South America Tea Market Outlook, 2028

South America Tea Market Outlook, 2028

The South American Tea market is a thriving business with different growth drivers that distinguish it from other regional markets. This primarily coffee-producing region is seeing a steady shift in consumer tastes as tea gains popularity. Several distinct growth drivers underlie the expansion of the South American tea market, and these forces are formally and significantly altering the market. The region's rising health consciousness is one of the key motivations. As South American customers become more health-conscious, they are turning to tea for its potential health benefits. Tea, especially herbal and green tea variants, is known for its antioxidant capabilities, which can help improve the immune system and fight free radicals. This health consciousness, together with the rise in non-communicable diseases, has led to a surge in tea consumption as South Americans seek beverages that contribute to their overall well-being. Furthermore, the South American tea market is seeing a significant trend for specialty and artisanal teas. Tea enthusiasts are looking for one-of-a-kind and high-quality tea experiences, such as blends, infusions, and rare tea varietals. The desire for premium and ethically sourced products is being driven by the admiration for specialty teas. As a result, tea connoisseurs are branching out and gravitating towards single-origin teas that highlight the region's distinct terroir. Another significant development driver in the South American tea market is the region's rich cultural variety. South America is made up of many countries, each with their own unique tea traditions and preferences. For instance, yerba mate is a cherished beverage in countries like Argentina and Uruguay, while coca tea is popular in the Andean regions. This diversity fosters an environment where various tea types and customs coexist, allowing for a dynamic and multifaceted tea market.

According to the research report, “South America Tea Market Outlook, 2028” published by Bonafide Research, the South America Tea market is expected to add more than USD 450 Million by 2028. The South American tea market is also undergoing a wave of innovation and experimentation, distinguishing it as a distinct and evolving sector. Tea connoisseurs, both businesses and consumers, are experimenting with new blends, flavour combinations, and brewing methods. The incorporation of traditional and modern aspects in tea preparation and presentation adds to the market's dynamic. Furthermore, the region's commitment to organic and natural products influences the South American tea market. South American tea farmers are rapidly adopting eco-friendly cultivation methods as public awareness of the benefits of organic farming and sustainability rises. Organic and natural teas have gained popularity among ecologically aware consumers in the region and internationally. The tourism industry also plays a pivotal role in driving the South American tea market. Countries like Argentina and Chile have tea estates and plantations that are becoming popular tourist destinations. Tourists visit these picturesque locations to learn about tea cultivation, processing, and the culture surrounding tea. This tea tourism not only boosts the local economies but also promotes tea as a premium South American product. Yerba mate, a traditional South American tea, has a particular place in the region's culture. It is the most popular type of tea, especially in Argentina, Uruguay, and sections of Brazil and Paraguay. Yerba mate is noted for its earthy flavour and is frequently used in a social setting, with individuals gathering to share a mate gourd and a bombilla (metal straw). Yerba Mate has created a name for itself on an international scale. South American yerba mate exports to numerous countries are constantly increasing. As more people across the world become acquainted with this one-of-a-kind tea, it has become an important South American export product.

Based on report market is categorised into three major countries Brazil, Argentina and Colombia. Among them Argentina is expected to lead the market of South America during the forecast period.
Argentina is one of the world's largest consumers of yerba mate, a traditional herbal tea native to South America. The popularity of yerba mate is a driving force in the South American tea market, and its consumption per capita in Argentina is among the highest in the world. Argentina is a significant producer of yerba mate, and its domestic production caters to the high demand for this traditional tea. The country's vast plantations and skilled producers ensure a steady supply of yerba mate to meet local consumption needs. Argentina's tea market, which has been eclipsed by the coffee dominance of its South American neighbour Brazil, is experiencing a substantial resurgence and expansion. In a country known for its rich culinary traditions and wine culture, tea is growing as an attractive beverage alternative. Tea holds a unique place in the culture and lifestyle of the people of Argentina. The country has a yerba mate tradition, which is a type of herbal tea that is consumed with a straw in a communal mate gourd. Aside from mate, traditional teas such as black tea are gaining popularity, as are herbal infusions. Argentina's tea market is notable for its variety, which includes classic black teas, green teas, herbal blends, and a growing interest in herbal teas, especially exotic teas.

