Tea Extracts Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Tea Extracts Market is Segmented By Type( Green Tea, Black Tea, Oolong Tea, Others), By Form ( Powder, Liquid ),  By Category (Organic, Conventional), By End Use (Food, Beverages, Cosmetics, Pharmaceuticals, Dietary Supplements, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Tea Extracts Market Size

The Global Tea Extracts Market reached USD 15.3 billion in 2022 and is projected to witness lucrative growth by reaching up to USD 26.7 billion by 2030. The market is growing at a CAGR of 7.2% during the forecast period 2024-2031. Tea, derived from the leaves and buds of the Camellia sinensis plant, is a widely consumed beverage enjoyed for its refreshing taste.

It is known to have stress-reducing properties and is popular worldwide. Tea extracts, known for their rich antioxidant and flavonoid content, offer a range of health benefits and drives the tea extracts market size. They are recognized for their potential anti-cancer and anti-aging properties, making them a preferable and healthier option for many individuals. 

Tea extracts are highly valued for their rich content of tea polyphenols, including catechins such as epigallocatechin gallate (EGCG) and theaflavins. These bioactive compounds possess antioxidant properties and are known for their potential health benefits which drives the tea extracts market revenue. Tea polyphenols, catechins, EGCG and theaflavins are abundant in tea leaves and contribute to the unique flavor and color of different tea varieties. 

Tea Extracts Market Scope

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Tea Extracts Market Dynamics

Increasing Health Benefits Associated With Consumption of Tea Extracts 

Tea extracts, particularly those derived from green tea, are known for their high antioxidant content. Antioxidants help protect cells from damage caused by harmful free radicals, which are associated with various chronic diseases, including cardiovascular diseases and cancer. 

For instance, studies suggest that tea extracts, especially those containing catechins and flavonoids, may have a positive impact on cardiovascular health. Regular consumption of tea extracts has been associated with reducing the risk of heart disease by improving blood pressure, reducing LDL cholesterol levels and enhancing blood vessel function. 

For instance, on November 30, 2022, Layn Natural Ingredients, launched an “instant tea” extract. Layn's tea extracts offer a wide range of functional health benefits and serve as valuable ingredients for flavor enhancement and product preservation purposes. 

Layn's tea ingredients encompass a comprehensive selection of tea extracts derived from high-quality Camellia sinensis leaves, including green, black, white, oolong and pu'erh. Notably, Layn's tea extracts include a carefully curated portfolio of options that have obtained Non-GMO Project Verification.

The Limited Availability of Raw Materials

Tea plants thrive in specific regions with suitable climates and soil conditions. The availability of raw materials can be limited to these specific geographical areas, making it challenging to meet global demand consistently. 

The harvest seasons for tea leaves can be limited to specific times of the year, varying by tea type and location. This seasonal nature of tea leaf harvesting can lead to fluctuations in the availability of raw materials for tea extract production.

Tea Extracts Market Segmentation

The global tea extracts market is segmented based on type, form, category, end user and region.

Green Tea Segment Accounts for the Highest Share of the Global Tea Extracts Market

Green tea is packed with antioxidants, particularly catechins, which help protect the body against damage caused by free radicals. These antioxidants have been linked to various health benefits, including reduced risk of chronic diseases and improved overall well-being. Green tea has been shown to increase metabolism and promote fat oxidation. 

Regular consumption of green tea may aid in weight management efforts by helping to burn calories more efficiently and drives the green tea segment expansion. For instance, on February 20, 2023, Laval Green Tea launched India's first-ever effervescent green tea.

Source: DataM Intelligence Analysis (2023)

Global Tea Extracts Market Geographical Share

Asia-Pacific is Expected to be the Dominating Region During Forecast Period.

By region, the global tea extracts market is segmented into North America, South America, Europe, Asia-Pacific, Middle-east and Africa.

The highest tea-producing and consuming region is the Asia Pacific. The increased demand for tea is attributed to its health advantages as well as an increased understanding of the herbal elements included in it. Tea extraction methods involve processes like infusion or decoction to extract flavors and beneficial compounds from tea leaves, while solvent extraction and supercritical fluid extraction are used for concentrated tea extracts in the APAC region. 

China and India, as the world's top tea growers, we're able to meet rising demand by exporting tea around the world. According to FAO, in 2021, the production of tea leaves in Asia reached 24.53 million metric tons due to the heavy consumption of Tea. 

Moreover, the presence of key market players in the region is expected to drive market growth. Cymbio Pharma Private Limited and AVT Natural Products Limited are some of the key players in the region. For instance, on 25 May, 2022, Organic India launched new varieties of tea & infusions. The newly launched products, Akila Chandrashekhar, CMO, Organic India, revealed, “The pandemic has triggered a tidal shift in consumer behavior, towards healthy eating.

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Source: DataM Intelligence Analysis (2023)

Tea Extracts Market Companies 

The major global players include DuPont, ADM, Kemin Indutries Inc, Givaudan, Synthite Industries Ltd, Finlays, Iff-frutarom, Martin Bauer Group, A. Holiday & Company and Indena S.P.A. 

Covid Impact on Tea Extracts Market

Due to the pandemic, there has been an increasing focus on health among consumers, leading to a rise in demand for tea extracts. Tea extracts, especially green tea extracts, have gained popularity during this time due to their various health benefits. Green tea extracts have been found to mimic the action of natural antibodies and exhibit properties that contribute to overall well-being. 

Numerous studies have highlighted the potential health advantages of regular green tea consumption. These include its anticarcinogenic, cardioprotective, neuroprotective, antibacterial and antiviral properties. Green tea catechins, in particular, have shown positive effects against a range of viruses that impact human health, such as hepatitis, herpes simplex, HIV, Zika and various coronaviruses, including influenza strains. 

Recent investigations and laboratory tests have also indicated that green tea extracts can impact the SARS-CoV-2 coronavirus, which causes COVID-19. Notably, independent laboratory experiments conducted at Japan's Nara Medical University have demonstrated the effectiveness of green tea extracts against the SARS-CoV-2 virus.

Key Developments

• On November 15, 2022, Ayurvedic and Natural Health Care Company DaburIndia Ltd, launched premium black tea. The products are packed with the goodness of over 30+ Ayurvedic Herbs, Dabur Vedic Tea provides various health benefits and helps boost immunity.
• On November 04, 2022, Netsurf Network India launched an array of new herbal green teas. The ayurvedic and herbal teas by Naturamore Herbal Green Teas aim to cater to health-conscious consumers who prefer to opt for chemical-free, herbal beverages.
• On April 20, 2023, Alaya Tea launched “Golden Tippy teas”. Their cultivation practices prioritize harmony with nature, resulting in leaves that grow naturally and are carefully hand-harvested, ensuring the preservation of their exquisite and intact form. To align with their commitment to sustainability, the tea is packaged using 100% compostable materials, including the zipper, adhesive and a special edition golden label. 

Why Purchase the Report?

• To visualize the global tea extracts market segmentation based on type, form, category, end user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous data points of tea extracts market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global tea extracts market report would provide approximately 77 tables, 82 figures and 195 Pages.

Target Audience 2024

• Manufacturers / Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies