A new research study on the West Africa tea market, published by Report Ocean, states that the total valuation of this market in 2019 was US$1.6 bn. The opportunity in this market is expected to increase at a CAGR of 8.50% during the period from 2021 to 2027 and reach US$2.6 bn by the end of the forecast period.
The report is titled “West Africa Tea Market by Type (Green Tea, Black Tea, and Others) and Distribution Channel (Independent Grocery Stores, Specialty Stores, and Others): Opportunity Analysis and Industry Forecast, 2021–2027.”
The shifting focus of consumers from carbonated drinks, thanks to the rise in health-related concerns, has propelled the demand for tea in West Africa and the regional market has gained significantly from this trend. Moreover, the surge in café culture, increase in disposable income, changing preferences, and launch of new flavors and introduction of healthy ingredients in tea by market players are expected to boost the West Africa market for tea in the years to come. On the other hand, the increasing cost of raw materials, owing to unpredictable weather, and the upswing in coffee consumption may hamper the growth in the market in the near future. However, the rising preference for tea among health-conscious young population is projected to offer lucrative opportunities for market players in the long run.
Impact of Covid 19 on West Africa Tea Market
The outbreak of coronavirus has a severe impact on the functionality of the modern society. Cafes and small eateries brought immense popularity to tea in West Africa. However, with the restrictions on operations of restaurants and food joints, the demand of tea has taken a toll in the region. The disruption in supply chain has also hampered this market substantially. Nonetheless, once the restrictions are lifted as the pandemic begins to slowdown, the market will gradually recover.
Rising Demand for Green Tea Supports West Africa Tea Market
The report analyzes the West Africa tea market on three fronts: The product type, distribution channel, and the country. Based on the product type, the market has been classified into green tea, black tea, and others. The green tea segment has been leading the West Africa market for tea. In 2019, the segment held more than 78% of the overall volume. It also led the market in terms of valuation last year, reaching US$1.2 bn. Progressing at a CAGR of 8.0% between 2020 and 2027, the opportunity in this segment is likely to touch US$1.9 bn by the end of the forecast period.
On the basis of the distribution channel, the market has been categorized into independent grocery stores, specialty stores, and others. As per the research study, the specialty stores segment is anticipated to emerge as the fastest growing segment, rising at a CAGR of 9.30% over the period of the forecast, thanks to the significant increase in retail sales and the availability of large shelf space for maximum sale.
In terms of the country, the West Africa tea market is considered to be spread across Benin, Cape Verde, Burkina Faso, Gambia, Guinea, Guinea-Bissau, Ghana, Ivory Coast, Liberia, Mali, Mauritania, Nigeria, Niger, Senegal, Sierra Leone, and Togo. Ghana and Mauritania have surfaced as the key importers of tea in this region, states the research study.
- The demand for green tea is higher than other types of tea.
- Ghana and Mauritania have surfaced as the key importer of tea in West Africa.
- Mauritania accounts for the most prominent share in the West Africa tea market.
The West Africa tea market is classified into:
- Green Tea
- Black Tea
By Distribution Channel
- Independent Grocery Stores
- Specialty Stores
- Burkina Faso
- Cape Verde
- The Gambia
- Ivory Coast
- Sierra Leone
Companies Mentioned in the Report
- AVI LIMITED
- KAKUZI PLC
- KETEPA LTD.
- MOKATE SA
- PROMASIDOR IP LTD
- RIFT VALLEY CORPORATION
- ROOIBOS LIMITED
- UNILEVER PLC
- ZAFFICO TEA COMPANY LIMITED
Company Name: Report Ocean
Contact Person: Nishi Sharma
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