Functional Beverages and Skincare Drive Growth in Global Tea Extract Market

 According to a new report by MarketsandMarkets titled "Tea Extract Market by Source (Green Tea, Black Tea, Oolong Tea and Other Tea Sources), Application (Food & Beverage, Pharmaceuticals & Dietary Supplements, Cosmetics & Personal Care), Form, Category, Technology, and Region - Global Forecast 2030," the global tea extract market is projected to grow from USD 2.99 billion in 2025 to USD 4.36 billion by 2030, expanding at a CAGR of 7.8% during the forecast period.

Health Consciousness Driving Market Growth

The surge in demand for tea extracts is largely fueled by growing consumer awareness about the health-promoting properties of tea. Rich in antioxidants and bioactive compounds, tea extracts are known to support metabolism, improve skin health, and promote weight management. These benefits have made tea extracts highly desirable across various industries, including food & beverage, nutraceuticals, and personal care.

The growing preference for clean-label and natural ingredients further amplifies the demand for tea extracts, especially in functional foods, beverages, and cosmetics. Green tea extracts, in particular, are gaining rapid traction due to their high polyphenol content and proven efficacy in weight control and skincare applications.

Powdered Form Leads the Market

Among the different forms of tea extracts, powdered tea extracts hold the largest market share. Their versatility, solubility, and stability make them ideal for use in a wide range of products—from beverages and supplements to cosmetics. The powdered form's high concentration of active compounds allows manufacturers to deliver potent health benefits with precise dosing, further driving its adoption.

Green Tea Extracts Dominate by Source

In the source segment, green tea extracts continue to dominate due to their rich content of polyphenols and catechins. These compounds offer antioxidant, anti-inflammatory, and metabolic health benefits, making green tea extract a popular choice for use in functional beverages, dietary supplements, and skincare products. The increasing consumer demand for plant-based, clean-label health solutions reinforces this segment’s leading position.

Know about the assumptions considered for the study

Asia-Pacific Leads; Europe Poised for Rapid Growth

The Asia-Pacific region, with its long-standing tea culture and strong production base in countries like China and India, is projected to dominate the global tea extract market. However, Europe is expected to register the highest CAGR during the forecast period. Rising demand for organic, natural, and plant-based ingredients in European countries—especially Germany, France, and the UK—is fostering adoption of tea extracts in wellness-centric products. The region’s commitment to sustainable living and clean-label formulations makes it a fertile ground for market growth.

Key Players and Strategic Developments

The tea extract market features several prominent players focused on innovation, quality enhancement, and global expansion. Leading tea extract companies profiled in the report include:

• ADM (US)
• Kemin Industries, Inc. (US)
• Givaudan (Switzerland)
• Synthite Industries Ltd (India)
• International Flavors & Fragrances Inc. (US)
• The Nature Network (UK)
• Finlays (UK)
• Taiyo International (Japan)
• Plant Lipids Private Limited (India)
• Indena S.p.A. (Italy)

These companies are actively investing in R&D and product development to tap into the growing consumer demand for high-quality, natural tea extract products.