Theanine Market Size, Share, Industry, Forecast and Outlook (2024-2031)

Global Theanine Market is segmented By Source (Green Tea, Black Tea, Mushrooms, Others), By Type (L-theanine, D-theanine), By Application (Functional Beverages , Dietary Supplements, Cosmetics, Pharmaceuticals, Others) By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Theanine Market Size

The Global Theanine Market reached US$ 65.50 million in 2023 and is expected to reach US$ 122.11 million by 2031, growing with a CAGR of 8.03% during the forecast period 2024-2031.

There is a growing consumer preference for natural health supplements, including theanine, driven by increasing awareness of health and wellness benefits. Consumers are seeking products that offer stress relief, relaxation, and cognitive enhancement without synthetic additives, thereby driving market expansion. With rising stress levels globally, consumers are turning to theanine supplements as part of their stress management and mental health support routines, boosting market growth.

Market players are diversifying their product offerings to cater to diverse consumer preferences. Theanine supplements are now available in various forms such as capsules, tablets, teas, and functional beverages, providing options that appeal to different demographics and usage scenarios. Advanced delivery systems and combination products with synergistic ingredients are being developed to offer enhanced benefits, driving market differentiation.

For instance, on June 7, 2024, San Diego-based wellness brand Cymbiotika introduced its latest innovation, the Nootropic Creamer, aimed at enhancing brain health, focus, and sustained energy throughout the day. This new product features a blend of premium nootropics including L-theanine, known for its calming effects, and L-tyrosine, a precursor to neurotransmitters crucial for brain function.

Theanine is increasingly incorporated into functional beverages and dietary supplements in North America. These products are positioned as wellness-enhancing options, appealing to health-conscious consumers looking to improve cognitive function and overall well-being. Market players in North America are innovating with new formulations and delivery systems to enhance the bioavailability and efficacy of theanine.

heanine Market Scope

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Theanine Market Dynamics

Growing Demand for Natural Health Supplements

Increasing consumer awareness and preference for natural and organic products are boosting the demand for theanine-based supplements. As consumers seek out supplements that offer relaxation and cognitive benefits without side effects, theanine’s popularity rises, expanding its market presence globally. This expansion is facilitated by the market’s response to growing consumer interest in natural stress relief and cognitive enhancement.

The rise of e-commerce and health-focused retail chains enhances the accessibility of theanine supplements. The market benefits from these efficient distribution channels, making it easier for consumers to purchase theanine products. Companies within the market are innovating by incorporating theanine into various product forms. This diversification within the market helps meet different consumer needs and preferences, thereby driving overall market growth.

For instance, on May 30, 2024, Green Bioactives, a developer of plant-based products, announced the results of a clinical study showcasing the efficacy of its proprietary L-theanine and fructooligosaccharide ingredient, GBL-Memory. The study demonstrates that GBL-Memory can improve memory by up to 10.1%. Published in the peer-reviewed journal Food Science and Nutrition, these compelling findings arrive as the natural product and health supplement industry seeks innovative solutions to address cognitive decline in an increasingly aging population.

Rising Awareness of Stress Management and Relaxation

As more people seek natural solutions for stress relief and relaxation, the demand for theanine, known for its calming properties, is rising. This shift towards natural health supplements boosts the overall market for theanine products. The growing emphasis on mental health and well-being is expanding the theanine market. Consumers are increasingly turning to supplements that promote relaxation and reduce anxiety, leading to an expansion of theanine product offerings and market reach.

Market players are investing in marketing campaigns to educate consumers about the benefits of theanine for stress relief and relaxation. To cater to the rising demand for stress management solutions, companies in the market are developing innovative theanine products. These include various forms like capsules, tablets, teas, and functional beverages, which are designed to appeal to a broader consumer base. 

Limited Availability of Raw Materials

Theanine is primarily extracted from tea leaves, particularly green and black tea. Any disruptions in tea production due to factors like adverse weather conditions, pests, or geopolitical issues can lead to fluctuations in raw material availability. Such disruptions can result in supply shortages, impacting the production and availability of theanine products in the global theanine market.

Limited availability of raw materials can lead to price volatility in the theanine market. Higher raw material costs due to scarcity or increased demand can affect product pricing, potentially making theanine supplements less competitive compared to alternative products. As suppliers may struggle to meet demand with limited raw material availability, there could be challenges in maintaining consistent quality standards for theanine products. This inconsistency may undermine consumer trust and affect market reputation.

Theanine Market Segment Analysis

The global theanine market is segmented based on source,  type, application, and region.

Growing Consumer Preference for Natural Products

Green tea is renowned for its high theanine content, making it a significant contributor to the overall theanine market. The natural presence of theanine in green tea leaves positions it as a preferred source for consumers seeking natural and plant-based supplements. Increasing consumer preference for natural and plant-derived supplements fuels the demand for green tea-based theanine products.

