The global Tea Extracts Market is estimated to be valued at US$ 15.11 Bn in 2023 and is expected to exhibit a CAGR of 43% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Tea extracts are natural ingredients obtained from the dried leaves of Camellia sinensis. It contains polyphenols like catechins and flavonoids which have various health benefits such as weight management, heart health, cancer prevention and antioxidant properties. The extracts are not only used in beverages but also as natural ingredients in various food products, dietary supplements, cosmetics and personal care products. They also act as natural coloring and flavoring agents. Tea extracts provide cost effectiveness, improved shelf-life and ease of handling in food processing as compared to fresh tea leaves.
Market key trends:
One of the key trends in tea extracts market is growing demand for sustainably sourced and organic tea extracts. Consumers are increasingly aware about ethical and environmentally responsible sourcing of ingredients used in their foods and beverages. They prefer brands that source high quality tea extracts through sustainable cultivation and fair trade practices. Another trend is the increasing application of tea extracts in functional food and beverages. Many new product launches in food and beverage industry are incorporating tea extracts for their claimed health benefits. With growing popularity of dietary supplements, cosmeceuticals and personal care products, tea extracts are also finding larger applications beyond beverages.
- Threat of new entrants: The tea extracts market requires high R&D and processing costs which acts as a barrier for new companies. The established players also have high brand recognition.
- Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of numerous suppliers. However, switching costs are low.
- Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to the availability of substitute raw materials.
- Threat of new substitutes: Emerging herbal extracts pose a moderate threat as substitutes. However, tea extracts have established demand for its proven health benefits.
- Competitive rivalry: The tea extracts market has few global players with large market shares. Companies compete based on product differentiation, reliability, and pricing.
The Global Tea Extracts Market Demand is expected to witness high growth, exhibiting CAGR of 43% over the forecast period, due to increasing health consciousness among consumers. The market size for 2023 is US$ 15.11 Bn.
The Asia Pacific region is expected to dominate the tea extracts market during the forecast period. This is attributed to the easy availability of tea crops and large production in countries like India and China. North America is expected to grow at a fast pace due to the increasing utilization of tea extracts in functional food & beverages and supplements in the U.S. and Canada.
Key players operating in the tea extracts market are 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, Â Martin Bauer Group., and Taiyo International. These players are focusing on new product launches and capacity expansions to strengthen their market position.