How is the Market Size and Growth Rate for Global Tea Extracts Shaping Up?
The tea extracts market size has witnessed a significant growth in recent years. The value of the market increased from $4.44 billion in 2024 to an estimated $4.75 billion in 2025, representing a compound annual growth rate (CAGR) of 7.0%. This growth can be attributed to traditional usage in Asian cultures, increased consumer awareness of health benefits, antioxidant properties and health claims, growing demand for functional beverages, and expansion into the non-alcoholic beverage industry.
The tea extracts market size is set to experience robust growth in the coming years. It is projected to surge to $6.21 billion by 2029 at a CAGR of 7.0%. This growth in the forecast period can be credited to the rising popularity of specialty and herbal teas, growing application in functional foods and supplements, and the impact of e-commerce and direct-to-consumer sales channels. Trends to watch in the coming years include innovative tea extract blends, the emergence of organic and clean label tea extracts, research and development in tea extract bioactive, and a shift towards natural and plant-based ingredients.
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What are the Key Drivers of the Tea Extracts Market Growth?
The increase in demand for dietary supplements will act as a key driver for the growth of the tea extracts market in the forthcoming years. These ingestible products have become distinguishable from regular foods and pharmaceuticals and are consumed worldwide. Tea extracts, particularly green tea extracts, are extensively used in the production of dietary supplements. These tea extract dietary supplements assist in blood sugar regulation, blood pressure control, weight management, disease prevention, and workout recovery. The supplements market generated an impressive revenue of US$0.78 billion in 2024, according to a report by the US-based Smithfield Agency. The market is expected to show consistent growth with a projected annual increase of 6.53% from 2024 to 2029. Therefore, the rising demand for dietary supplements is primed to fuel the growth of the tea extract market.
What are the Major Segments Within the Global Tea Extracts Market?
The tea extracts market covered in this report is segmented into the following categories:
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
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Which Companies are Leading the Tea Extracts Market?
Prominent 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 are the Emerging Trends in the Tea Extracts Market?
Innovative product launches are becoming a popular trend in the tea extracts market. Major players in the market are concentrating on new product innovations to meet consumer demand and strengthen their position in the market. For instance, Layn Natural Ingredients, a US-based company specialising in high-quality natural ingredients from plants, launched an instant tea extract in November 2022. This instant tea extract is a concentrated form of tea that dissolves quickly in water, offering a convenient and flavourful beverage option without the need for brewing.
Which Region is Leading the Growth in the Tea Extracts Market?
North America was the largest region in the tea extracts market in 2024. However, Asia-Pacific is expected to be the fastest-growing region in the forecast period. The geographical coverage of the tea extracts market report includes Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
What Does The Tea Extracts Market Report 2025 Offer?
The tea extract is used for weight loss, blood sugar regulation, and disease prevention. Tea extracts are supplements derived from the tea plant containing concentrated compounds of antioxidants, polyphenols, vitamins, and flavonoids, which have been linked with various health benefits such as supporting heart, liver, brain function, enhancing skin appearance, and lowering the risk of cancer. The Tea Extracts Market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.
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