Brazil Yerba Mate Market- Trend Analysis & Forecast to 2030

Brazil yerba mate extracts production reached 441.84 thousand tonnes in 2022 and the production value increased by 9.05% (in terms of Brazilian Real) compared to production in 2017. Brazil is the largest producer and exporter of Yerba Mate, making it a cornerstone of the global supply chain. The country exported 48.06 thousand tonnes of yerba mate, valued at USD 96.17 million in 2022.

Market/ Product Overview

Yerba Mate, a traditional South American beverage, has gained global popularity due to its unique taste and health benefits. Brazil is a key player in the Yerba Mate market, contributing significantly to global production and export. The market has experienced steady growth, driven by increasing consumer demand for natural and functional beverages. Yerba Mate is rich in antioxidants, vitamins, and minerals, making it a preferred choice among health-conscious consumers. Brazil’s dominance in the market is attributed to its ideal growing conditions, advanced agricultural practices, and well-established export infrastructure. As consumer preferences shift towards natural and energy-boosting drinks, the global Yerba Mate market is projected to witness robust growth, with Brazil continuing to play a pivotal role in meeting the demand. The market's expansion is also supported by the increasing popularity of Yerba Mate in North America, Europe, and Asia.

Importance of Brazil in Yerba Mate Global Supply Chain

Brazil is the largest producer and exporter of Yerba Mate, making it a cornerstone of the global supply chain. The country's favorable climate and soil conditions, along with its extensive cultivation areas, ensure a consistent and high-quality supply of Yerba Mate to international markets, reinforcing its importance in the global market.

Brazil Yerba Mate Production & Demand Trend

Brazil yerba mate leaves production reached 618.60 thousand tonnes and extracts production reached 441.84 thousand tonnes in 2022. Brazil is the largest producer of yerba maté in the world, followed by Argentina and Uruguay. Brazil's Yerba Mate production is concentrated in the southern regions, where the climate is conducive to cultivating this plant.

Yerba mate tea is majorly consumed in Brazil, Argentina, Uruguay, and Paraguay, as well gained popularity in Middle Eastern countries namely Syria and Lebanon. Over the years, demand for Yerba Mate has grown both domestically and internationally, driven by its health benefits and cultural significance. The domestic market remains strong, while export demand continues to rise, particularly in health-conscious markets in Europe and North America.

Brazil Yerba Mate Market Growth Factors

The Brazil Yerba Mate market is experiencing growth due to several factors. The rising global demand for natural and functional beverages is a primary driver, as Yerba Mate is recognized for its energizing properties and rich nutritional content. Increasing health awareness among consumers is also fueling the market, as Yerba Mate is perceived as a healthier alternative to coffee and other caffeinated drinks. Additionally, the expansion of the wellness and organic product segments has led to increased interest in Yerba Mate, particularly in markets like North America and Europe. The beverage’s cultural heritage and the growing trend of adopting traditional and artisanal products also contribute to its expanding global footprint, making Brazil a key supplier in the international market.

Brazil Yerba Mate Market Restraints & Challenges

Despite its potential, the Brazil Yerba Mate market faces several challenges. Environmental concerns, such as deforestation and the loss of biodiversity, pose significant threats to sustainable Yerba Mate production. Additionally, the market is highly dependent on specific growing regions, making it vulnerable to climate change and unpredictable weather patterns. The labor-intensive nature of Yerba Mate cultivation also presents challenges, as it requires skilled labor for harvesting and processing. Moreover, the global market is competitive, with Argentina and Paraguay also being major producers, which can impact Brazil's market share.

Brazil Yerba Mate Supply Chain Bottlenecks/ Challenges

The Yerba Mate supply chain in Brazil faces several bottlenecks and challenges. One of the primary issues is the labor-intensive harvesting process, which relies on skilled workers and is subject to labor market fluctuations. Transportation from remote production areas to processing facilities can be problematic, particularly in regions with underdeveloped infrastructure. Another significant challenge is ensuring consistent quality across batches, as Yerba Mate is sensitive to variations in climate and soil conditions. Additionally, the industry must navigate environmental regulations aimed at preserving the natural forests where Yerba Mate is cultivated, which can affect the scalability of production. These bottlenecks can lead to supply disruptions and impact the timely delivery of Yerba Mate to both domestic and international markets.

