The tea extracts market is projected to grow at a CAGR of 6.9% from 2019-2025, according to Research and Markets
The global tea extracts market is estimated to be valued at US$2.5 billion in 2019, and is projected to reach $3.8 billion by 2025, recording a CAGR of 6.9%, research company Research and Markets revealed in its report, Tea Extracts Market by Application, Category, Form, Type, and Region – Global Forecast to 2025.
The increase in consumption of convenience food, rise in health consciousness among consumers, and multi-functionalities of tea extracts are some of the major factors that have led to an increase in the application of tea extracts and surge in demand for tea extract supplements. These factors are projected to drive the growth of the global tea extracts market.
According to the report, the conventional segment, by category, is estimated to be the largest segment in tea extracts market during the forecast period. Tea extracts are manufactured either organically or through conventional methods. Natural fertilisers and compost are used to produce tea extracts organically, while extensive chemical treatment using chemical fertilisers are adopted for conventional tea extracts. Conventional tea extracts are produced commercially, unlike organic extracts, which are produced by small-scale producers; hence, organically produced tea extracts are priced at a premium rate, which affects their demand. Organic, being a recent trend, is still at its nascent stage, and hence, the conventional category segment dominated the global market.
The report further pointed out that the beverage segment, by application, is projected to witness the “fastest growth” in the market during the forecast period. This is largely due to the trend towards healthy eating has increased the demand for convenient and healthy options for food and beverages among consumers. Manufacturers have been incorporating innovative flavours in their ready-to-drink (RTD) beverage products, such as peach, lemon, honey, pomegranate, mint, and several herbal flavours, to cater to consumer demand. The growing demand for RTD tea in the global beverage segment has been creating opportunities for the market in the beverage industry.
Additionally, North America, according to the report, is estimated to account for the largest market share due to the high demand for tea extracts from the US. The increase in obesity cases and heart attacks has led consumers to switch to antioxidants and anti-inflammatory food and beverage products. Botanical extracts are being increasingly used among US consumers in their daily diets, with a view to derive multiple benefits and lead healthy lifestyle. Since a majority of the US population consume tea, this flavour is being used by the US food and beverage industry for their innovative products in the form of extracts. The rise in popularity of functional foods and switch from the traditional source of nutrients are major propellants of the tea extracts market in the region.
