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

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, Japan's tea ceremony, called Chanoyu, is a ritual practice of serving matcha, which later became a symbol of cultural and personality development. Meanwhile, 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.

The Tea Extract Market is witnessing a steady growth rate of 7.22% within the forecast period (2025- 2033F).

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 is helping to prevent cardiovascular diseases, manage weight, and manage metabolism. Food and beverage industries prefer tea extract due to its insoluble nature, which gives natural color and flavor to the product. Hence, acts as a nutritious compound and a satisfying clean-label program. Among the various extracts, the green tea extract is the most popular extract among consumers.

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 and is expected to maintain its leading position throughout the forecast period. These extracts are made from dried green tea leaves. Green tea extract is rich in antioxidants, antivirals, and polyphenol compounds, such as epigallocatechin-3-gallate (ECGC). 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. Additionally, the demand for ready-to-use products among people is further fueling its growth. For instance, in September 2025, the Indian Tea Research Association (TRA) launched decaffeinated green tea extract, competing with Japan's matcha.

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 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.

Based on category, the tea extract market is segmented into conventional and organic. In 2024, the conventional segment dominated the market. Traditional cultivation requires low production costs, which makes it affordable to consumers and manufacturers on a large scale. Moreover, in the Asia-Pacific region, such as China, India, and Japan, they are cultivated on a large scale due to the availability of raw materials on a large scale and a favorable environment required for cultivation, such as warm climate, humidity, and the presence of acidic soil. This ensures a continuous flow supply chain and fulfills the required demand of various industries. Furthermore, conventional tea extracts are used in ready-to-drink products, dietary supplements, and personal care products due to their low price.

Based on application, the tea extract market is segmented into food & beverages, pharmaceutical, nutraceutical, cosmetics & personal care, and others. In 2024, the food & beverages segment dominated the market. The extract adds flavor and color to various products, including instant tea & coffee, energy drinks, flavored drinks, bakery items, and dairy products. For example, in milk, the tea extract is used to add flavor, such as instant coffee or matcha milk. Furthermore, in Japan, green tea extract blended with milk is a popular drink among consumers. Moreover, it satisfies the increasing demand for antioxidant-rich, nutritious, clean-label products among consumers.

For a better understanding of the tea extracts market, the market is analyzed based on its worldwide presence in countries such as North America (The US, Canada, and Rest of North America), Europe (Germany, The UK, France, Italy, Spain, Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Rest of Asia-Pacific), Rest of World. The Asia-Pacific tea extract market dominated the global tea extract market in 2024. This is due to the bulk manufacturing and utilization of tea in this region. Additionally, governments' schemes and programs for the cultivation of tea ensure the availability of raw material. 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.

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