Spain Influence on Global Yerba Mate Prices

Brazil’s dominance in the Yerba Mate market gives it substantial setting power, particularly in determining global prices and supply conditions. The country's extensive production capabilities and established export network enable it to influence market dynamics, although this power is tempered by competition from other key producers like Argentina.

Yerba Mate End-use Industries

Yerba Mate is primarily consumed as a beverage, enjoyed both traditionally and in modern forms such as ready-to-drink (RTD) teas. It is also used in the health and wellness industry, where its extracts are included in dietary supplements and energy drinks due to its natural stimulant properties and rich antioxidant content.

Yerba Mate is primarily consumed as a hot infused drink, accounting for nearly 70% of its global consumption. However, its use is expanding across various industries, including food, where it is incorporated into confectionery, beverages, dietary supplements, cosmetics, body care products, and functional foods. The growing demand and popularity of Yerba Mate are likely driving the rise in Yerba Mate-based food and beverage products.

Brazil Yerba Mate Trade (Export & Import) Trend

Brazil is the largest producer and exporter of Yerba Mate, making it a cornerstone of the global supply chain. The country exported 48.06 thousand tonnes of yerba mate, valued at USD 96.17 million in 2022.

Brazil leads in the export of Yerba Mate, with key markets including the United States, Germany, and Japan. The export trend has been positive, driven by increasing global awareness of the health benefits associated with Yerba Mate. While imports are minimal due to Brazil’s large production capacity, the country’s exports continue to grow as demand rises in both traditional and new markets. However, trade challenges such as tariff barriers and competition from other South American countries can affect Brazil's market position. The recent expansion of organic and fair-trade Yerba Mate products has also bolstered Brazil's exports, catering to niche markets in Europe and North America.

Brazil Yerba Mate Market Competitive Analysis

The Brazil Yerba Mate market is highly competitive, with numerous small and large-scale producers. Companies focus on maintaining high product quality and meeting organic certification standards to gain a competitive edge in international markets. Innovation in product offerings, such as flavored Yerba Mate and RTD beverages, is also a key strategy among leading players to differentiate themselves in a crowded market.

List of Key Companies (Manufacturers/Suppliers/Exporters),

■ Leão Alimentos e Bebidas
■ Chimarrão BittenCourt
■ Ecoteas
■ Mateada
■ Yaguara
■ Baldo S.A.
■ Soul Mate Organics
■ Meta Mate
■ Triunfo do Sul
■ Kraus
■ Rosamonte
■ Lauro Raatz

In January 2019, Coca-Cola Brazil, under its Leão brand, has introduced a line of yerba maté pods, aimed at satisfying the growing Brazilian demand for convenient and practical healthy beverages.
In March 2021, plant-based beverage brand Amaz Project, Inc (U.S.), unveiled a brand refresh, introducing a new line of organic sparkling yerba mate drinks. The company relaunching focusing on canned yerba mate beverages.
In October 2023, Boise-based (U.S.) company Matea announced the release of its biodynamic yerba mate powder. Matea is the first and only yerba mate brand globally to earn certifications from USDA Organic®, Demeter Biodynamic®, and the American Yerba Mate Association®, transforming the way consumers enjoy this traditional South American tea.

Future Outlook

The Brazil Yerba Mate market is expected to grow steadily through 2030, driven by increasing global demand for natural, health-focused beverages. As consumer preferences continue to shift towards organic and functional products, Brazil’s role as a leading supplier of Yerba Mate is likely to strengthen. However, the market's future will depend on addressing environmental concerns and ensuring sustainable production practices. Innovation in product offerings and expansion into new markets will be key to maintaining growth momentum and enhancing Brazil's competitive position in the global Yerba Mate market.