The tea sector of Portugal—a country in the Iberian Peninsula in Southwestern Europe and the westernmost point in continental Europe—shows stable growth rates this year due to the ever-growing demand for tea from local citizens, which contributes to generally high sales.
The history of tea in the country dates back to the period of Portuguese maritime expansion, in the 15th and 16th centuries—a time of great conquests and discoveries. Tea, which had been used in China for several centuries, was discovered by the Portuguese as soon as they landed in that country. Like other Asian ingredients, this product was taken to Portugal by caravel ships and then introduced to Europe.
Nowadays, Portugal is the only country in mainland Europe that has its own commercial tea production. Due to this, the country was included by the Food and Agriculture Organization (FAO) of the United Nations in the list of world tea producing countries.
Last year, the tea sector of Portugal grew by about 2% compared to 2023, which was mainly due to the growth of green tea. Most local analysts and producers expect the growth will continue this year, although at generally lower rates.
Unlike most other European countries, tea consumption in Portugal is dominated by herbal teas—a segment that represents around 60% of the market, while black and green tea account for the remaining 40%.
According to experts of the Portuguese research agency Business Scoot, in terms of structure of consumption, black tea is consumed twice as much as green tea, despite the slower growth. 58.6% of Portuguese residents consume tea, with consumption being highly segmented by gender, with the female consumption rate being 39% higher than that of men. As in most of the other EU states, tea is primarily consumed by people of upper and upper middle class with generally high income level. Among the types of tea most consumed by the Portuguese are chamomile and lemon balm infusions.
Despite the ever-growing demand for tea in Portugal, the country still has one of the lowest consumption figures in Europe: A Portuguese person consumes, on average, only four cups of tea per year, which is almost two times lower than most other European countries. Most of the local tea market is concentrated in the largest cities and areas of the country, such as Greater Lisbon, Greater Porto, and the North Coast.
According to an earlier study conducted by Portugal's research agency Multidados, local customers spend between €3 and €5 per month on tea. Among the most popular tea brands in the country are Lipton (which holds about 40% of the market), Tetley, Continente, Twinings, and Pingo Doce.
Still, despite generally small volume in the local market, Portugal is the only country in mainland Europe that has its own commercial tea production (although there are a few small-scale tea-growing projects in the European continent).
According to the Portuguese Hipersuper business paper, the family-owned plantation is located in Vila do Conde, one of the oldest settlements in northern Portugal. The tea produced by the couple is green, Asian-style, and made from whole leaves to better preserve their flavor. The leaves are harvested 100% by hand and most of the processing is done by hand.
In addition to the plantation in Vila do Conde, there are two tea plantations in the Azores archipelago composed of nine volcanic islands in the Macaronesia region of the North Atlantic Ocean. These plantations are located on the island of São Miguel, producing teas under the brands of Gorreana and Porto Formoso. Both of them were established almost 100 years ago. As Madalena Motta, manager of the Gorreana tea company, earlier told in an interview with the Portuguese media, all the tea from the Azores is naturally organic as, "There are no pests on the island, and the soil is clean. The fields are cleaned manually and also by thermal weeding."
In terms of market preferences, according to representatives of local producers and analysts, Portuguese consumers like to experiment with different teas and herbs, mixing fruits and spices, and trying not only the famous tea bags and pyramids, but also capsules. In addition, more and more people are buying loose tea as a reflection of conscious consumption. Finally, another trend observed in the local market is environmental mindfulness, as today’s consumers are more aware of the impact that such popular brands can have on the planet and future generations.
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