The tea extract market is estimated at USD 2.99 billion in 2025 and is projected to reach USD 4.36 billion by 2030, at a CAGR of 7.8% from 2025 to 2030. The key factors driving the growth of the tea extracts market include increasing consumer awareness regarding the health benefits of tea extracts, such as their antioxidant properties and role in improving metabolism. Growing demand for clean-label and natural ingredients in the food and beverage industry, along with increasing applications of tea extracts in dietary supplements, functional beverages, and cosmetics, are also contributing to market expansion. The popularity of green tea extracts, known for their high polyphenol content, is particularly on the rise due to their association with weight management and skin care. The growing use of tea extracts in nutraceuticals and sports drinks further boosts the market, as consumers increasingly focus on fitness and wellness. Additionally, advancements in extraction technologies, which enhance the bioavailability and potency of tea extracts, are enabling more innovative product formulations. The Asia-Pacific region is expected to dominate the tea extracts market, driven by the rich tea culture in countries like China and India, along with growing export demand for tea-based ingredients globally.
Emerging Trends in the Tea Extract Market
The tea extract market is experiencing significant growth due to increasing consumer demand for natural and healthy beverages, functional ingredients, and plant-based products. Here are the latest trends shaping the market:
1. Rising Popularity of Ready-to-Drink (RTD) Beverages
- The growing demand for RTD teas, energy drinks, and flavored beverages infused with tea extracts is driving market growth.
- Green tea, matcha, and oolong extracts are increasingly being used in functional drinks for their antioxidant and metabolism-boosting properties.
2. Growth of Functional and Nutraceutical Tea Extracts
- Consumers are looking for health-focused products, leading to an increase in tea extracts with adaptogenic, stress-relieving, and immune-boosting properties.
- Tea polyphenols, catechins, and flavonoids are being marketed for anti-aging, weight management, and cardiovascular health.
3. Surge in Demand for Organic and Clean-Label Products
- Organic and non-GMO tea extracts are witnessing high demand as consumers prefer clean-label, chemical-free, and sustainably sourced products.
- Brands are focusing on transparent labeling and eco-friendly packaging.
4. Expansion in the Cosmetics and Skincare Industry
- Tea extracts, particularly green tea and white tea extracts, are increasingly used in anti-aging, skin-brightening, and anti-inflammatory skincare formulations.
- The rise in natural beauty products has led to greater usage of tea polyphenols in serums, face masks, and creams.
5. Innovation in Extraction Techniques
- Advanced supercritical CO2 and water extraction methods are gaining popularity to preserve bioactive compounds while ensuring purity.
- Cold-brew tea extracts are also gaining traction for better taste profiles and higher antioxidant content.
6. Increasing Demand for Plant-Based and Vegan Ingredients
- The shift towards plant-based lifestyles has led to the rising use of tea extracts as natural caffeine sources in plant-based supplements and food products.
- Tea extracts are replacing artificial stimulants in sports nutrition and energy supplements.
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The powdered form of tea extracts has the largest share within the form segments of the market.
The powdered form of tea extracts holds the largest share within the form segments of the market, primarily due to its versatility and convenience in various applications. Powdered tea extracts are widely used in the food and beverage industry as they are easily soluble in water, allowing for efficient incorporation into products such as beverages, smoothies, and supplements. Their extended shelf life and stability further make them a preferred choice for manufacturers. Additionally, the powdered form is highly concentrated, which enhances its appeal for use in nutraceuticals and cosmetics, where precise dosage and high antioxidant content are critical. The growing demand for natural, clean-label products, especially in functional foods and beverages, continues to drive the popularity of powdered tea extracts.
The green tea extracts in the by-source segment account for the largest market share in the tea extract market during the research period.
Green tea extracts dominate the by-source segment of the tea extract market, accounting for the largest market share during the research period. This is primarily attributed to the growing consumer awareness regarding the health benefits associated with green tea, such as its antioxidant, anti-inflammatory, and weight management properties. Green tea extracts are increasingly used in functional beverages, dietary supplements, and skincare products, further enhancing their market presence. The high concentration of polyphenols and catechins in green tea extracts has made them a preferred choice among consumers seeking natural ingredients with proven health benefits. Moreover, the rising demand for clean-label products and plant-based ingredients is expected to continue driving the growth of the green tea extract market.
Europe is expected to register significant CAGR during the forecast period for the tea extract market.
The rising demand for natural and organic ingredients in the food and beverage sector across European countries is a key factor driving market growth. Countries like Germany, France, and the United Kingdom are focusing on the increased adoption of tea extracts in functional beverages, dietary supplements, and personal care products. Additionally, growing consumer awareness about the health benefits of tea extracts, such as their antioxidant and anti-inflammatory properties, is further boosting demand. The region’s strong inclination towards sustainable and plant-based ingredients also complements the expansion of the tea extract market in Europe. As a result, companies are actively investing in research and development to cater to this growing consumer base, fostering innovation and product diversification.
Leading Tea Extract Companies:
The report profiles key players such as ADM (US), Kemin Industries, Inc. (US), Givaudan (Switzerland), Synthite Industries Ltd (India), International Flavors & Fragrances Inc. (US), The Nature Network (UK), Finlays (UK), Taiyo International (Japan), Plant Lipids Private Limited (India), Indena S.p.A. (Italy), VDF FutureCeuticals, Inc. (US), UmangGlobal (India), Synergy Flavors, Inc. (US), Karle Group of Companies (India), AVT Naturals (India) and more.
Archer-Daniels-Midland Company (US) is a global leader in the production, processing, transportation, storage, and merchandising of agricultural commodities, ingredients, and nutrition solutions. The company operates through four primary business segments: Ag Services and Oilseeds, Carbohydrate Solutions, Nutrition, and Other Business. ADM’s tea extract business falls under the Nutrition segment’s botanical extract subcategory, providing natural tea-derived polyphenols for food, beverage, and nutraceutical applications. The Other Business segment includes remaining operations outside the core business areas. With a strong global footprint, ADM operates in the North America, South America, Europe, Middle East & Africa, and Asia-Pacific, ensuring food security and supply chain efficiency. The company also leads sustainability efforts, supporting carbon reduction and environmentally friendly solutions. The company’s internal R&D network, comprising approximately 1,600 employees, drives innovation, introducing over 40 new products in 2023 to meet evolving consumer demands. The company has a global presence in more than 190 countries.
International Flavors & Fragrances Inc. (US) is a leading global producer specializing in food, beverage, health & biosciences, scent, and pharma solutions. The company develops and manufactures flavors, fragrances, and active ingredients used across various industries, including food and beverages, personal care, home care, and pharmaceuticals. IFF’s product portfolio includes ingredients for dairy, meat, snacks, beverages, savory and sweet products, cosmetics, dietary supplements, functional food, and pharmaceutical excipients. The company holds global leadership positions in key market categories such as Tastes, Textures, Scents, Nutrition, Enzymes, Cultures, and Probiotics. IFF operates across four major business segments: Nourish, Health & Biosciences, Scent, and Pharma Solutions. The tea extract business falls under the Health & Biosciences segment, focusing on providing innovative ingredients for health and wellness solutions. With a strong geographic presence, IFF operates manufacturing facilities in over 15 countries, including the United States, Germany, Spain, China, India, and Brazil. The company’s global R&D efforts are supported by approximately 3,700 employees across 40 countries, ensuring continued innovation and customer-focused solutions. The company has global presence in Europe, Africa & Middle East, Greater Asia, North America, and South America.
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