Global sales of natural tea extract are estimated to total USD 5.4 billion in 2024 and USD 11.1 billion by 2034. Sales are projected to rise at a CAGR of 7.5% over the forecast period between 2024 and 2034.
Green tea has become the drink of choice for a high number of drinkers. Tea extract has thus become a common household item. The refreshing qualities of green tea are being embraced by all generations. The health qualities of the drink, too, are earning it admirers. The younger generations, obsessed with fitness, thus constitute a significant consumer base of green tea, as well as tea extract.
Global Natural Tea Extract Industry Assessment
| Attributes | Description |
|---|---|
| Historical Size, 2023 | USD 5 billion |
| Estimated Size, 2024 | USD 5.4 billion |
| Projected Size, 2034 | USD 11.1 billion |
| Value-based CAGR (2024 to 2034) | 7.5% |
As part of health trends, dietary supplements too have become more common. The busy lifestyles of the working population around the world make it hard for them to keep up with healthy diet regimens. Thus, more preference is being given to nutrition supplements. Tea extracts are seeing more use in these supplements. Not only are the health qualities of the extract cherished, but the familiar whiff of tea is also drawing in more consumers.
In addition to supplements and drinks, tea extract is also finding its way into more foods. The demand for functional food is ramping up as consumers seek to combine taste with healthiness. Green tea extract’s medicinal properties, especially its antioxidant function, are making it a popular ingredient in functional foods. The extract is used to enhance the flavor of the foods too.
The trend of preferring natural ingredients is not limited to the food and beverage sector. The cosmetics industry is also undergoing a notable natural boom. The ill effects of chemicals in cosmetics are being brought into the spotlight more, paving the way for organic ingredients to become a part of more cosmetics. Natural tea extract is riding the natural wave in the cosmetics sector.
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Demand for Energy Drinks Powers Up the Natural Tea Extract Market
With gym-going culture prominent, the demand for energy drinks is shooting up. With more consumers taking up sports as well, energy drinks are being sought on an increased basis. Natural tea extract is being used not only for its healthy properties but also for the unique taste it provides to energy drinks. Thus, energy drinks are an energizing avenue for the development of the product.
Bakery and Confectionary Use to Bolster Natural Tea Extract Market
While tea is not typically associated with the ingredients of bakery products, confectionery innovation has led to a variety of ingredients used in sweetmeats. Consumer clamor for diverse flavors has also led to tea-flavored confectionaries hitting the industry. Tea extract is a convenient option for bakers to get the tea flavor in their goods. The healthy nature of the extract also attracts more of the health-conscious crowd to bakery goods.
Side Effects of Green Tea Extract Lower Natural Tea Extract Market Possibilities
While green tea extract’s health benefits help its cause, ceasing to use the extract has been linked to side effects. Headaches, mood swings, and other side effects make consumers hesitant to use the extract in the first place.
The extract has also been known to lower the level of iron the body derives from food and supplements. Thus, a notable number of medical personnel advise against the taking of green tea extract in conjunction with iron supplements.
The market size of natural tea extract recorded a CAGR of 9.2% during the historical period between 2019 and 2023. The growth of the natural tea extract industry was positive as it reached a value of USD 5 billion in 2023 from USD 3.5 billion in 2019.
The pandemic highlighted the need for healthy habits in diets. Thus, during the historical period, more people took up the consumption of green tea.
The consumption of functional foods also increased. With home cooking obtaining a second wind, ingredients that were healthy but still flavorful increased in profile. Thus, the natural tea extract industry recorded a positive growth rate in the historical period.
The growth rate of the market during the forecast period is expected to be lower than the historical period. The emergence of various alternatives that give the same health benefits is supposed to curtail the growth prospects of the product.
Opportunities, however, still abound for investors. The varied use of the product, finding applications in food and beverage, pharmaceuticals, and more, is set to nourish the demand for natural tea extract. Growing knowledge about the health benefits of the product, combined with greater cosmetic use, is set to position the natural tea extract industry on a positive trajectory.
Principal Consultant
Among the prominent tier 1 companies in the sector are Finlays, Martin Bauer Group, and Tata Global Beverages. Partnership is a common strategy in the market. However, a more hostile option in the form of a takeover is also practiced to get ahead in the market.
One of the prominent players in the industry is Finlays. The United Kingdom-based player opened a new research and development facility in Rhode Island, the United States in 2018. The company also entered into a partnership with Firmenich in 2022 to concentrate on sustainable tea production.
Another prominent player, Martin Bauer Group, is focused on expanding production facilities. Tata Global Beverages, keeping in line with the company’s name, is focused on geographic expansion.
Some tier 2 companies of note in the industry include Herbo Nutra Extract Private Limited, Shree Sai Biotech, and Natural Hub. These tier 2 companies focus on acquiring authentic local ingredients and ensuring quality to consumers.
The section below covers the industry analysis for the natural tea extract market for different countries. Demand analysis on key countries in several regions of the globe, including North America, Asia Pacific, Europe, and others, is provided. By the end of the forecast period, the industry value in the United States is projected to hit USD 2 billion. Not far behind is China, where the value at the end of the projected period is expected to hit USD 1.8 billion.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| United States | 7.8% |
| United Kingdom | 8.7% |
| China | 8.3% |
| Japan | 9.2% |
| South Korea | 10% |
South Korea’s natural tea extract market is poised to exhibit a CAGR of 10% between 2024 and 2034. It will likely emerge as a highly lucrative pocket across East Asia during the forecast period.
