South America Tea Market Outlook 2031:
The South America tea market size was valued at USD 9.11 Billion in 2022 and is projected to reach USD 13.77 Billion by 2031, expanding at a CAGR of 4.7% during the forecast period 2023 - 2031. The growth of the market is attributed to the premiumization of tea products.
Tea is produced by steeping the tea powder or leaf buds of the tea plant, also known as camellia sinensis, in freshly boiled water. Tea was introduced in China in 2700 BC. For centuries it was a medical beverage and in around third century it became a daily drink.
In 1824, tea cultivation was found in the slopes, along the outskirts of Burma and in Assam, a state of India. The British brought tea culture into India in 1836 and into Ceylon (Sri Lanka) in 1867. Earlier, they utilized seeds from China; however, later seeds were used from Assam. The Dutch East India Company conveyed the principal transfer of tea from China to Europe in 1610.
In 1669, the English East India Company brought tea from ports in Java to London. By 19th Century, the tea market had spread to Georgia, Sumatra, and Iran and further reached out to non-Asian nations such as Natal, Uganda, Malawi, Brazil, Argentina, and Peru in South America.
Tea Market Trends, Drivers, Restraints, and Opportunities
- Growing awareness regarding medicinal benefits of tea is one of the key factors contributing to the market growth.
- Increasing demand for speciality tea is expected to drive the market growth during the forecast period.
- Expansion of food service channels is estimated to facilitate the market development in the coming years.
- Lack of proper knowledge about tea cultivation process can hinder the market development.
- Rising demand for herbal tea can create lucrative opportunities for market players in the region.
Scope of the Tea Market Report
The report on the South America tea market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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South America Tea Market - Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Forms (Leaf Tea, Crush Tea, Tear Tea, and Curl Tea), Product Types (Black Tea, Green Tea, and Others), and Distribution Channels (Supermarkets/Hypermarkets, Specialist Retailers, Online Retailers, and Convenience Stores)
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Geographical Scope
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Argentina, Chile, Brazil, Columbia, and Rest of South America
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Dilmah Ceylon Tea Company PLC.; Hain Celestial; Palais des Thés; Unilever; and The Wiltshire Tea Company
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South America Tea Market Segment Insights
Crush tea segment is expected to grow at a robust rate
Based on forms, the market is divided into leaf tea, crush tea, tear tea, and curl tea. The crush tea segment is expected to grow at a robust pace during the forecast period. Growing preference for convenient hot beverage and rising consumption of healthy hydrants is are expected to spur the growth of this market segment. However, the other segments are anticipated to hold a large share of the market in the coming years.
Green tea segment is projected to expand at a considerable CAGR
On the basis of product types, the South America tea market is segregated into black tea, green tea, and others. The green tea segment is projected to expand at a considerable CAGR during the forecast period owing to its health benefits such as high amount of antioxidants. Rising demand for drinks that aid in weight management and detox is estimated to fuel the growth of the segment.
Supermarkets/hypermarkets segment is anticipated to hold large market share
In terms of distribution channels, the market is bifurcated into supermarkets/ hypermarkets, specialist retailers, online retailers, and convenience stores. The supermarkets/hypermarkets segment is expected to hold a large market share owing to convenience in shopping and availability of various discount offers, attracting consumers.
Brazil is anticipated to constitute a key market share
Based on regions, the South America tea market is classified as Argentina, Chile, Brazil, Columbia, and Rest of South America. Brazil is expected to constitute a key share of the market during the forecast period period. Increasing awareness about health drinks is anticipated to rise the consumption of tea products in the country. Rapid development in the food and beverages industry in Brazil is favoring the market growth in the region.
Segments
The South America tea market has been segmented on the basis of
Forms
- Leaf Tea
- Crush Tea
- Tear Tea
- Curl Tea
Product types
- Black Tea
- Green Tea
- Others
Distribution Channels
- Supermarkets/ Hypermarkets
- Specialist Retailers
- Online Retailers
- Convenience Stores
Geography
- Argentina
- Chile
- Brazil
- Columbia
- Rest of South America
Key Players
Competitive Landscape
Key players competing in the South America tea market are Dilmah Ceylon Tea Company PLC.; Hain Celestial; Palais des Thés; Unilever; and The Wiltshire Tea Company.
Some of the key players focusing on new product and flavor development and also focusing on increasing their quality standards.
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