Africa Tea Market

Africa Tea Market Overview

• The Africa Tea Market is valued at USD 10 billion, based on a five-year historical analysis. This growth is primarily driven by increasing consumer demand for diverse tea varieties, health and wellness positioning of tea over sugary beverages, and continued expansion of tea output in East and Southern Africa, especially Kenya, Uganda, Tanzania, Malawi, and Rwanda. The market has seen a rise in both domestic consumption and export opportunities, with Kenya sustaining a leading role in global black tea exports.
• Key producers include Kenya, South Africa, and Ethiopia, supported by favorable agro-climatic conditions, established estates and smallholder networks, and robust export channels; Kenya remains the largest African producer and a top global black tea exporter, while South Africa anchors the herbal segment through rooibos and honeybush. Rooibos, cultivated mainly in South Africa’s Cederberg, underpins the region’s herbal tea identity alongside growing demand for functional and organic infusions.
• In 2023, Kenya advanced quality and market reforms for tea exports through continued implementation of Kenya Tea Board oversight and KTDA-linked factory and auction quality requirements, reinforcing export competitiveness, traceability, and sustainable practices in production and trading via the Mombasa auction.

Africa Tea Market Segmentation

By Type:The tea market in Africa is segmented into various types, including Black Tea (CTC and Orthodox), Green Tea, Herbal/Fruit Tea (including Rooibos, Honeybush), Oolong Tea, White Tea, Specialty and Flavored Tea, and Ready-to-Drink (RTD) Tea. Among these, Black Tea, particularly the CTC variety, dominates due to entrenched production in East/Southern Africa and strong export orientation via Mombasa; leaf tea remains central, while RTD and value-added flavored formats are gaining traction through modern retail and e-commerce. The growing health-conscious consumer base is lifting demand for Green Tea and Herbal/Fruit Tea, including rooibos and functional blends.

By End-User:The end-user segmentation of the tea market includes Households, HoReCa (Hotels, Restaurants, Cafés), Offices and Institutions, Foodservice Distributors and Caterers, Retail Private Labels, and Others. Households represent the largest segment, driven by daily consumption habits and cultural prevalence across major markets. HoReCa is expanding with premium and specialty offerings, while modern trade growth and online channels support broader availability and private-label development.

Africa Tea Market Competitive Landscape

The Africa Tea Market is characterized by a dynamic mix of regional and international players. Leading participants such as Lipton Teas and Infusions (formerly Unilever tea business), Kenya Tea Development Agency (KTDA), James Finlay (Africa) Ltd, Ekaterra Kenya Ltd, Ceylon Tea Kenya (Dilmah presence via distribution partners), Taylors of Harrogate (Yorkshire Tea) – Africa sourcing and distribution, Brooke Bond (Unilever heritage brand in East Africa), AVT Natural/AVT Tea (Africa distribution), Joekels Tea Packers (South Africa), Rooibos Limited (South Africa), Pioneer Foods Beverages (Bokomo/Bevco, South Africa) – Five Roses, Freshpak, Ahmad Tea (Egypt/Nigeria distribution), Gold Crown Beverages (Kericho Gold, Kenya), Mzuzu Coffee & Tea (Malawi) – tea estates and processing, Buhler/Metropolitan Tea Co. Africa (distribution and packing) contribute to innovation, geographic expansion, and service delivery in this space.

Africa Tea Market Industry Analysis

Growth Drivers

• Increasing Health Consciousness:The African tea market is experiencing a surge in demand due to rising health consciousness among consumers. In future, the health and wellness food sector in Africa is projected to reach $25 billion, with tea being a significant contributor. The World Health Organization reports that 70% of consumers are opting for beverages perceived as healthy, driving the demand for herbal and green teas, which are rich in antioxidants and beneficial compounds.
• Rising Disposable Incomes:As disposable incomes in Africa increase, particularly in urban areas, consumers are willing to spend more on premium tea products. According to the African Development Bank, the average disposable income in Sub-Saharan Africa is expected to rise to $4,000 per capita in future. This economic growth is fostering a shift towards higher-quality tea options, including specialty and organic varieties, which are gaining popularity among affluent consumers.
• Expansion of Retail Channels:The expansion of retail channels, including supermarkets and online platforms, is significantly boosting tea sales in Africa. In future, the number of supermarkets in Africa is projected to increase by 20%, enhancing accessibility to a wider range of tea products. E-commerce is also on the rise, with online sales expected to account for 15% of total tea sales, providing consumers with greater convenience and variety in their purchasing options.

Market Challenges

• Climate Change Impact:Climate change poses a significant threat to tea production in Africa, affecting yield and quality. The Intergovernmental Panel on Climate Change (IPCC) predicts that in future, tea-growing regions may experience a 25% reduction in suitable land due to rising temperatures and erratic rainfall patterns. This environmental challenge could lead to decreased supply and increased prices, impacting the overall market dynamics.
• Supply Chain Disruptions:Supply chain disruptions, exacerbated by global events, are a major challenge for the African tea market. In future, logistical issues are expected to increase costs by 20%, affecting the timely delivery of tea products. Additionally, the reliance on international shipping routes makes the market vulnerable to geopolitical tensions and trade restrictions, which can further complicate supply chain efficiency and reliability.

Africa Tea Market Future Outlook

The Africa tea market is poised for significant transformation, driven by evolving consumer preferences and technological advancements. As health-consciousness continues to rise, the demand for specialty and organic teas is expected to grow. Additionally, the integration of sustainable practices and digital retail solutions will enhance market accessibility. Collaborations with local farmers will also play a crucial role in ensuring quality and sustainability, positioning the African tea market as a competitive player in the global arena.

Market Opportunities

• Export Potential to Global Markets:Africa's tea industry has substantial export potential, particularly to Europe and North America, where demand for premium teas is increasing. In future, African tea exports are projected to reach $1.5 billion, driven by the growing popularity of unique African tea blends and flavors, which can capture niche markets abroad.
• Product Innovation and Diversification:There is a significant opportunity for product innovation within the African tea market. In future, introducing new flavors and health-focused blends can attract a broader consumer base. The market can leverage local herbs and spices to create unique offerings, enhancing consumer interest and driving sales growth in both local and international markets.