Tea in the United Arab Emirates

2020 IMPACT

COVID-19 boosts retail sales of loose black tea, a staple item in Emirati households

Black tea, especially loose black tea, saw positive retail volume and value growth in 2020. Loose black tea is considered an essential staple item in the United Arab Emirates and consumers therefore always make sure to have loose black tea at home.

Tea products with functional ingredients continue to gain popularity

The health and wellness trend continued to support tea volume and current value sales in the United Arab Emirates in 2020. While tea in general has traditionally been considered a wholesome beverage in the country, as consumers become better educated about health and nutrition, they are showing greater interest in varieties that are perceived to offer specific benefits.

Unilever remains the dominant player thanks to its longstanding presence and wide distribution network

Unilever Gulf FZE remains the dominant player in tea in 2020 thanks to its Lipton brand, the leading tea brand in the United Arab Emirates. Lipton tea is widely available in the country and enjoys a longstanding presence and a brand recognition.

RECOVERY AND OPPORTUNITIES

A staple item, loose black tea is expected to see constant growth

Tea as a product area as a whole is anticipated to continue to register constant growth over the forecast period. Black tea is and will remain a staple item in Emirati households, while it is also preferred by the large South Asian community living in the country.

Green tea looks set to show the fastest growth in the forecast period, benefiting from the HW trend

The health and wellness trend will continue to support green tea and fruit/herbal volume and current value sales in the United Arab Emirates in the forecast period, as well as being one of the key drivers of innovation in the product area. There is increasing media coverage and awareness locally about the health benefits of green tea in, for example, relieving body pain, improving digestion and detoxification.

Interest in tea blends that complement specific foods increases

As is the case with coffee, consumers in the United Arab Emirates are developing more refined tastes when it comes to tea. This is partly explained by the fact that the country is home to large expatriate communities with diverse tea traditions and preferences.