We read the daily news, and oh boy, is it filled with troubles. The load shedding in South Africa hit on the weekend, and experts believe much more is on the way. The government is planning more taxes and even doing away with medical aid tax. Metros are being blamed for not creating enough jobs in the country. The retirement age is increasing to 80, some say, mainly because young people are only starting to save in their 30s for retirement. Criminals who should be prosecuted aren’t even being investigated. Oh boy, this is the news. Time to make a nice cup of tea—or would it be coffee?
You see, coffee has become the biggest household beverage and also the biggest takeaway beverage and the biggest sit-down-in-a-restaurant beverage. Some time back—I’m talking about a few years ago—tea was big, or so it seemed. You had various small franchises offering all sorts of wonderful flavored teas in beautiful triangular tins, but they seem to have gone off the market a long time ago. What is it about tea that people don’t like? I mean, tea is at times a refreshing beverage. On a hot day, funnily enough, tea seems to be the beverage that satisfies or quenches thirst. Same thing in winter—a nice hot cup of tea goes a long way to making you feel better.
Is the Tea Market in South Africa Growing?
Despite tea’s quieter presence in the retail space, the South African tea market is not only alive but growing. In 2024, the market generated revenue of USD 645.0 million and is projected to reach USD 1,011.5 million by 2030, reflecting a compound annual growth rate (CAGR) of 7.8%. This suggests a strong demand for tea, even in the face of coffee’s dominance. Entrepreneurs looking to enter the market should take note—tea is far from dead; it’s evolving.
Emerging Tea Trends
One of the biggest trends driving growth in the tea market is functional tea—blends infused with herbs and botanicals that promote health and wellness. Consumers are seeking teas with specific benefits, such as improved digestion, stress relief, and energy boosts. This shift towards health-conscious consumption is an opportunity for new brands to innovate with wellness-focused products.
Additionally, sustainable and ethical sourcing is becoming a priority for tea drinkers. Companies that offer organic, fair-trade, or locally sourced teas stand a better chance of capturing a loyal consumer base.
The Advantages of Tea Over Coffee
Tea may not have the same caffeine kick as coffee, but that can actually be an advantage. While coffee often results in energy crashes and jitters, tea provides a more balanced, sustained energy boost. Tea is also packed with antioxidants, which help with cognitive function, blood sugar control, and heart health. With the growing trend of health-conscious consumption, tea has a strong edge over coffee for those looking for wellness benefits.
The Power of Rooibos
One tea that has gained worldwide recognition is rooibos, or bush tea, which is native to South Africa. Rooibos is known for its unique flavor and health benefits, and it is a major export product. Countries like Japan and the United Kingdom have seen increasing demand for South African rooibos, making it one of the country’s most valuable tea products. This presents an opportunity for entrepreneurs to tap into the international market by offering high-quality, sustainably sourced rooibos tea.
Opportunities for Entrepreneurs
For those looking to start a tea business, the opportunities are clear:
• Health & Wellness Teas: Creating unique blends with functional benefits can attract a growing health-conscious audience.
• Sustainability & Ethical Sourcing: Offering organic and fair-trade options can differentiate a brand in the competitive tea market.
• Premium & Specialty Teas: Crafting high-quality loose-leaf teas, unique flavors, or artisanal packaging can appeal to niche consumers.
• Experiential Retail: Hosting tea-tasting events or creating immersive tea experiences can engage customers and build brand loyalty.
Conclusion
Tea may not dominate the South African beverage scene like coffee, but it is far from being forgotten. The market is growing, consumer interest in functional and premium teas is rising, and rooibos is a globally sought-after product. For entrepreneurs, this is the perfect time to explore opportunities in the tea industry—because while coffee may be king, tea has a quiet strength that is not to be underestimated.
