| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Historical Data Period | 2019 - 2023 |
| CAGR | 2.20 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South America Tea Market Analysis
The South America Tea Market is expected to register a CAGR of 2.2% during the forecast period.
Countries in South America, such as Brazil, Argentina, and others are exhibiting a healthy demand for hot tea. Consumers in the regions are becoming more health conscious and their preference for herbal tea, green tea, and organic tea is also increasing. The increasing prevalence of obesity is a major issue in the region. According to World Obesity Atlas, the 2022 report predicted that the prevalence of obesity in Argentina will be 35.8% by 2030. As consumer awareness is increasing, consumption of green tea is increasing as it helps in weight loss. The market players are launching new campaigns and advertisements to make people aware of the benefits of tea consumption. The prominence of health campaigns coupled with the steady demand for green tea is driving the demand for tea in this region.
Demand for herbal tea is also increasing in the region owing to its health benefits and several old age population in the region. According to World Bank data from 2021, 10% of Brazil's population is of age 65 or older. Additionally, owing to the millennial population in the region, the demand for iced tea is also increasing. new flavors of iced tea like peach, mango, strawberry, and many more are attracting young consumers in the region. Premiumization of tea products is gaining prominence among consumers owing to its functional properties, which in turn is expected to boost the growth of the market. The expansion of food service channels has also facilitated the growth of the tea market in South America. Over the medium term, the market is expected to grow owing to the rising disposable income, more working population, and product innovation.
South America Tea Market Trends
Increasing Consumption of RTD tea
Increasing awareness about the health benefits of ready-to-drink tea is driving consumers to opt for a healthy lifestyle. Consumption of ready-to-drink tea causes weight loss and helps in reducing cholesterol, body pain, and headache. Due to rising health problems like frequent headaches, body pain, and fatigue, consumer preference for black tea is increased. black tea contains polyphenols and antioxidants which are beneficial for health and skin. Furthermore, the availability of a variety of ready-to-drink tea like iced tea, flavored tea, green tea, and many more is grabbing consumer attention, due to vigorous advertisements and promotions of the products, the product is reaching the consumers which is increasing the sales of products. Additionally, import exports of tea products are also driving the growth of the market. According to UN Comtrade data from 2021, Argentina Imported 89941Kg of Black Tea from Canada in 2021.
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Brazil Dominates the Market
In Brazil, the consumption of tea is increasing owing to its herbal benefits, convenience, and variety. Consumers are willing to pay more for the variety of tea products that are available in the market. Consumers prefer black tea, green tea, herbal tea, and other tea types. The millennials in the country are attracted to the variety of flavors that are present in iced tea beverages. Market players have been innovating new products with different fruit flavors like peach, pear, and many more. Furthermore, a rise in disposable income, changes in taste preferences, and healthy ingredients added to the tea are other factors that fuel the market growth. Brazil imports tea from other countries like the United States, China, Japan, and others. According to UN Comtrade data from 2021, Brazil imported 2,11,505 Kg of tea from the United States.
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South America Tea Industry Overview
Innovation in new products and flavors, as well as mergers and acquisitions, are the major competitive strategies followed by the key players in the tea market. Changing consumer preferences have intensified the competition among global players. Several companies find it important to meet the local regulatory requirements apart from meeting their standard safety and quality criteria. The major players in the South American tea market include Dilmah Ceylon Tea Company PLC., The Wiltshire Tea Company, Unilever Plc, Bigelow Tea Company, and The Coca-Cola Company (Honest Tea)
South America Tea Market Leaders
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Dilmah Ceylon Tea Company PLC.
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The Wiltshire Tea Company
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Unilever Plc
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Bigelow Tea Company
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The Coca-Cola Company (Honest Tea)
- *Disclaimer: Major Players sorted in no particular order
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South America Tea Market News
- June 2022: Twinings London launched Twinings' new Glow+ tea, a peach-flavored white tea. This tea is rich in polyphenols, vitamin B7, and the fruit flavors of peach and aloe vera.
- April 2021: The Coca-Cola Company brand Honest Tea launched a new caffeinated, ready-to-drink beverage, Yerba Mate, a unique flavor mixture of coffee and tea in a bottled beverage. The product is available in flavors like Strawberry Pomegranate Matcha, Peach Mango Green Tea, and Lemon Ginger Black Tea.
- March 2021: Steaz Tea, a Healthy Beverage Company brand, launched Steaz Antioxidant Brew Yerba Mate, an antioxidant-infused ready-to-drink (RTD) tea. The tea is available in three different varieties: Golden Mate, Peach Please, and Mint To Be.
South America Tea Industry Segmentation
Tea is a beverage made from the Camellia sinensis plant. Camellia sinensis is a species of evergreen shrubs or small trees in the flowering plant family Theaceae whose leaves and leaf buds are used to produce tea. Form, type, distribution method, and geography are the market segments for tea in South America. Based on form, it is segmented into leaf tea and CTC tea. By type, the market is segmented into black tea, green tea, herbal tea, and other types. Based on distribution channels, it is segmented into hypermarkets and supermarkets, specialist retailers, convenience stores, online retailers, and other distribution channels. Furthermore, based on geography, it is segmented into Brazil, Argentina, and the rest of South America. For each segment, market sizing and forecasts have been done based on value (in USD million).
| Form | Leaf Tea |
| CTC Tea (Crush, Tear, Curl) | |
| Type | Black Tea |
| Green Tea | |
| Herbal Tea | |
| Other Types | |
| Distribution Channel | Supermarkets/Hypermarkets |
| Specialty Stores | |
| Convenience Stores | |
| Online Retail Stores | |
| Other Distribution Channels | |
| Country | Brazil |
| Argentina | |
| Rest of South America |
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South America Tea Market Research FAQs
What is the current South America Tea Market size?
The South America Tea Market is projected to register a CAGR of 2.2% during the forecast period (2025-2030)
Who are the key players in South America Tea Market?
Dilmah Ceylon Tea Company PLC., The Wiltshire Tea Company, Unilever Plc, Bigelow Tea Company and The Coca-Cola Company (Honest Tea) are the major companies operating in the South America Tea Market.
What years does this South America Tea Market cover?
The report covers the South America Tea Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the South America Tea Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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South America Tea Industry Report
Statistics for the 2025 South America Tea market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. South America Tea analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
