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Tea Extracts Market: Growth Opportunities and Recent Developments

(, January 10, 2020 ) The global tea extracts market is estimated to be valued at USD 2.5 billion in 2019 and is projected to reach USD 3.8 billion by 2025, recording a CAGR of 6.9%. The market is projected to witness significant growth due to factors such as the increase in the consumption of functional foods, rise in health consciousness among consumers, and increasing adoption of tea due to the ill-effects from caffeine, thereby widening the scope of its applications. The increasing market potential, growing population, and growing demand for different types of tea extracts, as per health benefits, are factors that are projected to impact the growth of the tea extracts market.

The demand for tea extracts remains high across developed markets, such as the US and UK. Developing countries, such as China, Brazil, and India, are projected to witness a surge in demand for tea extracts in the coming years. This demand is projected to remain high due to the increase in the production of processed and functional food products. Emerging economies, such as Malaysia, Indonesia, and Thailand, in the Asia Pacific region, are also witnessing high growth. In addition, the exponential growth is projected to be witnessed in the new and emerging markets, such as China, India, and other Asia Pacific countries.

Key manufacturers are focusing on expanding in Asia, as it offers cost-effective benefits to manufacturers, in terms of production and processing, due to the low prices of raw materials and cheap labor. The rise in the standard of living and changes in lifestyles in developing countries also contribute to the growth of the functional food and convenience products market.

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Companies are increasingly investing in R&D activities, and new product launches to incorporate the formulations of existing products and cater to customer requirements. Companies are focusing on innovating new products to benefit their customers. The rise in health concerns and the consumer demand for healthy products are expected to encourage companies to invest in research & development activities. Top players such as ADM (US), Givaudan (Switzerland), and Dupont (US) are focusing on engaging in research & development activities to meet the increasing demand for tea extracts in various applications. In June 2019, Givaudan (Switzerland) launched its innovation center to produce differentiated flavors, taste, and aroma in various products, such as food, beverages, and personal care.

The company has also acquired Naturex (US), an international leader in plant extraction, to set up its foot in the US market.

By application, the tea extracts market is segmented into food, beverages, pharmaceuticals, and cosmetics. Beverages are the most popular application of tea extracts, as tea has been one of the conventional beverages since time immemorial. Also, due to its antioxidant and anti-inflammatory properties, it has gained popularity in recent times, aligning with the shift towards the healthy lifestyle among consumers. Hence, the beverages segment is estimated to dominate the market in 2019, by application.

Green tea extracts are used in various applications, such as food, beverages, and cosmetics. Due to the rising health consciousness, consumers are shifting towards the non-conventional type of nutrient options. Consumers are willing to spend on luxury foods and beverages due to the increase in disposable income and the rise in geriatric population. Consumers are also keen to switch from traditional caffeine-based drinks to flavored tea extracts.

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The major players, such as Dupont (US), ADM (US), Givaudan (US), Kemin Industries (US), and Frutarom (US), in the tea extracts market, are focusing on undertaking new product launches, expansions & investments, and acquisitions to expand their global footprint.

About MarketsandMarkets™

MarketsandMarkets™ provides quantified B2B research on 30,000 high growth niche opportunities/threats which will impact 70% to 80% of worldwide companies’ revenues. Currently servicing 7500 customers worldwide including 80% of global Fortune 1000 companies as clients. Almost 75,000 top officers across eight industries worldwide approach MarketsandMarkets™ for their painpoints around revenues decisions.

Our 850 fulltime analyst and SMEs at MarketsandMarkets™ are tracking global high growth markets following the "Growth Engagement Model – GEM". The GEM aims at proactive collaboration with the clients to identify new opportunities, identify most important customers, write "Attack, avoid and defend" strategies, identify sources of incremental revenues for both the company and its competitors. MarketsandMarkets™ now coming up with 1,500 MicroQuadrants (Positioning top players across leaders, emerging companies, innovators, strategic players) annually in high growth emerging segments. MarketsandMarkets™ is determined to benefit more than 10,000 companies this year for their revenue planning and help them take their innovations/disruptions early to the market by providing them research ahead of the curve.

MarketsandMarkets’s flagship competitive intelligence and market research platform, "Knowledgestore" connects over 200,000 markets and entire value chains for deeper understanding of the unmet insights along with market sizing and forecasts of niche markets.


Mr. Shelly Singh


Source: EmailWire.Com

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