Tannin Market Size - By Source, Product Type, Application & Forecast, 2024-2032

Tannin Market size is poised to expand at over 6.9% CAGR between 2024 and 2032 driven by the expanding leather tanning sector worldwide. Tannins play a crucial role in tanning processes, where they convert raw animal hides into durable and supple leather, while imparting desirable qualities, such as color, texture, and resistance to decay. With the rising demand for leather goods globally, particularly in the automotive, fashion, and furniture sectors, the need for tannins is surging.

Additionally, tannins sourced from renewable plant materials are preferred by environmentally conscious consumers, further boosting their use in sustainable leather production. For instance, in February 2024, Silvateam S.p.A., a leading producer of plant-based tannins, acquired wet-Green GmbH, the developer of patented wet-green(R) technology for Olivenleder(R), from MB-Holding GmbH to become the majority owner.

The tannin industry is segmented into source, product type, application, and region.

Based on product type, the market size from the non-hydrolysable segment is projected to depict a 6.6% growth rate between 2024-2032. Non-hydrolysable tannins, such as condensed tannins, ellagitannins, and gallotannins, are valued for their diverse applications in industries, such as food & beverage, leather tanning, pharmaceuticals, and cosmetics. Due to their ability to exhibit antioxidant, antimicrobial, and astringent properties, non-hydrolysable tannins have turned ideal for natural preservatives, flavor enhancers, and skincare ingredients. Furthermore, the shifting consumer preference towards natural and sustainable products is contributing to the growing product adoption.

In terms of application, the tannin market from the wine and beverage industry segment recorded substantial growth in 2023 and is expected to grow at a 6.6% CAGR through 2032. Tannins are vital components in wine production as they contribute to color, flavor, and mouthfeel while acting as natural preservatives for enhancing the aging process and stability of the wine. The ongoing expansion of the wine industry globally, particularly in emerging markets is propelling the demand for tannins sourced from various botanicals. Moreover, tannins also find applications in beverages for producing teas, juices, and soft drinks as well as adding complexity and health benefits, further increasing their acceptance.

Regionally, the Europe tannin market size is set to exhibit a 6.5% CAGR from 2024 to 2032. The rich history of the region in wine production is fueling the demand for tannins in the winemaking industry. Additionally, the thriving food & beverage sector also utilizes tannins as natural additives, flavor enhancers, and preservatives. Of late, there is growing awareness of the health benefits of tannins in beverages, such as teas and juices. The escalating focus on sustainable and environmentally friendly practices for aligning with the use of tannins sourced from renewable plant materials will also boost the regional industry expansion.