TEA EXTRACTS MARKET ANALYSIS

The global tea extracts market is estimated to surpass US$ 264.01 Bn by the end of 2030 in terms of revenue, exhibiting a CAGR of 6.4% during the forecast period (2023 to 2030).

Drivers

• Increasing awareness about health benefits of tea extracts

Health-related issues among the millennial population have been on the rise for the past few years, owing to consumption of junk food, work-life imbalance, and hectic daily routine, which leaves no time for exercise.

Thus, the need for the consumption of natural or organic tea extracts is being foreseen across the globe. Moreover, a research article published by National Institute of health in 2021, indicated that the ingestion of tea extracts assists in fighting against breast cancer. These extracts cause DNA breakage, which damages breast cancer cells and slows their proliferation. As per the report by the U.S. Breast cancer Organization published on February 4, 2021, around 13% of women in the U.S. are prone to develop breast cancer in their lifetime. Thus, the popularity of tea extracts to prevent such diseases is expected to gain traction in the coming years.

• Lifestyle changes and increased demand

An increasing working population, rising demand for ready-to-use goods, and expanding retail marketplaces are some of the factors predicted to drive the market growth over the forecast period. The rising popularity of tea as a natural element in personal care products is projected to fuel expansion in the worldwide tea extract market. Growing disposable income, increasing spending on food and beverages, and expanding consumer awareness about the benefits of healthy lifestyles are also projected to fuel the global tea extracts market expansion.

Trends

• Surging popularity of innovative and fortified beverages

Various types of tea extracts are widely used across the cosmetics industry. This can be attributed to the anti-inflammatory and antioxidant properties of these extracts. Moreover, the shifting inclination towards natural and organic cosmetic products across the globe is expected to trigger the demand for tea extracts.

Market Restraint

• Increasing number of substitute products

Rapid discoveries and research in food technology have opened up doors for several other alternatives to tea extracts. For instance, roots and extracts of Ginseng, an important medicinal plant widely popular across Asia, provides similar advantages as that of tea extracts. Moreover, Maca, a cruciferous vegetable found in Central Peru, helps in combating fatigue, and thus can act as an alternative to tea extracts with regards to the production of energy boosting beverages. Thus, the key players in this market including CWAY GROUP, a prominent food and beverage manufacturer, developed 100% caffeine-free Maca energy drink, which claims to provide many health benefits for the human body.

Opportunity

• Demand for organic products is increasing.

The growing global demand for organic goods is likely to create profitable opportunities for market participants in the future. Owing the tremendous demand for tea's functional features, tea makers worldwide are continually launching new and creative products. In order to widen their product variety and increase total sales, they are also offering ready-to-drink variations. These manufacturers are investing in creative marketing methods and celebrity endorsements, which are projected to drive the market growth in the next few years.

Market Segmentation  

1. Global Tea Extracts Market by Application, 2020

The food and beverages segment held the dominant position in the market and accounted for more than 32.4% share in the global tea extracts market in 2020.

Figure 1: Global Tea Extracts Market, by Application, 2020

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2. Global Tea Extracts Market by Region, 2022

North America held the dominant position in the global tea extracts market in 2022, accounting for a market share of 37.6% in terms of value, followed by Europe and Asia Pacific respectively.

Figure 2: Global Tea Extracts Market, by Region, 2022

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• Competitive Section

The key players operating in the global tea extracts market include AVT Natural, Archer Daniels Midland Company, Blueberry Agro, Cymbio Pharma Pvt Ltd., Harrisons Malayalam Ltd., Indena S.p.A., Martin Bauer Group, Synthite Industries Ltd., Synergy Flavors, Teawolf, and Taiyo International.

• Key Developments:
• In December 2020, Layn Natural Ingredients acquired Chengdu Wagott Bio-tech, China’s largest exporter of green tea extracts. With the help of this expansion, the company aims to expand its botanical extract portfolio.
• In February 2021, Finlays, one of the leading suppliers of coffee, tea, and botanical solutions, at worldwide launched a new range of premium, natural, and sustainably-sourced tea extracts in the market
• In November 2020, Florida Food Products acquired Amelia Bay LLC. With the help of this acquisition, the company aims to expand its product portfolio of natural ingredients.
• In August 2021, Layn Natural Ingredients an manufacture expanded its portfolio of non-GMO project verified botanical extracts. The new range of non-GMO products includes citrus, apple, Galla chinensis, green coffee bean, green tea, ginger, grape seed, magnolia bark, pu’erh tea, rosemary, and Sophora japonica.

*Definition: Tea extracts are derived from plants, such as Camellia Sinensis, and contain natural molecules named Catechins (polyphenols) which have antioxidant properties. The popularity of green tea extracts has increased at a rapid pace over the last few years due to the belief of tea extracts assisting the process of weight loss and facilitating skin and hair care. Thus, several tea manufacturers have started leveraging these properties by selling tea extracts across several industrial sectors such as food & beverages, cosmetics, and pharmaceuticals.