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The Tea and Coffee Industry
South Africa is a net importer of tea and coffee and its tea production is in decline. The herbal tea sector, which includes rooibos, green tea and fruit/herbal tea, is growing 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 continues to increase, and 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.
Herbal Teas Grow
Production of black tea, the tea that is used in most major tea brands, has almost stopped in South Africa as most tea estates have ceased production, including the Ntingwe Tea Estate which has not harvested any tea nor generated income for the past three years despite government investment. Growing consumer interest in health and wellness continues to boost the demand for specialty teas, including fruit/herbal tea and green tea. Despite their higher than average prices, herbal and green tea recorded strong retail volume growth in 2019. Rooibos has retained its popularity and is exported to more than 60 countries, while Honeybush is exported to 25 countries.
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.