Both the global and local Tea markets are witnessing a strong dichotomy in Tea buying habits, with the market previously showing strong preferences for traditional Teas, such as breakfast blends and black Teas. However, Tea is poised for a new wave of consumer preferences, which is centred around connections and valued holistic Tea experiences.
Insight Survey’s latest SA Tea Industry Landscape Report 2020 uncovers the global and local Tea markets based on the latest information and research. It describes the market drivers and restraints as well as the relevant global and local market trends, innovation and technology, to present an objective insight into the South African Tea industry environment and its future.
Following water, Tea is the second most consumed beverage globally, with per capita consumption of Tea being estimated to reach 0.90kg in 2020 and is expected to continue to increase to reach 0.96kg in 2025, as illustrated in the graph below.
Similarly, Tea consumption in South Africa continues to rise, with Tea standing in sixth place, along with coffee, in terms of beverage consumption in the country. The prominence of the beverage is further demonstrated with Tea making up approximately 5.6% of total household spending on beverages among South African consumers.
This global and local rise in Tea consumption is as a result of the ever-increasing Tea culture across the globe. As such, consumers are increasingly seeking alternative holistic Tea experiences, which has resulted in numerous businesses and restaurants exploring interesting and unique ways of innovating the Tea experience for consumers.
The Tea industry has thus transformed from the confinement of third-wave cafés, to including specialty Tea options and holistic Tea experiences, which highlight the cross-cultural appeal and incorporates the rich histories and stories around the Tea itself.
For example, High Teas have been trending in South Africa, with many local hotels and restaurants offering special High Tea menus and events for consumers. These High Tea events are gaining popularity, as they enhance the overall Tea experience by serving as a luxurious way to consume Tea, whilst enjoying a high-class day out. Belmond Mount Nelson, for example, offers morning, afternoon, and evening High Teas, with the menu including forty loose-leaf Teas, as well as offering Tea ceremonies, masterclasses, tastings, and pairings.
Furthermore, industry players are further enhancing the Tea experience for consumers, through Tea subscription services, which have gained in popularity in recent years. These Tea subscription services enables consumers to easily explore and discover new Teas, gain education and information regarding various Teas, as well as conveniently stocking up on Tea on a monthly basis. Tea subscription service, Tealyst for example, provides four loose-leaf Teas on a monthly basis and is delivered with a Tea card with information about the Tea selected, as well as brewing instructions.
Another innovative Tea subscription service which is popular amongst South African consumers, is Steep Box. This is a monthly subscription service that provides loose-leaf Teas from across the world. Each month, subscribers receive three premium Teas, as well as instructions on steeping the Tea and additional information about the Tea origins.
As the Tea culture continues to rise both globally and locally, innovative new Tea experiences and services are expected to continue to rise and further drive growth in the Tea market. Industry players are thus expected to keep up with this development, in order to meet changing consumer needs and preferences, as well as remain competitive in the market.
The South African Tea Industry Landscape Report 2020 (142 pages) provides a dynamic synthesis of industry research, examining the local and global Tea industry from a uniquely holistic perspective, with detailed insights into the entire value chain – from manufacturing and importing to retailing, sustainability, pricing analysis, consumption and purchasing trends.
Some key questions the report will help you to answer:
- What are the current market dynamics (production, consumption, trade) of the global Tea industry?
- What are the key global and South African Tea industry trends, innovations, drivers, and challenges?
- What are the market size value and volume trends in the SA Tea market (2014-2019) and forecasts (2020-2024)?
- Who are the key manufacturing and retail players in the SA Tea industry?
- What are the prices of popular Tea brands and products (black tea, rooibos tea, green tea, fruit/herbal tea, tea capsules and pods) at SA Tea outlets, Tea shops, and supermarkets?
Please note that the 142-page report is available for purchase for R30,000.00 (excluding VAT). Alternatively, individual sections can be purchased for R12,500.00 (excluding VAT). For additional information simply contact us at firstname.lastname@example.org or directly on (021) 045-0202.
For a full brochure please go to: South African Tea Industry Landscape Report 2020
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