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Tea Extracts Market Size
Tea Extracts Market size was valued at USD 4.5 billion in 2023 and is estimated to grow at over 5.9% CAGR from 2024 to 2032. Propelled by rising consumer awareness regarding the health benefits of these compounds, including their antioxidative and anti-inflammatory properties.
Tea extracts are derived from natural sources, aligning with the clean label trend. Consumers are increasingly seeking products with recognizable and natural ingredients, making tea extracts an attractive choice for manufacturers looking to meet clean label demands.
| Report Attributes | Details |
|---|---|
| Base Year: | 2023 |
| Market Size in 2023: | USD 4.5 Billion |
| Forecast Period: | 2024 to 2032 |
| Forecast Period 2024 to 2032 CAGR: | 5.9% |
| 2032 Value Projection: | USD 7.2 Billion |
| Historical Data for: | 2018 - 2023 |
| No. of Pages: | 150 |
| Tables, Charts & Figures: | 191 |
| Segments covered: | Type, Form, Application, Region |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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The price of tea extracts can be influenced by various factors, including weather conditions, supply-demand imbalances, and changes in production costs. Price fluctuations can create uncertainty for both manufacturers and consumers in the market. Ensuring consistent quality in tea extracts can be challenging, especially when sourcing tea from different regions and with varying processing methods. The availability and sourcing of high-quality tea leaves for extraction can be a challenge, particularly for specialty or rare varieties.
COVID-19 Impact
The economic impact of the pandemic affected consumer spending and consumption patterns. Some consumers reduced discretionary spending on non-essential items, impacting the demand for tea extract-based products. Thus, the reduced number of COVID-19 cases and implementation of subsequent strategies by government and non-government organizations is set to drive the market growth.
Tea Extracts Market Trends
Consumer preferences for natural and healthy products have driven the demand for tea extracts as they are perceived as natural sources of antioxidants, polyphenols, and other health-promoting compounds. The trend of functional beverages and fortified products has led to the incorporation of tea extracts in a wide range of beverages, including ready-to-drink teas, energy drinks, and functional beverages with added health benefits. Green tea extract remains the most popular type of tea extract, attributed to its high antioxidant content and associated health benefits.
Tea Extracts Market Analysis
The green tea extracts market size held over USD 0.9 billion in 2022. Green tea extracts are rich in catechins and polyphenols, known for their antioxidant properties, which contribute to their popularity as health-promoting ingredients.
The liquid form segment accounted for 55% of the tea extracts market share in 2022. Liquid tea extracts are easy to incorporate into various food and beverage products, including beverages, sauces, dressings, and desserts. Liquid extracts quickly infuse flavor, making them suitable for applications where a rapid flavor release is desired.
The tea extracts market from food & beverages segment is anticipated to expand at 4.3% CAGR through 2032. The popularity of ready-to-drink teas has driven the demand for tea extracts in various flavors and formulations, catering to consumers seeking convenient and refreshing beverages.
U.S. tea extracts market size dominated around USD 1 billion in 2022, due to the increasing focus on health and wellness among consumers in North America. Consumers are seeking natural and functional ingredients like tea extracts that offer potential health benefits, such as antioxidants and polyphenols.
Tea Extracts Market Share
Some of the major companies operating in the tea extracts market are:
- ADM
- Finlays
- Martin Bauer Group
- Grameen Herbal
- Blueberry Agro Products Pvt Ltd
- AVT Natural Products Ltd
- Kemin Industries, Inc
- Indena S.p.A
- Synthite Industries Ltd
- Harrisons Malayalam Ltd
- Cymbio Pharma Pvt. Ltd
- Shaanxi Sciphar Hi-Tech Industry Co., Ltd
- Changsha Botaniex, Inc
- Harrisons Malayalam Ltd
- Amax NutraSource, Inc
These companies focus on strategic partnerships, new product launch & commercialization for market expansion. Furthermore, these companies are heavily investing in research that allows them to introduce innovative products and garner maximum revenue in the market.
Tea Extracts Industry News:
- In January 2023, the Archer Daniels Midland Company opened an innovation center at the Biopolis research hub in Singapore. This 8,900-square foot (825-square meter) space would facilitate flavor and ingredient creation as well as the development of products.
This tea extracts market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million & Units from 2018 to 2032, for the following segments:
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Market, By Type
- Green Tea Extracts
- Black Tea Extracts
- Oolong Tea Extracts
- White Tea Extracts
- Others
Market, By Form
- Liquid
- Powdered
Market, By Application
- Food & Beverages
- Dietary Supplements
- Cosmetics & Personal Care
- Pharmaceuticals
- Others
The above information has been provided for the following regions and countries:
- North America
- U.S.
- Canada
- Europe
- Germany
- UK
- France
- Spain
- Italy
- Asia Pacific
- China
- Japan
- India
- Australia
- South Korea
- Indonesia
- Malaysia
- Latin America
- Brazil
- Mexico
- Argentina
- Middle East & Africa
- South Africa
- Saudi Arabia
- UAE
- Egypt
Frequently Asked Questions (FAQ) :