Tea Extract Market: Current Analysis and Forecast (2025-2033)

Global Tea Extract Market Size & Forecast

The Global Tea Extract Market was valued at USD 3,214.81 million in 2024 and is expected to grow at a robust CAGR of around 7.22% during the forecast period (2025-2033F), due to the rising demand for clean-label ingredients and ready-to-drink beverages among consumers.

Tea Extract Market Analysis

Tea is the second most-consumed drink globally. In the traditional era, tea was used for medical treatment, and then slowly it gained popularity among consumers and emerged as a cultural practice. For example, the Chinese tea ceremony is a way of showing respect to elders, hospitality, and building social connections. Nowadays, tea is not only a consumable drink, but it is also used in many sectors and industries for the development of products, such as skin care products and medicine preparation. However, tea extracts are most preferred by industries in the preparation of products. Due to the presence of bioactive compounds such as epigallocatechin gallate (EGCG) at high levels. EGCG shows anti-inflammatory, anti-tumor, and antioxidant properties. It helps prevent cardiovascular diseases, manage weight, and regulate metabolism. Food and beverage industries prefer tea extract due to its soluble nature, which gives natural color and flavor to the product.  Hence, acts as a nutritious compound and a satisfying clean-label program.

Global Tea Extract Market Trends

This section discusses the key market trends that are influencing the various segments of the global tea extract market, as found by our team of research experts.

Technological Advancement in Extraction Method

Among the major trends in the tea extract market, technological advancement in the extraction method is the most prominent one. With advanced technological techniques such as supercritical CO2 extraction, ultrasonic-assisted extraction, and membrane, it is possible to produce large amounts of bioactive compounds such as EGCG and catechins. With a reduction in bitterness and caffeine level, the purity of the compound is improved. For example, PurTea produces highly soluble and less bitter green tea extract. For instance, in June 2024, Taiyo International relaunched its product Sunphenon TH30. It is a L-theanine-rich green tea extract that can be utilized in supplementary food, dairy products, and beverages.

Tea Extract Industry Segmentation

This section provides an analysis of the key trends in each segment of the global tea extract market report, along with forecasts at the global, regional, and country levels for 2025-2033.

The Green Tea Extract Market Dominates the Tea Extract Market

Based on extract type, the tea extract market is segmented into green tea extract, black tea extract, oolong tea extract, and others. In 2024, the green tea extract dominated the market. These extracts are rich in antioxidants, antivirals, and polyphenol compounds, such as epigallocatechin-3-gallate (ECGC).  It helps protect cells from damage, prevents cardiovascular diseases, controls metabolism levels, and lowers the risk of cancer. These properties have increased their demand among people. In addition, many industries and sectors, such as dietary supplements, pharmaceuticals, and cosmetics, utilize the extract in their products. For example, green tea extract is used for the preparation of weight management capsules, tablets, and powders in the dietary supplements sector. While the cosmetic sector used the extract in its anti-aging products.

The Powder Segment Dominates the Tea Extract Market.

Based on form, the tea extract market is segmented into powder, liquid, and encapsulated. The powder segment held the largest market share in 2024. Due to its long shelf life, ease of transportation, storage efficiency, and versatility, industries and sectors prefer it. The food and beverage industries use powder form in their products, such as smoothies, energy drinks, and iced tea, due to its soluble nature. Further, it enhances the color and flavor of the product. Nutraceutical and pharmaceutical industries prefer using powder form extract due to its transformable nature. Additionally, consumers are increasingly seeking supplements that are easy to carry and provide an exact dosage for weight management, metabolism management, and boosting immunity.

Asia Pacific Dominated the Global Tea Extract Market

The Asia-Pacific tea extract market dominated the global tea extract market in 2024 and is forecasted to remain in this position in the forecast period. This is due to the bulk manufacturing and utilization of tea, ensuring a continuous-flow chain between consumers and manufacturers, the availability of raw material, and fulfilling the demand of various industries, including food & beverages, pharmaceuticals, and nutraceuticals. Additionally, tea is a cultural product of this region, as it is a highly consumed product among the people. This trend favors food and beverage companies to introduce new tea-related products, such as instant tea and dairy products, which will gradually gain the attention of consumers. For instance, in March 2024, the Indian government allotted the budget of Rs 528.97 crore for the Tea Development & Promotion Scheme. The schemes planned on creating 800 self-help groups (SHGs) and 330 farmer-producer organizations (FPOs), further improving value and volume. Moreover, to foster the tea market globally, the government will provide a fund of Rs 72.42 crore.

China held a dominant Share of the Asia-Pacific Tea Extract Market in 2024

China leads the tea extract market due to large-scale manufacturing and a robust distribution network.  The tea extract market is fueled by a strong production infrastructure and favorable climatic conditions. This further ensures the continuous flow of the supply chain. Additionally, government programs and private investment are driving the market. For instance, on July 25, the Zhejiang province of eastern China issued guidelines, “Implementation opinions on Accelerating High-Quality Development of Tea Industry,” for expanding the tea plantation process. By using modern techniques, improving the distribution network, enhancing policy support, and industry supervision, the tea extract market can be expanded significantly. Furthermore, the rise of new beverage brands due to the increasing demand for healthy drinks is boosting domestic revenue for tea extraction technologies and the launch of new products. For example, in July 2024, Dayao Soda launched its new sugar-free tea, “Chayuan Xiang,” made for raw tea leaf extraction. Available in three different flavors: ordinary oolang, white orchid oolang, and golden osmanthus oolang. 

Tea Extract Competitive Landscape

The global tea extract market is competitive, with several global and international market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions.

Top Tea Extract Companies

Some of the major players in the market are Synthite Group, MartinBauer, Givaudan, Finlays, International Flavors & Fragrances Inc. (IFF), Botanic Healthcare, Synergy Flavors, Inc. (Carbery Group), BLUEBERRYAGRO, Hälssen & Lyon, and Cymbio Pharma Pvt Ltd.

Recent Developments in the Tea Extract Market

• In July 2025, Fresh Beauty launched its new product, Fresh Black Tea Serum. Enriched with Mauritius black tea extract, the product will help in reducing wrinkles and promote even skin tone.

• In 2024, Shiseido launched beauty-from-within supplements containing ginseng extract, green tea extract, and GABA, which is a drinkable product.

• In September 2023, Otsuka Pharmaceutical and Bonafide Health, LLC launched their new product, Thermalla. The product contains curcumin extract, decaffeinated green tea extract, and spirulina extract. The product was designed to promote women's health.

Global Tea Extract Market Report Coverage

Reasons to Buy the Tea Extract Market Report:

• The study includes market sizing and forecasting analysis confirmed by authenticated key industry experts.

• The report briefly reviews overall industry performance at a glance.

• The report covers an in-depth analysis of prominent industry peers, primarily focusing on key business financials, type portfolios, expansion strategies, and recent developments.

• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.

• The study comprehensively covers the market across different segments.

• Deep dive regional-level analysis of the industry.

Customization Options:

The global tea extract market can further be customized as per the requirements or any other market segment. Besides this, UnivDatos understands that you may have your own business needs; hence, feel free to contact us to get a report that completely suits your requirements.