AI overview of Tea Extracts Market
The Tea Extracts Market is poised for significant growth, projected to reach a market size of US$ 5.88 billion by 2031, up from US$ 3.58 billion in 2023, reflecting a robust CAGR of 6.4% from 2023 to 2031. This growth is driven by the rising demand for natural ingredients in food and beverages, alongside the expanding application scope of tea extracts in dietary supplements and personal care products. Notably, the trend towards organic and clean-label products is reshaping consumer preferences, further enhancing the Tea Extracts Market share. With diverse segments including green, black, and oolong tea, the market is well-positioned to capitalize on the increasing interest in health-conscious and sustainable options.
The tea extracts market size is projected to reach US$ 5.88 billion by 2031 from US$ 3.58 billion in 2023. The market is expected to register a CAGR of 6.4% during 2023–2031. The rising use of organic and clean-label products is likely to bring new trends in the market during the forecast period.
Tea Extracts Market Analysis
The demand for tea extract is attributed to a rise in consumer demand for natural and healthy beverages, owing to surging awareness about the health benefits associated with tea extracts, such as their antioxidants, anti-inflammatory, and weight management properties. In addition, the market is supported by the expanding trends for functional food and beverages, which incorporate tea extracts for their flavor, nutritional content, and health benefits. The growth is further fueled by innovations in tea extract formulations, including ready-to-drink teas, dietary supplements, and cosmetics.
Tea Extracts Market Overview
Tea extract encompasses a range of products derived from tea leaves, including green, black, white, and oolong tea. The tea extracts market is witnessing significant growth owing to rising consumer demand for natural, health-focused ingredients. These extracts, rich in bioactive compounds such as catechins, polyphenols, and flavonoids, are increasingly used in beverages, dietary supplements, functional foods, and personal care products. The market is characterized by a shift towards organic and sustainably sourced tea extracts.
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Tea Extracts Market: Strategic Insights

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Tea Extracts Market: Strategic Insights

