Tea Extract Market Forecasts from 2023 to 2028

The tea extract market is evaluated at US$3, 099.508 million for the year 2021 growing at a CAGR of 5.19% reaching the market size of US$4, 417.978 million by the year 2028.

The growth of the tea extract market is predicted to be fueled by a rise in the working population, an increase in the demand for ready-to-use items, and growing retail marketplaces. A change in lifestyle and rising demand from the personal care sector are some other growth drivers. According to the warehousing development and regulatory authority, the water-soluble extract percentages for green tea, black tea, and Kangra tea are 32%, 32%, and 23% respectively. These extracts are further used for various health benefits fueling the demand in the tea extract industry.

Growing utilization of tea extracts in dietary supplements

Tea Extract is commonly used in the creation of nutritional supplements. Tea extracts used in dietary supplements aid in controlling blood sugar, blood pressure, and weight, preventing illness, and recovering from exercise. The utilization of dietary supplements is growing as a result of increased healthcare expenses and an accompanying focus on preventative medicine. Customers' knowledge of their health is growing all around the world, which is affecting the sales of nutritional supplements as healthy alternatives to conventional medication.

Some dietary supplements contain green tea, often in the form of green tea extract. Caffeine and catechins, especially the flavonoid epigallocatechin gallate (EGCG), are the key ingredients in green tea that are linked to weight reduction. A normal cup of brewed green tea has 45 mg of caffeine and between 240 and 320 mg of catechins.

Key market players focus on innovation in dietary supplements

Key manufacturers offer multiple dietary supplements including tea extracts fueling the tea extract market. For instance, the 500 mg of green tea extract in INLIFE supports the immune system. Epigallocatechin Gallate (EGCG), a polyphenol catechin, is abundant in this product, which aids in the formation of healthy cells and the prevention of cell damage. The antioxidant EGCG in green tea extract is well known for its potent anti-free radical and anti-ageing properties. Furthermore, Zenwise's Green Tea Extract contains Green Tea Extract (725 mg) and Vitamin C (60 mg). To support good cholesterol levels and cognitive and cardiovascular well-being in both men and women, green tea extract has been demonstrated to improve weight reduction. To support a stronger immune system and a better lifestyle, vitamin C in combination with green tea polyphenols can assist in boosting antioxidant protection.

The United States is anticipated to be the fastest-growing country in the North American region

The United States tea extract industry is anticipated to grow in the projected period owing to the increased use of tea as a natural and functional ingredient that provides benefits such as polyphenols, and antioxidants. Further, the market is propelled due to the increased focus of consumers on their health and wellness. According to the Tea Association USA, on any given day more than 159 million Americans are drinking tea, and in 2021 the people in the US consumed almost 85 billion servings of tea which is equivalent to 3.9 billion gallons.

Strategic mergers and collaborations are happening in the tea extract market, which can further propel the market growth. For instance, in May 2022, Florida Food Products (FFP) acquired T-Bev, which is a provider of high-quality, and all-natural ingredients focused on botanical and tea-related products. The company plans to nutraceutical ingredients and strengthen natural tea products in the projected period.

Growth in tea imports in the United States

According to the Observatory of Economic Complexity (OEC), the value of tea imported by the United States in value was worth US$526 million in 2021. The major supplier were Japan, India, China, Argentina, and Sri Lanka which supplied tea worth US$ 93.5, US$ 68.8, US$ 63.8, US$ 53.9, and US$ 40.7 million respectively. Hence, in the projected period, the tea extract industry is anticipated to grow as consumption of tea extract increases. There are multifold benefits to consuming tea leaf extracts. For instance, according to the National Institute of Health (.gov), tea leafs absorb ultraviolet radiation, due to which it protects the skin against harmful effects, which is increasing the tea extract market in the personal care industry.

Government initiatives are boosting the market

In July 2022, green tea extract underwent a thorough premarket safety evaluation by Health Canada's Food Directorate following the regulatory framework for supplementary foods. Based on the amount of epigallocatechin gallate (EGCG) and total catechins in the standardized green tea extracts, the premarket evaluation findings indicate their safety. Therefore, as stated in the Notice of Proposal information paper, Health Canada plans to permit the use of green tea extract (EGCG/catechins) by altering the list of permitted supplemental ingredients.

Market Key Developments

• In November 2022, an Instant Tea Extract powder line was added to Layn Natural Components' assortment of tea extracts, which is a producer of botanical extract components. The tea extract powders are made using a water extraction procedure, which helps to preserve the flavour and usefulness inherent in the tea leaves. The vertically integrated supply chain of Layn allows for full traceability of its tea extracts, which are manufactured responsibly.
• In January 2022, the biggest privately held fragrance and flavor firm in the world, Firmenich, and Finlays, a major provider of tea, coffee, and botanical solutions, made a deal that grants Firmenich complete sales rights to Finlays' European tea and coffee extracts portfolio.

Segmentation:

By Tea Type

• Green Tea
• White Tea
• Oolong Tea
• Black Tea
• Pu’erh Tea

By Water Solubility

• Hot Water-Soluble Extract
• Cold Water-Soluble Extract

By Form

• Liquid
• Powder

By Application

• Food
• Beverage
• Cosmetics
• Pharmaceuticals

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Spain
• Italy
• Others
• Middle East and Africa
• UAE
• Israel
• Saudi Arabia
• Others
• Asia Pacific
• Japan
• China
• India
• Australia
• Thailand
• Taiwan
• Others