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    The Tea and Coffee Industry in South Africa 2025

    Stephen Timm | South Africa | 25 April 2025

    The Tea and Coffee Industry in South Africa 2020

    Yasmin Mahomedy | South Africa | 25 May 2020

    The Tea and Coffee Industry in South Africa 2018

    Yasmin Mahomedy | South Africa | 27 March 2018

    The Tea and Coffee Industry in South Africa 2016

    Yasmin Mahomedy | South Africa | 08 February 2016

    The Tea and Coffee Industry in South Africa 2014

    Yasmin Mahomedy | South Africa | 28 April 2014

    Report Info

    Report Summary Table of Contents
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    Report Coverage

    This report focuses on the tea and coffee industry in South Africa, including the rooibos and honeybush industries. It includes information on production, processing, sales and retail outlets, the sharp rise in prices, consumption and the current position of state-backed tea estates. Notable players, investments and developments are discussed. There are profiles of 32 companies including major processors and suppliers such as Unilever, National Brands and Nestlé, coffee companies such as Famous Brands Coffee Company, tea companies such as Joekels Tea Packers and rooibos and honeybush companies such as Cape Rooibos, Rooibos Ltd, Melmont Honeybush Tea, Agulhas Honeybush Tea and Bitou Honeybush.

    Introduction

    • While a small amount of coffee and black tea is produced locally, the country relies almost entirely on imports.
    • Coffee and tea imports grew by 10% in 2024.
    • Coffee prices, despite edging down since March 2025, have climbed to record highs recently, while tea prices have also seen marked increases.
    • This has led to consumers trading down or cutting back.
    • Nevertheless, demand for ground coffee is growing, driven by a growing coffee culture which is fuelling the growth of coffee outlets.
    • Record coffee price increases could put coffee shops under pressure.
    • The sector faces challenges including climate change, land expropriation and low economic growth which could limit demand for high-end tea and speciality coffee products.

    Trends

    • A number of coffee shops use loyalty programmes to drive sales.
    • Bubble tea shops are becoming popular, following the global trend.
    • Consumers are demanding traceability of their coffee beans.
    • Demand for specialty coffee and high quality ground coffee is growing.
    • Matcha, a green tea juice, is sought after by people looking for healthy drink alternatives.
    • Rapid expansion of coffee shops.
    • Rooibos extracts are increasingly being used as skincare and healthcare products.
    • Significant coffee and tea price increases.
    • Tea
    • The healthy food and drinks trend is driving demand for functional tea products.
    • The trend in convenience is driving the growth of capsule and ready-to-drink products.

    Opportunities

    • Importing coffee in a strategic way from certain regions or using containers to hedge high prices.
    • Selling and exporting health teas like rooibos and honeybush.
    • Speciality coffee shops.
    • Tea shops, specifically bubble tea.

    Challenges

    • Climate change threatens to reduce the areas where coffee and tea can be grown.
    • Coffee and tea prices have increased significantly in recent years.
    • Government funded tea estates have become unsustainable.
    • Low economic growth and weak consumer spend.
    • The cost of raw materials has increased significantly.
    • The honeybush tea sector has a number of challenges, including onerous compliance and certification requirements.
    • There is some concern that the coffee shops sector is overtraded.
    • Water outages.

    Outlook

    • Coffee prices are forecast to increase.
    • Some players are predicting a coffee shortage if prices continue to rise.
    • If prices lead to customers reducing their spending, some coffee shop chains are going to be under pressure.
    • However, demand for ground coffee remains strong.
    • Local black tea consumption has been declining, while rooibos consumption has been stagnant, but the healthy drinks trend is likely to drive demand for rooibos and honeybush tea

