What Has Been the Growth Trajectory for the Tea Extracts Market in Recent Years?
The tea extracts market has seen considerable growth due to a variety of factors.
• In the past few years, the tea extracts market has seen significant growth. The market size is predicted to rise from $4.44 billion in 2024 to $4.75 billion in 2025, marking a compound annual growth rate (CAGR) of 7.0%.
The previous growth recorded in this market can be credited to factors such as their conventional use in Asian cultures, heightened consumer awareness about its health advantages, its antioxidant properties, and health benefits claims. Other contributing factors include the boosted demand for functional beverages and the industry's expansion into the non-alcoholic beverage sector.
How Does the Forecast Look for the Tea Extracts Market?
The tea extracts market is expected to maintain its strong growth trajectory in upcoming years.
• Expectations are high for robust growth in the tea extracts market over the next few years. By 2029, the market is projected to expand to $6.21 billion, with a compound annual growth rate (CAGR) of 7.0%.
The growth anticipated during this forecasting period is largely due to the increasing popularity of specialized and herbal teas, extensive applications in functional foods and supplements, and the growth of e-commerce and direct-to-consumer sales channels. Notable trends expected for the forecast period include the innovation of tea extract blends, a rise in organic and clean label tea extracts, developments in tea extract bioactive research, and a shift towards natural and plant-based ingredients.
What Main Forces Are Fueling Expansion In The Tea Extracts Market?
Increased demand for dietary supplements is projected to boost the tea extract market's growth. Dietary supplements are a broad category of consumable products that differ from ordinary food and pharmaceuticals and are used globally. Specifically, green tea extracts are often used in the production of dietary supplements. These tea extract dietary supplements help regulate blood sugar, manage weight, prevent diseases, regulate blood pressure, and aid in post-exercise recovery. For example, the Smithfield Agency, a US-based marketing and advertising firm, reported that the supplements market produced a remarkable revenue of US$0.78 billion in June 2024. Furthermore, the market is set to grow steadily, with an estimated annual growth of 6.53% from 2024 to 2029. Hence, the rising demand for dietary supplements is fueling the tea extract market's expansion.
What Are The Primary Segments In The Global Tea Extracts Market?
The tea extracts market covered in this report is segmented –
1) By Type: Black Tea, Oolong Tea, Green Tea, Other Types
2) By Nature: Organic, Conventional
3) By Form: Powder, Liquid
4) By Application: Food and Beverages, Pharmaceuticals, Cosmetics, Other Applications
5) By Distribution Channel: Online, Offline
Subsegments:
1) By Black Tea: Loose Leaf Black Tea Extract, Instant Black Tea Extract, Powdered Black Tea Extract
2) By Oolong Tea: Loose Leaf Oolong Tea Extract, Instant Oolong Tea Extract, Powdered Oolong Tea Extract
3) By Green Tea: Loose Leaf Green Tea Extract, Instant Green Tea Extract, Powdered Green Tea Extract, Matcha Green Tea Extract
4) By Other Types: White Tea Extract, Herbal Tea Extract, Rooibos Tea Extract, Specialty Tea Extracts
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Which Key Trends Are Driving Changes In The Tea Extracts Market?
In the tea extracts market, the major trend growing in popularity is the emergence of new product innovations. To meet consumer demand and consolidate their standing, major companies in the tea extract market are focusing on novel product developments. For example, Layn Natural Ingredients, an American firm renowned for producing premium natural ingredients from plants, launched "instant tea" extract in November-2022. This is a concentrated form of tea that rapidly dissolves in water, offering a flavorful and convenient drink alternative without the necessity to brew.
Who Are the Key Players in the Tea Extracts Market?
Major companies operating in the tea extracts market include:
• Taiyo International Ltd.
• AVT Tea Sources Ltd.
• DuPont de Nemours Inc.
• Futureceuticals Inc.
• Kemin Industries
• Synthite Industries Ltd.
• Archer Daniels Midland Co.
• Frutarom Ltd.
• Martin Bauer Group Ltd.
• Indena SPA
• Teawolf LLC
• Phyto Life Sciences Pvt. Ltd.
• Halssen & Lyon GmbH
• Harrisons Tea Ltd.
• Synergy Flavors Inc.
• FInlay Tea Solutions Ltd.
• Tata Global Beverages Ltd.
• Givaudan SA
• Dehe Bio-tech Co. Ltd.
• Hainan Qunli Co. Ltd.
• Sichuan Yujia Tea Co. Ltd.
• ADM WILD Europe GmbH & Co.KG
• Allen Flavors Inc.
• Damin Food Co. Ltd.
• Dohler GmbH
• Goodricke Group Limited
• Robertet Group SA
• ShanShan Tea Co. Ltd.
• Shenzhen Shenbao Huacheng Tech. Co. Ltd.
What Is The Most Dominant Region In The Tea Extracts Market?
North America was the largest region in the tea extracts market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the tea extracts market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
