Black Tea Extracts Market

Black Tea Extracts Market Snapshot (2023 to 2033)

Global black tea extracts demand is anticipated to be valued at USD 137.5 million in 2023, forecast to grow at a CAGR of 4.7% to be valued at USD 217.6 million from 2023 to 2033. Growth is attributed to the rise in awareness regarding the side effects of synthetic flavors.

Data Points	Key Statistics
Expected Market Value (2023)	USD 137.5 million
Anticipated Forecast Value (2033)	USD 217.6 million
Projected Growth Rate (2023 to 2033)	4.7% CAGR

Black tea extract is derived from powdered form powdered leaves of black tea. These leaves come from a plant called Camellia Sinensis. Camellia sinensis is the plant from which green tea, oolong, white tea, and other forms of tea are derived. Black tea is processed in a different way than green tea.

The increasing popularity of ready-to-drink beverages as a substitute for sodas and other fruit drinks is anticipated to drive market growth. Changing consumer preferences toward nutritious food supplements over synthetic ingredients are likely to drive growth over the next eight years.

Other factors such as the rise in the acceptance of black tea flavor in functional beverages, growth of product portfolios in the cosmetics industry, and the encapsulation of products, are expected to further generate new opportunities for the black tea extract market during the forecast period.

There is a large consumption of green tea in China, Japan, and other Asian countries owing to its medicinal value. Therefore, the inclusion of green tea extracts in the nutraceutical and functional food industries is expected to restrain market growth in the forthcoming years.

Which are Some Prominent Drivers Spearheading Black Tea Extracts Market Growth?

The black tea extracts market is expected to witness sustained growth over the forecast period, owing to factors such as the growing applications of black tea extracts in the cosmetics and food additives industry.

Other factors expected to boost the market growth include rising health-conscious consumers, increasing purchasing power, and rising per capita health expenditure. The presence of natural ingredients in black tea extracts coupled with growing awareness regarding its health benefits contributes significantly to the growth of the black tea extracts market over the analysis period.

The rise in awareness regarding the side effects of synthetic flavors is one of the major factors that is expected to accelerate market growth in the forthcoming years. Furthermore, the rise in the demand for herbal dietary supplements and the increase in the demand for fortified and innovative beverages are also expected to heighten the overall demand for the black tea extracts market during the forecast period.

Additionally, the various health benefits associated with black tea and an increase in the consumption of beverages all across the globe are also expected to serve as foremost drivers for the black tea extract market at a global level. In addition, the rise in the per capita spending on processed food and the rise in the clean label trend across the world is also lifting the growth of the black tea extract market during the forecast period.

What are the Challenges Faced by the Black Tea Extracts Industry?

The easy availability of cost-effective substitutes and the caffeine content in black tea extract can cause irregular heartbeat and sleep-related problems, which in turn is expected to hinder the growth of the black tea extract market during the forecast period. In addition, the unstable prices of raw materials are anticipated to challenge the growth of the black tea extract market over the analysis period.

The black tea extracts industry is largely affected by the presence of substitutes, namely herbal fusions and green tea extracts. Further, factors such as the increased number of advertisements and the marketing of substitutes are anticipated to impede industry growth in the near future.

There is a large consumption of Green tea in China, Japan, and other Asian countries owing to its medicinal value. Therefore, the inclusion of green tea extracts in the nutraceutical and functional food industries is expected to restrain market growth in the forthcoming years.

Why is North America Emerging as an Opportunistic Black Tea Extracts Market?

In terms of regional platforms, North America holds the largest market share in the black tea extracts market. The region is expected to surge to over 34.5% share from 2023 to 2033. North America is anticipated to be the largest importer of the product for use in cosmetic applications, ready-to-drink beverages, and other beauty supplement industries.

The region accounts for the consumption of 1,502.6 tons of the product owing to high demand for ready-to-drink beverages as an alternative to other herbal drinks on account of the nutritious health benefits. Additionally, North America leads the black tea extract market due to the high caffeine consumption and its related products.

How is Europe Contributing to Growth of the Black Tea Extracts Market?

According to Future Market Insights, Europe is expected to hold significant growth opportunities for black tea extracts and is expected to reach a share of 27.3% in 2023. Europe is expected to foresee significant growth in the black tea extracts market in the near future, owing to the larger production and consumption trend observed in the region.

Key players located in the region are integrated across the value chain. The presence of major players in Europe, coupled with increased disposable income and changing consumer preferences toward ready-to-drink beverages, will likely drive product growth soon. Many companies are focusing on using innovative techniques to manufacture products customized exclusively for the end-use industries, which is likely to drive growth in product consumption over the forecast period.

Where does Asia Pacific region stand in the Black Tea Extracts Market?

According to Future Market Insights, Asia-Pacific is expected to grow with lucrative growth opportunities for black tea extracts market and is expected to reach a significant share of 25.4% in 2023. Asia Pacific is expected to be a key industry for black tea extracts due to the larger production and consumption trend observed in the region.

Key players located in the region are integrated across the value chain. The presence of major players in Asia Pacific, coupled with increased disposable income and changing consumer preferences toward ready-to-drink beverages, is likely to drive product growth over the forthcoming years.

Many companies are focusing on using innovative techniques to manufacture products customized exclusively for the end-use industries, which is likely to drive growth in product consumption during the analysis period. Moreover, Asia-Pacific is expected to account for a substantial market share over the forecast period, attributed to the consumers' increased disposable income and the region's large production and consumption base.