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 6
    2.2. Geographic Position 7
    2.3. Size of the Industry 8
    3. LOCAL 11
    3.1. State of the Industry 11
    3.2. Key Trends 23
    3.3. Key Issues 23
    3.4. Notable Players 23
    3.5. Trade 25
    3.6. Corporate Actions 31
    3.7. Regulations 31
    3.8. Enterprise Development and Social Development 32
    4. AFRICA 34
    5. INTERNATIONAL 36
    6. INFLUENCING FACTORS 40
    6.1. Economic Environment 40
    6.2. Labour 41
    6.3. Environmental Issues 41
    6.4. Technology, R&D, Innovation 43
    6.5. Government Support 44
    6.6. Input Costs 44
    6.7. Land Reform Policy 44
    7. COMPETITIVE ENVIRONMENT 45
    7.1. Competition 45
    7.2. Ownership Structure of the Industry 46
    7.3. Barriers to Entry 46
    8. INDUSTRY SUMMARY 47
    9. OUTLOOK 48
    10. INDUSTRY ASSOCIATIONS 48
    11. REFERENCES 48
    11.1. Publications 48
    11.2. Websites 49
    APPENDIX 1 51
    Summary of Notable Players 51
    APPENDIX 2 54
    List of HS Codes Covered 54
    COMPANY PROFILES 55
    AGULHAS HONEYBUSH TEA CC 55
    BEAN THERE COFFEE COMPANY (PTY) LTD 57
    BIG FIVE ROOIBOS COMPANY (PTY) LTD (THE) 59
    BREWKOMBUCHA (PTY) LTD 60
    CACO SERVICES (PTY) LTD 61
    CAPE NATURAL TEA PRODUCTS (PTY) LTD 63
    CAPE ROOIBOS (PTY) LTD 65
    CARMIEN TEA (PTY) LTD 67
    CLIPPER COFFEE AND TEA CC 69
    COLOMBO BREW CO (PTY) LTD 70
    FAMOUS BRANDS COFFEE COMPANY (PTY) LTD 71
    GLOBAL COFFEE EXPORTS (PTY) LTD 73
    HAPPY CULTURE KOMBUCHA (PTY) LTD 75
    HONEY BUSH PROCESSING (PTY) LTD 76
    HONEYBUSH NATURAL PRODUCTS (PTY) LTD 77
    JOEKELS TEA PACKERS (PTY) LTD 78
    L C PACKAGING (S A) (PTY) LTD 80
    MASTERTONS COFFEE AND TEA SPECIALISTS (PTY) LTD 81
    MELMONT HONEYBUSH TEA CC 83
    NATIONAL BRANDS LTD 84
    NESTLE (SOUTH AFRICA) (PTY) LTD 86
    PEACOCK TEA AND COFFEE (PTY) LTD 89
    RED T COMPANY (PTY) LTD (THE) 91
    ROOIBOS LTD 92
    SABIE VALLEY COFFEE CC 94
    SANPEACE (PTY) LTD 96
    SKIMMELBERG (PTY) LTD 97
    TEA AND COFFEE DISTRIBUTORS (EASTERN PROVINCE) (PTY) LTD 98
    THEONISTA (PTY) LTD 99
    UNILEVER SOUTH AFRICA (PTY) LTD 100
    UNION HAND ROASTED (PTY) LTD 103
    VIDA E CAFFE HOLDINGS (PTY) LTD 104

    Report Coverage

    This report focuses on the tea and coffee industry in South Africa. It includes comprehensive information on the state of the tea and coffee sectors and the factors that influence them, including the effects of coronavirus which have been severe for coffee shops. There are profiles of 43 companies including major players such as Unilever, Nestlé and National Brands. Among tea companies are Joekels Tea Packers, which packs private label teas for major retailers as well as its own brand, and speciality tea producers Agulhas Honeybush and Zooka Health. Coffee companies profiled include Bean There and Vida e Caffè.

    Introduction

    This report focuses on the tea and coffee industry in South Africa. The country is a net importer of coffee and tea, and production of black tea, the tea that is used in the production of most popular tea brands, has been uneconomical and under severe financial difficulties. Black tea production faces further decline as the number of tea estates has declined from 12 in 2010 to 2 in 2020. The herbal tea sector, which includes rooibos, green tea and fruit/herbal tea, continues to grow due to growing interest in health and wellness. The increasing global demand for rooibos has seen exports increase from 6,000 tons in 2016 to 7,693 tons in 2019. Coffee consumption grew from approximately 589,000 60kg bags in the 2016/2017 period, to approximately 675,000 60kg bags in 2019/2020 (the coffee production year is from 1 October to 30 September). The growing coffee culture has seen many entrepreneurs enter the sector. But the coronavirus pandemic has caused devastation for coffee shops and restaurants that are battling to survive as the country remains in lockdown.

