The global black tea extracts market size was estimated at USD 94.1 million in 2016. The increasing popularity of ready-to-drink beverages as a substitute to sodas and other fruit drinks is anticipated to drive the market growth. Changing consumer preferences toward nutritious food supplements over synthetic ingredients are likely to drive the growth over the next eight years.
The black tea extracts market is likely to grow on account of increasing awareness among producers regarding sustainable harvesting, processing, and extraction methods with the use of innovative technologies to increase the number of polyphenols and bioactive ingredients in the yield. Tea producers are adopting contract farming techniques to boost the production yield by educating farmers on seed quality and irrigation techniques among others.
U.S. black tea extracts market revenue, by form, 2014 - 2025 (USD Million)
The consumers in the U.S. are aware of the health benefits of ready-to-drink beverages in comparison to carbonated soft drinks. The market is expected to grow on account of increased product demand by the consumers in the 18-34 years age group. In addition, the growing demand for black tea extracts based beverages in restaurants is expected to drive growth over the forecast period.
Asia Pacific is the highest tea producing and consuming region characterized by the presence of key players. The producers in the region are integrated across the value chain. Some of the players are integrated through extraction processes which has around 35-40% margins. Distributors incorporate a margin of 20 - 25% of the price in the value chain.
Factors such as growing awareness about the sustainable sourcing of products and the effects of conventional farming practices on the environment are expected to drive the production. Producers are adopting various regulations and certifications namely USDA Organic, Fairtrade, Kosher, Rainforest Alliance, HACCP, GMP, Ethical Tea Partnership to ensure quality and sale ability of products in an attempt to lure more customers.
The black tea extracts industry is largely affected by the presence of substitutes, namely herbal fusions and green tea extracts, with the products capturing a notable market share of 20% as of 2016. However, factors such as the increased number of advertisements and marketing of substitutes are anticipated to hamper the industry growth.
Green tea is largely consumed in China, Japan, and other Asian countries owing to its medicinal value. Therefore, the inclusion of green tea extracts in the nutraceutical and functional food industries is expected to hamper the industry growth over the next eight years.
Powder is anticipated to be the highest-growing segment on account of its usage in the cosmetics industry owing to the rising demand for organic & personal care products. The product is largely being included in the powdered form in ready-to-drink beverages on account of growing preference towards using nutritious ready to drink substitutes.
Powdered extracts are easily soluble and offer different antioxidants at different temperatures and thus can be used in hot water soluble as well as cold water soluble products for medicinal purpose and in beverages. In addition, factors such as ease of stocking and transportation across the globe are expected to account for high growth.
Liquid extract is preferably used in medicinal preparations and functional food applications where exact amount of liquid can be mixed to get right mix of solution. The segment accounted for 21.8% of the global consumption in 2016, in terms of volume, on account of high use in the beauty supplements and functional food preparations.
The encapsulated tea extracts market is expected to register slower growth on account of the negative side effects of the product as it contains higher concentration of polyphenols in each capsule. However, the rising demand for encapsulated product in the beauty supplements and weight reduction formulations is expected to drive the market growth.
Hot water soluble product is generally used in low concentrations such as 0.35 to 0.45g in 100 ml of water. The powdered form of the extract is used in the food & beverage industry for the preparation of beverages with a premix of 3 in 1 or 2 in 1. Hot water soluble product has different types of antioxidants in comparison to cold water soluble beverages as antioxidants concentration varies with the extraction temperatures. The use of Hot water soluble product in the Asian and European markets is anticipated to drive the market growth over the next eight years.
The product is generally available in various flavors in the powdered form for use in the production of beverages. In addition, the powdered form offers superior properties such as ease of usage and storage, which in turn has increased its demand. The higher retention of bioactive compounds and nutrients makes hot water soluble product a preferable choice over other drinks. These factors are expected to increase market growth in the developed economies over the next eight years.
