Despite the challenging economic environment, the country’s largest tea producer, Tanganda Tea Company Limited has introduced three new herbal tea varieties to the market in response to customer demands.
The economic environment has been challenging, characterised by limited foreign currency and inflationary pressures weighing on disposable incomes.
But for Tanganda, this also comes as the market is increasingly becoming health conscious and shifting preferences towards traditional products believed to have medicinal qualities.
Tanganda already has green tea, rooibos, moringa teas as well as zumbani infusion, which became popular during the peak of the Covid 19 pandemic as it was widely believed to boost immunity.
During the year to September 30, 2022, the group introduced three more varieties, according to chairman Herbert Nkala.
“During the fourth quarter, the company introduced Makoni, Resurrection and Rosella herbal infusions onto the market in response to customer preferences,” he said in an update for the year.
During the year, Tanganda packed tea volumes into the regional market recorded a 57 percent growth from 218 tonnes in the prior year to 343 tonnes.
Overall packed tea sales volumes of 1 994 tonnes were 9 percent below 2 191 tonnes in the prior year.
“Logistical delays arising from global supply chain disruptions resulted in a lower local packed tea order fulfilment percentage especially in the peak winter season but this has since improved significantly.
“Liquidity challenges affecting disposable income in the economy further impacted the level of sales volumes,” said Nkala.
During the past two years, the Covid 19 pandemic had a knock on effect on businesses across sectors while the war in Ukraine also added to the challenges causing supply chain disruptions.
However, the tea market is poised for growth with demand firming across the globe. The market is currently experiencing recovery from the adverse impacts of the Covid 19 pandemic.
According to Statistica Research Department, the global tea market was valued at around US$207,1 billion in 2020, and is expected to rise to US$266,7 billion by 2025.
Tea is the second most-consumed drink in the world, only behind water and there are many teas that can vary in taste and color. Its uses are both recreational and medicinal.