Global Tea Extracts Market Research Report: Information By Type (Black Tea, Oolong Tea, Green Tea and Others), Form (Powder and Liquid), Category (Organic and Conventional), Application (Food & Beverages, Pharmaceuticals & Nutraceuticals, Personal Care and Others) and Region (North America, Europe, Asia-Pacific and Rest of the World) - Forecast till 2027

Market Scenario

Global Tea Extracts Market size is expected to cross USD 4.3 Billion by 2027 at a CAGR of 6.5% during the forecast period of 2020 to 2027. The tea extracts market has tremendous growth potential due to the presence of several market players and buyers across the globe Tea extract manufacturers are constantly investing in expansions, mergers & acquisitions, and partnerships as they strive in this highly competitive and lucrative market. They are also focusing on R&D to launch new products with innovative flavors and wider application scope.

Market Synopsis

Tea extract refers to the processed form of tea leaves rich in antioxidants, minerals, and vitamins. The global tea extracts market is expected to register a notable growth rate during the forecast period owing to the increasing demand for tea-based beverages for their health-promoting benefits. The growth of the global tea extracts market is also driven by the high demand for functional beverages and availability of several flavor variants in the market. The increasing demand for organic products across the world is expected to offer a lucrative opportunity to market players in the coming years. In accordance with the high consumption of tea for its functional properties, manufacturers in the global tea market are continuously launching new and innovative products. For instance, Twinings, a brand of Associated British Foods, launched a range of green teas in February 2018 that include a blend of botanicals with natural flavors, thereby strengthening the company’s product portfolio.

Functional tea extracts are generally priced high due to the ingredients used, production process, and distribution. Unique flavors and the use of all-natural ingredients in functional tea extracts such as ginger, rooibos, and hibiscus make it a highly popular and trending alternative to regular tea extracts. Additionally, availability of more cost-effective substitutes such as coffee and other plant extracts is also hampering the demand for tea extracts in the global market.

Market USP

Increasing Demand in Nutraceuticals

Market Drivers

• Rising Demand for Dietary Supplements: Tea extract is widely used in the production of dietary supplements. Dietary supplements made from tea extracts help in blood sugar regulation, regulate blood pressure, weight management, disease prevention, and exercise recovery. It is available in the form of capsules, liquids, and powdered form. The consumption of dietary supplements has been rising over the last few years and the market is expected to register exponential growth in the near future. The growth of the global dietary supplements market can be attributed to growing healthcare costs and the subsequent focus on preventive medicine. Health consciousness among consumers is increasing across the globe, which is also impacting the sales of dietary supplements as healthy alternatives to conventional medication. Dietary supplements provide essential nutrients to the body, thereby enhancing metabolism and immunity. According to MRFR analysis, the global dietary supplements market was valued at around USD 85 billion in 2018 and is projected to exhibit a CAGR of 5.8% from 2019 to 2025.


• High Demand for Functional Beverages


• Widespread Application in Food & Beverages


• Rising Preference Over Synthetic Flavors


• Launch of Innovative Flavors

Market Restraint

• Availability of Substitutes


• Production Constraints

Segmentation

By Type

• Black Tea


• Oolong Tea


• Green Tea: The green tea segment accounted for the largest share of the global tea extracts market in 2019. Green tea extract is made by withering tea leaves followed by steaming, rolling, and drying. The leaves undergo minimal processing and contain 80%–90% catechins and flavonols. The infused leaves are green, and the liquor is mild, pale green or lemon-yellow. Green tea has a subtle, delicate flavor, and less caffeine than fermented tea. It is also beneficial to health since non-fermented leaves retain a higher concentration of natural vitamins and polyphenols than fermented leaves. The segment is also expected to register the highest CAGR during the forecast period 2020-2027.


• Others

By Form

• Powder: In 2019, the powder segment accounted for a larger revenue share and is expected to register a higher growth rate during the forecast period owing to its ease of usage and production. Powdered tea extracts, especially black tea extract, are easily soluble and contain antioxidants that can function at different temperatures. The segment garnered a market share of nearly 80% in 2019 and is expected to maintain its dominance throughout the forecast period.


• Liquid

By Category

• Organic


• Conventional: The conventional segment accounted for the larger revenue share in 2019 and is expected to continue to do so during the forecast period. Large scale commercial production and sale of conventional tea plants and their easy availability are the major determinants driving the growth of the segment. Production and availability of conventional tea extracts at lower price than organic tea extracts are yet another determinant boosting the growth of the segment.

By Application

• Food & Beverages: In 2019, the segment dominated the global tea extracts market with a revenue share of more than 40%. The surging demand for natural and organic ingredients in the food & beverage industry is a key determinant fueling the growth of the segment. The high antioxidant and other volatile compound content in different cultivars of tea offers a strong flavor and aroma profile, owing to which tea is widely used in the food & beverage industry as a functional ingredient. Market players such as Archer Daniels Midland and Givaudan offer products catering to the food & beverage application.


• Pharmaceuticals & Nutraceuticals


• Personal Care


• Others

By Region

• North America: North America dominated the global tea extracts market in 2019 by accounting for more than 30% of the market share. The increasing demand for natural ingredients in various industries such as food & beverages, pharmaceuticals & nutraceutical, and personal care is driving the growth of the North American tea extract market. Product innovation is another major factor contributing to market growth. Consumers are highly inclined toward skincare products with natural ingredients due to which the application of tea extract is increasing in the personal care industry as well.


• Europe


• Asia-Pacific


• Rest of the World

Key Players

• Taiyo International (Japan)


• AVT Tea Sources Ltd. (India)


• Dupont (US)


• Futureceuticals (US)


• Kemin Industries (US)


• Synthite Industries Ltd (India)


• Archer Daniels Midland (US)


• Frutarom (US)


• Martin Bauer Group (Germany)


• Indena SPA (Italy)


• Teawolf (US)


• Phyto Life Sciences Pvt Ltd (India)


• Halssen & Lyon GmbH (Germany)


• Harrisons Tea (India)


• Synergy Flavors (US)

Report Scope:

Report Attribute/Metric	Details
Market Size	USD 4.3 Billion
CAGR	6.5% (2020-2027)
Base Year	2019
Forecast Period	2027
Historical Data	2019-2018
Forecast Units	Value (USD Million)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered	Type, Form, Application and Region
Geographies Covered	North America, Europe, Asia-Pacific, and Rest of the World (RoW)
Key Vendors	Taiyo International (Japan), AVT Tea Sources Ltd. (India), Dupont (US), Futureceuticals (US), Kemin Industries (US), Synthite Industries Ltd (India), Archer Daniels Midland (US), Frutarom (US), Martin Bauer Group (Germany), Indena SPA (Italy), Teawolf (US), Phyto Life Sciences Pvt Ltd (India), Halssen & Lyon GmbH (Germany), Harrisons Tea (India), Synergy Flavors (US)
Key Market Opportunities	Tea Extracts Market focusing on R&D to launch new products with innovative flavors and wider application scope.
Key Market Drivers	High Demand for Functional Beverages Widespread Application in Food & Beverages Rising Preference Over Synthetic Flavors Launch of Innovative Flavors Rising Demand for Dietary Supplements