Green tea enjoys widespread popularity and consumption globally, contributing to its dominance in the theanine market. This availability ensures a steady supply of raw materials for the production of theanine supplements and functional beverages. Continuous innovation in green tea formulations and product development supports market expansion. Companies are exploring new formulations and applications to enhance the bioavailability and efficacy of theanine in green tea-based products, meeting evolving consumer demands.

For instance, on February 4, 2022, Cambridge Commodities launched a new addition to its branded ingredients lineup: TheaGreen, featuring L-theanine sourced naturally from green tea leaves. Green tea yields about 30-50 mg of theanine per 2/3 cup, albeit with variability. TheaGreen addresses this by offering concentrated and standardized L-theanine in two strengths: 40% and 60%, ensuring consistent quality and efficacy in dietary supplements and functional foods.

Global Theanine Market Geographical Share

Increasing Health Consciousness and Large Consumer Base in North America

North America dominates the global sour milk drink market. Rising health consciousness among North American consumers drives demand for natural and functional ingredients that promote well-being. Theanine's reputation for stress relief and cognitive enhancement aligns with consumer preferences for products that support mental health and overall wellness, contributing to regional dominance in the market.

North America benefits from a well-established healthcare infrastructure that supports consumer access to dietary supplements and functional foods. This infrastructure facilitates distribution channels and consumer education initiatives, contributing to market growth. Continuous product development and innovation in delivery systems enhance the appeal and efficacy of theanine products, driving market leadership.

For instance, on March 27, 2023, GURU Organic Energy Corp., Canada's foremost organic energy drink brand, announced the launch of GURU Theanine Fruit Punch in the Canadian market, accompanied by a comprehensive national marketing campaign. This exciting new product combines GURU's commitment to organic ingredients with the calming and focus-enhancing benefits of theanine.

COVID-19 Impact Analysis

The pandemic disrupted global supply chains, affecting the availability of raw materials needed for the production of theanine supplements, primarily sourced from tea leaves. Restrictions on movement, labor shortages, and logistical challenges disrupted the supply chain, leading to potential shortages and increased costs. Operational challenges, including ensuring worker safety and adapting to new health protocols, further complicated production processes, potentially affecting supply continuity.

During the pandemic, there was a shift in consumer behavior towards health and wellness products, including supplements promoting relaxation and stress relief like theanine. There was a surge in demand for such products as consumers sought ways to manage anxiety and enhance well-being amidst uncertainty. However, as economic uncertainties persisted and disposable incomes fluctuated, consumer spending patterns on non-essential items, including supplements, fluctuated. This variability in demand impacted the market's stability.

Russia-Ukraine War Impact Analysis

Ukraine is a major producer of grain and agricultural products, including tea leaves used in the production of theanine supplements. The conflict has disrupted agricultural activities, transportation routes, and export logistics, potentially affecting the supply of raw materials for theanine production globally. Uncertainty surrounding supply chains has led to concerns about shortages and increased costs, impacting market stability and pricing dynamics.

The geopolitical tensions between Russia and Ukraine have created broader economic uncertainties, affecting global trade and investment sentiment. Market participants in the theanine industry are cautious due to the potential impact on international trade policies and regulations, which could affect supply chain operations and market access. Changes in consumer behavior result in fluctuating demand patterns, impacting market growth and revenue generation for companies operating in the theanine sector.

Key Developments

• On February 19, 2024, AlphaWave L-Theanine received approval for the Australian market, alongside its existing US GRAS affirmation. This formulation is renowned for its ability to enhance alpha brainwaves, as validated by electroencephalogram (EEG) studies. These alpha brainwaves are indicative of a state of relaxed wakefulness, similar to that experienced during meditation, highlighting the product's potential benefits for promoting relaxation and mental clarity.
• On June 4, 2024, Green Bioactives Limited (GBL), a technology firm specializing in sustainable plant-based products, announced the launch of its latest achievement: a clinical study revealing that its new blend of L-theanine and FOS improves memory by up to 10.1%. This breakthrough underscores GBL's commitment to advancing cognitive health through innovative, plant-derived formulations.
• On September 17, 2020, PepsiCo announced the launch of Driftwell, a functional beverage infused with L-theanine to promote relaxation. Driftwell is PepsiCo’s fastest beverage brand ever to market, developed through an internal idea pitch competition for employees. The drink progressed from conception to execution in less than a year, addressing a real-life need with a solution designed to help consumers relax and unwind.

Theanine Market Major Players

The major players in the global theanine market include Taiyo International Inc., Witspower, Kyowa Hakko Bio Co., Ltd., Taiyo Kagaku Co., Ltd., NutriScience Innovations, LLC, Blue California, Hunan Nutramax Inc., Xian Tonking Biotech Co., Ltd., LGC Limited, Shaanxi Guanjie Biotechnology Co., Ltd.

Why Purchase the Report?

• To visualize the global theanine market segmentation based on source, type, application, and region and understand critical commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous global theanine market-level data points 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 critical products of all the major players.

The global theanine market report would provide approximately 62 tables, 54 figures, and 213 users.

Target Audience 2024

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