The tea market - Brazil

Tea, with 1.5 billion cups consumed every day, is the second most popular drink in the world after water. Established in China, introduced in Japan at the end of the 8th century and part of British culture, tea also has a special place in Middle Eastern cultures. This global character of tea is reflected by the long list of countries where it is drunk. Tea is a beverage obtained from the leaves of the tea plant (about 200 different species), infused in hot water. The types of teas are segmented by their colors (black, green, Oolong, yellow, white and post-fermented) which differ according to the treatment of the harvested leaves. Rooibos or "red tea" is actually an infusion obtained from the leaves of Aspalathus Linearis, which is only found in South Africa, and not from the tea plant. Behind water, tea is the most consumed beverage in the world, with over 3 million cups consumed every minute. In general, the consumption of healthy beverages and food has been growing 24% per year in Brazil. In this context, tea has become a tasty option and is increasingly present on the table of Brazilians and in specialty shops of the product. The largest tea companies in Brazil are Coca-Cola (owner of Matte Leão), Maratá, Herbalife and the Oetker Group. Despite its growing popularity, tea has not yet been fully established in the Brazilian market and its consumption is still generally low. This is largely due to the fact that Brazilians prefer coffee much more to tea. However, new variations of tea are becoming increasingly popular in Brazil, such as bubble tea and ready-to-drink tea. Despite the success of mass products, the specific high end niche has shown a strong opportunity for growth. One case of success is the Spanish brand "the Tea Shop", which grew in Brazil by 47% in 2018, supported by the trend of typically more exclusive gourmet foods and healthy beverages. The growth of this sub-segment is expected to continue on as more Brazilians become aware of the benefits of the beverage.