April 20, 2024
Tea Extracts Market

Tea Extracts Market is growing rapidly with increased consumption of herbal tea variants

The tea extracts market produces a variety of tea extracts obtained from green tea, black tea, and oolong tea. Tea extracts provide consumers with health benefits like weight management, immunity booster, antioxidant properties, skin care, and enhanced cognitive functions.

The Global tea extracts market is estimated to be valued at US$ 17.41 billion in 2024 and is expected to exhibit a CAGR of 8.0% over the forecast period from 2024 to 2031.

Tea extracts contain active compounds like polyphenols, catechins, caffeine, and other antioxidants which provide health benefits. Rising awareness about the medicinal properties of tea has increased the consumption of herbal tea variants containing extracts of green tea, pomegranate, turmeric, ginger, lemon, and Tulsi. Growing demand for dietary supplements and functional beverages with natural ingredients is also fueling the demand for tea extracts. The global tea extracts market is driven by increased health consciousness, changing lifestyles, and rising disposable incomes in developing countries.

Key Takeaways
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. These players are focused on new product launches, expansions, and mergers & acquisitions to gain a competitive edge in the market.

The increasing demand for herbal tea variants and dietary supplements owing to health benefits is a major factor propelling the growth of the Tea Extracts Market Size. Manufacturers are developing innovative products containing a mixture of various extracts to attract more consumers.

The global tea extracts market is witnessing significant expansion into emerging markets of Asia Pacific and Latin America. Increasing awareness about herbal tea, western influence, and rising disposable incomes in developing countries are boosting the uptake of premium tea extracts in these regions.

Market key trends

The rising popularity of bioactive compounds extracted from green tea, turmeric, and pomegranate is a key trend driving innovation in the tea extracts market. The proven anti-inflammatory, antioxidant, and anti-cancer properties of these ingredients are encouraging manufacturers to infuse tea extracts into various foods and beverages. The growing demand for plant-based and organic products is also shaping new product launches in the tea extracts industry.

Porter’s Analysis
Threat of new entrants: Tea Extracts Market require substantial R&D investments and established distribution channels to enter the market. Bargaining power of buyers: Large buyers have significant bargaining power due to the global presence of many tea extract manufacturers. Bargaining power of suppliers: Suppliers of raw materials such as tea leaves have moderate bargaining power due to the availability of substitute raw materials. Threat of new substitutes: Substitute products include coffee and other fruit/herbal extracts; however, tea extracts have established consumer preference. Competitive rivalry: The tea extracts market is highly fragmented with the presence of many global and regional players competing on product quality, taste, price, and marketing.

Geographical Regions
North America represents the largest regional market for tea extracts, accounting for over 30% of the global value share. This is due to high consumption of tea and tea-based beverages in the US and Canada.

Asia Pacific region is poised to be the fastest growing market during the forecast period, expanding at a CAGR of more than 9%. Increasing health consciousness and shift towards herbal preparations are driving the demand for tea extracts in countries such as China, India, Japan, and South Korea.

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