The demand for Natural Tea Extract market is expected to be valued at USD 5.71 Billion in 2025, forecasted at a CAGR of 7.5%to have an estimated value of USD 11.98 Billion from 2025 to 2035. From 2020 to 2025 a CAGR of 7.0% was registered for the market.
For many drinker’s green tea has emerged as their preferred beverage. As a result, tea extract is now a typical household product. People of all ages are enjoying green teas refreshing properties. Additionally, the drink is gaining popularity due to its health benefits. Because they are so focused on staying in shape younger people make up a sizable portion of the market for green tea and tea extract.
Dietary supplements have also increased in popularity as a result of health trends. People who work all over the world have hectic schedules that make it difficult for them to maintain healthy eating habits.
This has led to a greater preference for nutritional supplements. The use of tea extracts in these supplements is growing. In addition to the extracts health benefits more customers are being drawn in by the teas recognizable aroma.
Tea extract is also becoming more prevalent in foods in addition to supplements and beverages. The desire of consumers to combine taste and healthiness is driving up demand for functional foods. Green tea extract is becoming a common component of functional foods due to its therapeutic qualities particularly its antioxidant capacity. Additionally, the extract is used to improve the foods flavor.
| Attributes | Description |
|---|---|
| Estimated Global Industry Size (2025E) | USD 5.71 Billion |
| Projected Global Industry Value (2035F) | USD 11.98 Billion |
| Value-based CAGR (2025 to 2035) | 7.5% |
Preference for natural ingredients is not just a trend in the food and beverage industry. A notable natural boom is also occurring in the cosmetics industry. As the negative effects of chemicals in cosmetics gain more attention more cosmetics will use organic ingredients. The natural wave in the cosmetics industry is being driven by natural tea extract.
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Demand in Energy Drinks is Driving the Market Growth
Energy drink demand is skyrocketing as a result of the prevalent gym-going culture. As more people participate in sports there is a growing demand for energy drinks. Natural tea extract is used in energy drinks for its distinct flavor as well as its health benefits. Energy drinks are thus a stimulating avenue for product development.
Demand for Bakery Items Driving the Market Growth
Although tea isn't usually thought of as an ingredient in baked goods innovations in confectionery have produced a wide range of ingredients for sweetmeats. Tea-flavored confections are hitting the market as a result of consumer demand for a variety of flavors. For bakers who want to incorporate the flavor of tea into their products tea extract is a practical choice. The extracts healthful qualities also draw in more customers who are concerned about their health.
During the period 2020 to 2024, the sales grew at a CAGR of 7.0%, and it is predicted to continue to grow at a CAGR of 7.5% during the forecast period of 2025 to 2035.
The pandemic brought attention to the importance of eating a healthy diet. Thus, more people began drinking green tea during the historical period. Additionally, more functional foods were consumed. The popularity of home cooking led to a rise in the use of flavorful yet nutritious ingredients. As a result, during the historical period the natural tea extract industry experienced positive growth.
It is anticipated that the markets growth rate will be slower during the forecast period than it was during the historical period. The products growth prospects are expected to be limited by the emergence of multiple substitutes that offer the same health benefits. Still there are plenty of opportunities for investors.
The demand for natural tea extract is expected to be fueled by the products diverse applications which include food and beverage pharmaceuticals and more. With increased use in cosmetics and growing awareness of the products health benefits the natural tea extract market is expected to grow.
Tier 1 companies comprises industry leaders acquiring a 60% share in the global business market. These leaders are distinguished by their extensive product portfolio and high production capacity. These industry leaders stand out due to their broad geographic reach, in-depth knowledge of manufacturing and reconditioning across various formats and strong customer base. They offer a variety of services and manufacturing with the newest technology while adhering to legal requirements for the best quality.
Tier 2 companies comprises of mid-size players having a presence in some regions and highly influencing the local commerce and has a market share of 30%. These are distinguished by their robust global presence and solid business acumen. These industry participants may not have cutting-edge technology or a broad global reach but they do have good technology and guarantee regulatory compliance.
Tier 3 companies comprises mostly of small-scale businesses serving niche economies and serving at the local presence having a market share of 10%. Due to their notable focus on meeting local needs these businesses are categorized as belonging to the tier 3 share segment, they are minor players with a constrained geographic scope. As an unorganized ecosystem Tier 3 in this context refers to a sector that in contrast to its organized competitors, lacks extensive structure and formalization.
