Global Tea Extract Powder Market Report and Forecast 2024-2032

Global Tea Extract Powder Market Size

The global tea extract powder market reached a value of approximately USD 3.38 billion in 2023. The market is projected to grow at a CAGR of 6.0% between 2024 and 2032, reaching a value of around USD 5.73 billion by 2032.

Tea Extract Powder Market Outlook

• An average tea consumer in Asia can drink up to 3 cups of green tea in a day.

• Black tea accounts for 14.2% of overall tea production in China. 

• In 2021, India accounted for 20.5% of global tea production with an output of 1.33 MMT.

Tea Extract Powder Market Growth Rate

Tea extract powder refers to a substance that is crushed and processed to achieve a fine consistency resembling a powder. It is rich in antioxidants, helps fight inflammation, and boosts the immune system. Tea extract powders can be either used as capsules or as a natural ingredient in food and beverage products to enhance human health. It is also used in hydrating body lotions, hair conditioners, and skin moisturisers for its soothing properties.

The tea extract powder market expansion is being fuelled by the growing focus on health and wellness, the robust growth of the personal care and cosmetics sector, and the surging demand for functional food and beverages.

Key Trends and Developments

Increasing Tea Production in China; Rising Demand for Functional Foods; Increasing Innovation in the Beverages Industry; and Growing Demand for Anti-Ageing Cosmetics are the Major Trends Impacting the Tea Extract Powder Market Growth

December 2023

India’s tea production soared to 182.84 million kg in October, recording a y-o-y growth of 12.06%. This was mainly attributed to the rising yields of tea cultivation in Assam (104.26 million kg) and West Bengal (54.98 million kg). 

November 2023

Browns Investments PLC completed the acquisition of James Finlay Kenya’s tea estates for USD 23.6 million intending to expand its presence in the African continent. 

November 2022

Layn Natural Ingredients introduced an Instant Tea Extract powder line to expand its portfolio of tea extracts. The tea extract powders, retaining the flavour and functionality of tea leaves, are ideal for ready-to-drink products and iced tea.

February 2021

Givaudan Active Beauty unveiled a new collection of nootropics that benefit skin health. This includes green tea extracts, which prevent collagen degradation and impart a youthful appearance to the skin. 

Increasing Tea Production in China

As per the UN’s Food and Agriculture Organisation, tea production in China increased by 6.3% during 2011-2020 and is expected to continue growing, driven by the increasing processing of high-value tea crops (such as black tea). 

Rising Demand for Functional Foods

Tea extract powders are incorporated into a wide variety of foods to enhance immune strength, fight cancer, and improve the metabolism of people. The global sales of functional foods are significantly surging, indicating a conscious consumer shift towards healthy eating. 

Increasing Innovation in the Beverages Industry

Major beverage producers are incorporating tea extract powders into their products to differentiate themselves from sugary soft drinks and provide their beverages with a naturally healthy flavour.  

Growing Demand for Anti-Ageing Cosmetics

Green tea extracts are rich in polyphenols, which prevent premature signs of aging by keeping skin hydrated. They also provide sun protection and improve skin texture. The rapid geriatric population in countries such as Japan and the USA is expected to raise the demand for tea extract powders among cosmetics manufacturers, thereby leading to the market growth. 

Tea Extract Powder Market Trends

In 2021, China produced 3.06 MMT of tea, recording a year-on-year growth of 3%. Different teas are produced from the varying processing of tea leaves post-harvest, including minimal oxidation for green tea as compared to black and oolong tea. Green tea accounts for 60.4% of overall total tea production in China at 1.85 million tons. In 2020, black tea production surged by nearly 7.4%, higher than dark tea (6.3%), and green tea (0.36%) due to its increasing domestic demand. This is expected to fuel the tea extract powder market development worldwide. 

The rising incidence of health problems (44%) and food allergies (30%) among global consumers is a major driver of global sales of functional food products. In 2020, American households spent nearly $34.2 billion on fortified packaged foods due to the rising perception of nutritious food as the best medicine. The global sales of fortified food products were followed by rising sales of naturally healthy food products at $259 billion. This is expected to grow, as consumers increasingly look for natural food products with a delicious taste and aroma, boosting the incorporation of tea extract powders.

Tea Extract Powder Industry Segmentation

The EMR’s report titled “Global Tea Extract Powder Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Green Tea

• Black Tea

• Oolong Tea

• Others

Market Breakup by Application

• Food

• Beverages

• Cosmetics

• Pharmaceuticals

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Tea Extract Powder Market Share

Based on type, green tea is expected to dominate the market over the forecast period

Based on type, the market is segmented into green tea, black tea, and oolong tea, among others. Over the forecast period, green tea is expected to grow at a CAGR of 6.6% as consumer awareness regarding its health benefits increases. Green tea has catechins (25%-30%), flavonols (0.5%-2.5%), and protein (6%), among other antioxidants and nutrients that significantly improve immunity levels and enhance skin health. This is expected to drive the growth of the tea extract powder market globally.

Tea Extract Powder Market Leaders

Major market players are investing in innovative technologies for manufacturing tea extract powders amidst its increasing demand for manufacturing oral hygiene products, including flavourful mouthwashes and toothpaste among consumers.

Givaudan SA

Givaudan SA was founded in 1895 and is based in Switzerland. It is engaged in manufacturing unique flavours and fragrances that enhance people’s overall well-being. It is present in 52 countries worldwide, with a leading presence in Europe.

Archer-Daniels-Midland Company

Archer-Daniels-Midland Company was founded in 1902 and is headquartered in the United States. It is a major manufacturer of human and animal nutrition solutions, including plant-based proteins and tea extract powders.

Taiyo Kagaku Co.,Ltd.

Taiyo Kagaku Co.,Ltd. was founded in May 1946 and is based in Tokyo, Japan. It is engaged in the distribution of various food ingredients and conducts in-depth scientific research to manufacture novel functional ingredients.

Hälssen & Lyon GmbH

It was founded in 1879 and is headquartered in Hamburg, Germany. It is a B2B family-owned company that distributes a wide range of flavoured teas, fruits, spices, and herbs, to enhance the flavour of daily foods for consumers.

Other players in the tea extract powder market are James Finlay Limited, MB Holding GmbH & Co. KG, VDF FutureCeuticals, Inc., Synthite Industries Ltd., Phyto Life Sciences P. Ltd., and Cymbio Pharma Private Limited, among others.

Tea Extract Powder Market Analysis by Region

The Asia Pacific is expected to become a key region for tea extract powders, which can be attributed to the growing consumer demand for natural ingredients in food products.

Based on region, the market is segmented into North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa. Over the forecast period of 2024-2032, the Asia Pacific is projected to grow at a CAGR of 7.8% as the regional consumption of tea soars and consumers move away from food products made with artificial flavouring ingredients. The market is assessed to grow at a CAGR of 9.0% and 7.5% in India and China, respectively, between 2024 and 2032 as tea farming receives increasing government incentives for boosting export revenues.

Key Highlights of the Report