Tea Extracts Global Market Report 2024

Tea extract is utilized for its potential benefits in promoting weight loss, regulating blood sugar levels, and preventing various diseases. These extracts are derived from the tea plant and consist of concentrated compounds, including antioxidants, polyphenols, vitamins, and flavonoids. Tea extracts have been associated with diverse health advantages, such as supporting heart, liver, and brain function, enhancing skin appearance, and reducing the risk of cancer.

The primary types of tea extracts include black tea, oolong tea, green tea, and other variations. Black tea extracts are derived from the Camellia Sinensis bush and contain caffeine, other stimulants, and antioxidants. Tea extracts come in different nature types, such as organic and conventional, and are available in various forms, including powder and liquid. These extracts find applications in food and beverages, pharmaceuticals, cosmetics, and other industries. They are distributed through multiple channels, including both online and offline platforms.

The tea extracts market research report is one of a series of new reports that provides tea extracts market statistics, including tea extracts industry global market size, regional shares, competitors with a tea extracts market share, detailed tea extracts market segments, market trends and opportunities, and any further data you may need to thrive in the tea extracts industry. This tea extracts market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The tea extracts market size has grown strongly in recent years. It will grow from $4.14 billion in 2023 to $4.44 billion in 2024 at a compound annual growth rate (CAGR) of 7.0%. The growth observed during the historical period can be attributed to several factors, including the traditional use of tea in Asian cultures, a rise in consumer awareness of its health benefits, the recognition of its antioxidant properties and associated health claims, an increased demand for functional beverages, and the expansion of tea into the non-alcoholic beverage industry.

The tea extracts market size is expected to see strong growth in the next few years. It will grow to $5.81 billion in 2028 at a compound annual growth rate (CAGR) of 7.0%. The anticipated growth in the forecast period can be attributed to several factors, including the increasing popularity of specialty and herbal teas, a shift towards natural and plant-based ingredients, a growing application of tea extracts in functional foods and supplements, ongoing research and development in tea extract bioactives, and the prominence of e-commerce and direct-to-consumer sales channels. Major trends expected during this period include innovations in tea extract formulations, such as concentrates and powders, the rise of premium and specialty tea extracts, advancements in product formulations, the adoption of clean label and natural extraction processes, and the expanding use of tea extracts in beauty and personal care applications.

The tea extract market is anticipated to experience growth, driven by the increasing demand for dietary supplements. Dietary supplements, distinct from regular foods and pharmaceuticals, are widely used globally. Tea extracts, particularly those from green tea, are commonly incorporated into the production of dietary supplements. These supplements are known for assisting in blood sugar and blood pressure regulation, weight management, disease prevention, and workout recovery. For instance, a Consumer Survey on Dietary Supplements conducted by The Council for Responsible Nutrition in October 2021 revealed that 80% of Americans were using dietary supplements, highlighting the growing demand propelling the tea extract market.

The growth of the tea extracts market is expected to be fueled by the rising expenditure on food and beverages. Food and beverage expenditure reflects the amount of money spent on purchasing food and drinks. Tea extracts, recognized for their natural and refreshing qualities, are becoming increasingly popular as consumers seek healthier beverage options. According to a report by PwC, Rabobank, and Temasek, Asian consumers are projected to double their spending on food, surpassing $8 trillion by 2030. This surge in food and beverage expenditure is a key factor driving the growth of the tea extracts market.

A notable trend in the tea extracts market is the emergence of new product innovations. Major companies in the market are actively focusing on introducing innovative products to meet consumer demands and enhance their market position. For example, in February 2021, Finlays launched the Wellbeing Collection, a premium natural tea extracts range, utilizing brush-to-bottle technology. This innovative range of tea extracts, sourced sustainably and naturally, aims to cater to the growing consumer demand for healthy and eco-friendly products.

Strategic investments have become a significant strategy in the tea extracts market, employed by major companies to strengthen their market presence and expand geographically. Strategic investments are long-term commitments made to gain strategic advantages. For instance, in February 2023, Mother Parkers Tea & Coffee, a leading coffee and tea manufacturer, invested $33.4 million in a new cold coffee and tea extracts manufacturing facility in Mississauga, welcomed by the Ontario government. This investment is expected to create new job opportunities and expand the company's product offerings.

In July 2023, Finlays acquired tea and yerba mate extraction assets from Natural Instant Foods. This strategic move allows Finlays to transfer the extraction assets to Kenya, establishing a small-scale production line and pilot plant at its Saosa tea extraction facility in Kericho. Natural Instant Foods, based in Paraguay, specializes in producing soluble powder extracts of tea, yerba mate, and stevia.

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., Amelia Bay Systems, Damin Food Co. Ltd., Dohler GmbH, Goodricke Group Limited, Robertet Group SA, ShanShan Tea Co. Ltd., Shenzhen Shenbao Huacheng Tech. Co. Ltd.

North America was the largest region in the tea extracts market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the global tea extracts market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the tea extracts market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The tea extract market consists of sales of epicatechins, epicatechin gallate, and flavanols. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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