The tea extract market is projected to grow at a CAGR of 6.63% increasing from a market size of USD3,286.075 million in 2019 to a market size of USD4,830.076 million by the end of 2025. Tea is the most common beverage consumed worldwide, hence, with 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 to be beneficial in the prevention of 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 among others are used in the 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 the market growth in the forecast period. Utilization of tea extracts in functional beverages and nutraceuticals are further providing an opportunity for the market to grow in the forecast period and in 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 which include green tea and black tea. For the extraction of tea extracts, in addition to the utilization of traditional solvent and water extraction method, 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 concentrate liquid, and brewed tea extract concentrate liquid, green tea extract instant tea powder, and green tea top note CO2.
The growing beverage industry is fueling 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 of the developed regions. This has further increased the purchasing power of the consumers where they are capable of purchasing 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 and mergers and strategic collaborations to increase their market outreach and satiating consumer demands. The expansion of distribution channels, online and offline are 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 in 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 are further augmenting the market demand in this region.
On the basis of application, the 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 the rapid urbanization, a shift from rural areas to the urban areas of the world is being observed, hence the change in consumer dietary consumption trends with the evolving living conditions is soaring the market demand in the forecast period. With the shift in dietary trends and the adoption of a busy lifestyle, people are preferring drinks that are easy to consume with health benefits. Beverages including functional beverages, and plant-based waters are gaining popularity at a fast rate. These are further known to offer varied customers the ease of drinking their favourite beverage products at the location of their choice, without compromising with the quality. Additionally, ready-to-drink tea or coffee and cold-pressed juices are further gaining momentum with the growing market demand for convenience beverages. This is because of the fact that 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, hence, with the increasing family income and increasing per capita income, consumer willingness for premium beverages have 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.