Global Tea Extracts market report 2024, Forecast To 2033

The tea extracts market has witnessed substantial growth, increasing from $4.14 billion in 2023 to $4.44 billion in 2024, with a compound annual growth rate (CAGR) of 7.0%. The growth in the historic period is attributed to the traditional use of tea in Asian cultures, heightened consumer awareness of health benefits, the antioxidant properties and health claims associated with tea, the growing demand for functional beverages, and the expansion into the non-alcoholic beverage industry. Moving into the next few years, the market is expected to experience strong growth, reaching $5.81 billion in 2028 at a CAGR of 7.0%. The anticipated growth in the forecast period can be attributed to factors such as the rising popularity of specialty and herbal teas, a shift towards natural and plant-based ingredients, increasing application in functional foods and supplements, ongoing research and development in tea extract bioactives, and the prevalence of e-commerce and direct-to-consumer sales channels. Major trends expected in the forecast period include innovation in tea extract formulations (e.g., concentrates, powders), the development of premium and specialty tea extracts, innovations in product formulations, the focus on clean label and natural extraction processes, and the utilization of tea extracts in beauty and personal care applications.