African Tea Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)


African Tea Market Analysis:

1. The forecast period of 2022–2027 predicts a Compound Annual Growth Rate (CAGR) of 5.5% for the African tea market. This market is known for its labor-intensive nature, particularly in countries like Malawi where approximately 50,000 unskilled and semi-skilled workers are employed. However, the COVID-19 pandemic has posed challenges to the industry, especially during the peak seasons of tea plucking and production from March to September. The concentration of workers in estates and factories increases the risk of virus transmission. Despite these obstacles, Kenya, as the largest tea exporter in Africa, has managed to maintain tea production, although transportation disruptions and cash flow issues have been observed.

2. Looking ahead, the African tea market is expected to witness growth due to various factors. The rise in health awareness among consumers, coupled with the health benefits associated with tea consumption, is anticipated to drive market expansion. Additionally, the surge in disposable income among individuals is likely to contribute to the growth of this industry. Market players are also focusing on introducing healthier ingredients in tea, further fueling the overall market growth. Furthermore, the introduction of new flavors and varieties, along with the increasing demand for herbal tea, is expected to create more opportunities for growth in the tea market.

3. The demand for specialty teas in Africa, such as fruit/herbal tea and green tea, is primarily driven by the growing emphasis on health and wellness. Despite their higher than average unit prices, these teas have experienced strong retail volume growth in 2021. Consumers are increasingly seeking out these smaller specialty teas due to their perceived health benefits. As a result, the African tea market is witnessing a shift towards these varieties, reflecting the changing preferences and priorities of tea consumers in the region.

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