    Strengths

    • Rooibos and honeybush are grown exclusively in South Africa.
    • Some of the leading manufacturers in the coffee sector are global companies.
    • Strong coffee shop culture.

    Weaknesses

    • Coffee manufacturing sector is dependent on imports of coffee.
    • High production costs for both tea and coffee, with the growing of coffee being particularly labour-intensive.
    • South Africa is a net importer of tea and coffee.
    • There are no SADC import duties.
    • There is little investment in the growing of tea and coffee because of uncertainty regarding government’s land reform programme.

    Opportunities

    • Growing demand for Fairtrade products such as organic coffee.
    • Growth in the local and export value-added rooibos tea market.
    • Increasing demand for healthy beverages is expected to increase the demand for rooibos and honeybush tea.
    • Increasing international demand for rooibos tea.

    Threats

    • Continued climate change.
    • Coronavirus pandemic could force small coffee shops to close permanently if the lockdown continues.
    • Rising input costs including higher input costs, especially labour, are causing South African farmers to be even less competitive.

    Outlook

    South Africa’s production of black tea is declining as growers struggle to compete with imports and high production costs, especially labour. Product innovation for both tea and coffee is expected to increase as players vie for market share in a highly competitive market, under difficult trading conditions. The herbal tea sector will see growth due to the growing health awareness amongst consumers but according to Adele du Toit, spokesperson for the South African Rooibos Council, “although the demand for better quality teas and the healthy living trend will likely continue to grow demand for tea products, poor local economic performance and associated lowered consumer spending, will continue to be a challenge for the local tea industries as consumers seek to cut down on what they perceive as ‘luxury’ items”.

    Read More..
    The Tea and Coffee Industry in South Africa
    The Tea and Coffee Industry in South Africa 2020

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    R 1 330.00(ZAR) estimated $ 74.80 (USD)*

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    Historical Reports

    The Tea and Coffee Industry in South Africa 2025-04-25

    R 20 000.00(ZAR) estimated $1124.84 (USD)*

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    The Tea and Coffee Industry in South Africa 2018-03-27

    R 1 900.00(ZAR) estimated $106.86 (USD)*

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    The Tea and Coffee Industry in South Africa 2016-02-08

    R 1 900.00(ZAR) estimated $106.86 (USD)*

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    The Tea and Coffee Industry in South Africa 2014-04-28

