The global tea extracts market was valued at US$ 12,625.7 million in 2019, according to Tea Extracts Market Report, 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), and by Region (North America, Latin America, Asia Pacific, Europe, Middle East, and Africa), published by Coherent Market Insights.
The global tea extracts market is expected to surpass US$ 21,091.5 million by 2027, exhibiting a CAGR of 7.6% during the forecast period (2020-2027). Increasing health-related issues among the millennial population due to consumption of junk food, work-life imbalance, and hectic daily routine, which does not leave much time for exercise is driving the demand for tea extracts across the globe. Thus key players are developing advanced beverages to cater to the individual's nutritional demands. For instance, one of a prominent beverage manufacturer named Kill Kliff added two new performance beverages to its product portfolio in November 2019. The products named Mango Tango, and the G.O.A.T. (Grape-est of All Time) contains green tea extracts for providing healthy bioactive and antioxidant compounds and help in boosting energy.
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Key Trends and Analysis of the Tea Extracts Market:
- Among regions, North America accounted for a significant market share in 2019. The growth of the food and beverages industry across the U.S. is expected to drive the demand for tea extracts over the forecast period. According to the US Department of Agriculture (USDA), the foodservice market accounted for US$ 969.4 Bn in 2019 and is expected to grow in the near future.
Key Takeaways of the Market:
- Among tea extract type, green tea segment held largest revenue share of 36.8% in the global tea extracts market in 2019. According to Coherent Market Insights’ analysis, in 2018, high nutritional profile of tea extracts, high antioxidant content, and its use in weight loss has contributed to the increasing demand for tea extracts globally. A number of researches have been conducted for the use of green tea in various pharmaceutical applications. For instance, in 2016, according to a study conducted by the Jamia Hamdard University in New Delhi, India, green tea in combination with resveratrol helps in reducing the myocardial infarct area.
- Major 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
- Key players operating in the tea extracts market are focusing on various strategies such as capacity expansion in order to strengthen their market presence and expand their product portfolio. For instance, in October 2015, AVT Natural increased the capacity of their instant tea plant, located at the company's existing factory at South Vazhakulam, Kerala, India. The capacity was increased from 600 MT (metric tons) per annum to 1,000 MT (metric tons) per annum.
Global Tea Extracts Market - Impact of Coronavirus (Covid-19) Pandemic
- The global tea extracts market has been negatively impacted to some extent due to the ongoing COVID pandemic. This can be attributed to the imposition of lockdown, travel restrictions, and shutting down of restaurants and cafes. However, 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 materials. Thus, the demand for various types of tea extracts such as green tea is expected to gain significant momentum across the pharmaceutical industry in the near future.