Tea in Bulgaria

PROSPECTS

Rigid consumer perceptions to influence future performance

Looking forward, tea sales in Bulgaria are expected to grow at a modest single digit rate between 2018 and 2023. A key characteristic of the area is the fact that tea consumption is mainly associated with treatment of illness symptoms like cold or flu.

Rising health and image awareness drives demand for slimming teas

Fruit and herbal remains by far the most popular tea type in Bulgaria and is expected to lead growth over the forecast period. Slimming teas and medicinal teas are also performing well, while other teas sales are rising modestly.

Green tea likely to remain niche product

In 2018, green tea slightly outperformed overall tea sales in both volume and value terms. The area is benefiting from several factors such as increasing understanding of health benefits, promotion by retailers, as well as the gradually rising number of tea houses in major urban centres, which are helping to create interest among consumers in developing tea-drinking culture.

COMPETITIVE LANDSCAPE

Domestic producers lead fragmented area

Tea in Bulgaria is fragmented, with sales being led by Bioprograma EAD, Mercury P&P AD and Sofstok, but there still being space for other players. The first two players are domestic producers with extensive experience in the field and focused mainly on local resources, which reflects their solid presence in the fruit and herbal area.

Small players prosper

The best performing companies in 2018 were two small domestic tea producers with relatively short histories, Global Management Tech Corp and Bulgarian Tea. Both companies posted double digit value growth.

Domestic vs. international brand competition limited to fruit tea

Competition between domestic and international brands in Bulgaria is limited. International brands have a strong presence in black and green tea and minimal presence in herbal tea.

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