Tea extracts are concentrated solutions of bioactive compounds derived from tea leaves. They provide numerous health benefits and are used as functional ingredients in the food and beverage industry. Tea extracts contain antioxidants like polyphenols that protect cells from damage. They are widely used in dietary supplements, cosmetics, functional foods and beverages to impart health and wellness properties. For instance, green tea extracts containing Epigallocatechin gallate (EGCG) are often added to energy drinks, weight management products and skin creams for their antioxidant and anti-aging properties.

The global tea extracts market is estimated to be valued at US$ 17.41 Bn in 2024 and is expected to exhibit a CAGR of 8.0% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Increasing Demand from the Food and Beverage Industry: As mentioned in the heading, the food and beverage industry has seen rising consumption of tea extracts. Tea extracts are useful ingredients that impart health benefits, antioxidants and flavors in beverages, dietary supplements, functional foods and more. The growing health-conscious population globally is generating more demand for nutritional beverages containing tea extracts. Additionally, the convenient format of extracts allows easier incorporation in various product formulations. This growing demand from the food and beverage industry is expected to drive the tea extracts market.

Antioxidant Properties of Tea Extracts: Tea extracts are rich sources of polyphenolic antioxidants like catechins that protect cells from damage caused by free radicals. Free radical induced oxidative stress is linked to several chronic conditions. The antioxidant properties of tea extracts help neutralize free radicals, thereby providing health benefits. Increasing consumer awareness about the role of antioxidants in health is fueling interest in tea extracts. Their antioxidants boost the immune system and reduce inflammation. This key property is augmenting demand in supplements, cosmetics and functional foods markets.

Segment Analysis

The tea extracts market is dominated by the powder sub-segment which holds around 40% share of the overall market. Tea extracts powder is widely used in the food and beverage industry for flavoring and adding antioxidant properties to products. It is easy to handle, store and transport in powder form which has made it the preferred format for various manufacturers.

PEST Analysis

Political: Tea being an important agricultural commodity, governments across major producing countries implement supportive policies for its cultivation and trade. Subsidies and favorable export regulations boost the growth of tea extracts market.
Economic: Rising disposable incomes and increasing health consciousness is driving the demand for premium quality tea and derived products globally. Rapid urbanization in developing nations expands the customer base for tea extracts.
Social: Changing lifestyle and busy schedules have increased the consumption of packaged tea mixes and ready-to-drink beverages using tea extracts. Awareness about health benefits of antioxidants further augments the market.
Technological: Advanced extraction techniques allow manufacturers to utilize more plant parts and develop innovative formulations. This helps cater to diverse application requirements and customized formulations.

Key Takeaways

The global Tea Extracts Market Growth size was valued at US$ 17.41 Bn in 2024 and is expected to reach US$ 30.56 Bn by 2031, expanding at a CAGR of 8.0% during the forecast period.

Regional analysis

The Asia Pacific region dominated the global tea extracts market with over 35% share in 2024 owing to large production and consumption of tea in major economies like China and India. Countries like Japan and South Korea are fastest growing markets in the region led by shifting preferences towards healthy beverages.

Key players

Key players operating in the tea extracts market are Apple Inc., Huawei Technologies Co. Ltd., MediaTek Inc., Qualcomm Technologies Inc., Samsung Electronics CO. LTD., Intel Corporation, STMicroelectronics N.V., Toshiba Corporation, NXP Semiconductors N.V., and Broadcom Inc.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it