Tea in Saudi Arabia

PROSPECTS

Health and wellness trends driving demand for fruit/herbal teas

Health and wellness remains a key trend amongst young Saudis, thanks in part to the influence of Western lifestyles and high internet penetration in the country. This will continue to influence consumption patterns in beverages over the forecast period, giving a boost to fruit/herbal tea sales.

Distribution channels increase shelf space for tea

The number of speciality teas and multiple flavour combinations increased in the latter part of the review period, which was reflected in distribution channels increasing their shelf space for tea. It is expected that tea bags will continue to take the bulk of space in hypermarkets, supermarkets and convenience stores.

On-trade volume expected to increase

In the same way that consumers enjoy spending leisure time in a café or coffee shop, a portion of non-coffee drinkers have opted to indulge in speciality teas from tea shops. For example, Moroccan Taste, a chain of tea shops specialising in Moroccan teas with mint, ginger and other herbal combinations, has become popular in malls and street side kiosks across Saudi Arabia over the last few years.

COMPETITIVE LANDSCAPE

Lipton Tea Factory FZE continues to lead tea in 2018

Lipton Tea Factory FZE retained its leading position in tea in 2018, thanks to the popularity of its Lipton brand of tea bags and loose tea. It has invested in new product innovation, especially related to the health and wellness trend.

Key players competing for share through new product development

Competition in tea became fiercer in the latter part of the review period period, and key players sought to maintain or gain share through new product development. Lipton Tea Factory FZE introduced a line of Herbal Infusion tea bags with new flavour combinations, such as Lemon and Ginger, Morocco Mint and Hibscus.

Green tea remains fragmented

In line with the growing health and wellness trend, green tea remains popular, but is fragmented with both local and global brands present. AMS Baeshen & Co’s local flagship brand Al Rabea remained the leader in 2018, followed by private label and Twining & Co Ltd R’s global Twinings brand.

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