by Tea extracts are concentrated forms of tea that are widely used in food and beverages for their antioxidant and aromatic properties. Extracts contain high concentration of antioxidants like polyphenols, flavonoids that provide various health benefits. Tea extracts are extracted using advanced mechanical, ultrasonic and microwave extraction techniques that allows manufacturers to produce extracts with optimum concentration of phytonutrients while retaining aroma and flavor of tea.
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.
Key Takeaways
Key players operating in the tea extracts 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. Growing health-consciousness and demand for herbal products have opened new potential opportunities in application segments like functional foods, beverages, cosmetics which is likely to propel market growth. Advancements in extraction techniques allow tea extract manufacturers to provide customized extracts targeted towards specific health benefits like weight management, antioxidant rich extracts, extracts standardized for key catechins etc.
Market drivers
Increasing consumer preference for herbal & organic products extracted from natural sources is a key driver for Tea Extracts Market Size. Rising health concerns and awareness regarding benefits of antioxidants, polyphenols present in tea extracts is surging its demand in food and beverage industry. Proactively increasing applications of tea extracts in pharmaceuticals and cosmetics industry is expected to boost growth of tea extracts market over forecast period.
Challenges in the Tea Extracts Market
The tea extracts market is facing various challenges which include supply chain disruptions due to lockdowns imposed during the COVID-19 pandemic. Movement restrictions affected the procurement of raw materials and trade of tea extracts. There was a decline in demand from the food and beverages industry where tea extracts are majorly used. Another challenge is strong competition from players offering herbal tea extracts, fruit flavors, and other substitutes. Tea extracts face the threat of being replaced by alternate ingredients. Regulatory challenges also impact the industry as rules for usage of tea extracts vary across countries and regions.
SWOT Analysis
Strength: Tea Extracts Market offer various health benefits such as antioxidant properties. They are used as a flavoring agent in a wide range of food and beverages.
Weakness: Quality and efficacy of tea extracts may vary depending on the quality of raw materials used for extraction. Seasonal availability of certain raw materials can challenge constant production.
Opportunity: Rising demand for herbal and green tea extracts due to increasing health consciousness provides new avenues. Growing food processing and packaged beverages industries present expansion opportunities.
Threats: Presence of substitute ingredients pose a challenge. Stringent import regulations by certain countries pose a threat to international trades.
The tea extracts market in Asia Pacific is currently leading in terms of value due to major tea producing countries like China, India, and Sri Lanka being located in the region. North America is another concentrated market for tea extracts driven by their usage in food and beverages, cosmetics, and pharmaceuticals industries. Europe is also a prominent regional market.
Among regions, the tea extracts market in Central and South America is poised to witness fastest growth during the forecast period. This is attributed to rising health awareness, growing per capita incomes, and expanding food and beverages industries in countries like Brazil and Mexico.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
