The scope of our recent study on the "Tea Extracts Market Forecast to 2031 - Global Analysis - by Type, Category, Form, Application, and Geography" includes the factors fueling the tea extracts market growth, revenue estimation, and forecast, market share analysis, and the identification of significant market players and their key developments.
The tea extracts market size is projected to reach US$ 3.58 billion in 2023 to US$ 5.88 billion by 2031; it is estimated to register a CAGR of 6.4% from 2023 to 2031.
Tea extracts are concentrated forms of the bioactive compounds found in the tea leaves. These compounds are polyphenols, flavonoids, and catechins. These extracts are derived from various types of tea, including green, black, oolong, white, and others. They are used in a variety of products, ranging from dietary supplements to beverages, cosmetics, and pharmaceuticals. The demand for tea extracts is attributed to increasing consumer awareness of health benefits associated with tea such as its antioxidants, anti-inflammatory, and weight management properties. As consumers continue to prioritize wellness and natural ingredients, the demand for tea extracts in functional food, beverages, and nutraceuticals is growing.
Consumers are becoming aware of the adverse effects of consuming food and beverages with synthetic ingredients. Due to growing concerns about ingredient safety and potential health consequences, natural food additives are being increasingly used in various types of food and beverages. Several health organizations and food safety associations prohibit the use of various artificial flavorings in food and beverages. For instance, the US Food and Drug Administration (FDA) banned seven artificial flavors that have been associated with cancer on October 5, 2018. The FDA had advised using naturally extracted additives available in different flavors as they are a safer option. Also, the FDA prohibited eight artificial flavorings that were included in ice cream, baked goods, confectionery, and beverages. These ingredients used as flavorings have been known to cause cancer in humans.
Consumers increasingly prefer food and beverages that are free of synthetic flavors, colors, and other food additives. Herbal and naturally made products are becoming increasingly popular, owing to their perceived health benefits. Products that are free of artificial ingredients are included in the diets of many consumers, and they are willing to pay high prices for these ingredients. Further, consumers are focusing on holistic and conscious consumption of food and prefer products with ethically sourced ingredients. Tea extracts are widely used as antimicrobials, antioxidant agents, and shelf-life-extending agents in food and beverages to prevent major digestive and chronic diseases. Similarly, green tea extract, with its rich antioxidant content, is particularly favored in yogurt and drinkable dairy products, where it enhances the health profile by adding polyphenols known for their potential benefits in boosting metabolism and supporting overall wellness. Owing to increased applications in the food & beverages industry, manufacturers are significantly launching tea extracts. For instance, in November 2022, Layn Natural Ingredients, a manufacturer of botanical extract ingredients, added an instant tea extract powder line to its portfolio of tea extracts. This extract is suitable for instant tea and ready-to-drink products. Thus, the rising demand for natural ingredients in food and beverages fuels the tea extracts market growth.
Based on type, the tea extracts market is segmented into green tea, black tea, oolong tea, and others. The green tea segment dominated the market in 2023, owing to its rising popularity as a health-oriented beverage and ingredient. Green tea extracts, derived from the leaves of camellia sinensis, are rich in antioxidants, particularly catechins such as epigallocatechin-3-gallate (EGCG)-which are associated with numerous health benefits. These include improved metabolism, enhanced brain function, and reduced risk of chronic diseases such as cardiovascular issues. As consumers increasingly prioritize health and wellness, the demand for green tea extracts has surged for use in traditional beverages and as a key ingredient in dietary supplements, functional foods, and cosmetics. In the tea extracts market, the demand for green tea is further bolstered by its versatility.
The tea extracts market, based on application, is segmented into food & beverages, dietary supplements, personal care & cosmetics, and others. The food & beverages segment held the largest market share in 2023. The food & beverage application segment of the tea extracts market is a significant driver of its global demand. Global consumers seek products with natural ingredients and additional functional properties that support a healthy lifestyle. Tea extracts, derived from various types of tea such as green, black, oolong, and white tea, are rich in antioxidants, polyphenols, and other bioactive compounds-making them highly sought after for their health benefits. Tea extracts have antimicrobial and antioxidant activity, preventing major digestive and chronic diseases. The tea extracts essentially thrive on the wider functional benefits that these ingredients confer in terms of the high quality, safety, and nutrition of processed food products.
In terms of revenue, Asia Pacific dominated the tea extracts market share in 2023. China presents a major market for tea extracts in Asia Pacific. The China tea extracts market is a vast and rapidly growing industry driven by rich tea culture. China is the world's largest tea producer and consumer. The market is characterized by a strong preference for high-quality tea extracts, particularly in traditional Chinese medicine and the pharmaceutical industry. Chinese manufacturers such as Tongrentang and Yunnan Baiyao used tea extracts to create medicine products such as tea-based supplements and tea-infused health tonics. Furthermore, China's thriving food and beverages industry, led by companies such as Hangzhou Wahaha Group and Nongfu Spring, is constantly seeking new and exciting ways to incorporate tea extracts into products, driving growth and innovation in the market..
The report includes the segmentation of the global tea extracts market as follows:
The tea extracts market is segmented on the basis of type, category, form, application, and geography. Based on type, the market is segmented into alpha, beta, gamma, delta, and complex. In terms of category, the market is bifurcated into organic and conventional. Based on form, the market is divided into dry and liquid. By application, the market is segmented into food & beverages, dietary supplements, personal care and cosmetics, and others. The food & beverages segment is further segmented into bakery & confectionery, dairy & frozen dessert, beverages, and others.
By geography, the market is broadly segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America. The North America market is further segmented into the US, Canada, and Mexico. The tea extracts market in Europe is sub-segmented into Germany, France, the UK, Italy, Spain, and the Rest of Europe. The Asia Pacific tea extracts market is further categorized into China, India, Japan, Australia, South Korea, and the Rest of Asia Pacific. The market in the Middle East & Africa is further segmented into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. The South & Central America market is further categorized into Brazil, Argentina, and the Rest of South & Central America.
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