The following table shows the forecasted growth rates of the significant three geographies revenues. USA, UK and South Korea come under the exhibit of high consumption, recording CAGRs of 5.3%, 3.0% and 5.1%, respectively, through 2035.
| Country | CAGR, 2025 to 2035 |
|---|---|
| United States | 5.3% |
| UK | 3.0% |
| South Korea | 5.1% |
The industry in the USA is expected to grow at a compound annual growth rate (CAGR) of 5.3% between 2025 and 2035. It will continue to be a very dominant market for the duration of the forecast. The natural beauty movement is very popular in the United States. Organic cosmetics are gaining popularity as people show a greater distaste for chemical-based makeup.
Manufacturers are increasing the use of organic ingredients and offering fully organic products in order to meet the demands of American consumers. A major ingredient in organic cosmetic formulations is tea extract. Tigovit USA for instance unveiled the Tigoderm skincare product line in August 2023. An important component of this product line is green tea extract.
A compound annual growth rate (CAGR) of 5.1% is anticipated in the natural tea extract market in South Korea from 2025 to 2035. It is anticipated to become one of East Asias most profitable pockets during the forecast period. Globally K-beauty is gaining popularity. The already remarkable outcomes that K-beauty products have produced in South Korea are a major factor in their growing reputation.
These K-beauty companies experiment with new formulas and ingredients to maintain consumer interest and provide even greater opportunities for success. One of the ingredients being used to create new eye-catching products is tea extract. For instance, the VITALBEAUTIE Green Tea Probiotics supplement which Amorepacific introduced to South Korea was well received. As a result, the industry is expected to grow in the nation at a promising rate.
The natural tea extract market in the UK is anticipated to grow at a compound annual growth rate (CAGR) of 3.0% over the next ten years. This can be attributed to several factors. People in the United Kingdom are known for their love of tea. In the country tea is not only regarded as a refreshing beverage but also as a way of life.
As a result, the UK consumer base already enjoys tea which creates the foundation for tea extracts continued nationalization. The UK is said to be the country that drinks the third most tea worldwide. The use of tea has expanded to include herbal teas. Therefore, there could be a large demand for natural tea extract in the nation.
| Segment | Value Share (2025) |
|---|---|
| Green Tea Extract (Type) | 44% |
In 2025, the market share of the green tea extract segment was 44%. Green tea extract therefore outperforms extracts of other teas including black and white tea. Green tea has taken center stage on many café menus and is no longer viewed as an alternative. The drinks transition from specialty to mainstream has also contributed to the extracts growing appeal.
A variety of food and drink items contain green tea extract. Additionally, the extracts application in cosmetics and dietary supplements has a promising future. Green tea extract is therefore expected to grow favorably over the next ten years.
| Segment | Value Share (2025) |
|---|---|
| Dietary Supplements (End Use Application) | 38% |
In 2025, 38% of the industry share came from dietary supplements. The numerous health advantages of tea extract are driving its use in dietary supplements. The main one is that the extract can prevent cells from absorbing fat.
The extract is now a common supplement ingredient as fitness trends advance and obesity reduction becomes a significant concern. Because of its additional health advantages like lowering blood pressure and inflammation the extract is increasingly found in dietary supplements.
Leading companies in the natural tea extract market are making significant investments in R&D to enhance production methods and provide end users with greater options. Another common practice is mergers and acquisitions. Finlays one of the leading companies in the industry is a shining example of both of these tactics.
In 2018 a new research and development facility was opened by the UK-based player in Rhode Island USA. In 2022 the company also partnered with Firmenich to focus on producing tea in a sustainable manner. The expansion of production facilities is the main objective of Martin Bauer Group another significant player.
The market is expected to grow at a CAGR of 7.5% throughout the forecast period.
By 2035, the sales value is expected to be worth USD 11.98 Billion.
Demand for bakery items is increasing demand for Natural Tea Extract Market.
North America is expected to dominate the global consumption.
Some of the key players in manufacturing include Martin Bauer Group, Cymbio Pharma and more.
By type, methods industry has been categorized into green tea extract, black tea extract and white tea extract
By end use application, industry has been categorized into pharmaceutical, cosmetics, functional foods, dietary supplements and energy drinks
Industry analysis has been carried out in key countries of North America; Europe, Middle East, Africa, ASEAN, South Asia, Asia, New Zealand and Australia
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Natural Tea Extract Market
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