    R 1 900.00(ZAR) estimated $106.86 (USD)*

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 5
    2.2. Geographic Position 6
    3. SIZE OF THE INDUSTRY 7
    4. STATE OF THE INDUSTRY 9
    4.1. Local 9
    4.1.1. Corporate Actions 15
    4.1.2. Regulations 15
    4.1.3. Enterprise Development and Socio-Economic Development 18
    4.2. Continental 20
    4.3. International 22
    5. INFLUENCING FACTORS 23
    5.1. Government Intervention 23
    5.2. Economic Environment 24
    5.3. Input Costs 25
    5.4. Coronavirus 25
    5.5. Land Reform Policy 27
    5.6. Consumer Health Concerns 27
    5.7. Technology, Research and Development (R&D) and Innovation 28
    5.8. Labour 30
    5.9. Environmental Concerns 31
    6. COMPETITION 32
    6.1. Barriers to Entry 32
    7. SWOT ANALYSIS 33
    8. OUTLOOK 33
    9. INDUSTRY ASSOCIATIONS 34
    10. REFERENCES 34
    10.1. Publications 34
    10.2. Websites 35
    APPENDIX 1 36
    Summary of Notable players 36
    COMPANY PROFILES 40
    AGULHAS HONEYBUSH TEA CC 40
    ASSAGAY COFFEE CC 42
    BARNES TEA AND COFFEE MERCHANTS CC 44
    BEAN THERE COFFEE COMPANY (PTY) LTD 46
    BEAVER CREEK (PTY) LTD 48
    BREWKOMBUCHA (PTY) LTD 50
    BUBBLE TEA COMPANY (PTY) LTD (THE) 51
    CAPE NATURAL TEA PRODUCTS (PTY) LTD 52
    CARMIEN TEA (PTY) LTD 54
    CATURRA COFFEE COMPANY (PTY) LTD (THE) 56
    CHICORY SA (PTY) LTD 57
    CLIPPER COFFEE AND TEA CC 59
    COLOMBO BREW CO (PTY) LTD 61
    FAMOUS BRANDS COFFEE COMPANY (PTY) LTD 62
    GLOBAL COFFEE EXPORTS LTD 64
    HAPPY CULTURE KOMBUCHA (PTY) LTD 66
    HONEY BUSH PROCESSING (PTY) LTD 67
    HONEYBUSH NATURAL PRODUCTS (PTY) LTD 68
    HOTEL LIMA WHISKEY CC 69
    INCOBRANDS (PTY) LTD 71
    J WOLLBRANDT 73
    JOEKELS TEA PACKERS (PTY) LTD 75
    L C PACKAGING (S A) (PTY) LTD 77
    MASTERTONS COFFEE AND TEA SPECIALISTS (PTY) LTD 79
    MELMONT HONEYBUSH TEA CC 81
    MK HENDRIKZ 82
    NATIONAL BRANDS LTD 84
    NESTLE (SOUTH AFRICA) (PTY) LTD 87
    NEW LOOK PACKERS CC 91
    NTINGWE FARMING (PTY) LTD 93
    PEACOCK TEA AND COFFEE (PTY) LTD 95
    ROOIBOS LTD 98
    ROYAL TEA PACKERS CC 100
    RT CAIN 102
    SABIE VALLEY COFFEE CC 103
    SANPEACE (PTY) LTD 105
    STRICTLY COFFEE CC 107
    TEA AND COFFEE DISTRIBUTORS (EASTERN PROVINCE) (PTY) LTD 109
    THEONISTA (PTY) LTD 111
    UNILEVER SOUTH AFRICA (PTY) LTD 112
    UNION HAND ROASTED (PTY) LTD 115
    VIDA E CAFFE HOLDINGS (PTY) LTD 116
    ZOOKA HEALTH COMPANY (PTY) LTD 119

    Report Coverage

    The South African Tea and Coffee Industry highlights current conditions and trends, provides information on imports and exports, and discusses the factors influencing the success of the sector. Profiles for 35 companies involved in the agricultural and manufacturing sectors of the industry are provided. Included is Chicory SA (Pty) Ltd, a company that supplies several coffee manufacturers with chicory, an important input to mixed ground and mixed instant coffees. Also profiled are Beaver Creek (Pty) Ltd, Assagay Coffee and Sabie Valley Coffee, three companies that farm the coffee plant, Coffea, and then roast, blend and distribute their coffee products.

    Introduction

    This report focuses on the tea and coffee industry in South Africa. According to the Department of Agriculture, Forestry and Fisheries (DAFF), the gross value of black tea production has declined considerably in the past eight years, from R30.14m to R5.16m in the 2016/2017 period and only three tea estates remain in production. The herbal tea sector on the other hand has grown, mainly due to consumers looking for healthier options. The coffee sector has also experienced growth and consumption of coffee beans in South Africa increased from 29,760 tons in 2012/13 to 35,400 tons in 2015/16, a compound annual growth rate (CAGR) of 4.4%. As a result of greater demand for premium coffees, the number of coffee roasteries and coffee shops across the country has increased to more than 100 roasteries compared to fewer than 20 roasteries ten years ago.

    Strengths

    • Rooibos and Honeybush are grown exclusively in South Africa.
    • The infrastructure requirements for the production of Honeybush are low.
    • The leading manufacturers in the coffee sector are global companies.

    Weaknesses

    • Coffee manufacturing sector is dependent on imports of coffee.
    • High production costs for both tea and coffee, with the growing of coffee being particularly labour-intensive.
    • South Africa is a net importer of tea and coffee.
    • There are no SADC import duties.
    • There is little investment in the growing of tea and coffee because of uncertainty regarding Government’s land reform programme.

