May 22, 2024
Tea Extracts Market

Tea Extracts Market Growth Is Projected To Driven By Increasing Adoption Of Healthy Lifestyle

Tea extracts are derived from the leaves of the Camellia sinensis plant through solvent extraction and are rich in beneficial compounds such as polyphenols, plant antioxidants, and vitamins. Tea extracts serve as a natural flavoring agent and are widely used in food and beverages to add tea flavor while reducing caffeine content. Tea extracts also find applications in cosmetics and personal care products due to their antioxidant and skin-soothing properties. Tea extracts help protect skin from damage caused by UV radiation and oxidative stress.

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 key Trends:

One of the key trends in the tea extracts market is the growing demand for organic and naturally sourced ingredients in cosmetics and personal care products. Consumers are increasingly searching for natural ingredients that have fewer chemicals and are less harmful to the environment as well as the human body. Tea extracts fulfill this demand excellently due to their high antioxidant content derived from natural sources. Furthermore, the COVID-19 pandemic has increased health consciousness among people and boosted demand for immunity-supporting products. Tea extracts are rich in antioxidant polyphenols that help boost immunity. This is contributing to increased applications of tea extracts in dietary supplements and functional foods and beverages. Tea extracts manufacturers are also focusing on innovative product development such as tea-based gummy supplements and energy drinks to expand their consumer base.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the tea extracts market is moderate due to existing competition and requirement of high R&D and production costs.

Bargaining power of buyers: The bargaining power of buyers is high in the tea extracts market as there are numerous established players supplying tea extracts. Buyers can negotiate on price and quality.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials required for tea extracts such as tea leaves are abundantly available. However, suppliers of specialized production equipment have some bargaining power.

Threat of new substitutes: The threat of substitutes is moderate as other beverage extracts can replace tea extracts. However, tea extracts have established usage in various industries limiting impact of substitutes.

Competitive rivalry: The competitive rivalry in the tea extracts market is high due to numerous global and regional players. Companies compete based on product quality, innovation, and pricing.

Key Takeaways

The global Tea Extracts Market Growth is expected to witness high growth at a CAGR of 8.0% during the forecast period. 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.

Regional analysis

North America captures over 35% of the global tea extracts market share owing to rising demand for healthy beverage and food products. Europe accounts for around 30% share led by countries such as Germany, UK, and France. Asia Pacific is witnessing fastest growth at a CAGR of 9% on back of growing tea cultures in China, India, and other South East Asian countries.

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. The companies compete based on product quality, brand value, and innovation.

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