Africa Ready to Drink Tea Market Size

The Africa Ready to Drink Tea Market is experiencing significant growth, driven by a shift in consumer preferences towards healthier beverage options and the expansion of distribution channels such as supermarkets and grocery stores. This trend is further supported by increasing consumer spending and the convenience of purchasing RTD tea, particularly in developing nations. The market's expansion is notable in countries like Kenya, which benefits from its ideal tea-growing conditions, and South Africa, where there is a strong demand for health-conscious tea options. Egypt is also emerging as a key player, with urbanization and a growing middle class fueling the demand for innovative RTD tea products.

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Market Size of africa ready to drink tea Industry

Africa Ready to Drink Tea Market Summary
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svg icon Study Period 2018 - 2030
svg icon Market Size (2024) USD 216.3 Million
svg icon Market Size (2030) USD 364.5 Million
svg icon Largest Share by Soft Drink Type Iced Tea
svg icon CAGR (2024 - 2030) 9.09 %
svg icon Largest Share by Country South Africa

Major Players

Africa Ready to Drink Tea Market Major Players

*Disclaimer: Major Players sorted in no particular order

Key Players

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Africa RTD Tea Market Analysis

The Africa Ready to Drink Tea Market size is estimated at 216.3 million USD in 2024, and is expected to reach 364.5 million USD by 2030, growing at a CAGR of 9.09% during the forecast period (2024-2030).

216.3 Million

Market Size in 2024 (USD)

364.5 Million

Market Size in 2030 (USD)

7.12 %

CAGR (2018-2023)

9.09 %

CAGR (2024-2030)

Largest Segment by Soft Drink Type

58.53 %

value share, Iced Tea, 2023

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The rising demand for variants, there are Flavored Iced Teas available in a wide spectrum of flavors, from refreshing mint and zesty lemon to exotic choices like mango and passionfruit captivating the growth.

Fastest-growing segment by Soft Drink Type

9.64 %

Projected CAGR, Herbal Tea, 2024-2030

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Specialty tea continues to gain popularity with functional benefits, such as aiding digestion, are becoming increasingly popular among health-conscious consumers.

Leading Market Player

41.83 %

market share, PepsiCo, Inc., Inc.

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PepsiCo, Inc. has gained a competitive edge over other players due to its extensive product portfolio with wider brand presence, along with its strategic moves toward innovation.

Largest Segment by Country

89.37 %

value share, South Africa, 2023

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In line with health trends, green tea and rooibos variants of RTD tea are gaining momentum in the region, given their perceived additional health benefits including a high concentration of antioxidants.

Fastest-growing segment by Country

14.91 %

Projected CAGR, Nigeria, 2024-2030

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Manufacturers are introducing innovative flavors and varieties of RTD tea to cater to evolving consumer preferences. Expanding the appeal of RTD tea beyond traditional black tea in Nigeria.

Rising health concerns and increasing demand for herbal products propelling RTD tea sales across Africa

  • From 2021 to 2023, the value of RTD tea sales surged by 15.99%. This growth can be attributed to a rising preference for healthier beverages over carbonated drinks. The distribution of RTD tea has also expanded across various channels, including supermarkets, hypermarkets, grocery stores, specialist stores, and convenience stores. Among these, grocery stores stand out, offering a diverse range of RTD tea options, such as iced tea and green tea from different brands, catering to consumer preferences. This trend is expected to fuel further market growth.
  • The rise in consumer spending, coupled with the convenience of purchasing from supermarkets, presents a promising opportunity for RTD tea manufacturers, especially in developing nations. Notably, Kenya is Africa's largest tea producer owing to its favorable equatorial location, enabling year-round harvesting. The country boasts 11 distinct tea regions, spanning the high plains on both sides of the Eastern Rift Valley. Notably, the majority of tea production, about two-thirds, comes from smallholders and is processed in 66 factories.
  • Between 2024 and 2030, both herbal tea and green tea are projected to exhibit the highest CAGRs of 9.64% each. This surge is expected to be driven by the rising awareness of the fat-burning properties of herbal and green teas, aligning with heightened health concerns. To cater to the growing demand for premium brands, companies are crafting targeted social media campaigns, particularly aimed at tech-savvy young consumers. These campaigns emphasize value for money, personalization, and seamless digital integration. Notably, there has been a significant rise in the number of internet users, reflecting the expanding internet penetration across Africa.
Africa Ready to Drink Tea Market

The market is witnessing growth, driven by a rising consumer preference for ready-to-drink (RTD) teas with reduced sugar content

  • The sales value of RTD (ready-to-drink) tea in Africa experienced a significant increase of 15.99% in 2023, compared to 2021. This surge can be largely attributed to rising consumer awareness of the myriad health benefits linked to RTD tea. These advantages span from aiding weight management and alleviating body and headache discomfort to reducing cholesterol levels and even mitigating the risk of heart attacks.
  • South Africa stands out as the leading market for ready-to-drink (RTD) tea in Africa. In 2023, the sales value of RTD tea in South Africa increased by 27.04% from 2020. A discernible trend in the country is the growing preference for health-conscious RTD teas, emphasizing lower sugar levels, natural sweeteners, and added antioxidants. Key industry players, including The Coca-Cola Company, BOS brands, San Benedetto SpA, and Unilever, are actively catering to this demand. Companies are introducing sugar-free options in their ready-to-drink (RTD) tea lineup, favoring natural sweeteners like Sucrose, Stevia, and Fructose.
  • Egypt leads the pack among African nations in the RTD tea market, with a projected value CAGR of 10.25% from 2023 to 2030. The surge in urbanization and the expanding middle class in Egypt are driving the demand for convenient food and beverages, including RTD teas. As the market matures, Egyptian consumers are expected to display a growing interest in innovative RTD tea offerings, whether infused with functional ingredients or brewed using unique methods.

