For millions of South Africans, Rooibos is part of an everyday ritual, and behind that familiar cup lies an economic value chain stretching from the Rooibos growing regions of the Western and Northern Cape to farms, processing facilities, manufacturers, retailers, cafés and businesses across the country.
Rooibos production averages around 15 000 tonnes a year, although volumes fluctuate depending largely on plantings, rainfall and other climatic conditions. Demand remains resilient.
In 2025, total Rooibos sales were equivalent to more than 10 billion cups, roughly one cup for every person on Earth, with about 2 billion cups to spare.
The industry provides income and employment to approximately 8 000 people across primary production and upstream activities including processing, packaging and retailing.
“The real opportunity now is to unlock more value from Rooibos within South Africa through innovation, beneficiation and new business opportunities across the value chain,” said Adele du Toit, spokesperson for the South African Rooibos Council.
The plant is endemic to South Africa, with the Cederberg region at the heart of its production.
The industry includes some 300 commercial farmers and 210 small scale farmers. Rooibos also supports around 160 small scale farmers belonging to the Wupperthal Cooperative in the Western Cape and the Heiveld Cooperative in the Northern Cape.
In 2025, exports surpassed the 10 000 tonne milestone for the first time, reaching approximately 10 930 tonnes. This was almost double the 5 900 tonnes exported in 2015. Rooibos is now exported to more than 50 international markets, with Japan accounting for 33% of exports.
Rooibos is being used in a growing range of value-added applications, including extracts, functional foods and beverages, cosmetics and personal care products.
A social dividend
Rooibos also has a distinctive economic story because of its connection to Traditional Knowledge.
In 2019, the Rooibos industry entered into a landmark Access and Benefit Sharing agreement with San and Khoi communities, recognised as the Traditional Knowledge holders associated with Rooibos.
It was the world’s first industry wide benefit sharing agreement of its kind, creating a precedent for how an entire industry can share the benefits arising from the commercial use of traditional knowledge.
Under the agreement, processors pay a 1.5% levy based on the farm gate price of Rooibos in recognition of Traditional Knowledge associated with the plant.
Between 2019 and 2024, R42.7 million was distributed to San and Khoi councils through the benefit sharing mechanism.
Unlocking more value
It is this network of connections that makes the Rooibos economy worth looking at differently.
The question is not simply how much Rooibos South Africa produces or exports, but how much economic value is created between the Rooibos plant and the consumer, and where there is scope to create more of it.
“Rooibos has already demonstrated its ability to create economic value well beyond the farm. The challenge now is to build on that foundation in a way that strengthens the industry, supports the communities connected to it and protects the resource on which the entire value chain depends,” du Toit said.
ashley.lechman@nationalmg.co.za