In terms of type market is divided into green tea, black tea, oolong tea, herbal tea white tea and others. Herbal Tea is in significant demand in South America tea market. Furthermore based on application market is divided into residential and commercial. Residential is major consumer of tea in South America.

Herbal teas have been used for centuries in South America for their purported medicinal advantages. Many traditional cures involve the use of local herbs and plants, and their cultural familiarity has contributed to their appeal. The unique climate and habitats of South America provide a wealth of native plants and herbs. This diverse biodiversity provides a diverse range of raw materials for the manufacturing of herbal tea. Local herbs such as chamomile, lemongrass, and diverse indigenous plants are frequently combined to make one-of-a-kind herbal mixtures. Herbal teas with digestive characteristics, such as chamomile and mint, are popular. Herbal teas are sought after for their digestive help in South America, where culinary traditions include rich and sometimes hefty foods. Tea consumption has a rich cultural past in South America. Tea ceremonies and rituals are common in various South American countries, including Argentina and Uruguay, where yerba mate, a type of herbal tea, is firmly ingrained in the social fabric. These cultural practices have been passed down through generations, making tea an essential element of many South American households' everyday lives. In South America, tea, particularly yerba mate, is a symbol of hospitality and social bonding. It is frequently shared among family members, acquaintances, and co-workers. The process of brewing and drinking tea with others generates a sense of community and togetherness, making it a popular pastime in residential settings.

Based on distribution channel market is divided into supermarkets /hypermarkets, speciality stores, convenience stores and online. Supermarket/ hypermarkets distribution channel is expected to lead the market of South America tea market. Based on packaging type market is bifurcated into paper boards, plastic, loose tea, aluminium tin and tea bags.

Supermarkets and hypermarkets have plenty of shelf space for a wide variety of tea goods. This broad product offering offers a wide range of tea varieties, brands, flavours, and container sizes to meet the diverse needs of South American consumers. Under one roof, customers may get everything from conventional teas to specialty and herbal infusions. The convenience of one-stop shopping is a major driver of supermarket and hypermarket dominance in the tea market. Tea purchases can be readily combined with other grocery goods and household requirements, streamlining the shopping process. A wide range of people can easily access supermarkets and hypermarkets. They are usually found in cities and suburbs, making tea goods easily accessible to locals. The ease of proximity encourages frequent tea consumption. Loose tea packaging is in significant demand in South America tea market. Loose tea gives customers more control over the brewing process. They can customise the amount and blend of tea leaves to their taste preferences, which is highly valued in the South American market, where tea intake is frequently a personal and ceremonial experience. Loose tea is frequently believed to be of greater quality than pre-packaged tea bags. South American consumers, like tea fans worldwide, value freshness and flavour, which they believe loose tea leaves can provide more efficiently. Loose tea offers a broader range of tea alternatives, including specialty and artisanal blends. South American customers are becoming more interested in distinctive and exotic tea flavours, which are becoming more widely available in loose form.

Companies Covered in this report:

Associated British Foods plc, Starbucks Corporation, Dilmah Ceylon Tea Company PLC, Lipton Teas and Infusions, Tim Hortons Inc., Harney & Sons, R.C. Bigelow, Inc.

Considered in this report:

• Geography: South America
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:

• South America Tea market Outlook with its value and forecast along with its segments
• Country-wise Tea market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report:

• Brazil
• Argentina
• Colombia

By Tea Type:

• Green Tea
• Black Tea
• Oolong Tea
• Herbal Tea
• White Tea
• Others

By Application:

• Residential
• Commercial

By Distribution Channel:

• Supermarkets/ Hypermarkets
• Speciality Stores
• Convenience Stores
• Online

By Packaging Type:

• Paper Boards
• Plastic
• Loose Tea
• Aluminium Tin
• Tea Bags

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience:

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organisations related to the Tea industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

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