Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Tea extracts derived from plants such as Camellia Sinensis contain natural molecules named Catechins (polyphenols) which have antioxidant properties. The popularity of green tea extracts is increasing at a rapid pace over the last few years due to the belief of tea extracts assisting the process of weight loss and facilitating skin and hair care. Thus, several tea manufacturers have started leveraging these properties by selling tea extracts across several industrial sectors like food & beverages, cosmetics, and pharmaceuticals.
The global tea extracts market is estimated to surpass US$ 21,091.5 Mn by the end of 2027 in terms of revenue, exhibiting a CAGR of 7.6% during the forecast period (2020 to 2027).
Health-related issues among the millennial population have been on the rise for the past few years, owing to consumption of junk food, work-life imbalance, and hectic daily routine, which leaves no time for exercise. For instance, as per the NHANES (National Health and Nutrition Examination 2017-18 Survey), obese adults above the age of 20 years accounted for around 42.4% of the overall U.S. population.
Thus, the need for the consumption of natural or organic tea extracts is being foreseen across the globe. Moreover, a research article published by Anticancer Research in November 2018 stated that the consumption of oolong tea extracts helps in fighting against breast cancer. These extracts induce DNA cleavage and thus damage the breast cancer cells, thereby delaying their growth. As per the report by the U.S. Breastcancer Organization published on 4th February 2021, around 13% of U.S. women are prone to develop breast cancer in their lifetime. Thus, the popularity of tea extracts to prevent such diseases is expected to gain traction in the upcoming years.
Among regions, North America held dominant position in the global tea extracts market in 2019, accounting for 37.6% market share in terms of revenue, followed by Europe and Asia Pacific.
Figure 1. Global Tea Extracts Market Revenue Share (%), By Region, 2019
Rapid discoveries and research in food technology has opened up doors for several other alternatives to tea extracts. For instance, roots and extracts of Ginseng, an important medicinal plant widely popular across Asia, provides similar advantages as that of tea extracts. Moreover, Maca, a cruciferous vegetable found in central Peru, helps in combating fatigue and thus, can act as an alternative to tea extracts with regards to the production of energy boosting beverages. Thus, key players in this market like CWAY GROUP, a prominent food and beverage manufacturer, developed 100% caffeine-free Maca energy drink, which claims to provide many health benefits to the human body.
Tea Extracts Market Report Coverage
||Market Size in 2019:
||US$ 12,625.7 Mn
|Historical Data for:
||2017 to 2018
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||US$ 21,091.5 Mn
- North America: U.S., Canada
- Latin America: Brazil, Argentina, Mexico, Rest of Latin America
- Europe: U.K., Germany, France, Italy, Spain, Russia, Rest of Europe
- Asia Pacific: China, Japan, India, South Korea, ASEAN, Australia, Rest of Asia Pacific
- Middle East & Africa: Middle East, Africa
- By Type: Green Tea, Oolong Tea, Black Tea, Herbal/ Fruit Tea, White Tea, and Others
- By Nature: Organic, and Conventional
- By Form: Liquid, Powder, and Encapsulated
- By Application: Food & Beverages, Dietary Supplements, RTD Beverages, Cosmetics, and Others
AVT Natural, Archer Daniels Midland Company, Blueberry Agro, Cymbio Pharma Pvt Ltd., Harrisons Malayalam Ltd., Indena S.p.A., Martin Bauer Group, Synthite Industries Ltd., Synergy Flavors, Teawolf, and Taiyo International
- Increasing awareness about health benefits of tea extracts
- Surging popularity of innovative and fortified beverages
|Restraints & Challenges:
- Increasing number of substitute products
Various types of tea extracts are widely used across the cosmetics industry. This can be attributed to the anti-inflammatory and antioxidant properties of tea extracts. Moreover, the shifting inclination towards natural and organic cosmetic products across the globe is expected to trigger the demand for tea extracts. For example, in March 2017, Amway Inc. launched its G&H lotion collection that included G&H Refresh+, a body milk & body wash gel that contains green tea extracts.
Figure 2. Global Tea Extracts Market – Opportunity Analysis
Based on application, in 2019, the food & beverages segment accounted for 32.4% of the revenue share across the global tea extracts market. Tea extracts are known to have natural antioxidants, which help them in gaining popularity across the food industry. Thus, a majority of the beverage manufacturers are expanding their product line to plant-based functional extracts. For instance, in October 2017, (ADM) Archer Daniels Midland Company expanded its plant-based functional extracts product line to include green tea, an antioxidant blend, and acerola, a tropical fruit that is rich in vitamin C and bioflavonoids among other nutritional ingredients. Apart from its usage as seasonings in the food industry, tea extracts are also used for bread, frozen dairy desserts, candies, and other food items. On the other hand, tea extracts are used in the beverage industry as a flavor in alcoholic beverages
Figure 3. Global Tea Extracts Market Revenue Share (%), By Application, 2019
Global Tea Extracts Market - Impact of Coronavirus (Covid-19) Pandemic
The outbreak of coronavirus has negatively impacted the supply chain of the tea extracts industry. This can be attributed to the imposition of lockdown, travel restrictions, and shutting down of restaurants and cafes. Moreover, challenges associated with procurement of raw materials i.e. tea leaves, etc. owing to disruption in the supply chain have further hampered the tea extracts market growth. However, as per the guidelines prescribed by WHO (World Health Organization), the increasing need for the development of immunity booster medicines and vaccines has forced several pharmaceutical industries to test a variety of natural and plant-based products such as tea extracts over the post-pandemic period.
Key players operating in the global tea extracts market include AVT Natural, Archer Daniels Midland Company, Blueberry Agro, Cymbio Pharma Pvt Ltd., Harrisons Malayalam Ltd., Indena S.p.A., Martin Bauer Group, Synthite Industries Ltd., Synergy Flavors, Teawolf, and Taiyo International