Besides an increasing rate of application of tea extracts in the food and beverage products due to their antioxidative capacity, their nutraceutical properties of polyphenols have driven the application in the food and beverage as well as supplement industries facilitating new products innovations in the personal care and healthcare markets in the form of capsules, tablets and blurred category of health drinks. Further increasing health awareness, high rate of R&D investments and growing integration in nutricosmetic products are expected to drive the demand for the tea extract market. Nevertheless, the availability of cost-effective substitutes is expected to hinder the growth of the tea extract market to a certain extend.
During the past few years, there has been a rising inclination towards augmenting the health benefits derived out of daily food consumption with nutraceuticals which offers more targeted delivery of the nutritional aspects which fail to be absorbed via the former. Further with the increasing cognizance of naturally derived ingredients, the inclusion of tea extract has emerged as one of the growing trends in the same. Based on the beauty-from-within philosophy, both players in the food and beverage market and personal care market are increasingly investing in the new product development with tea extract and its variety as key the ingredient. The purchasing propensities of consumers are being increasingly influenced by the perception of food as medicine whereby the rationale is to derive health benefits for a variety of food and beverage products.
The beverage category, especially that of the ready-to-drink (RTD) category is dominating the market due to its acknowledgment by various sections of consumers. Another aspect that is determinative of tea extract market growth is the increasing tendency to monitor the intake of sugar. Particularly, due to increased consumption of processed food which paves the way for consuming free sugars, among others deters the adherence to a balanced diet leading to non-communicable diseases (NCDs). To this end, quite a few countries across the world have implemented taxes on sugar-sweetened beverages, among others which have driven an increased rate of product development as far as RTDs are concerned. Above all, certain key market developments pertaining to the tea extract market to convey the forecasted upward trajectory are being mentioned below:
January 2018 Beverage based application – Product Launch
The launch of a new sparkling drink was announced among others by UK juice maker The Berry Company, among which the goji berry drink was reported to constitute green tea extract among others which was designed to deliver a fully authentic Far Eastern experience.
March 2018 Nutraceutical based application - Product Launch
The Launch of a unique nutraceutical that is a plant-based nootropic, was announced. Designed to be administered orally, Percepta™ has been developed to target the accumulation of tangles and plaques in the brain that directly contribute to memory loss that is related to the normal rate of aging. It reportedly constitutes of a specific oolong tea extract known as MemorTeaTM harvested from the Guan Yin mountain in China
May 2018 Cosmetics based application - Product Launch
Hawaiian Tropic® the organization that is renowned for making personal care products with high-quality ingredients had reportedly launched a product called intended for providing total-body sun care by making Hawaiian Tropic® Antioxidant Plus which is formulated with green tea extract in addition to broad-spectrum protection, available in SPF 30 and SPF 5, commercially available.
May 2018 Beverage based application - Product Launch
Nestle Waters had reportedly launched a range of organic sparkling flavored teas with the rationale to foray into trends for low- and no-sugar offerings. Sanpellegrino + Tea, which is made commercially available in flavors like Limone + Tea and Pesca + Tea reportedly contain 50 calories per 25cl can and is made from organic tea extract, among others.
September 2018 Cosmetic based application - Product Launch
The designer and developer of distinct hair care products that had reportedly launched a line of hair care products called Theorie Sage hair debuted in Canada with a benefit-drivencollection of eight aromatic shampoos and conditioners with reportedly highly concentrated blends that merge the best of lab-formulated and natural ingredients. Among the aforesaid a product is known for invigorating and strengthening damaged, dull hair has green tea extract as one of the key botanicals.
October 2018 Cosmetic based application - Product Launch
NIVEA is a German personal care brand that specializes in body-care had reportedly launched a complete cleanse skin named MicellAIR Skin Breathe Professional intended to be used for effectively removing long-lasting waterproof makeup, has been formulated with a combination of Black Tea extract, MicellAIR Complex, and dry oil among others.
The aspect of COVID 19 with substantial emergence of new cases in many countries as well as the looming threat of the second wave, at best the current condition can be termed as a mixed scenario for the tea extracts market. The aforesaid is also substantiated by the fact that despite governments of several countries are gradually relaxing the lockdown measures in their respective countries, consumers are adhering to extra precaution measures. Further, based on the mixed scenarios, the consumers who are protected form a plausible loss of income or health is expected to sustain the market growth through a purchase made over various online distribution channels, however those affected with furloughing or in some case unemployment have to reconsider their costs. Even though the aforesaid has impacted the growth of the market, the emerging trend of in-home consumption is expected to offset the downward-draft of RTDs and other FMCG products with tea extract as their ingredient.
The sales performance of tea extract infused products is expected to vary, should another wave of lockdown measures arise. It will be more geared towards the necessity than luxury where the cost-effective alternatives have high chances of supplanting certain products with tea extracts, which will impact the overall performance of the tea extract market. COVID 19 restrictions also provide opportunities for producers where they can leverage the altered consumer perception of value sensitivity. Thereafter expandable categories like that of soft drinks and other edibles will be subjected to promotions thereby invigorating in-home consumption.