In comparison to other non-alcoholic beverages such as coffee and milk, tea has maintained the most significant demand over the pandemic.
The tea market in Tanzania has evolved dramatically over the past few years, due to the consumers changing behaviors during COVID-19. is forecasted to reach 569.87 million USD, with an increase of 12.89% per annum CAGR in the period of 2020-2025. Of late, the production of quality tea is set to increase in order to finance the Tea Board of Tanzania, and enable generic promotions and the funding of modern technologies to factories. This has been in response to the falling tea production within the country, that could have been a response to consumers preferences shifting towards cold drinks. The production will include the improvement of the quality and the introduction of eight new variants that will be supplied to various farmers.
As consumers return to normal, tea brands can look to understand the impact on the consumption habits of different age groups, but with a particular focus on young-middle aged consumers such as Millennials and Gen X.
For these age groups, it is imperative to understand their consumption patterns to understand how demand of non-alcoholic beverages changes, with a particular focus on tea.
Tea demand across the period of 2020 and 2021 has varied for the age groups
Tea consumption across age groups has seen a drop since April 2020 to October 2021. For Millennials, demand has remained pretty consistent with a minor drop in demand in July 2021, while for other age groups demand has fluctuated particularly in 2020. For both Gen X and Millennials, demand for tea rose from July 2021 to October 2021, however, never recovered to the demand seen in April 2020.
There is frequent use of tea in Tanzania
Across age groups tea usage remained frequent, with 25% respondents using tea several times a week and 13% using tea daily. Therefore, these numbers present good evidence that tea across the population is still high as respondents use tea products very frequently. Only 2% of respondents state that their tea usage is about once a month.
Tea has maintained a steady demand as compared to other non-alcoholic beverages
In comparison to other non-alcoholic beverages such as coffee and milk, tea has maintained the most significant demand over the pandemic. Coffee demand dropped steeply in October 2020, but was able to make a recovery by April of 2021. The demand for milk, while high, incurred ups and downs, but ultimately recached similar demand to April 2020, in October 2021. Tea overall saw a slight drop in demand in July 2021 and only recovered slightly in October 2021.
By age group the drivers of demand are very closely tied
In terms of who is driving the demand for tea, Gen X (21%) and Millennials (20%) are key, however very closely followed by Baby Boomers and Gen Z both at 19%. Demand for coffee remains lower for all age groups, suggesting that tea is a preferred drink, while milk and tea are equally enjoyed by Millennials, Gen Z and Gen X, with a low preference for Baby Boomers.
For Tanzania, as a large tea producing country, it is common for these countries to be the larger consumer of their own tea. Thus, meaning that much of the tea in the country is not set to be exported, but rather consumed within the country itself. By making tea a greater exported product, the results of such actions could be detrimental to the tea, therefore it is important that brands tailor their products to the local population.
Our data intelligence platform can help you track these trends in consumer behaviors in Africa over time. This provides you with valuable insights that can help you or your business make fast data-driven decisions.
Contact our team today to explore how our consumer intelligence can empower your decision-making process. Win with confidence with Kasi insights https://www.kasiinsight.com/thehub
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