How is Middle East & Africa Contributing to the Growth of the Black Tea Extracts Market?

According to Future Market Insights, the Middle East & Africa are expected to provide significant growth opportunities for the black tea extracts market and are expected to reach a share of 12.8% in 2023.

The region is anticipated to witness a substantial rise in demand for black tea extract, owing to its increased application in the cosmetic industry and high demand for ready-to-drink beverages.

Factors such as a rise in health awareness along with an increase in per-capita disposable income are also anticipated to fuel the growth of the black tea extracts market in the region over the forecast period.

Role of Start-ups in Black Tea Extracts Market

There are many prominent market players in the black tea extracts market, such as Amaara Herbs, Aromica Tea, Starlon Naturals, Eten Craft, Blueberry Agro Products, Tearaja, The Tea Trove, Ruloi Tea, Infused Kettle, Dwellar Teas, Adjourn Tea House, Bunka, Brooklyn Tea, MoreFya Herbal Tea and Smoke Blends, Ivy’s Tea Co., Cup of Té, The Black Leaf Tea & Culture Shop, Sip Tea Shop, Drink Our Hi-G, Hands of Sage, and Clipper Tea, among others, that are working hand-in-hand to provide the best-in-class black tea extracts for enhancing the global arena. However, there are many global start-ups in the black tea extracts market, which are stepping forward in matching the requirements of the black tea extracts domain.

• In June 2023, Clipper Tea, a British-based Certified B-Corp tea brand, started offering the next generation of tea drinkers trendy flavors and coveted experiences by combining high-quality ingredients that are sourced ethically and sustainably.
• In November 2020, Manipur-based Dweller Teas launched the new Nong-Mang-Kha Ginger Loose Tea’ to enable the public to consume more of the traditional herb, Nongmangkha. Endowed with anti-viral and anti-bacterial properties, Nongmangkha is consumed to boost their immunity.
• In January 2018, Kerala-based start-up Eten-Craft introduced an array of products under the Myte brand in the country's emerging iced tea and black tea segments. Promoted by three management graduates with experience in the food industry, the start-up hopes to make a mark in the growing iced-tea sector.

Market Competition

Some of the key participants present in the global black tea extracts market include Synthite Industries Limited, Finlay, Martin Bauer Group, Amax NutraSource, Inc., Kemin Industries, AVT Natural Products Ltd., Cymbio Pharma Pvt. Ltd., Inc., Phyto Life Sciences P. Ltd., and Blueberry Agro Products Pvt Ltd., among others.

The market is highly competitive due to the presence of such a large number of participants. While global players such as Synthite Industries Limited, Finlay, and Martin Bauer Group, account for a considerable market size, several regional-level players are also operating across key growth regions, particularly in North America.

Recent Developments

• February 2023: Synthite Industries announced the development of a new, more concentrated version of black tea extract. The new form is reported to be more powerful and simpler to utilize, which might make it more appealing to makers of food, beverages, and nutritional supplement items.
• March 2023: Martin Bauer Group confirmed the development of its black tea extract manufacturing capacity in India. The development is in response to the rising demand for black tea extract in the region, most notably in India and China.
• April 2023: Amax NutraSource, Inc. announced the introduction of a new range of black tea extract-based nutritional supplements. The pills are supposed to aid enhance weight reduction, energy levels, and general wellness.

Report Scope

Report Attribute	Details
Growth Rate	CAGR of 4.7% from 2023 to 2033
Base Year for Estimation	2022
Market Value in 2023	USD 137.5 million
Market Value in 2033	USD 217.6 million
Historical Data	2018 to 2022
Forecast Period	2023 to 2033
Quantitative Units	Revenue in USD million and CAGR from 2023 to 2033
Report Coverage	Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis
Segments Covered	Form, Application, Product Type, Region
Regions Covered	North America; Latin America; Europe; East Asia; South Asia & Oceania; Middle East and Africa
Key Countries Profiled	United States of America, Canada, Brazil, Mexico, Germany, France, Italy, Spain, United Kingdom, BENELUX, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Singapore, Australia, New Zealand, GCC Countries, South Africa, Israel
Key Companies Profiled	Synthite Industries Limited; Finlays; Martin Bauer Group; Amax NutraSource, Inc.; Kemin Industries; AVT Natural Products Ltd.; Cymbio Pharma Pvt. Ltd.; Phyto Life Sciences Pvt. Ltd.; Blueberry Agro Products Pvt. Ltd.
Customization	Available Upon Request

Key Segments Profiled in the Black Tea Extracts Industry Survey

Black Tea Extracts Market by Form:

• Liquid
• Encapsulated
• Powder

Black Tea Extracts Market by Application:

• Functional Food
• Beverages
• Cosmetics
• Beauty Supplements
• Dietary Supplements
• Herbal/Natural Medicine

Black Tea Extracts Market by Product Type:

• Hot Water Soluble
• Cold Water Soluble

Black Tea Extracts Market by Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia & Pacific
• Middle East & Africa

Frequently Asked Questions

What is the Black Tea Extracts Market Value in 2023? 

The market is valued at USD 137.5 million in 2023. 

What is the Projected Market Growth Outlook? 

The market is expected to secure a CAGR of 4.7% through 2033.

Who are the Leading Competitors in the Market? 

Synthite Industries Limited and Finlays are the leading competitors in the market. 

Which is the Top Trend in the Market? 

Increasing awareness regarding the side effects of synthetic flavors is encouraging sales. 

What is the Projected Size of the Market by 2033? 

The market is likely to reach USD 217.6 million by 2033.