At 5.4% CAGR, Europe Tea Extracts Market is Projected to be Worth US$ 1,425.28 Million by 2031, says Business Market Insights

According to Business Market Insights’ research, the Europe tea extracts market was valued at US$ 933.84 million in 2023 and is expected to reach US$ 1,425.28 million by 2031, registering a CAGR of 5.4% from 2023 to 2031. Rising demand for natural ingredients in food and beverages and growth of cosmetic and personal care industry are among the critical factors attributed to drive the Europe tea extracts market growth.

Consumers are becoming aware of the adverse effects of consuming food and beverages with synthetic ingredients. Due to growing concerns about ingredient safety and potential health consequences, natural food additives are being increasingly used in various types of food and beverages. Several health organizations and food safety associations prohibit the use of various artificial flavorings in food and beverages. Consumers increasingly prefer food and beverages that are free of synthetic flavors, colors, and other food additives. Herbal and naturally made products are becoming increasingly popular, owing to their perceived health benefits. Products that are free of artificial ingredients are included in the diets of many consumers, and they are willing to pay high prices for these ingredients. Further, consumers are focusing on holistic and conscious consumption of food and prefer products with ethically sourced ingredients. Tea extracts are widely used as antimicrobials, antioxidant agents, and shelf-life-extending agents in food and beverages to prevent major digestive and chronic diseases. Similarly, green tea extract, with its rich antioxidant content, is particularly favored in yogurt and drinkable dairy products, where it enhances the health profile by adding polyphenols known for their potential benefits in boosting metabolism and supporting overall wellness. Owing to increased applications in the food and beverages industry, manufacturers are significantly launching tea extracts. For instance, in November 2022, Layn Natural Ingredients, a manufacturer of botanical extract ingredients, added an instant tea extract powder line to its portfolio of tea extracts. This extract is suitable for instant tea and ready-to-drink products. Thus, the rising demand for natural ingredients in food and beverages drives the tea extracts market.

On the contrary, disruptions in supply chain hamper the growth of Europe tea extracts market.

Based on type, the Europe tea extracts market is segmented into green tea, black tea, oolong tea, and others. The green tea segment held 53.3% market share in 2023, amassing US$ 497.40 million. It is projected to garner US$ 774.58 million by 2031 to register 5.7% CAGR during 2023–2031.

In terms of form, the Europe tea extracts market is bifurcated into powder and liquid. The liquid segment held 67.0% share of Europe tea extracts market in 2023, amassing US$ 625.69 million. It is anticipated to garner US$ 931.37 million by 2031 to expand at 5.1% CAGR during 2023–2031.

By application, the Europe tea extracts market is segmented into food and beverages, bakery and confectionery, dairy and frozen dessert, beverages, other food and beverages, dietary supplements, personal care and cosmetics, and others. The food and beverages segment held 33.1% market share in 2023, amassing US$ 309.45 million. It is projected to garner US$ 453.65 million by 2031 to register 4.9% CAGR during 2023–2031.

By category, the Europe tea extracts market is bifurcated into conventional and organic. The conventional segment held 74.2% market share in 2023, amassing US$ 692.88 million. It is projected to garner US$ 1,046.20 million by 2031 to register 5.3% CAGR during 2023–2031

By country, the Europe tea extracts market is segmented into Germany, France, Italy, the UK, Russia, Spain, and the Rest of Europe. Our regional analysis states that the Rest of Europe captured 39.7% share of Europe tea extracts market in 2023. It was assessed at US$ 371.11 million in 2023 and is likely to hit US$ 518.44 million by 2031, registering a CAGR of 4.3% during 2023–2031.

Key players operating in the Europe tea extracts market are Finlays, Botanic Healthcare Group, Martin Bauer GmbH & Co KG, Firmenich International SA, Givaudan SA, International Flavors & Fragrances Inc, Kerry Group Plc, Archer Daniels Midland Company, Sensient Technologies Corp, Kemin Industries Inc, Medikonda Nutrients, Virginia Dare Extract Co Inc, Lipoid-Kosmetik, Florida Food Products, and Dohler GmbH, among others.

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