High demand for cold water soluble black tea extract product that is used as 0.3g in 100 ml solution has been noted on a global level. The cold water soluble beverages are used as substitutes for sodas and other beverages by young population. The ready-to-drink beverages market is anticipated to drive the industry growth over the forecast period.
The demand for cold water soluble extracts is expected to reach USD 101.6 million by 2025 on account of the growing demand in the food and beverages industry in chocolates, premixes, and cookies. Bakery industry has exhibited a high demand for the product for the production of cakes and pastries. The global production of black tea extracts is growing owing to the increased demand in application industries.
The cosmetics industry is anticipated to register the highest growth over the forecast period owing to the inclusion of organic ingredients due to increased awareness among the population regarding the effects of synthetic compounds. The use of the product in perfumes is anticipated to be capturing largest market share as compared to other personal care products over the forecast period.
The extracts offer various properties such as antifungal, humectant, astringent, and skin conditioner. The demand for the product in the manufacture of cosmetics is expected to drive the growth. In addition, the growth in the conscious purchasing decisions toward green consumption is likely to drive the growth for black tea extracts over next eight years.
Global black tea extracts market share, by application, 2016 (%)
The product is largely included in the ready-to-drink beverages application as it acts as a nutritious alternative to other beverages that offer various health benefits. It is also preferred as a sports drink as it contains lesser amount of caffeine and sugar in comparison to others. Moreover, the availability of the product at affordable prices in physical and online stores is likely to drive the demand over the forecast period.
The demand for the product for the production of functional foods is expected to generate a CAGR of 4.9% from 2017 to 2025 due to the rising consumer consciousness toward personal health. In addition, the rising demand for functional foods in Europe and North America is expected to drive the growth over the forecast period.
Asia Pacific is expected to be a key industry for black tea extracts due to the larger production and consumption trend observed in the region. Key players located in the region are integrated across the value chain.
The presence of major players in Asia Pacific coupled with increased disposable income and changing consumer preferences toward ready-to-drink beverages is likely to drive the product growth over the next eight years. A large number of companies are focusing on using innovative techniques for the manufacture of products customized exclusively for the end-use industries, which is likely to drive the growth in the product consumption over the forecast period.
North America is anticipated to be the largest importer of the product for use in the cosmetic applications, ready-to-drink beverages, and other beauty supplement industries. The region accounted for the consumption of 1,502.6 tons of the product owing to high demand for ready-to-drink beverages as an alternative to other herbal drinks on account of the nutritious health benefits.
The competition is largely concentrated in Asia Pacific with the presence of global and domestic players. Major players in the industry include Synthite Industries Limited; Finlay; Martin Bauer Group; Amax NutraSource, Inc; Kemin Industries; AVT Natural Products Ltd.; and Cymbio Pharma Pvt. Ltd. among others. High performance, reduction in the cost, superior quality, and the use of advanced technologies are anticipated to be major characteristics of the players.
A large number of companies have adopted innovative extraction technologies for producing suitable products as per the requirement of the end-use application industry. These companies are investing higher amounts of money on harvesting and extraction processes to improve the yield.
Base year for estimation
Actual estimates/Historical data
2014 - 2025
2017 - 2025
Volume in Tons, Revenue in 000’ USD and CAGR from 2017 to 2025
North America, Europe, Asia Pacific, Central & South America, Middle East & Africa
U.S., Canada, Germany, UK, France, China, India, Japan, Brazil
Revenue forecast, competitive landscape, growth factors and trends
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Segments covered in the report
This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global black tea extracts market on the basis of form, product, application, and region:
Form Outlook (Volume, Tons; Revenue, 000’; USD, 2014 - 2025)
Product Outlook (Volume, Tons; Revenue, 000’ USD; 2014 - 2025)
Hot Water Soluble
Cold Water Soluble
Application Outlook (Volume, Tons; Revenue, 000’ USD; 2014 - 2025)
Regional Outlook (Volume, Tons; Revenue, 000’ USD; 2014 - 2025)
Central & South America
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