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”.
Full Report
R 1 900.00(ZAR) estimated $105.39 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 73.77 (USD)*
Historical Reports
The Tea and Coffee Industry in South Africa 2018-03-27
R 1 900.00(ZAR) estimated $105.39 (USD)*
View Report Add to CartThe Tea and Coffee Industry in South Africa 2016-02-08
R 1 900.00(ZAR) estimated $105.39 (USD)*
View Report Add to CartThe Tea and Coffee Industry in South Africa 2014-04-28
R 1 900.00(ZAR) estimated $105.39 (USD)*
View Report Add to CartTable of Contents
[ Close ]PAGE | ||
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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 |