PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1712821
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1712821
The tea extract market is estimated at USD 2.99 billion in 2025 and is projected to reach USD 4.36 billion by 2030, at a CAGR of 7.8% from 2025 to 2030. This growth is fueled by the rising demand for natural and organic ingredients in various industries, including food and beverage, pharmaceuticals, and cosmetics.
Scope of the Report | |
---|---|
Years Considered for the Study | 2025-2030 |
Base Year | 2024 |
Forecast Period | 2025-2030 |
Units Considered | Value (USD Million), Volume (KT) |
Segments | By Source, Form, Application, Category, Technology, and Region |
Regions covered | North America, Europe, Asia Pacific, South America and RoW |
The global tea extract market is gaining traction due to the versatility of tea extracts in different applications. Green tea, black tea, and oolong tea extracts are increasingly being incorporated into dietary supplements, functional foods, and skincare products. The health benefits associated with tea extracts, such as improved metabolism, enhanced immune function, and anti-aging properties, are driving their adoption across diverse consumer segments.
The shift towards healthier lifestyles and the preference for natural products over synthetic alternatives are key factors propelling the tea extract market. Additionally, advancements in extraction technologies are enabling manufacturers to produce high-quality tea extracts with enhanced efficacy and stability. This is particularly important for the pharmaceutical and cosmetic industries, where the purity and potency of ingredients are critical.
As consumer demand for clean-label and sustainable products continues to rise, the tea extract market is expected to witness further innovation and expansion. Companies are investing in research and development to create new formulations and applications for tea extracts, catering to the evolving preferences of health-conscious consumers. This trend is likely to drive the market's growth, making tea extracts a valuable component in the global health and wellness industry.
"In the tea extract market, the organic category is experiencing rapid growth and is expected to be the fastest-growing segment in the forecasted period. "
This surge is largely driven by the rising consumer demand for clean-label products and natural ingredients. Health-conscious consumers are increasingly opting for organic tea extracts due to their perceived benefits, including the absence of synthetic pesticides, chemicals, and artificial additives, aligning with their preferences for more natural and sustainable products. Organic tea extracts, derived from sources like green tea, black tea, and oolong tea, are seen as a healthier alternative due to their rich content of antioxidants, polyphenols, and other beneficial compounds. The growing popularity of organic food and beverages, coupled with increasing awareness of environmental sustainability, is propelling the demand for organic tea extracts across various applications such as food & beverage, pharmaceuticals, dietary supplements, and cosmetics. The premium pricing associated with organic products, along with the growing focus on ethical sourcing and environmentally friendly farming practices, has further boosted this segment. As a result, companies are investing in the organic tea extract market, developing innovative products to cater to the evolving preferences of health-conscious consumers worldwide.
"In the tea extract market, the food & beverage application segment holds the largest market share, driven by the increasing use of tea extracts in a wide range of consumable products. "
Tea extracts, derived from green tea, black tea, oolong tea, and other tea sources, are valued for their health benefits, rich flavor profiles, and natural functional properties, making them a popular ingredient in the food and beverage industry.
Tea extracts are widely incorporated into products like ready-to-drink beverages, teas, soft drinks, energy drinks, and flavored waters. These extracts offer a concentrated source of antioxidants, polyphenols, and catechins, which appeal to health-conscious consumers. The rise in demand for functional and health-enhancing beverages has led to a significant surge in the use of tea extracts in beverages aimed at providing added nutritional value. Additionally, in food applications, tea extracts are being utilized in the production of baked goods, confectioneries, sauces, and dressings, where their natural properties such as antioxidant activity and flavor-enhancing capabilities are leveraged. The increasing awareness of the health benefits associated with tea extracts, such as anti-inflammatory and anti-aging properties, has further fueled their demand in both food and beverage sectors.
As consumers continue to seek healthier alternatives, natural ingredients, and functional foods, the food & beverage application segment of the tea extract market is expected to witness sustained growth, driven by innovation and the development of new product formulations that cater to evolving consumer preferences.
The Europe is expected to be the fastest growing region during the forecasted period in the tea extract market. The rising consumer demand for natural and health-oriented food and beverages has significantly contributed to this growth. European consumers are becoming more health-conscious, seeking functional foods and beverages that offer nutritional benefits while aligning with sustainable and clean-label trends. The increasing popularity of green tea, black tea, and herbal tea extracts in a variety of beverages, including energy drinks, flavored water, and ready-to-drink teas, is particularly notable in Europe. The European market is witnessing a surge in the use of tea extracts due to their rich antioxidant content and perceived health benefits, such as enhancing digestion, reducing stress, and supporting weight management. Moreover, the region's focus on organic and natural ingredients has led to a higher demand for tea extracts sourced from sustainable and organic cultivation practices. Organic tea extracts, in particular, are seeing robust growth due to the European Union's stringent regulations on food safety and preference for clean-label products. The increasing innovation by food and beverage manufacturers, along with the introduction of new products featuring tea extracts as a key ingredient, is further driving the expansion of the market in Europe. This trend is expected to continue as consumers prioritize health, wellness, and sustainability, making Europe the fastest-growing region in the tea extract market for the food & beverage application segment.
Prominent companies include includes ADM (US), Kemin Industries, Inc. (US), Givaudan (Switzerland), Synthite Industries Ltd (India), International Flavors & Fragrances Inc. (US), The Nature Network (UK), Finlays (UK), Taiyo International (Japan), Plant Lipids Private Limited (India), Indena S.p.A. (Italy), VDF FutureCeuticals, Inc. (US), UmangGlobal (India), Synergy Flavors, Inc. (US), Karle Group of Companies (India), AVT Naturals (India) and among others.
This research report categorizes the tea extract market By Source (Green Tea, Black Tea, Oolong Tea And Other Tea Sources), Application (Food & Beverage, Pharmaceuticals & Dietary Supplements, Cosmetics & Personal Care), Form (Liquid, Powder, Encapsulated), Category (Organic, Conventional), Technology And Region (North America, Europe, Asia Pacific, South America, and Rest of the World).
The report covers information about the key factors, such as drivers, restraints, opportunities, and challenges impacting the growth of the tea extract market. It also provides a detailed analysis of the major players in the market, including their business overview, products offered; key strategies; partnerships, new product launches, expansions, and acquisitions. Competitive benchmarking of upcoming startups in the tea extract market is covered in this report.
The report will help the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall tea extract market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.