PUBLISHER: The Business Research Company | PRODUCT CODE: 1657001
PUBLISHER: The Business Research Company | PRODUCT CODE: 1657001
Tea extract is utilized for its potential benefits in promoting weight loss, regulating blood sugar levels, and preventing various diseases. These extracts are derived from the tea plant and consist of concentrated compounds, including antioxidants, polyphenols, vitamins, and flavonoids. Tea extracts have been associated with diverse health advantages, such as supporting heart, liver, and brain function, enhancing skin appearance, and reducing the risk of cancer.
The primary types of tea extracts include black tea, oolong tea, green tea, and other variations. Black tea extracts are derived from the Camellia Sinensis bush and contain caffeine, other stimulants, and antioxidants. Tea extracts come in different nature types, such as organic and conventional, and are available in various forms, including powder and liquid. These extracts find applications in food and beverages, pharmaceuticals, cosmetics, and other industries. They are distributed through multiple channels, including both online and offline platforms.
The tea extracts market research report is one of a series of new reports from The Business Research Company that provides tea extracts market statistics, including tea extracts industry global market size, regional shares, competitors with a tea extracts market share, detailed tea extracts market segments, market trends and opportunities, and any further data you may need to thrive in the tea extracts industry. This tea extracts market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The tea extracts market size has grown strongly in recent years. It will grow from $4.44 billion in 2024 to $4.75 billion in 2025 at a compound annual growth rate (CAGR) of 7.0%. The growth in the historic period can be attributed to traditional use in Asian cultures, increased consumer awareness of health benefits, antioxidant properties and health claims, growth in demand for functional beverages, expansion into non-alcoholic beverage industry.
The tea extracts market size is expected to see strong growth in the next few years. It will grow to $6.21 billion in 2029 at a compound annual growth rate (CAGR) of 7.0%. The growth in the forecast period can be attributed to rising popularity of specialty and herbal teas, increasing application in functional foods and supplements, e-commerce and direct-to-consumer sales channels.Major trends in the forecast period include innovative tea extract blends, rise of organic and clean label tea extracts, research and development in tea extract bioactive, shift towards natural and plant-based ingredients..
The growing demand for dietary supplements is projected to significantly boost the tea extract market in the coming years. Dietary supplements encompass a wide range of ingestible products that differ from regular foods and pharmaceuticals and are widely used worldwide. Tea extracts, particularly green tea extracts, play a vital role in the production of dietary supplements. These extracts support various health benefits, including blood sugar regulation, blood pressure management, weight control, disease prevention, and post-workout recovery. For example, in June 2024, the Smithfield Agency, a US-based marketing and advertising firm, reported that the supplements market generated a remarkable revenue of $0.78 billion in 2024. Furthermore, this market is expected to maintain steady growth, with a projected annual increase of 6.53% from 2024 to 2029. Thus, the rising demand for dietary supplements is a key driver of growth for the tea extract market.
The growth of the tea extracts market is expected to be fueled by the rising expenditure on food and beverages. Food and beverage expenditure reflects the amount of money spent on purchasing food and drinks. Tea extracts, recognized for their natural and refreshing qualities, are becoming increasingly popular as consumers seek healthier beverage options. According to a report by PwC, Rabobank, and Temasek, Asian consumers are projected to double their spending on food, surpassing $8 trillion by 2030. This surge in food and beverage expenditure is a key factor driving the growth of the tea extracts market.
New product innovations are a prominent trend gaining traction in the tea extracts market. Key players in this sector are concentrating on developing innovative products to cater to consumer demand and enhance their market presence. For example, in November 2022, Layn Natural Ingredients, a US-based company specializing in high-quality natural ingredients sourced from plants, introduced instant tea extract. This concentrated form of tea dissolves rapidly in water, offering a convenient and flavorful beverage option without the need for brewing.
Strategic investments have become a significant strategy in the tea extracts market, employed by major companies to strengthen their market presence and expand geographically. Strategic investments are long-term commitments made to gain strategic advantages. For instance, in February 2023, Mother Parkers Tea & Coffee, a leading coffee and tea manufacturer, invested $33.4 million in a new cold coffee and tea extracts manufacturing facility in Mississauga, welcomed by the Ontario government. This investment is expected to create new job opportunities and expand the company's product offerings.
In July 2023, Finlays acquired tea and yerba mate extraction assets from Natural Instant Foods. This strategic move allows Finlays to transfer the extraction assets to Kenya, establishing a small-scale production line and pilot plant at its Saosa tea extraction facility in Kericho. Natural Instant Foods, based in Paraguay, specializes in producing soluble powder extracts of tea, yerba mate, and stevia.
Major companies operating in the tea extracts market include Taiyo International Ltd., AVT Tea Sources Ltd., DuPont de Nemours Inc., Futureceuticals Inc., Kemin Industries, Synthite Industries Ltd., Archer Daniels Midland Co., Frutarom Ltd., Martin Bauer Group Ltd., Indena SPA, Teawolf LLC, Phyto Life Sciences Pvt. Ltd., Halssen & Lyon GmbH, Harrisons Tea Ltd., Synergy Flavors Inc., FInlay Tea Solutions Ltd., Tata Global Beverages Ltd., Givaudan SA, Dehe Bio-tech Co. Ltd., Hainan Qunli Co. Ltd., Sichuan Yujia Tea Co. Ltd., ADM WILD Europe GmbH & Co.KG, Allen Flavors Inc., Damin Food Co. Ltd., Dohler GmbH, Goodricke Group Limited, Robertet Group SA, ShanShan Tea Co. Ltd., Shenzhen Shenbao Huacheng Tech. Co. Ltd.
North America was the largest region in the tea extracts market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the global tea extracts market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the tea extracts market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.
The tea extract market consists of sales of epicatechins, epicatechin gallate, and flavanols. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Tea Extracts Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on tea extracts market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for tea extracts ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The tea extracts market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.