Tea Extract Market Size, Share, Opportunities, COVID 19 Impact, And Trends By Tea Type (Green Tea, White Tea, Oolong Tea, Black Tea, Pu’erh Tea), By Water Solubility (Hot Water Soluble Extract, Cold Water Soluble Extract), By Form (Liquid, Powder), By Application (Food, Beverage, Cosmetics, Pharmaceuticals), And By Geography- Forecasts From 2022 To 2027
- Published : Aug 2022
- Report Code : KSI061613466
- Pages : 120
The tea extract market is projected to grow at a CAGR of 5.74%, increasing from a market size of US$2,995.260 million in 2020 to a market size of US$4,427.360 million by the end of 2027.
Tea is the most common beverage consumed worldwide; hence, with the known health benefits of tea, the market for tea extracts is propelled to grow at a significant pace in the forecast period. Tea is also proven beneficial in preventing deadly diseases like cancer and cardiovascular diseases. Also, at the time of throat infections, tea is proven to be highly beneficial in curing flu-like symptoms. The main components of tea include polyphenols; also, catechins, gallic acid, and flavonoids, which are used in food and beverages. Hence, the growing food and beverage industry is driving the market demand in the forecast period.
Instant tea extract mixes are used in vending machines, further propagating market growth in the forecast period. The utilization of tea extracts in functional beverages and nutraceuticals further provides an opportunity for the market to grow in the forecast period and the upcoming years. With the growing trend of consuming green tea, the market for green tea extracts holds strong prospects over the next five years. This is mainly attributed to the changing living conditions of people giving rise to changing dietary patterns as well.
The presence of companies offering innovative tea extract products is providing an impetus for the market to thrive in the forecast period. Synthite Industries Ltd. offers industrial products, which include tea and coffee extracts. The company processes all types of tea, including green and black tea. For the extraction of tea extracts, in addition to the utilization of traditional solvent and water extraction methods, there are certain advanced extraction technologies, namely supercritical fluid (CO2) extraction, thin-film distillation, spinning cone column, membrane separation, and spray drying for obtaining a variety of tea extracts to be used in various applications. The product for tea extracts comprises instant tea powder, instant tea powder (high clarity), brewed black tea top note liquid, tea extract concentrate liquid, black tea aroma encapsulated, encapsulated tea aroma powder, black tea extract CO2, black tea extract concentrates liquid, and brewed tea extract concentrate liquid, green tea extract instant tea powder, and green tea top note CO2.
The growing beverage industry is fuelling the growth of the global tea extract market in the forecast period.
The market is expected to fuel at a decent rate with the increasing disposable income in the developing economies of the world and a high disposable income in the developed regions. This has further increased the purchasing power of consumers who can purchase premium drinks. The growing preference for convenience foods and beverages is further propagating the market growth in the forecast period due to the growing urbanization and consumer adoption of the busy lifestyle in order to sustain in the fast-moving urban environment. Additionally, market players are adopting strategies in the form of acquisitions, mergers, and strategic collaborations to increase their market outreach and satiate consumer demands. The expansion of distribution channels, online and offline, is further strengthening the market growth in the forecast period. Furthermore, with continuous innovations in the beverage industry, the market is propelled to grow in the upcoming years.
Geographically, the Asia Pacific region is projected to hold a notable share of the market owing to an expanding middle-class population that provides a high consumer base. The growing disposable income, increasing family income, and increasing urbanization with a change in consumer lifestyle further augment the market demand in this region.
On the basis of application, RTD drinks are accounted to hold a significant market share, followed by instant mixes, functional beverages, nutraceuticals, and cosmetics.
The growth of RTD drinks is attributed to the growing consumer preference for convenience food and beverages, fueling the market demand in the forecast period. There is a growing preference for convenience food and beverages around the globe. This is attributed to rapid urbanization; a shift from rural areas to urban areas is being observed. Hence, the change in consumer dietary consumption trends with the evolving living conditions is soaring in the market demand in the forecast period. With the shift in dietary trends and the adoption of a busy lifestyle, people prefer drinks that are easy to consume with health benefits. Beverages, including functional beverages and plant-based waters, are gaining popularity quickly. These are further known to offer varied customers the ease of drinking their favourite beverage products at the location of their choice without compromising the quality.
Additionally, ready-to-drink tea or coffee and cold-pressed juices are gaining momentum with the growing market demand for convenience beverages. This is because these grab-and-go drinks easily fit into the busy schedule of the working population. In many of the emerging economies of the world, women have started entering the main workforce. Thence, with the increasing family income and increasing per capita income, consumer willingness for premium beverages has also risen. Furthermore, with strong economic growth and increasing disposable income, the consumer preference for buying expensive drinks remain high, thus propelling the market growth in the forecast period.