    Opportunities

    • Growing demand for Fairtrade products such as organic coffee.
    • Growth in the local and export value-added Rooibos tea market.
    • Increasing demand for healthy beverages is expected to increase the demand for Rooibos and Honeybush tea in current and new local and export markets.
    • Increasing demand for Rooibos tea from China.
    • Reducing chicory imports by increasing local production.

    Threats

    • Continued climate change.
    • Rising input costs including higher electricity and labour costs, are causing South African farmers to be even less competitive.
    • The continued practice of no government assistance to local coffee plantations.
    • Withdrawal of government assistance to tea growers.

    Outlook

    While South Africa’s black tea industry is expected to continue to decline mainly due to drought-induced declining harvests and rising production costs, the herbal tea sector, Rooibos in particular, is expected to benefit from the growing shift of consumers looking for healthier options. According to economist Gilberto Biacuana, who is also a research analyst at the Land Bank of South Africa, “The growing demand for coffee consumption domestically and internationally presents an opportunity for South Africa to increase its coffee production and create employment.” However, farmers and processors will need to find ways to manage and overcome the high input costs involved.

    Read More..
    The Tea and Coffee Industry in South Africa
    The Tea and Coffee Industry in South Africa 2018

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    Historical Reports

    The Tea and Coffee Industry in South Africa 2025-04-25

    R 20 000.00(ZAR) estimated $1124.84 (USD)*

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    The Tea and Coffee Industry in South Africa 2020-05-25

    R 1 900.00(ZAR) estimated $106.86 (USD)*

    View Report Add to Cart

    The Tea and Coffee Industry in South Africa 2016-02-08

    R 1 900.00(ZAR) estimated $106.86 (USD)*

    View Report Add to Cart

    The Tea and Coffee Industry in South Africa 2014-04-28

    R 1 900.00(ZAR) estimated $106.86 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 3
    2.2. Geographic Position 4
    3. SIZE OF THE INDUSTRY 6
    4. STATE OF THE INDUSTRY 9
    4.1. Local 9
    4.1.1. Tea 9
    4.1.2. Coffee 12
    4.1.3. Corporate Actions 15
    4.1.4. Regulations 15
    4.1.5. Enterprise Development and Social Economic Development 17
    4.2. Continental 18
    4.2.1. Tea 18
    4.2.2. Coffee 20
    4.3. International 21
    4.3.1. Tea 21
    4.3.2. Coffee 21
    5. INFLUENCING FACTORS 22
    5.1. Government Intervention 22
    5.2. Economic Environment 23
    5.3. Rising Operating Costs 24
    5.4. Land Reform Policy 24
    5.5. Consumer Health Concerns 25
    5.6. Labour 25
    5.7. Technology, Research and Development (R&D) and Innovation 26
    5.8. Environmental Concerns 28
    6. COMPETITION 29
    6.1. Barriers to Entry 30
    7. SWOT ANALYSIS 31
    8. OUTLOOK 31
    9. INDUSTRY ASSOCIATIONS 32
    10. REFERENCES 32
    10.1. Publications 32
    10.2. Websites 32
    COMPANY PROFILES 34
    ASSAGAY COFFEE CC 34
    BARNES TEA AND COFFEE MERCHANTS CC 35
    BEAVER CREEK (PTY) LTD 37
    BUBBLE TEA COMPANY (PTY) LTD (THE) 39
    CAFE CAPS (PTY) LTD 40
    CAPE NATURAL TEA PRODUCTS (PTY) LTD 41
    CARMIEN TEA (PTY) LTD 43
    CATURRA COFFEE COMPANY (PTY) LTD (THE) 46
    CHICORY SA (PTY) LTD 48
    CLIPPER COFFEE AND TEA CC 50
    COLOMBO BREW CO (PTY) LTD 52
    FAMOUS BRANDS COFFEE COMPANY (PTY) LTD 53
    GLOBAL COFFEE EXPORTS LTD 55
    HOTEL LIMA WHISKEY CC 57
    INCOBRANDS (PTY) LTD 58
    J WOLLBRANDT 60
    JOEKELS TEA PACKERS (PTY) LTD 62
    L C PACKAGING (S A) (PTY) LTD 64
    MASTERTONS COFFEE AND TEA SPECIALISTS (PTY) LTD 66
    MK HENDRIKZ 68
    NATIONAL BRANDS LTD 70
    NESTLE (SOUTH AFRICA) (PTY) LTD 73
    NEW LOOK PACKERS CC 77
    NTINGWE FARMING (PTY) LTD 79
    PEACOCK TEA AND COFFEE (PTY) LTD 81
    ROOIBOS LTD 83
    ROYAL TEA PACKERS CC 85
    RT CAIN 87
    SABIE VALLEY COFFEE CC 88
    SANPEACE (PTY) LTD 90
    STRICTLY COFFEE CC 91
    TEA AND COFFEE DISTRIBUTORS (EASTERN PROVINCE) CC 92
    UNILEVER SOUTH AFRICA (PTY) LTD 94
    UNION HAND ROASTED (PTY) LTD 97
    VIDA E CAFFE HOLDINGS (PTY) LTD 98

