According to UnivDatos analysis, rising global demand for clean-label ingredients, coupled with advanced technologies for extraction, are the major factors driving the growth of the tea extract market. As per their “Tea Extract Market” report, the global market was valued at USD 3,214.81 million in 2024, growing at a CAGR of about 7.22% during the forecast period from 2025 - 2033 to reach USD million by 2033.  

Tea extract is obtained from the fresh or dried leaves of the Camellia Sinensis plant. Based on extraction methods, these extracts occur in three different forms: powder, liquid, and encapsulated form. Additionally, powder form extract is highly used by industries due to its long shelf life and soluble nature. For example, the food & beverage industry used it in the making of brewed tea and energy drinks. Due to its antioxidant and anti-inflammatory nature, cosmetics and personal care products utilize it in face masks and scrubs. Furthermore, liquid extract is preferred in the manufacturing of syrups as it provides a consistent flavor. For example, Lipton Green Tea uses liquid extracts to maintain a consistent flavor.

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Technological Advancement in Extraction Method

Among the major trends in the tea extract market, technological advancement in the extraction method is the most prominent one. With advanced technological techniques such as supercritical CO2 extraction, ultrasonic-assisted extraction, and membrane, it is possible to produce large amounts of bioactive compounds such as EGCG and catechins. With a reduction in bitterness and caffeine level, the purity of the compound is improved. For example, PurTea produces highly soluble and less bitter green tea extract.

For instance, in June 2024, Taiyo International relaunched its product Sunphenon TH30. It is a L-theanine-rich green tea extract that can be utilized in supplementary food, dairy products, and beverages.

Government Investments Fuel Growth in the Global Tea Extract Market

Investments in tea extract by government programs and businesses are a significant catalyst for market growth, as these companies focus on increasing manufacturing and innovating new products to meet the growing demand for natural ingredients. Therefore, strengthening value chain integration and reducing production costs. Additionally, Mergers and acquisitions play an important role as food and beverage and supplementary brands are seeking opportunities to expand their product portfolio and enhance supply chains. Due to this, the acquisition of small tea companies by big brands is on the rise. For instance, in July 2023, Finlays acquired tea and yerba mate extraction assets from Natural Instant Foods. Such mergers and acquisitions allow companies to improve their position in the market by gaining access to advanced tea extract technologies, geography, and distribution networks.

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Strategic Investment, M&A Activities, and Advanced Technology Boost Global Tea Extract Market Growth

The tea extract market is growing due to increasing investments, mergers and acquisitions, and technological advancements. Government plans and programs are further expanding the production capacity and raw materials to fulfill the demand of various industries. Moreover, the strategic acquisition of businesses strengthens the distribution network, technological advancement, and geographical expansion. With growing innovations of advanced tea extract technologies, such as PurTea, improving the purity level of the extract and taste. These factors ensure the tea extract market's growth.

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