Africa Ready to Drink Tea Market - Growth, Trends, and Forecasts (2020 - 2025)

The Africa ready-to-drink tea market is projected to grow at a CAGR of 1.8% during the forecast period (2020 -2025).

• The market is majorly driven by the rising demand for RTD beverages in the region, along with an increase in the innovations at ingredient levels, and launches of new products such as flavored RTD tea drinks, carbonated RTD tea, and caffeine-free RTD tea. In addition, the market is supported by the health and wellness trend among consumers in the region, especially South Africa. In line with health trends, green tea and rooibos variants of RTD tea are gaining momentum, given their perceived additional health benefits including a high concentration of antioxidants.
• However, the presence of various substitutes such as energy drinks, and other RTD carbonated drinks, etc. are the major restraints of the market.

Key Market Trends

Rising Demand for Black Tea

Black Tea is witnessed to have a significant growth in its demand in African countries, especially Kenya. This demand in the market is because the country is a major contributor to black tea blends for generations, which has geared up the marketing efforts of RTD black tea manufacturers. Furthermore, rising awareness of the nutritional benefits of black tea over regular tea makes it a preferred choice, after green tea in the region. Black tea is a good source of antioxidants, reduces blood pressure, reduces the risk of diabetes and other conditions such as rheumatoid arthritis, and Parkinson’s disease, and many others. In addition, growing health awareness of the consumers and the ongoing wellness trends, along with convenience are some of the other driving factors influencing to enlarge the RTD black tea market in the coming years.

Supermarket/Hypermarkets to Drive The Sales For RTD Tea In The Region

The distribution of RTD tea has expanded through many channels, such as supermarkets, hypermarkets, grocery stores, specialist stores, convenience stores, etc. Among the numerous outlets available, grocery stores are preferred in the countries as it has varied varieties of RTD of different companies along with catering to consumer’s preferences, which is anticipated to drive the market growth in the future. The increase in demographics spending, ease, and convenience through supermarket purchases is expected to pave a strong pathway for RTD tea manufacturers to penetrate, particularly in the developing countries, where these stores are being set in large numbers. With the increasing demand for RTD tea, supermarkets, and hypermarkets such as Carrefour, SPAR, Pick 'n Pay, and convenience stores are witnessing a fast growth in the sales of their market.

Competitive Landscape

The Africa RTD tea market is consolidated in nature having fewer domestic and multinational players competing for market share. Emphasis is given on the merger, expansion, acquisition, and partnership of the companies along with new product development as strategic approaches adopted by the leading companies to boost their brand presence among consumers. For instance, Bos Brands (Pty) Ltd benefitted from its distribution partnership with leading packaged food manufacturer Rhodes Food Group with brand BOS Ice Tea gaining further share in 2019. Key players dominating the regional market include Unilever, BOS Brands, The Coca-Cola Company, and San Benedetto S.p.A. among others.

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