    Report Coverage

    The South African Tea and Coffee Industry highlights current conditions and discusses the factors influencing the success of the sector. Thirty-nine companies involved in the relevant agricultural, manufacturing, wholesale and retail sub-sectors are profiled. Companies include coffee manufacturer Nestlé South Africa, which dominates the coffee sector with 37% of the market by value. Also profiled are National Brands, Unilever and Joekels Tea Packers and Tea Blenders which dominate the tea packing sector with a combined market share of 96%. Profiles for popular retail outlets such as Vida E Caffe Holdings (Pty) Ltd t/a Vida Caffe and The Bubble Tea Company (Pty) Ltd are included in this report.

    Introduction

    This report focuses on the tea and coffee industry in South Africa, which is being negatively affected by drought, high labour costs and the declining Rand. South Africans consume more than 20,000 tons of coffee, most of which is imported, 20 million kilograms of black tea and 7 million kilograms of Rooibos annually. According to the South African Rooibos Council, the Rooibos industry contributes about R500m to national GDP annually and directly employs between 4,500 and 5,000 people. The retail value of the entire tea market including Rooibos tea, is estimated at more than R2.1bn. However, only six tea estates remain in South Africa and they have survived only as a result of government assistance.

    Strengths

    • Rooibos and Honeybush are grown exclusively in South Africa.
    • The infrastructure requirements for the production of Honeybush are low.
    • The manufacturers in the coffee sector are global companies.

    Weaknesses

    • Coffee manufacturing sector is dependent on imports of coffee.
    • High production costs for both tea and coffee, with coffee growing being particularly labour-intensive.
    • South Africa is a net importer of tea
    • There are no SADC import duties.
    • There is little investment in the growing of tea and coffee because of uncertainty regarding Government’s land reform programme.

    Opportunities

    • Growing demand for Fairtrade products such as organic coffee.
    • Growing the local and export value-added market for Rooibos tea.
    • Increasing demand for healthy beverages is expected to increase the demand for Rooibos and Honeybush tea in current and new local and export markets.
    • Reducing chicory imports by increasing local production.

    Threats

    • Effects of climate change are reducing the size of tea and coffee plantations.
    • Rising input costs including higher electricity and labour costs, are causing South African farmers to be even less competitive.
    • The continued practice of no government assistance to local coffee plantations.
    • Withdrawal of government assistance to tea growers.

    Outlook

    South Africa’s tea and coffee manufacturing sectors are battling to survive because of high production costs and having to rely on imports which have become more expensive due to the weaker Rand. As mentioned, analysts expect the price of coffee to increase by as much as 300% in 2016. Despite higher tea prices, the consumption of tea in South Africa and globally is expected to increase as a result of the growing demand by health-conscious consumers for herbal and organic teas.

