Tea Extracts Market

Global Tea Extracts Market Size (2024 To 2032)

The size of the global tea extracts market is expected to be worth USD 2.86 billion in 2024 and grow at a CAGR of 7% from 2024 to 2032 to achieve USD 4.91 billion by 2032. Due to the numerous benefits and applications associated with tea extracts, the popularity and demand for these extracts is increasing.

Tea is one of the most popular beverages across the globe that can be extracted from camellia leaves. Various tea extracts are commercially available, including white tea extract, green tea extract, black tea extract, and oolong tea extract, according to the processing of source leaves. The tea extract has bioactive ingredients that include epigallocatechin (EGCG), aflavin, polyphenols and caffeine, of which caffeine is the main ingredient. It is ready to drink and is used for healthy drinks. Tea extract is associated with antioxidants that provide rich health benefits. Tea extract is defined as concentrated tea, especially black tea, green tea, and oolong tea. Tea is considered the most popular and commonly served drink on the planet. Tea extracts like green tea are rich in antioxidants and promote heart health. They are used in various industries like food and beverages, cosmetics, and pharmaceuticals, to increase the nutritional value of food. Increased consumption of prepared foods and the multifunctionality of tea are expected to drive this market growth.

MARKET DRIVERS

The global tea extract market continues to grow due to the high consumption of beverages worldwide.

The growing demand for tea extract is among the prominent drivers of the target market. Furthermore, as the population's perception of health and well-being increased, consumers tended to be healthier and more natural products. The health benefits associated with consuming tea extracts are responsible for the increasing demand for tea extracts. The tea extract has gained popularity among consumers as it has several therapeutic effects, including relaxing the mind, controlling cholesterol and sugar levels, burning excess fat, and preventing diseases such as Alzheimer's cancer. It also helped by applying tea extracts to animal nutrition, functional foods, cosmetics, and personal hygiene products. Tea extracts are available in both organic and conventional types. The size of the organic tea extract market has exploded in recent years as consumer demand for certified organic products increases. The Asia Pacific is deemed to be the fastest-growing region in the world business. Factors such as increasing income levels with better lifestyles are a major driving force for tea extracts in the Asia Pacific region. In addition, new types of tea extracts have been introduced to the market due to the increased consumption of innovative foods and beverages along with increased demand for improved cosmetics.

The global tea extract market is expected to increase during the forecast period due to increased demand for beverages and the application of tea extract to cosmetics and functional foods. Globally, the demand for green tea extract and black tea extract, along with the main tea-producing and consuming regions, is likely to become popular in the region due to the population's propensity for organic and healthy products. There is also medicinal value associated with this extract. The presence of tea extract in the functional food and functional food industries is supposed to accelerate the growth of the tea extract market over the outlook period. The growth of the cosmetics and personal care industry is also assumed to fuel demand for tea extracts. Tea extract is widely used in the production of various food products like cereals, cakes, instant noodles, dairy products, meat products and confectionery. In addition to adding flavor, aroma, and fragrance to foods, this extract is also known to provide products with certain health benefits. In addition to its use in the food and beverage industry, tea extract is widely used in the pharmaceutical industry due to the presence of highly bioactive ingredients that cause biochemical and pharmacological effects. Tea extracts are also used to promote plant growth and produce skin and hair cosmetics, including creams, cleansers, toners, serums, and others. Therefore, in some industries, the demand for tea extract is expected to increase, increasing interest in research and development activities among manufacturers, resulting in the development of the tea extract business.

MARKET RESTRAINTS

Factors such as the increase in the number of advertisements and the marketing of substitutes are expected to hamper industrial growth.

REPORT COVERAGE

SEGMENTAL ANALYSIS

By Type Insights

The black tea segment occupied the largest share of the global market in 2024. Black tea is the most widely consumed type of tea globally, and its extracts are commonly used in a variety of products, including beverages, dietary supplements, and functional foods. Black tea extracts are rich in antioxidants like polyphenols, which provide health benefits, such as improving heart health and supporting metabolism. The broad demand for black tea in both traditional and innovative beverage formats, such as ready-to-drink tea and tea-based products, contributes to its dominance in the tea extracts market.

The green tea segment is gaining attention and is expected to be fastest-growing segment in the tea extracts market during the forecast period. Green tea is highly valued for its health benefits, including its antioxidant properties, weight management support, and potential cancer-fighting compounds. As consumer interest in healthy lifestyles grows, green tea extracts are gaining popularity in dietary supplements, functional foods, and skincare products. The rise in demand for natural, wellness-focused products and beverages has fueled the rapid growth of green tea extracts, making it the fastest-expanding segment in the market.

By Form Insights

The powder segment held the leading share of the global market in 2024. Powdered tea extracts are widely used in a range of products, such as tea blends, ready-to-drink beverages, and dietary supplements. Powdered extracts are preferred due to their convenience, longer shelf life, and ease of incorporation into various food and beverage formulations. The versatility of powdered tea extracts, which can be easily rehydrated, combined with their higher concentration, has contributed to their dominance in the market.

