The Tea Extracts Market Size was valued at USD 2.9 billion in 2022. The Tea Extracts market industry is projected to grow from USD 3.0885 Billion in 2023 to USD 4.506560983 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.50% during the forecast period (2023 - 2030). The rising frequency of people and the food industry's towards vegetable ingredients such as flavoring or flavoring ingredients are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Tea Extracts Market Trends
The market for tea extract is widely employed in creating nutritional supplements. Nutritional supplements containing tea extracts aid in controlling blood sugar, blood pressure, and weight, preventing disease and recovering from exercise. There are capsules, liquids, and powdered versions of it available. Dietary supplement use has increased over the past few years, and shortly, the industry is anticipated to experience exponential expansion. Growing healthcare expenses and the following emphasis on preventative medicine contribute to the rise of the global market for dietary supplements. Globally, consumers are becoming more health conscious, which affects the sales of dietary supplements as natural alternatives to prescription drugs. Dietary supplements give the body vital nutrients, thereby enhancing metabolism and immunity. Therefore, the Rising frequency of people and the food industry towards vegetable ingredients such as flavoring ingredients have recently enhanced the Tea Extracts market CAGR globally.
However, there have been significant advances in treatment innovations to cater to the demand. For instance, Blood sugar control, disease prevention, and weight loss are all supported by tea extract consumption. Supplements made from the tea plant are referred to as tea extracts. It has concentrated antioxidant, polyphenolic, vitamin, and flavonoid components. Tea extracts have several health advantages, including strengthening liver, brain, and heart function, improving skin quality, and reducing cancer risk are other factors driving the growth of the Tea Extracts market revenue.
Tea Extracts Market Segment Insights
Tea Extracts Type Insights
Based on type, the Tea Extracts Market segmentation includes Oolong Tea, Green Tea, and others. The Tea Extracts segment held the majority share in 2022 contribution to around in the global market revenue. The green tea segment accounted for the largest share of the global tea extract market in 2019. Green tea extract is made by withering tea leaves, 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 from 2022 to 2030. That hence, the market growth.
March 2022: Westrock Coffee Company, LLC and S&D Coffee & Tea, a Westrock Coffee subsidiary, announced a united branding that would debut a new visual identity as one company. Moving ahead, the two firms will operate under the same brand, Westrock Coffee, reaffirming their joint ambition to construct and operate the world's most integrated coffee, Tea, and extracts supply chain. Westrock Coffee purchased S&D in 2020, uniting the leading private-label retail coffee company with the leading food service coffee, tea, and extracts company. Under the Westrock Coffee brand, the combined firm is prepared for future growth, with manufacturing, new development, and packaging facilities for Tea, coffee, and extracts in central Arkansas, Concord, North Carolina, and Malaysia recently announced.
Figure 1: Tea Extracts Market, by Type,2022& 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Revie
Tea Extracts By Form Insights
Based on the form type, the Tea Extracts Market segmentation includes Powder, Liquid. In 2022, the powder segment accounted for a larger revenue share. It was expected to register a higher growth rate during the forecast period owing to its ease of usage and production. Powdered tea extracts, especially black ones, are easily soluble and contain antioxidants that can function at different temperatures. The segment garnered a Tea Extracts Market share of nearly 80% in 2022 and is expected to maintain its dominance throughout the forecast period. Hence, the rising frequency of people and the food industry towards vegetable ingredients such as flavoring or flavoring ingredients for Tea Extracts positively impacts the market growth.
Tea Extracts By Category Insights
Based on Category, The Tea Extracts Market data has been divided into Organic, Conventional. The conventional segment dominated the market in 2022 and is projected to be the faster-growing segment during the forecast period; 2022-2030. The main factors influencing the segment's growth include ordinary tea plants' widespread commercial production and sale and their straightforward accessibility. Another factor driving the segment's rise is the availability of conventional tea extracts at lower prices than organic ones.
February 2021: Finlay, one of the leading suppliers of coffee, Tea, and botanical solutions launched a new range of premium, natural, and sustainably sourced tea extracts. This approval has further broadened the growth opportunity for the Tea Extracts industry.
November 2020: Florida Food Products acquired Amelia Bay LLC. With the help of this acquisition, the company aims to expand its product portfolio of natural ingredients.
Tea Extracts By Application Insights
Based on By Application, the global Tea Extracts industry has been segmented into Food & Beverages, Pharmaceuticals & Â Â Nutraceuticals, Personal Care, and Others. With a revenue share of more than 40%, the sector dominated the global market for tea extracts in 2019. One major factor driving the segment's rise is the food and beverage industry's growing demand for natural and organic ingredients. Due to the high antioxidant and other volatile chemical content in different cultivars of Tea, which provides a strong flavor and aroma character, Tea is frequently employed as a functional ingredient in the food and beverage sector. Companies that cater to the food and beverage application include Archer Daniels Midland and Givaudan.
