Tea has continued to record positive growth rates in volume terms in recent years, but has also seen declining sales in real value terms in Middle East and Africa. With consumers struggling in a difficult economic climate, many have been trading down to cheaper products or brands, while industry players have been looking to maintain demand with price-based promotions and aggressive discount campaigns. However, from 2023, positive growth is expected in both volume and real value terms.
This report comes in PPT.
The pandemic had a negative impact on many economies, with most countries now also facing rising inflation. This has been making local consumers more price-sensitive, steering them towards cheaper products or brands. In South Africa, for example, private label was gaining share in 2022, with retailers displaying their private label tea in prime shelf locations. Woolworths is innovating across tea with an extensive range of products, offering shoppers dozens of private label tea varietals.
The chemical properties of the rooibos plant mean that tea made from it can offer several health and immune-boosting properties. Along with links to weight loss, reduction in pain and allergies, and digestive benefits, recent studies have also linked rooibos to reducing anxiety levels. The antioxidant levels found in rooibos tea are higher than in foods typically associated with high antioxidant levels, such as cranberries or blueberries. This has led some to contend that rooibos tea could be seen as a functional ingredient to boost cognitive abilities.
While all of the tea currently sold in Morocco is imported, there are plans to begin local production on a commercial scale. Locally-produced tea could well find favour among local consumers, particularly if its origin is highlighted in the marketing of these products. As a result, brands that utilise locally-grown tea could grow in popularity at the expense of imported offerings.
Tea has good forecast period prospects, with all the major markets set to see relatively dynamic growth. Tea is a relatively cheap beverage, important in what is currently a tricky economic environment, and can also boast health credentials, also a significant factor in its favour, given the growing health and wellness trends, which were provided with more impetus by the pandemic.
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