    Read More..
    The Tea and Coffee Industry in South Africa
    The Tea and Coffee Industry in South Africa 2016

    Full Report

    R 1 900.00(ZAR) estimated $106.86 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 74.80 (USD)*

    Buy Now +

    Historical Reports

    The Tea and Coffee Industry in South Africa 2025-04-25

    R 20 000.00(ZAR) estimated $1124.84 (USD)*

    View Report Add to Cart

    The Tea and Coffee Industry in South Africa 2020-05-25

    R 1 900.00(ZAR) estimated $106.86 (USD)*

    View Report Add to Cart

    The Tea and Coffee Industry in South Africa 2018-03-27

    R 1 900.00(ZAR) estimated $106.86 (USD)*

    View Report Add to Cart

    The Tea and Coffee Industry in South Africa 2014-04-28

    R 1 900.00(ZAR) estimated $106.86 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 3
    2.2. Geographic Position 4
    3. SIZE OF THE INDUSTRY 6
    4. STATE OF THE INDUSTRY 10
    4.1. Local 10
    4.1.1. Corporate Actions 16
    4.1.2. Regulations and Government Programmes 16
    4.1.3. Enterprise Development and Social Economic Development 18
    4.2. Continental 19
    4.3. International 20
    5. INFLUENCING FACTORS 22
    5.1. Government Intervention 22
    5.2. Labour 22
    5.3. Economic Environment 23
    5.4. Rising Input Costs 23
    5.5. Land Reform Policy 24
    5.6. Consumer Health Concerns 24
    5.7. Environmental Concerns 25
    5.8. Technology, Research and Development (R&D) and Innovation 25
    6. COMPETITION 27
    6.1. Barriers to Entry 28
    7. SWOT ANALYSIS 28
    8. OUTLOOK 29
    9. INDUSTRY ASSOCIATIONS 29
    10. REFERENCES 30
    10.1. Publications 30
    10.2. Websites 30
    COMPANY PROFILES 31
    A J Products (Western Cape) CC 31
    Assagay Coffee CC 33
    Austrian Coffee Estate CC 35
    Back To Basics (Pty) Ltd 36
    Barnes Tea and Coffee Merchants CC 38
    Beaver Creek (Pty) Ltd 40
    Bubble Tea Company (Pty) Ltd (The) 42
    Cafe Caps (Pty) Ltd 43
    Cape Natural Tea Products (Pty) Ltd 44
    Carmien Tea (Pty) Ltd 46
    Caturra Coffee Company (Pty) Ltd (The) 49
    Chicory SA (Pty) Ltd 51
    Clipper Coffee and Tea CC 53
    Coffee Capsules Direct (Pty) Ltd 55
    Colombo Tea and Coffee Company (Pty) Ltd 56
    Focus Circle CC 58
    Incobrands (Pty) Ltd 60
    J Wollbrandt 62
    Joekels Tea Packers (Pty) Ltd 64
    L C Packaging (S A) (Pty) Ltd 66
    Mastertons Coffee and Tea Specialists (Pty) Ltd 68
    MK Hendrikz 70
    National Brands Ltd 72
    Nestle (South Africa) (Pty) Ltd 75
    New Look Packers CC 78
    Ntingwe Farming (Pty) Ltd 80
    Peacock Tea And Coffee (Pty) Ltd 82
    Rooibos Ltd 84
    Royal Tea Packers CC 87
    RT Cain 89
    Sabie Valley Coffee CC 90
    Sanpeace (Pty) Ltd 91
    Seattle Coffee Company (South Africa) (Pty) Ltd 92
    Strictly Coffee CC 94
    Taste Holdings Ltd 96
    Tea and Coffee Distributors (Eastern Province) CC 101
    Unilever South Africa (Pty) Ltd 103
    Venteco SOC Ltd 106
    Vida E Caffe Holdings (Pty) Ltd 108

    Introduction

    This report focuses on the tea and coffee industry in South Africa. More than 20,000 tons of coffee is consumed in South Africa per annum but with only three coffee farms left in the country, it is imported coffee that continues to dominate the local market. Coffee farmers are struggling to survive mainly because of high labour costs, and without assistance from government, the country faces the prospect of losing its remaining coffee production. The South African tea sector is also being adversely affected by higher labour costs and the four farms that produce tea are only able to do so because of government assistance. The retail value of the entire tea market, including rooibos tea, is estimated at more than R2.1bn.

    Strengths

    • Rooibos and honeybush are grown exclusively in South Africa.
    • The infrastructure requirements for the production of honeybush are low.
    • The manufacturers in the coffee sector are global companies.

    Weaknesses

    • Coffee manufacturing sector is dependent on imports of coffee.
    • High production costs for both tea and coffee, with coffee growing being particularly labour-intensive.
    • Little investment in the growing of tea and coffee because of uncertainty regarding Government’s land reform programme.
    • South Africa is a net importer of tea.
    • There are no SADC import duties.