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Tea Extracts Market Drivers and Opportunities
Wide Application Scope of Tea Extracts Propels Market Growth
Tea extracts are valued for their medicinal properties and health benefits in the pharmaceutical and nutraceutical industries. Tea extracts are considered important owing to their rich concentration of bioactive compounds, including polyphenols, catechins, and flavonoids. These compounds offer numerous health benefits, making tea extracts a popular ingredient in dietary supplements and pharmaceutical products aimed at improving overall well-being. As a result, various manufacturers are launching ingredients in combination with green tea extract for the nutraceutical industry. For instance, in October 2023, Activ’Inside, the nutraceutical ingredient manufacturer in the US, launched ImrpovD3—a new ingredient formulated by vitamin D and green tea extract complex. In addition, in the cosmetics & personal care industry, tea extracts are used in self-grooming products, cosmetics, and other personal care products. Tea extracts are effective in protecting skin from environmental damage, soothing irritation, and reducing the appearance of lines and wrinkles. As a result, tea extracts are gaining popularity in personal care products as a functional ingredient. Tea extracts are also utilized in the animal feed industry to improve the overall health and performance of livestock and pets. The demand for natural and organic animal feed ingredients is driven by the need for sustainable and nutritionally dense feed options. Thus, the wide range of applications of tea extracts across various end-use industries drives the tea extracts market.
Growing Cosmetic and Personal Care Industry to Create Opportunities in the Market During Forecast Period
The Europe personal care and cosmetics market was valued at ~US$ 94 billion in 2022, as per Cosmetics Europe—the personal care association. The personal care & cosmetics industry adds ~US$ 30 billion to the European economy. Similarly, in Asia Pacific, the expenditure on skincare and makeup products is increasing, which plays a major role in boosting the business of the cosmetic & personal care industry worldwide. The beauty & personal care sector is significantly growing in Asian countries such as India, China, Japan, and South Korea. As per World Bank data, consumer expenditure in India increased from US$ 1.9 trillion in 2018 to US$ 2.4 trillion in 2022. According to the Korea Customs Service statistics, skincare cosmetics was the largest import category, representing 41.8%, or US$ 711 million of total cosmetic imports, in 2022.
Natural ingredients such as tea extracts are significantly employed in cosmetic and personal care products owing to their beneficial properties. The antioxidant-rich qualities of tea-based skin care products help fight free radicals and environmental stressors, resulting in healthier and more radiant skin. Tea extracts are also well-known for their calming and anti-inflammatory properties, which makes them ideal for a variety of skin types—including sensitive and acne-prone skin. The antioxidant properties of tea extracts enhance skin appearance while preventing aging. Vitamin E, present in tea extracts, contributes to hydration, cell regeneration, and nourishment.
Tea Extracts Market Report Segmentation Analysis
Key segments that contributed to the derivation of the tea extracts market analysis are type, category, form, and application.
- Based on type, the tea extracts market is segmented into green tea, black tea, oolong tea, and others. The green tea segment held the largest market share in 2023.
- In terms of category, the tea extracts market is divided into organic and conventional. The conventional segment held a larger market share in 2023.
- Based on form, the tea extracts market is bifurcated into dry and liquid. The liquid segment dominated the market in 2023.
- By application, the market is segmented into food & beverages, dietary supplements, personal care & cosmetics, and others. The food & beverages segment held a significant share of the market in 2023.
Tea Extracts Market Share Analysis by Geography
The geographic scope of the tea extracts market report is mainly divided into five regions—North America, Asia Pacific, Europe, the Middle East & Africa, and South & Central America.
Asia Pacific dominated the tea extracts market. Asia Pacific has a long-standing culture of tea consumption. As per the Food and Agriculture Organization (FAO) of the United Nations, in 2023, Asia accounted for 85% of worldwide tea production, with China, India, and Sri Lanka being the top three producers—accounting for 62% of the total production. The growing health consciousness among consumers and the rising application of tea extracts in various industries such as food & beverages, pharmaceuticals, and cosmetics are boosting the market for tea extracts in Asia Pacific.
The Asia Pacific tea extracts market is also gaining momentum owing to rising disposable incomes and growing awareness of tea extracts' antioxidant properties. Many research and development activities are being conducted to broaden new pharmaceutical and personal care applications. For instance, In February 2024, Tata Consumer Products invested US$ 50 million in a new tea extract manufacturing facility in Assam, India, with the aim of increasing production capacity by 40%.
Tea Extracts Market Regional Insights
The regional trends and factors influencing the Tea Extracts Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Tea Extracts Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
Tea Extracts Market Report Scope
Report Attribute | Details |
---|---|
Market size in 2023 | US$ 3.58 Billion |
Market Size by 2031 | US$ 5.88 Billion |
Global CAGR (2023 - 2031) | 6.4% |
Historical Data | 2021-2022 |
Forecast period | 2024-2031 |
Segments Covered |
By Type
|
Regions and Countries Covered | North America
|
Market leaders and key company profiles |
Tea Extracts Market Players Density: Understanding Its Impact on Business Dynamics
The Tea Extracts Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

- Get the Tea Extracts Market top key players overview
Tea Extracts Market News and Recent Developments
The tea extracts market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A key recent development in the tea extracts market is mentioned below:
- Finlays launched The Wellbeing Collection—a premium tea extracts range helping brand owners tap into the trend for natural, functional, and sustainable products. Extracts in the Wellbeing Collection are rich in highly sought-after bioactive compounds, adding value to your product through consumer association with various wellness benefits. (Source: Finlays, Company Website, April 2024)
Tea Extracts Market Report Coverage and Deliverables
The "Tea Extracts Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:
- Tea extracts market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Tea extracts market trends as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed Porter's Five Forces and SWOT analysis
- Tea extracts market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the tea extracts market
- Detailed company profiles
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The List of Companies - Tea Extracts Market
- Finlays
- Botanic Healthcare Pvt Ltd
- Firmenich International SA
- Givaudan SA
- International Flavors & Fragrances Inc
- Kerry Group Plc
- Archer Daniels Midland Company
- Sensient Technologies Corp
- Kemin Industries Inc
- Medikonda Nutrients
- Virginia Dare Extract Co Inc
- Lipoid-Kosmetik
- Florida Food Products
- Dohler GmbH
- MartinBauer


