures, Egyptian consumers are expected to display a growing interest in innovative RTD tea offerings, whether infused with functional ingredients or brewed using unique methods.
Africa Ready to Drink Tea Market Trends
Growing healthconsiousness among consumers and innovations in flavor profile is impacting the market positively
In East Africa, Chai is a popular blend of black tea, milk, and spices. In Southern Africa, Red Bush tea, also known as Rooibos, is a popular herbal tea. In West and North Africa, Bisap, or Kirkade, a hibiscus-based tea, is a popular beverage. In North and West Africa, Mint tea is a popular choice.
Under the product attributes, African consumers appreciate RTD tea because it provides them with the variety of tea flavors, including classic choices such as black, green, and herbal blends.
In 2022, Nigeria has observed an inflation of 25.80%. Inflation in Africa has had a detrimental impact on the CIP rate, leading to an increase in the cost of food products, including RTD tea beverages, in various nations. However, players in the region are cutting their profit margins to avail products at a reasonable price to the consumers.
Under RTD tea beverages, black tea beverages are highly popularized and enjoyed by consumers. Induvial dealing with diabetes are consideration these beverages for its health benefits and other functional benefits.
Africa RTD Tea Industry Overview
The Africa Ready to Drink Tea Market is fairly consolidated, with the top five companies occupying 81.76%. The major players in this market are BOS Brands (Pty) Ltd, Clover S.A. (Pty) Ltd, PepsiCo, Inc., Tata Consumer Products Ltd and The Coca-Cola Company (sorted alphabetically).
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 EXECUTIVE SUMMARY & KEY FINDINGS
2 REPORT OFFERS
3 INTRODUCTION
3.1 Study Assumptions & Market Definition
3.2 Scope of the Study?
3.3 Research Methodology
4 KEY INDUSTRY TRENDS
4.1 Consumer Buying Behaviour
4.2 Innovations
4.3 Brand Share Analysis
4.4 Regulatory Framework
5 MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VALUE IN USD AND VOLUME, FORECASTS UP TO 2030 AND ANALYSIS OF GROWTH PROSPECTS)
5.1 Soft Drink Type
5.1.1 Green Tea
5.1.2 Herbal Tea
5.1.3 Iced Tea
5.1.4 Other RTD Tea
5.2 Packaging Type
5.2.1 Aseptic packages
5.2.2 Glass Bottles
5.2.3 Metal Can
5.2.4 PET Bottles
5.3 Distribution Channel
5.3.1 Off-trade
5.3.1.1 Convenience Stores
5.3.1.2 Online Retail
5.3.1.3 Supermarket/Hypermarket
5.3.1.4 Others
5.3.2 On-trade
5.4 Country
5.4.1 Egypt
5.4.2 Nigeria
5.4.3 South Africa
5.4.4 Rest of Africa
6 COMPETITIVE LANDSCAPE
6.1 Key Strategic Moves
6.2 Market Share Analysis
6.3 Company Landscape
6.4 Company Profiles
6.4.1 BOS Brands (Pty) Ltd
6.4.2 Clover S.A. (Pty) Ltd
6.4.3 CWAY Group
6.4.4 Dynamic Brands Manufacturing (Pty) Ltd.
6.4.5 PepsiCo, Inc.
6.4.6 Tata Consumer Products Ltd
6.4.7 The Coca-Cola Company
7 KEY STRATEGIC QUESTIONS FOR SOFT DRINK CEOS
8 APPENDIX
8.1 Global Overview
8.1.1 Overview
8.1.2 Porter’s Five Forces Framework
8.1.3 Market Dynamics (DROs)
8.2 Sources & References
8.3 List of Tables & Figures
8.4 Primary Insights
8.5 Data Pack
8.6 Glossary of Terms
2 REPORT OFFERS
3 INTRODUCTION
3.1 Study Assumptions & Market Definition
3.2 Scope of the Study?
3.3 Research Methodology
4 KEY INDUSTRY TRENDS
4.1 Consumer Buying Behaviour
4.2 Innovations
4.3 Brand Share Analysis
4.4 Regulatory Framework
5 MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VALUE IN USD AND VOLUME, FORECASTS UP TO 2030 AND ANALYSIS OF GROWTH PROSPECTS)
5.1 Soft Drink Type
5.1.1 Green Tea
5.1.2 Herbal Tea
5.1.3 Iced Tea
5.1.4 Other RTD Tea
5.2 Packaging Type
5.2.1 Aseptic packages
5.2.2 Glass Bottles
5.2.3 Metal Can
5.2.4 PET Bottles
5.3 Distribution Channel
5.3.1 Off-trade
5.3.1.1 Convenience Stores
5.3.1.2 Online Retail
5.3.1.3 Supermarket/Hypermarket
5.3.1.4 Others
5.3.2 On-trade
5.4 Country
5.4.1 Egypt
5.4.2 Nigeria
5.4.3 South Africa
5.4.4 Rest of Africa
6 COMPETITIVE LANDSCAPE
6.1 Key Strategic Moves
6.2 Market Share Analysis
6.3 Company Landscape
6.4 Company Profiles
6.4.1 BOS Brands (Pty) Ltd
6.4.2 Clover S.A. (Pty) Ltd
6.4.3 CWAY Group
6.4.4 Dynamic Brands Manufacturing (Pty) Ltd.
6.4.5 PepsiCo, Inc.
6.4.6 Tata Consumer Products Ltd
6.4.7 The Coca-Cola Company
7 KEY STRATEGIC QUESTIONS FOR SOFT DRINK CEOS
8 APPENDIX
8.1 Global Overview
8.1.1 Overview
8.1.2 Porter’s Five Forces Framework
8.1.3 Market Dynamics (DROs)
8.2 Sources & References
8.3 List of Tables & Figures
8.4 Primary Insights
8.5 Data Pack
8.6 Glossary of Terms
