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Are flavour innovations and infusions spicing up SA’s RTD/Iced Tea market?

Globally, Ready-to-drink (RTD) Tea or Iced Tea, continues to gain popularity due to the growing consumer perceptions of these products as a healthy alternative. The South African market, by comparison, has struggled over the past few years, however, the RTD Tea Industry has been fighting back with the launch of interesting flavours, infusions, and innovative variants to satisfy the needs of capricious South Africa consumers.

Insight Survey’s latest SA RTD/Iced Tea Industry Landscape Report 2020 uncovers the global and local 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, to present an objective insight into the South African RTD Tea industry environment, its market dynamics and its future.

In 2019, the global RTD Tea market reached a total of approximately 36.2 billion litres in terms of total retail sales, as illustrated in the graph below. Regionally, Asia-Pacific represented the largest market in the global RTD Tea market, reaching approximately 26.7 billion litres in 2019. This was followed by North America and Western Europe, with approximately 4.0 billion litres and 3.3 billion litres, respectively. The global market is forecast to grow at a compound annual growth rate (CAGR) of approximately 3.2% (previously 4.3%), which includes the impact of the COVID-19 global pandemic.

RTD/Iced Tea
RTD/Iced Tea Industry Report

Within the South African market, RTD Tea has experienced marginal volume growth in recent years. In 2017 and 2018, the market actually witnessed a decline in volume, however, the market is predicted to achieve a CAGR of 3.7% over the 2020 to 2024 forecast period, as local players are successfully fighting back with product innovation, in order to remain competitive and win back South African consumers.

Product innovation in the South African RTD Tea market has been focused on the utilisation of local ingredients, to create new and interesting products, whilst also capitalising on their health benefits. As part of this strategy, Rooibos is increasingly being incorporated into product ranges, as an alternative base for various RTD/Iced Tea as well as kombucha products.

Rooibos is a plant that is indigenous to South Africa, possessing various functional/health benefits, such as being a rich source of antioxidants. Some brands that are using Rooibos as a base for their RTD Tea range include BOS Ice Tea, Monatea’s Cold-Brew Tea, and Real-T’s Premium Ice Tea, amongst others. In May 2019, BOS launched its Sparkling Unsweetened Iced Tea range, with flavours including pineapple and coconut, white peach and elderflower, and blueberry and jasmine.

Market players are also experimenting with Rooibos as a base for kombucha, that has traditionally been made with black or green tea. Several manufacturers, including Brew Kombucha, Dr Tom’s Premium Kombucha, and Theonista, all offer Rooibos-based kombucha. Brew Kombucha’s available flavours include original Rooibos, Buchu Babe and African Rose.

The popularity of CBD-infused products has also reached the RTD Tea market in the form of RTD cannabinoid-infused kombucha teas. One such example is South African kombucha manufacturer, Happy Culture, who in December 2019 released their Cherry CBD Kombucha. This product is available in a cherry flavour and is created by infusing the kombucha with premium CBD oil.

Furthermore, capitalising on consumer demand for both convenience and healthy alternatives, BOS has developed and launched the first functional rooibos health shots in South Africa. The product range is available in 50ml bottles, with four variants, including Bounce Back, Chill Out, Let It Glow, and Gut A Problem.

The South African RTD/Iced Tea Industry Landscape Report 2020 (87 pages) provides a dynamic synthesis of industry research, examining the local and global RTD Tea industry from a uniquely holistic perspective, with detailed insights into the entire value chain – from key global and South African market trends, innovation and technology, drivers, and challenges as well as manufacturer, distributor, retailer, and pricing analysis.

Some key questions the report will help you to answer:

  • What are the current market dynamics of the global RTD Tea industry?
  • What are the key global and South African RTD Tea industry trends, innovation, drivers, and challenges?
  • What are the market size value and volume trends in the SA RTD Tea market (2014-2019) and forecasts based on the impact of COVID-19 (2020-2024)?
  • Who are the key manufacturers, distributors, and retail players in the SA RTD Tea industry?
  • What are the prices of popular RTD Tea brands and products at leading retail outlets?

Please note that the 83-page report is available for purchase for R27,500.00 (excluding VAT). Alternatively, individual sections can be purchased for R10,000.00 (excluding VAT). For additional information simply contact us at or directly on (021) 045-0202 or (010) 140-5756.

For a full brochure please go to: South African RTD Tea Industry Report 2020

About Insight Survey:

Insight Survey is a South African B2B market research company with more than 10 years of heritage, focusing on business-to-business (B2B) and industry research to ensure smarter, more-profitable business decisions are made with reduced investment risk.

We offer market research solutions to help you to successfully improve or expand your business, enter new markets, launch new products or better understand your internal or external environment.

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