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Consumers are increasingly seeking products derived from environmentally friendly sources, driving the market towards plant-based tannins found in bark, wood, and fruits. This shift aligns with the broader trend of sustainability in various industries. Customer and consumer preferences are steering the market towards health-oriented applications, with a rising demand for tannins in functional foods and beverages. Tannins, known for their antioxidant properties, are finding a place in health-conscious consumer choices, influencing product formulations and marketing strategies in the food and beverage sector. In terms of technology, there is a notable emergence of innovative extraction methods and processing technologies in the tannin market.
Advanced techniques aim to enhance the efficiency of tannin extraction, ensuring higher purity and quality of the final products. These technological advancements contribute to the industry's overall competitiveness and sustainability. As for market disruptions, the increasing awareness of sustainable practices is challenging traditional extraction methods. Companies are reevaluating their processes to align with environmentally friendly standards, potentially disrupting older, less sustainable practices. This shift is not only driven by consumer demand but also by stringent regulations promoting eco-friendly sourcing and production methods.
Plant-based segment held the dominant market share worth USD 1.8 billion in 2023, favored by widespread availability and increasing demand for sustainable and natural products.
The market size of tannin reached USD 2.72 billion in 2023 and is set to witness 6.9% CAGR from 2024 to 2032, propelled by rising popularity of natural antioxidants in the F&B sector.
Balchem, W. Ulrich GmbH, EVER s.r.l, Tannin Corporation, Laffort, TANAC, Mimosa S.A., Silvateam S.p.a, Polson Limited and S.A. Ajinomoto OmniChem N.V.
Asia Pacific market surpassed USD 990 million revenue in 2023, attributed to the booming leather sector, and increasing demand for tannins in other sectors.