West Africa Tea Market is Expected to Reach $2.6 Billion by 2027—Allied Market Research

According to a new report published by Allied Market Research, titled, “West Africa Tea Market by Type and Distribution Channel: Opportunity Analysis and Industry Forecast, 2021–2027,” The West Africa tea market was valued at $1.6 billion in 2019, and is projected to reach $2.6 billion by 2027, registering a CAGR of 8.5% from 2021 to 2027. The green tea segment was the highest contributor to the market, with $1.2 billion in 2019, and is estimated to reach $1.9 billion by 2027, at a CAGR of 8.0% during the forecast period. 

Tea is one of the most popular beverages made via brewing or boiling of dried Camellia sinensis plant leaves. The two prominent types of tea include green tea, widely consumed in West African nations, and black tea, common in Central African countries. Tea care & husbandry management comprises proper site selection and several carefully maintained steps, which include permanent source of water, proper shelter, free draining soil with pH ranging from 5 to 5.8, and stringent regulations toward the amount of pesticides used on plantations. Presently, the commercial consumption of tea is increasing, thus bridging the gap between out-of-home tea and coffee consumption. Ghana and Mauritania are the major importers of tea in this region. 

Multiple health benefits associated with consumption of tea and rise in fitness concerns among individuals are the major factors that contribute toward West Africa tea market growth. The additional facts that support the growth of the market include increase in café culture, rise in disposable income, change in taste preferences, and introduction of new flavors with additional healthy ingredients. However, increase in cost of raw materials due to unpredictable weather, high cost of production, and rise in trend of coffee consumption are expected to hamper the growth of market during the forecast period.   

Moreover, unpredictable anomaly such as the outbreak of the COVID-19 pandemic is anticipated to adversely affect the market growth. Conversely, rise in tea demand from health-conscious, young population and frequent introduction of new flavors & varieties are expected to provide numerous opportunities for expansion of the tea market in West Africa. 

According to the West Africa tea market analysis on the basis of distribution channel, the specialty stores segment was fastest growing distribution channel in 2019, registering a CAGR of 9.3% during the West Africa tea market forecast period. This is attributed to increase in business of retail sales and availability of large shelf space for maximum sale. 

Tea consists of a large number of bioactive compounds apart from flavonoids such as amino acids, caffeine, lignins, proteins, and xanthines. These compounds help in maintaining cardiovascular health, reducing cholesterol, enhancing metabolism, preventing cancer, and promoting neurological health. In 2019 the green tea segment occupied 78.21% of the share, in terms of volume.  

Key findings of the study   

• The West Africa Tea Market size was valued at $1.6 billion in 2019 and is estimated to reach $2.6 billion by 2027, growing at a CAGR of 8.5% throughout the forecast period. 
• Based on type, the green tea segment helds the major West Africa Tea Market share in the in 2019.
• Based on distribution channel, the other segment held the highest share in the West Africa Tea Market in 2019. 
• Mauritania held the highest share in the West Africa Tea industry.