Tea Extracts Market is estimated to be valued at USD 30.9 Bn in 2025 and is expected to reach USD 377.84 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of 43% from 2025 to 2032.
The Tea Extracts Market Size is anticipated to develop rapidly over the coming years due to innovation, health trends, and growing uses in a variety of industries. The global tea extracts market is experiencing robust growth, fueled by increasing consumer demand for natural, healthy, and functional ingredients across beverages, dietary supplements, and personal care products. This expansion is driven by heightened health consciousness, the antioxidant and bioactive properties of tea extracts, and the popularity of ready-to-drink teas and functional beverages.
For instance, in July 2025, MartinBauer, the vanguard of tea and botanical ingredients for the food, beverage, and dietary supplement industries, has launched a new line of prebiotic solutions. By using prebiotic fibers as carriers, this line transforms conventional extracts into dual-function ingredients that combine the benefits of botanicals with the microbiome-nourishing power of prebiotics.
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Event |
Description and Impact |
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The shift toward natural ingredients and clean labels |
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Adoption of AI and Machine Learning in Automation |
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Here’s a table summarizing global tea export and import volumes and values for 2025:
|
Category |
Country/Region |
Volume (Metric Tons) |
Value (USD Billion) |
|
Top Exporters |
Kenya |
570,000 |
1.45 |
|
China |
360,000 |
1.20 |
|
|
India |
250,000 |
0.95 |
|
|
Sri Lanka |
230,000 |
0.90 |
|
|
Total Exports |
~2.1 million |
~8.5 |
|
|
Top Importers |
Pakistan |
260,000 |
0.85 |
|
Russia |
150,000 |
0.70 |
|
|
United States |
130,000 |
0.65 |
|
|
EU (combined) |
~400,000 |
1.50 |
|
|
Total Imports |
~1.9 million |
~7.2 |
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In terms of application, the food & beverages segment is expected to contribute largest share of 32.40% for the Tea Extracts market trends in 2025. This is due to growing customer demand for clean-label products and natural, health-promoting ingredients, the food and beverage category is the market leader for tea extracts worldwide.
Because of their high antioxidant content and bioactive components, which appeal to consumers who are health-conscious, tea extracts are frequently used in ready-to-drink teas, functional beverages, dairy substitutes, and even baked goods.
In terms of extract type, the green tea segment is expected to contribute largest share of the Tea Extracts market trends in 2025. Green tea extracts are increasingly incorporated into dietary supplements, functional beverages, cosmetics, and pharmaceuticals, reflecting consumer demand for natural, clean-label, and plant-based ingredients.
The segment also benefits from advancements in extraction technologies, which enhance the quality and effectiveness of the extracts, further expanding their applications in food, beverages, and personal care products
For instance, in October 2024, PLT Health Solutions has announced the addition of cellflo6, a patented green tea (Camelia sinensis) extract formulated to provide energy, sport performance, and overall health benefits, to its portfolio. Currently, Cellflo6 is included in several pre-workout, energy, recovery, and men's health formulations.
These include recovery formulae utilized by U.S. military tier 1 operators and 7-Select Fusion Energy, an energy drink marketed under the 7-Eleven brand. The retailer's in-house brands include the new, sugar-free Fusion Energy Drink, which is currently offered in more than 30,000 retail locations across North America, including 7-Eleven, Speedway, and Stripes.
In terms of nature, the conventional segment is expected to contribute largest share of the Tea Extracts market trends in 2025. In the market for tea extracts, the conventional category now commands a higher share than the organic segment. The mass market is served by standard tea extracts, which are widely available and produced using well-established techniques, which contribute significantly to their domination.
Due to rising consumer awareness of tea's health benefits, such as its antioxidant qualities and ability to prevent disease, conventional tea extracts are widely employed in a variety of applications, including food and beverages, nutritional supplements, and personal care items.
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North America held the dominant position in the global tea extracts market in 2025, accounting for a market share of 37.60% in terms of value, followed by Europe and Asia Pacific respectively.
Growing knowledge of the health advantages of tea extracts, including as its anti-oxidant and disease-preventive qualities, as well as a move away from artificial additives as a result of legal constraints and customer demand for clean-label goods, are driving this expansion. Powdered tea extracts are the most widely used form in the region, and the food and beverage category has the biggest market share.
The market is further driven by the demand for clean-label and natural ingredients, with tea extracts widely used as flavorings, colorants, and functional additives in food and beverages, as well as for their medicinal properties in nutraceuticals and pharmaceuticals. The popularity of ready-to-drink tea products and functional beverages is rising, supported by innovations in tea blends and e-commerce expansion.
The market for tea extracts in Europe is expanding steadily due to rising customer demand for natural, functional, and healthful beverages. Growing demand for herbal and specialty teas, such chamomile and green tea, which are prized for their alleged health advantages and antioxidant qualities, is what defines the industry in the region.
The U.S. also sees significant use of tea extracts in personal care and cosmetic products, reflecting a broader trend toward clean-label and plant-based ingredients. The popularity of ready-to-drink teas and functional beverages continues to rise, supported by a robust retail infrastructure and ongoing product innovation.
India is a major player in the market for tea extracts since it is one of the biggest producers and consumers of tea worldwide. Both domestic consumption and export growth are supported by the nation's rich raw material supply and long-standing tea culture. Due to shifting lifestyles and growing health consciousness, tea extracts are being used more and more by Indian consumers in functional meals, nutritional supplements, and nutraceuticals.
As the world's largest producer and a nation with a long history of tea drinking, China dominates the market for tea extracts worldwide. Green tea extracts, which are well known for their health advantages, such as antioxidant and metabolic support, are highly preferred in the Chinese market.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2024 | Market Size in 2025: | USD 30.9 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 43% | 2032 Value Projection: | USD 377.84 Bn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
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, Martin Bauer Group., and Taiyo International |
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| Growth Drivers: |
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| Restraints & Challenges: |
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Various types of tea extracts are widely used across the cosmetics industry. This can be attributed to the anti-inflammatory and antioxidant properties of these extracts. Moreover, the shifting inclination towards natural and organic cosmetic products across the globe is expected to trigger the demand for tea extracts.
The growing global demand for organic goods is likely to create profitable opportunities for market participants in the future. Owing the tremendous demand for tea's functional features, tea makers worldwide are continually launching new and creative products.
In order to widen their product variety and increase total sales, they are also offering ready-to-drink variations. These manufacturers are investing in creative marketing methods and celebrity endorsements, which are projected to drive the market growth in the next few years.
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.
Thus, the need for the consumption of natural or organic tea extracts is being foreseen across the globe. For instance, in September 2025, researchers found that specific compounds in tea extract may help regulate fat metabolism and improve insulin sensitivity. This discovery supports growing interest in tea-based functional ingredients for promoting healthier lifestyles and combating obesity-related conditions.
An increasing working population, rising demand for ready-to-use goods, and expanding retail marketplaces are some of the factors predicted to drive the market growth over the forecast period. The rising popularity of tea as a natural element in personal care products is projected to fuel expansion in the worldwide tea extract market.
Growing disposable income, increasing spending on food and beverages, and expanding consumer awareness about the benefits of healthy lifestyles are also projected to fuel the global tea extracts market expansion.
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