The tea market - Brazil

The global tea market has experienced steady growth, with an expected average annual growth rate of 2.83% from 2018 to 2026, leading to a projection of over $68 billion by 2027. China continues to dominate international tea trade with exports reaching $2.02 billion in 2019. Despite a global presence, the Brazilian tea market remains small in comparison, with exports and imports under $2 million and $3 million respectively as of 2019, and has shown a decreasing trend in recent years. However, within Brazil, regional preferences vary, with types of tea such as Mate in the South and Tamarind in the North-East showing particular popularity. Seasonality affects demand, with tea being more popular during the winter months. Tea's overall popularity in Brazil has been lukewarm with consumption being relatively low compared to other countries. Nevertheless, between 2010 and 2019, there was a 53% increase in consumption, highlighting a growing market. Sales of Ready-to-Drink (RTD) tea have notably increased by 37% from 2015 to 2019. Key players like Coca-Cola's brand Leão dominate the market, holding a roughly 25% share as of 2018, followed by local and international brands. The market offers diverse options, from traditional hot teas and RTD variations to tea capsules and new trends like bubble tea. RTD tea in particular appeals to the young population and aligns with a growing health trend, predicting continual growth in the segment. Bubble tea, being the latest trend, has also seen considerable growth, doubling sales from R$3 million to R$6 million between 2017 and 2018. Regulations on tea in Brazil are stringent, with restrictions on plant parts used for production and prohibitions on medicinal claims on packaging. Lastly, market segmentation shows a mix of both traditional and RTD tea companies, with specialist tea brands carving out their own niche within the industry..Exploring the Momentum of Tea Consumption in Brazil The Brazilian tea market, despite traditionally being overshadowed by the country's deep-rooted coffee culture, is witnessing a remarkable shift. With tea consumption on the rise, Brazil is gradually garnering attention as a promising sector within the global tea industry. Over the past decade, from 2010 to 2019, the market has seen a significant uptick in tea consumption, boasting a surge of more than 50%. A notable example of this growth trajectory is the leap in volume sales of tea, which increased by approximately 30% from 2012 to 2017. This trend is expected to sustain its momentum, with projected sales poised to grow by over 20% by 2022 compared to the volume witnessed in 2017. The expansion of the Brazilian tea market is multifaceted, propelled by factors such as the increasing demand for healthier beverage choices, particularly among younger consumers, and the diversification of tea products available. The push for healthier lifestyles has seen ready-to-drink (RTD) teas blossom as one of the fastest growing non-alcoholic beverage segments in Brazil. Although representing less than 1% of the total non-alcoholic beverage sales in 2019, RTD tea demonstrated a marked increase of over 30% within just a few years, highlighting its burgeoning popularity. The market for traditional hot tea in Brazil is driven by big national brands that dominate the scene. Key market leaders including Coca-Cola, with its Leão brand, hold significant market shares, accounting for nearly a quarter of the market. Other players, such as Maratá, Dr. Oetker, and international entities like Associated British Foods with their Twinnings brand, contribute to the competitive landscape. In recent years, new trends have emerged within the market, adding a fresh dynamic to the tea scene in Brazil. Among these is the advent of bubble tea, whose photogenic qualities and novel presentation have captivated a younger audience, and tea capsules, which offer a convenient alternative to traditional tea-making. The RTD tea segment also continues to innovate, with sparkling versions and tea-lemonade blends catching on. The Brazilian tea market size, valued at billions of Brazilian Reals, has seen consistent growth, with reports indicating a double-digit percentage increase from 2018 to 2019. The industry not only satisfies domestic consumption demands but also supports a sizable portion of the country's workforce. While the tea market in Brazil is evolving, regulations set by Anvisa provide a framework that ensures product.### Dominant Forces and Emerging Contenders in Brazil's Tea Market Landscape The Brazilian tea market showcases a dynamic assortment of players ranging from global behemoths to specialized local favorites, each bringing unique offerings to a growing and health-conscious consumer base. Here we explore some of the key protagonists weaving the narrative of Brazil's tea story. #### Traditional Tea Titans **Coca-Cola with its brand "Leão"** stands as a towering figure in the traditional tea sector, enjoying an enviable market share with a significant presence. Their production leverage within Brazil and a strong distribution network give Leão an edge in terms of accessibility and price competitiveness. **Dr. Oetker**, a household name in many sectors including food and beverages, makes its presence felt in the Brazilian tea market with its range of flavors. Known for quality, the brand caters to a segment seeking a blend of tradition and taste. Moving to the esteemed English label, **Twinings**, operated by Associated British Foods, provides the Brazilian consumer with a touch of international class. Twinings is often associated with elegance and a rich heritage, appealing to those who relish the narrative as much as the brew. #### Refreshing the Market: RTD Tea Brands As the demand for convenience collides with the quest for healthier beverages, **Unilever's Lipton**, in a strategic partnership with AmBev for distribution, offers a refreshing selection of RTD teas. This partnership combines Unilever's global expertise in blending tea with AmBev's robust local market reach. In addition to Lipton, **Feel Good**, a product of Wow! Nutrition, and **Campo Largo** by Zanlorenzi are key players that offer variety and cater to the fast-paced lifestyle that finds favor with RTD teas. These brands are gaining traction by positioning themselves as both convenient and healthful alternatives to sugary drinks. #### Niche and Specialty Players At the specialty front, **Herbalife** stands out with its unique positioning as a wellness brand that extends into the tea market. Their products are geared towards consumers who are not just looking for a refreshing beverage but also a health supplement. **Tea Shop**, with its impressive growth and diverse product line, emphasizes the gourmet and exotic side of tea. Their teas are a testament to the burgeoning demand for premium and specialty blends, often finding favor with connoisseurs and those who wish to explore the subtler nuances of tea. #### Cozy Corners: Tea Houses Beyond retail, sit-down establishments such

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• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 05/02/2021

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