South America Tea Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

South America Tea Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

South America tea market is forecasted to register a CAGR of 2.2% during the forecast period (2020-2025).

Key Highlights

• Premiumization of tea products is gaining prominence among consumers owing to its functional properties, which in turn is expected to boost the growth of the market. Expansion of foodservice channels has also facilitated the growth of the tea market in South America.
• Countries in South America, such as Brazil and Ukraine are exhibiting a healthy demand for hot tea. Prominence of health campaigns coupled with the steady demand for herbal tea is driving the demand for tea in this region. Brazil is expected to dominate the market by the end of 2024.

Key Market TrendsIncreasing Consumption of RTD tea

Consumption of RTD teas has witnessed a rising trend owing to the convenience and a healthy alternative to other ready-to-drink beverages on the market. In addition, the launch of new flavored teas, such as lemon and peach, has boosted the market growth in the South American region., but tea companies are becoming more creative with their flavor combinations. For instance, Steaz, a company offering organic green tea-based beverages, has a wide range of flavored RTD green tea beverages such as unsweetened iced tea series with passion fruit and dragon fruit flavors, lightly sweetened line with jasmine hibiscus, cactus water mixed green tea, pina colada flavor, and others.

Hypermarkets/Supermarkets is the Popular Distribution Channel

The South American tea market by sales channels is classified based on the availability of the product. Tea powders (like instant mixes) and ready-to-drink teas are generally available at hypermarkets/supermarkets. The advantage of a hypermarket or a supermarket over other stores is that these markets provide everything a consumer needs at one stop. The supermarket/hypermarket chains are searching for new ways to increase sales through their channels. Discount offers, lending new attractive look to the products and making brochures are some of the techniques being adopted to increase sales.

Competitive Landscape

Innovation in new products and flavors, as well as mergers and acquisitions, are the major competitive strategies followed by the key players in the tea market. Changing consumer preferences have intensified the competition among the global players. Several companies find it important to meet the local regulatory requirements apart from meeting their standard safety and quality criteria. The major players in the South American tea market include Dilmah Ceylon Tea Company PLC., Unilever, Hain Celestial, The Wiltshire Tea Company and Palais des Thés, among others

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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