The Brazilian tea sector is steadily growing these days thanks to an ever-expanding domestic range and stable demand for tea. In fact, the market has grown since the pandemic, when more drinks began to be consumed at home.
According to the Brazilian Tea Association (ABChá), which was established in 2019, the tea sector of the country currently consists of more than 100 companies. In recent years, a number of new players have expanded into the sector, which led to a significant growth of the local range. In accordance with a recent report in the Brazil GZH business paper, the range of tea available in the Brazilian market has significantly expanded mainly through the combination of fruits or the use of native plants, such as yerba mate.
According to Carla Saueressig, vice-president of the Brazilian Tea Association, the Brazilian tea market has been growing for the last 20 years and currently "this trend is ongoing."
Brazilian tea production has been concentrated over the years in the state of São Paulo, largely due to the influence of Japanese immigration, with the Ribeira Valley as one of the tea hubs. Other centers are also Rio Grande do Sul, the most Southern state of Brazil, which supplies its output throughout the country and abroad.
According to some Brazilian tea producers, the ongoing growth of the market is also in line with consumer tastes, which consider tea a healthy and tasty drink. The premium tea segment is especially seeing growth, driven by young, urban consumers seeking healthier lifestyle habits. They prefer low-calorie, preservative-free beverages associated with relaxation and well-being.
"Brazilians are traditional drinkers of infusions, but they are increasingly drinking them for pleasure," says Saueressig. "And this is something that will change the market."
The ever-growing demand leads to the emergence of new players and a further expansion of capacities by the historical leaders in the market. An example is Scrivia Brasil, the Rio Grande do Sul-based company, which is one of the main manufacturers of herbal teas in the country. The company, which operates on a full cycle basis, has significantly expanded its output, which amounted to 35 million tea bags each year. According to the company, in addition to the domestic market, a significant part of its production is sent for exports.
"The tea market in Brazil has been growing for many years, being still very much linked to health benefits," says Mathias Pretto, head of Scrivia. "People usually reach for chamomile when they need a calming effect, or green tea when they want to lose weight."
Among the bestselling teas in Brazil are chamomile teas, as well as teas from yerba mate, a species native to South America. In the latter case, Baldo, a company based in Encantado in the Taquari Valley, currently remains one of Brazil's largest producers of teas from yerba mate. The company has four production units located in Rio Grande do Sul, Santa Catarina, and Paraná, in addition to an operation in Uruguay.
"We didn’t reinvent the wheel, but we value what we already know," says Leandro Gheno, vice president of Baldo. "We understand that mate has a potential for consumption that is still unknown. It is a national drink. Chimarrão, tererê, mate, which are original from Rio’s beaches, are actively used as raw materials at present."
Saueressig also sees potential in these ingredients, "While Rio Grande do Sul is a consumer of chimarrão, the rest of the country consumes a lot of iced mate tea, in addition to the traditional tererê from the Central-West. Yerba mate, in addition to chimarrão, has a lot of potential for growth based on new production processes."
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According to the Brazilian Tea Association, just like coffee, which has developed its production chain and has become widely specialized over the years, tea will continue to grow in popularity among Brazilians in years to come. But according to producers and some local analysts, the existing imperfect domestic legislation in the field of tea business prevents more active development of the industry.
At present, all the teas sold in Brazil are subject to regulations from the National Health Surveillance Agency (Anvisa). Anvisa divides plants into two categories: pharmacopoeias (used for medicines) and food teas (used in commercial teas). Many plants used in various spheres in Brazil, however, are not listed in the latter group, which creates serious problems for many local producers, preventing them from the use of these plants in their production and processing operations. This is the case of mallow and pennyroyal, for example.
According to local analysts, the well-known "marcela tea" or "macela," a plant that is a symbol of Rio Grande do Sul, is not catalogued by Anvisa and, therefore, cannot be sold. That generates debates in the industry, while companies claim that the list of plants approved by Anvisa is incomplete, creating an unfair market dispute and negatively affecting the level of competition in the local market. So far, producers have already called on the Brazil federal government and Parliament to make adjustments to the legislation, while a final decision will be taken within the next several weeks.
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