Africa Ready to Drink Tea Industry Segmentation Africa RTD Tea Industry Segmentation

Green Tea, Herbal Tea, Iced Tea are covered as segments by Soft Drink Type. Aseptic packages, Glass Bottles, Metal Can, PET Bottles are covered as segments by Packaging Type. Off-trade, On-trade are covered as segments by Distribution Channel. Egypt, Nigeria, South Africa are covered as segments by Country.

  • From 2021 to 2023, the value of RTD tea sales surged by 15.99%. This growth can be attributed to a rising preference for healthier beverages over carbonated drinks. The distribution of RTD tea has also expanded across various channels, including supermarkets, hypermarkets, grocery stores, specialist stores, and convenience stores. Among these, grocery stores stand out, offering a diverse range of RTD tea options, such as iced tea and green tea from different brands, catering to consumer preferences. This trend is expected to fuel further market growth.
  • The rise in consumer spending, coupled with the convenience of purchasing from supermarkets, presents a promising opportunity for RTD tea manufacturers, especially in developing nations. Notably, Kenya is Africa's largest tea producer owing to its favorable equatorial location, enabling year-round harvesting. The country boasts 11 distinct tea regions, spanning the high plains on both sides of the Eastern Rift Valley. Notably, the majority of tea production, about two-thirds, comes from smallholders and is processed in 66 factories.
  • Between 2024 and 2030, both herbal tea and green tea are projected to exhibit the highest CAGRs of 9.64% each. This surge is expected to be driven by the rising awareness of the fat-burning properties of herbal and green teas, aligning with heightened health concerns. To cater to the growing demand for premium brands, companies are crafting targeted social media campaigns, particularly aimed at tech-savvy young consumers. These campaigns emphasize value for money, personalization, and seamless digital integration. Notably, there has been a significant rise in the number of internet users, reflecting the expanding internet penetration across Africa.
Soft Drink Type
Green Tea
Herbal Tea
Iced Tea
Other RTD Tea
Packaging Type
Aseptic packages
Glass Bottles
Metal Can
PET Bottles
Distribution Channel
Off-trade
Convenience Stores
Online Retail
Supermarket/Hypermarket
Others
On-trade
Country
Egypt
Nigeria
South Africa
Rest of Africa
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Africa Ready to Drink Tea Market Size Summary

The Africa Ready to Drink Tea Market is experiencing significant growth, driven by a shift in consumer preferences towards healthier beverage options over carbonated drinks. This trend is supported by the expanding distribution channels, including supermarkets, hypermarkets, and grocery stores, which offer a diverse range of RTD tea options such as iced and green tea. The market is further bolstered by the increasing consumer spending and the convenience of purchasing from these outlets, particularly in developing nations. Kenya, as Africa's largest tea producer, plays a crucial role in this market due to its favorable climate and extensive tea regions. The market is characterized by a strong presence of smallholders and numerous processing factories, contributing to the robust supply of tea products.

The demand for herbal and green teas is projected to rise, fueled by growing awareness of their health benefits, including fat-burning properties. Companies are leveraging social media to target tech-savvy young consumers, emphasizing value, personalization, and digital integration. South Africa leads the market with a notable preference for health-conscious RTD teas, while Egypt's urbanization and expanding middle class drive demand for convenient beverages. Despite inflationary pressures affecting prices, major players like The Coca-Cola Company and BOS Brands are adapting by offering sugar-free and innovative tea options. The market remains fairly consolidated, with a few key companies dominating the landscape, ensuring a competitive environment for RTD tea products across the continent.

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Africa Ready to Drink Tea Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2030 and analysis of growth prospects)

    1. 1.1 Soft Drink Type

      1. 1.1.1 Green Tea

      2. 1.1.2 Herbal Tea

      3. 1.1.3 Iced Tea

      4. 1.1.4 Other RTD Tea

    2. 1.2 Packaging Type

      1. 1.2.1 Aseptic packages

      2. 1.2.2 Glass Bottles

      3. 1.2.3 Metal Can

      4. 1.2.4 PET Bottles

    3. 1.3 Distribution Channel

      1. 1.3.1 Off-trade

        1. 1.3.1.1 Convenience Stores

        2. 1.3.1.2 Online Retail

        3. 1.3.1.3 Supermarket/Hypermarket

        4. 1.3.1.4 Others

      2. 1.3.2 On-trade

    4. 1.4 Country

      1. 1.4.1 Egypt

      2. 1.4.2 Nigeria

      3. 1.4.3 South Africa

      4. 1.4.4 Rest of Africa

Africa Ready to Drink Tea Market Size FAQs

The Africa Ready to Drink Tea Market size is expected to reach USD 216.29 million in 2024 and grow at a CAGR of 9.09% to reach USD 364.50 million by 2030.

In 2024, the Africa Ready to Drink Tea Market size is expected to reach USD 216.29 million.

Africa RTD Tea Market Report Snapshots

Africa Ready to Drink Tea Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)