Tea Extracts Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. North America Tea Extracts market accounted for USD 21.3 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. This is attributed to 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 across the Region.
Further, the significant countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: TEA EXTRACTS MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's Tea Extracts market accounts for the second-largest market share due to the availability of The increasing demand for natural ingredients in various industries, such as food & beverages, pharmaceuticals & nutraceuticals, and personal care. Further, the Germany Tea Extracts market held the largest market share, and the UK Tea Extracts market was the fastest-growing market in the European Region.
The Asia-Pacific Tea Extracts Market is expected to grow at the fastest CAGR from 2022 to 2030. Moreover, the China Tea Extracts market held the largest market share, and the India Tea Extracts market was the fastest-growing market in the Asia-Pacific region
Hence, Asia-Pacific is anticipated to register the highest growth rate over the forecast period from 2022–2030.
Tea Extracts Key Market Players& Competitive Insights
Major market players are spending a lot of money on R&D to increase their product lines, which will help the Tea Extracts market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Tea Extracts industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
Manufacturing locally to reduce operating costs is one of the primary business strategies manufacturers adopt in the global Tea Extract industry to benefit clients and expand the market sector. The tea extract industry has provided medicine with some of the most significant benefits in recent years. The Tea Extracts market major player such 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) and others are working to expand the market demand by investing in research and development activities.
James Finlay & Co was formed in 1750 and became one of Scotland's leading cotton manufacturers and merchants under Kirkman Finlay's leadership. In the 1860s, the firm came under the control of John Muir and diversified into Indian tea plantations.
Finlay, one of the leading suppliers of coffee, Tea, and botanical solutions launched a new range of premium, natural, and sustainably sourced tea extracts in the market.
Westrock Coffee Company, LLC is the leading integrated coffee, Tea, and extract service provider in the US, providing sourcing and financing, supply chain management, roasting, packaging, and distribution services to retailers, restaurants, convenience stores, commercial accounts, and hospitality customers around the world.
Westrock Coffee Company, LLC and S&D Coffee & Tea, a Westrock Coffee subsidiary, announced a united branding that would debut a new visual identity as one company. The two firms will operate under the same brand, Westrock Coffee, reaffirming their joint ambition to construct and operate the world's most integrated coffee, Tea, and extracts supply chain. Westrock Coffee purchased S&D in 2020, uniting the leading private-label retail coffee company with the leading food service coffee, tea, and extracts company. Under the Westrock Coffee brand, the combined firm is prepared for future growth, with manufacturing, new development, and packaging facilities for Tea, coffee, and extracts in central Arkansas, Concord, North Carolina, and Malaysia recently announced.
Key Companies in the Tea Extracts market include
Tea Extracts Industry Developments
February 2021: Finlay, one of the leading suppliers of coffee, Tea, and botanical solutions, launched a new range of premium, natural, and sustainably sourced tea extracts.
November 2020: Florida Food Products acquired Amelia Bay LLC. With the help of this acquisition, the company aims to expand its product portfolio of natural ingredients.
Tea Extracts Market Segmentation
Tea Extracts By Type Outlook
Tea Extracts By Form Outlook
Tea Extracts By Category Outlook
Tea Extracts By Application Outlook
Tea Extracts Regional Outlook
North America
Europe
Asia-Pacific
| Report Attribute/Metric | Details |
| Market Size2022 | USD 2.9 billion |
| Market Size 2023 | USD 3.0885 billion |
| Market Size 2030 | USD 4.506560 billion |
| Compound Annual Growth Rate (CAGR) | 6.50% (2023-2030) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2030 |
| Historical Data | 2019- 2021 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Form, Application, and Region |
| Geographies Covered | North America, Europe, AsiaPacific, and the Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | 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 broader application scope |
| Key Market Dynamics | High Demand for Functional Beverages Widespread Application in Food & Beverages Rising Preference Over Synthetic Flavors Launch of Innovative Flavors Rising Demand for Dietary Supplements |
Tea Extracts Market Highlights:
Frequently Asked Questions (FAQ) :
The Tea Extracts Market size was valued at USD 2.9 Billion in 2022.
The global market is projected to grow at a CAGR of 6.50% during the forecast period, 2022-2030.
North America had the largest share of the global market
The key players in the market are 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).
The Green Tea Extracts category dominated the market in 2022.
The Conventional Category had the largest share of the global market.
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