    Opportunities

    • Growing demand in the speciality coffee and value-added\ncoffee sector
    • Growing the local and export value-added market for\nrooibos tea.
    • Increasing demand for healthy beverages is expected to\nincrease the demand for rooibos and honeybush tea in\ncurrent and new local and export markets.
    • Reducing chicory imports by increasing local production.

    Threats

    • Effects of climate change are reducing the size of tea and coffee plantations.
    • Rising input costs including higher electricity and labour costs, are causing South African farmers to be even less competitive.
    • The continued practice of no government assistance to local coffee plantations.
    • Withdrawal of government assistance to tea growers.

    Outlook

    With growing health consciousness worldwide, the demand for tea especially herbal tea is increasing. Climate change however is a major threat to both coffee and tea production and extreme weather conditions could interrupt supply and make tea and coffee more difficult to grow. Government’s land reform policy is deterring farmers from investing in the sector and the country’s increasing labour, electricity and fuel costs continue to hamper South Africa’s competitiveness. This is expected to result in increased imports, particularly in the coffee sector. The herbal tea sector expects continued growth as demand increases, especially for rooibos and honeybush.

    The Tea and Coffee Industry in South Africa
    The Tea and Coffee Industry in South Africa 2014

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Supply Chain 2
    3. SIZE OF THE INDUSTRY 3
    4. STATE OF THE INDUSTRY 5
    4.1. Local 5
    4.1.1. Corporate Actions 7
    4.1.2. Regulations 7
    4.1.3. Black Economic Empowerment 8
    4.2. Continental 8
    4.3. International 9
    5. INFLUENCING FACTORS 10
    5.1. Economic Environment 10
    5.2. Rising Input Costs 10
    5.3. Land Reform Policy 10
    5.4. Labour Resources 10
    5.5. Consumer Health Concerns 11
    5.6. Environmental Concerns 11
    6. COMPETITION 11
    6.1. Barriers to Entry 12
    6.2. Research and Development (R&D) and Innovation 12
    7. SWOT ANALYSIS 13
    8. OUTLOOK 13
    9. INDUSTRY ASSOCIATIONS 13
    10. REFERENCES 14
    10.1. Publications 14
    10.2. Websites 14
    ORGANGOGRAM 15
    COMPANY PROFILES 17
    AJ PRODUCTS (WESTERN CAPE) CC 17
    ASSAGAY COFFEE CC 18
    BACK TO BASICS (PTY) LTD 19
    BARNES TEA & COFFEE MERCHANTS CC 20
    BEAVER CREEK (PTY) LTD 21
    CAPE NATURAL TEA PRODUCTS (PTY) LTD 22
    CARMIEN TEA (PTY) LTD 23
    CATURRA COFFEE COMPANY (PTY) LTD 24
    CHICORY SA (PTY) LTD 25
    CLIPPER COFFEE & TEA CC 26
    COLOMBO TEA & COFFEE COMPANY (PTY) LTD 27
    FOCUS CIRCLE CC 28
    INCOBRANDS (PTY) LTD 29
    JOEKELS TEA PACKERS (PTY) LTD 30
    LC PACKAGING (SA) (PTY) LTD 31
    MASTERTONS COFFEE & TEA SPECIALISTS (PTY) LTD 32
    MRS MK HENDRIKZ SOLE PROPRIETOR 33
    NATIONAL BRANDS LTD 34
    NESTLE (SA) (PTY) LTD 36
    NEW LOOK PACKERS CC 38
    NTINGWE FARMING (PTY) LTD 39
    PEACOCK TEA & COFFEE (PTY) LTD 40
    ROOIBOS LTD 41
    ROYAL TEA PACKERS CC 43
    SABIE VALLEY COFFEE CC 44
    SANPEACE (PTY) LTD 45
    STRICTLY COFFEE CC 46
    TEA & COFFEE DISTRIBUTORS (EASTERN PROVINCE) CC 47
    UNILEVER SOUTH AFRICA (PTY) LTD 48
    VENTECO (PTY) LTD 50

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