The liquid segment is anticipated to record a prominent CAGR in the tea extracts market over the forecast period. Liquid tea extracts are gaining popularity due to their ease of use and quick dissolution in beverages, making them ideal for ready-to-drink products, functional beverages, and quick-mix solutions. As consumers seek convenient, on-the-go options with natural ingredients, the demand for liquid tea extracts is rapidly increasing, particularly in the beverage industry. This convenience factor, coupled with the growing trend for wellness-focused drinks, is driving the fast growth of liquid tea extracts in the market.

By Nature Insights

The conventional segment led the tea extracts market by holding the leading share of the global market in 2024. Conventional tea extracts are produced using standard agricultural practices, where synthetic fertilizers and pesticides may be used. These extracts are generally more affordable, which contributes to their widespread use in commercial and mass-market tea products, such as ready-to-drink beverages, packaged teas, and food products. The accessibility and lower production costs of conventional tea extracts make them the dominant choice in the global market.

The organic segment is predicted to showcase fastest growth in the global market over the forecast period. With growing consumer awareness about the health and environmental benefits of organic products, the demand for organic tea extracts is increasing rapidly. Organic tea extracts are made from tea leaves cultivated without the use of synthetic chemicals, pesticides, or fertilizers, appealing to health-conscious consumers who prioritize clean, sustainable, and eco-friendly products. This shift toward organic products in the beverage and health supplement industries is driving the fast growth of organic tea extracts in the market.

By Application Insights

The food & beverages segment dominated the tea extracts market by accounting leading share in 2024. Tea extracts are widely used in a variety of food and beverage products, such as tea-based drinks, flavored foods, confectionery, and snacks. The global demand for functional beverages, including iced tea, tea blends, and health drinks, has driven the widespread use of tea extracts. Their natural antioxidants and health benefits, such as promoting metabolism and boosting immunity, make tea extracts highly popular in the food and beverage industry, ensuring the dominance of this segment.

The ready to drink beverages segment is anticipated to witness the fastest CAGR in the global market over the forecast period. As consumer preferences shift toward convenience and on-the-go options, ready-to-drink (RTD) tea beverages have seen a rapid rise in demand. These beverages, made with tea extracts, are popular due to their refreshing taste, health benefits, and easy consumption. With an increasing interest in functional drinks, especially those that offer added benefits like antioxidants and weight management support, the RTD tea segment is expanding rapidly, driven by innovation in flavors and formulations.

REGIONAL ANALYSIS

The geographical segmentation includes past, present, and future demand in the areas of the Middle East and Africa, North America, Asia Pacific, Latin America, and Europe. The regional segments are divided into the United States, Canada, Mexico, the United Kingdom, France, Germany, China, Japan, India, Korea, Brazil and Argentina. The high consumption of functional RTD tea-based foods and beverages in the Asia Pacific region is estimated to increase the growth of the global tea extracts market. In addition, large-scale tea production is expected to complement the growth of the market. As the demand for hot beverage tea increases in Asian countries, it will help the market prosper in the Asia Pacific area. Additionally, several small and emerging companies that produce regular tea extracts in the Chinese market are foreseen to help expand the Asia Pacific tea extract market. Furthermore, high living standards and the growth of FDI in countries such as India, Malaysia, Thailand and China open up new opportunities for the tea extract business.

KEY PLAYERS IN THE GLOBAL TEA EXTRACTS MARKET

Major Key Players in the global tea extracts market are DuPont, Archer Daniels Midland Company, Frutarom, MANE, Teawolf, Givaudan, Synthite Industries Ltd, Synergy Flavors, AVT Tea Source Ltd, Taiyo International, Halssen & Lyon GmbH, Harrisons Tea, Indena SPA and Others.

RECENT HAPPENINGS IN THE MARKET

• In June 2019, Givaudan opened a new iconic innovation center in Switzerland. The workspace is 12,000 square meters and aims to create differentiated and sustainable taste, flavor and fragrance solutions for the food and beverage, beauty, personal care and home care industries.
• In June 2019, The Kerry Group expanded and strengthened its research and development efforts by establishing a new $ 23.6 million facility in Tumkur, India.
• In January, the Archer Daniels Midland Company started an innovation facility at the Biopolis Research Center situated in Singapore. This 8,900 square foot (825 square meter) space facilitates product development as well as flavor and material creation.

DETAILED SEGMENTATION OF THE GLOBAL TEA EXTRACTS MARKET INCLUDED IN THIS REPORT

This research report on the global tea extracts market has been segmented and sub-segmented based on type, form, nature, application, and region.

By Type

• Green Tea
• Oolong Tea
• Black Tea
• Others

By Form

• Liquid
• Powder

By Nature

• Organic
• Conventional

By Application

• Food & Beverages
• Pharmaceuticals
• Cosmetics
• Dietary Supplements
• Ready to Drink Beverages
• Others

By Region

• North America
• Europe
• The Asia Pacific
• Latin America
• The Middle East and Africa