K-beauty is becoming more popular worldwide. A big contributor to the building reputation of K-beauty products is the already impressive results the products have achieved in South Korea. These K-beauty brands explore new ingredients and formulations to keep demand fresh and offer even more success prospects.
Tea extract is just one of the ingredients that is being used to come up with new attractive products. For example, Amorepacific launched the VITALBEAUTIE Green Tea Probiotics supplement in South Korea to popular acclaim. Thus, the industry is predicted to advance at a promising rate in the country.
The United States is set to see the industry expand at a CAGR of 7.8% over the period from 2023 to 2033. It will remain a highly dominant market throughout the forecast period.
In the United States, the natural beauty trend is prevalent. As more aversion is shown towards chemical cosmetics, organic cosmetics are becoming more widely accepted. To cater to these needs of American consumers, manufacturers are incorporating more organic ingredients and making available fully organic products.
Tea extract is playing a key role in organic cosmetic formulations. For example, in August 2023, Tigovit USA introduced the Tigoderm skincare products line. In this range of products, green tea extract plays a key role.
In the United Kingdom, the natural tea extract market is expected to progress at a CAGR of 8.7% over the ensuing decade. This is attributable to a combination of factors.
The United Kingdom is renowned for its population’s love for tea. Tea is considered not only a refreshing drink in the nation but a way of life. Thus, the United Kingdom’s consumer base already has a taste for tea, laying out the groundwork for tea extract to penetrate further in the nation. It is claimed that the United Kingdom consumes the third-most tea in the world.
Tea consumption is also extending to drinking herbal teas. Thus, natural tea extract has the potential to garner significant demand in the country.
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The section contains information about the leading segments in the industry. The leader in the type segment, green tea extract, is anticipated to travel forward at a CAGR of 7.3% through the year 2034, while the leader in the application segment, dietary supplements, is forecast to register a CAGR of 7.1%.
| Type | Green Tea Extract |
|---|---|
| Value Share (2023) | 44% |
Green tea extract segment held 44% of the industry share in 2023. Thus, green tea extract triumphs over extracts of other teas, such as black tea and white tea.
Green tea is no longer seen as an alternative and is instead at the front and center of many café’s menus. This progression of the drink from niche to mainstream has also helped with the popularity of its extract.
Green tea extract is used in several food and beverage products. The use of the extract in dietary supplements and cosmetics, too, has a bright future. Thus, green tea extract is in for positive progression over the coming decade.
| Application | Dietary Supplements |
|---|---|
| Value Share (2023) | 38% |
Dietary supplements contributed 38% of the industry share in 2024. Tea extract‘s application in dietary supplements is growing due to the myriad of health benefits it provides.
Primary among them is the extract’s ability to inhibit fat absorption in cells. As fitness trends progress and obesity reduction becomes a major concern, the extract is becoming a popular ingredient in supplements. Other health benefits, such as reducing inflammation and blood pressure, also see the extract become more of a common feature in dietary supplements.
Leading natural tea extract market players are investing heavily in research and development to improve production processes and offer more variety to end users. Mergers and acquisitions are also common practices.
One of the prominent players in the market, Finlays is a prime example of both these strategies. The United Kingdom-based player opened a new research and development facility in Rhode Island, the United States, in 2018. The company also entered into a partnership with Firmenich in 2022 to concentrate on sustainable tea production. Another prominent player, Martin Bauer Group, is focused on expanding production facilities.
Recent Industry Developments in Natural Tea Extract Market
In terms of type, the industry is divided into green tea extract, black tea extract, white tea extract, and others.
Based on application, the industry is segmented into pharmaceutical, cosmetics, functional foods, dietary supplements, energy drinks, and others.
Key countries of North America, Latin America, Europe, East Asia, South Asia, Middle East and Africa (MEA), and Oceania have been covered in the report.
The global natural tea extract market is set to witness a CAGR of 7.5% through 2034.
The global natural tea extract market stood at USD 5 billion in 2023.
The global natural tea extract industry is anticipated to reach USD 11.1 billion by 2034.
South Korea is set to see the market record a CAGR of 10% for the forecast period.
Finlays, Martin Bauer Group, Tata Global Beverages, and Amax NutraSource.
1. Executive Summary
2. Industry Introduction, including Taxonomy and Market Definition
3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments
4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections
5. Pricing Analysis
6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034
6.1. Type
6.2. Application
7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Type
7.1. Green Tea Extract
7.2. Black Tea Extract
7.3. White Tea Extract
7.4. Others
8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application
8.1. Pharmaceutical
8.2. Cosmetics
8.3. Functional Foods
8.4. Dietary Supplements
8.5. Energy Drinks
8.6. Others
9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
9.1. North America
9.2. Latin America
9.3. Western Europe
9.4. South Asia
9.5. East Asia
9.6. Eastern Europe
9.7. Middle East & Africa
10. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
11. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
12. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
13. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
14. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
15. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
16. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
17. Sales Forecast 2024 to 2034 by Type and Application for 30 Countries
18. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
19. Company Profile
19.1. Finlays
19.2. Akbar Brothers
19.3. Martin Bauer Group
19.4. Tata Global Beverages
19.5. Amax NutraSource
19.6. Cymbio Pharma
19.7. Kemin Industries
19.8. AVT Natural Products
19.9. Nestle
19.10. Indena S.p.A.
19.11. Zhejiang Tea Group Co. Ltd
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Natural Tea Extract Market