Key Developments in the Market
- In February 2022, a global provider of tea, coffee, and botanical solutions Finlays, and the global largest privately held fragrance and taste firm, Firmenich, signed an agreement that effectively grants Firmenich complete sales rights to Finlays' European tea and coffee extracts portfolio. In accordance with this new contract, Firmenich will concentrate on commercializing the cold brew coffee and tea extract portfolios, two essential components of Finlays' extracts business in Europe.
- In January 2022, Oregon-based T-Bev Inc., a provider of herbal and botanical extracts, was acquired by Florida Food Products (FFP). T-Bev, a company founded and run by Anson Gu, provides a variety of functional components, such as green tea extract, L-theanine extract, as well as natural sweeteners, and other chemicals. This acquisition served as the foundation for FFP's expansion on West Coast.
- In October 2021, in response to rising consumer demand for clean-label, Layn Natural, a botanical extracts supplier, announced an expansion of its tea extract line. The extracts include polyphenols, catechins, EGCG, flavonoids, L-theanine, caffeine, and other antioxidants and active substances. The portfolio is intended for use in applications related to flavour and product preservation, as well as health and wellbeing. The contents include green, black, white, oolong, and pu-erh tea extracts from the Camellia sinensis plant.
- COVID-19 Insights:
COVID-19 had a significant impact on the global tea extract market. The mandated lockdown and social distancing measures in the harvesting period significantly impacted the supply chains and harvest. The main factors that hindered the market were the lack of manpower and border restrictions.
Tea Extract Market Scope:
|Market Size Value in 2020||US$2,995.260 million|
|Market Size Value in 2027||US$4,427.360 million|
|Growth Rate||CAGR of 5.74% from 2020 to 2027|
|Forecast Unit (Value)||USD Million|
|Segments Covered||Tea Type, Water Solubility, Form, Application, And Geography|
|Regions Covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies Covered||Kemin Industries, Inc., Givaudan, Synthite Industries Ltd., Finlays, Martin Bauer Group, FutureCeuticals, Inc., Synergy Flavors, Cymbio Pharma Private Limited, Phyto Life Sciences P. Ltd., AVT Natural Products Ltd.|
|Customization Scope||Free report customization with purchase|
- By Tea Type
- Green Tea
- White Tea
- Oolong Tea
- Black Tea
- Pu’erh Tea
- By Water Solubility
- Hot Water-Soluble Extract
- Cold Water-Soluble Extract
- By Form
- By Application
- By Geography
- North America
- South America
- Middle East and Africa
- Saudi Arabia
- Asia Pacific
- North America
Frequently Asked Questions (FAQs)
1.1. Market Overview
1.2. COVID-19 Scenario
1.3. Market Definition
1.4. Market Segmentation
2. RESEARCH METHODOLOGY
2.1. Research Data
3. EXECUTIVE SUMMARY
3.1. Research Highlights
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Force Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. TEA EXTRACT MARKET ANALYSIS, BY TEA TYPE
5.2. Green Tea
5.3. White Tea
5.4. Oolong Tea
5.5. Black Tea
5.6. Pu’erh Tea
6. TEA EXTRACT MARKET ANALYSIS, BY WATER SOLUBILITY
6.2. Hot Water-Soluble Extract
6.3. Cold Water-Soluble Extract
7. TEA EXTRACT MARKET ANALYSIS, BY FORM
8. TEA EXTRACT MARKET ANALYSIS, BY APPLICATION
9. TEA EXTRACT MARKET ANALYSIS, BY GEOGRAPHY
9.2. North America
9.2.1. United States
9.3. South America
9.5. Middle East and Africa
9.5.1. United Arab Emirates
9.5.3. Saudi Arabia
9.6. Asia Pacific
10. COMPETITIVE ENVIRONMENT AND ANALYSIS
10.1. Major Players and Strategy Analysis
10.2. Emerging Players and Market Lucrativeness
10.3. Mergers, Acquisitions, Agreements, and Collaborations
10.4. Vendor Competitiveness Matrix
11. COMPANY PROFILES
11.1. Kemin Industries, Inc.
11.3. Synthite Industries Ltd.
11.5. Martin Bauer Group
11.6. FutureCeuticals, Inc.
11.7. Synergy Flavors
11.8. Cymbio Pharma Private Limited
11.9. Phyto Life Sciences P. Ltd.
11.10. AVT Natural Products Ltd.
Kemin Industries, Inc.
Synthite Industries Ltd.
Martin Bauer Group
Cymbio Pharma Private Limited
Phyto Life Sciences P. Ltd.
AVT Natural Products Ltd.
|Report Name||Published Month||Get Sample PDF|
|Coffee Bean Market Size & Share: Industry Report, 2023 - 2028||Mar 2023|
|Organic Tea Market Size & Share: Industry Report, 2022–2027||Aug 2022|
|Global Tea Market Size, Share & Growth: Industry Report, 2022-2027||Sep 2022|
|Milk Powder Market Size, Share & Trends: Industry Report, 2022–2027||Sep 2023|
|Coffee Pods Market Size, Share & Growth: Report, 2023 - 2028||Aug 2023|