The global tea extracts market comprises components obtained from tea leaves that are used as food additives and dietary supplements. Tea extracts contain antioxidants like polyphenols that help fight inflammation and reduce the risk of chronic diseases. They are a rich source of catechins, flavonoids and other phytonutrients that support heart health, brain functions and weight management. Growing consumer preference for herbal and naturally-derived ingredients is fueling the demand for tea extracts in the food and beverage industry for products such as ready-to-drink teas, functional beverages, and confectioneries.
The Global Tea Extracts Market is estimated to be valued at US$ 17.41 Bn in 2024 and is expected to exhibit a CAGR of 8.0% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the tea extracts market are Apple Inc., Huawei Technologies Co. Ltd., MediaTek Inc., Qualcomm Technologies Inc., Samsung Electronics CO. LTD., Intel Corporation, STMicroelectronics N.V., Toshiba Corporation, NXP Semiconductors N.V., and Broadcom Inc. These companies are focusing on new product launches and acquisitions to expand their product portfolio and global footprint.
The key opportunities in the tea extracts market include its application in functional foods and beverages due to rising health awareness. Tea extracts are being widely used in food and supplements claiming various health benefits such as improved heart health, brain function, weight management and antioxidant properties.
Globally, the Tea Extracts Market Size is expanding at a rapid pace with companies focusing on various geographies for sales and production facilities. The U.S. and Europe hold major market shares currently but Asian countries like India and China are also emerging as key producers and exporters of tea extracts. New regulatory approvals and innovative application development is supporting the global expansion of tea extracts.
Market Drivers:
Rising consumer awareness about health benefits of natural ingredients is driving the use of tea extracts in various food and beverage products. Antioxidants present in tea extracts are widely promoted for reducing risks of chronic diseases.
Growth of functional food and beverage industry wherein tea extracts are used as key ingredients. Ready-to-drink tea and flavored bottled water products claiming antioxidant properties are boosting the demand.
Market Restrains:
Availability of cheaper synthetic substitutes that can impart similar functional properties restrain the market.
Standardization and processing challenges for tea extracts limit their application in certain product types.
Segment Analysis
The tea extracts market can be segmented based on product, nature, form, application and region. Based on product, the green tea extract segment dominates the market due to rising consumer preference for green tea attributed to its health benefits. Green tea extracts have antioxidant and anti-inflammatory properties that help reduce risks of cancer, heart disease and maintain overall well-being. Based on nature, the organic tea extracts segment is growing at a higher rate as clean label and organic products see rising demand. Based on form, the liquid tea extracts segment holds the largest share as liquid extracts are widely used in beverages and convenience food products. Based on application, the functional food segment dominates owing to increasing consumer inclination towards healthy and nutritional food and beverages.
Global Analysis
Regionally, the Asia Pacific market leads the global tea extracts market and is expected to maintain its dominance over the forecast period. This is attributed to Asia Pacific being the largest producer and consumer of tea with countries like India, China, Japan being top markets. North America holds the second largest share and is expected to witness steady growth owing to rising awareness about health benefits of tea extracts and changing consumer preferences for herbal supplements and beverages. Europe follows suit with countries like Germany, UK dominating demand as consumers increasingly opt for plant-based extracts. Latin America and Middle East & Africa are emerging markets with significant growth prospects. Key market players are focusing on enhancing geographical presence in these developing regions through collaborations and branding.
Get more insights on Tea Extracts Market
The global tea extracts market is estimated to be valued at USD 2.5 billion in 2019 and is projected to reach USD 3.8 billion by 2025, recording a CAGR of 6.9%.
The market is projected to witness significant growth due to factors such as the increase in the consumption of functional foods, rise in health consciousness among consumers, and increasing adoption of tea due to the ill-effects from caffeine, thereby widening the scope of its applications.
The increasing market potential, growing population, and growing demand for different types of tea extracts, as per health benefits, are factors that are projected to impact the growth of the tea extracts market.The demand for tea extracts remains high across developed markets, such as the US and UK.
This demand is projected to remain high due to the increase in the production of processed and functional food products.
Emerging economies, such as Malaysia, Indonesia, and Thailand, in the Asia Pacific region, are also witnessing high growth.
In addition, the exponential growth is projected to be witnessed in the new and emerging markets, such as China, India, and other Asia Pacific countries.Key manufacturers are focusing on expanding in Asia, as it offers cost-effective benefits to manufacturers, in terms of production and processing, due to the low prices of raw materials and cheap labor.
The global Tea Extracts Market size is expected to reach USD 4,160.7 Million in 2028 and register a revenue CAGR of 6.5% over the forecast period, according to the latest report by Reports and Data.
Steady revenue growth of tea extracts market can be attributed to rising awareness among people about health benefits of natural flavors.
At present, consumers consider taste or flavor of beverages to be one of the most essential components that persuade them to try those beverages.The Global Tea Extracts Market includes relevant and verified information relating to the overall market, key players, and their market position and financial standing.
The report utilizes advanced analytical tools such as SWOT analysis, Porter’s Five Forces Analysis, investment return analysis, and feasibility analysis to offer a comprehensive view of the market position of the major players of the industry.Get free sample extract of the report @ https://www.reportsanddata.com/sample-enquiry-form/4645Key Players:Key players profiled in the global market report include The Archer Daniels Midland Company, Martin Bauer Group, Givaudan, DuPont, Indena SPA, Kemin Industries Inc., Finlays, FutureCeuticals, Inc., Synthite Industry Ltd., and Taiyo International.Some Key Highlights From the Report:By extract type, green tea segment accounted for largest revenue share in 2020.
Green tea extracts help in reducing inflammation and blood pressure.
Additionally, these extracts have high antioxidant content that are beneficial for reducing oxidative stress in the human body.
