Black Tea Extract Market Size at a CAGR of 6.8% During the Forecast Period 2020–2025

Black Tea Extract Market size is estimated to be 128.7 Million in 2019, growing at a CAGR of 6.8% during the forecast period 2020-2025. Black tea is made from the leaves of a bush called Camellia sinesis. A process called oxidation turns the leaves from green to a dark brownish-black color. Black tea is enriched with theaflavin, which has a good antioxidant property. Besides, this theaflavin-enriched black tea extract has also shown anti-stress effects in a number of randomized crossover studies. Increasing demand of ready-to-drink beverages along with the rising health benefits of black tea is a significant factor driving the black tea extracts market during the forecast period 2020-2025. The shift of consumers towards nutritional supplement is propelled to increase the utilization and demand of the product. Moreover, AVT is a leading vertically integrated manufacturer of plant extracts and natural ingredients solution for the food, beverage, animal nutrition and nutraceutical industries of the world. With a low amount of caffeine and sugar supplement available in stores and online distribution channel for diabetes patients is in turn is boosting its market growth.

Key Takeaways

  • Hot Water Soluble held the major market share in 2019, owing to the high extract of theaflavin, a healthy natural ingredient of black tea.
    Beverages segment held the largest market share in the year 2019 owing to the rising demand of ready-to-drink beverages, health supplements and various other nutraceutical drinks.
  • APAC contributed to the largest market share of more than 35% owing to the presence of large dominant players in the region including Cymbio Pharma Private Limited and AVT Natural Products Limited.
  • Wide application of black tea extracts in cosmetic and beverage industry is a major factor driving the Black Tea Extract Market during the forecast period 2020-2025.

By Product- Segment Analysis

By Product, the Black Tea Extract Market is segmented into Hot Water Soluble and Cold Water Soluble. Hot Water Soluble held the major market share in 2019, owing to the high extract of theaflavin, a healthy natural ingredient of black tea. Moreover, they are perfect for the formulations of milk powders to make instant hot tea beverages. In addition, Liming Biotech offers Liming Instant Tea produced by unpolluted high-quality tea. The advanced technology and equipment ensure it retain the active components in tea, which is beneficial to human body, to an utmost degree. Besides, Liming Instant Tea has its color, flavor, and taste with no difference from original tea. Also, Cold Water-Soluble segment is projected to witness growth at fastest CAGR of 7.5% in forecast period 2020-2025 owing to the rising demand of ready-to-drink beverages.

By Application- Segment Analysis

By Application, the Black Tea Extract Market is segmented into Functional Food, Beverages, Cosmetics, Beauty Supplement and Others. Beverages segment held the largest market share in the year 2019 owing to the rising demand of ready-to-drink beverages, health supplements and various other nutraceutical drinks. Moreover, Harrisons produces about 20 million kg of black tea per annum, making it the largest producer of tea in South India. The company produces black tea extracts from CTC and orthodox tea which is suitable for tea formulation for health and beverage industry. Also, beauty supplement segment is projected to witness growth at fastest CAGR of 7.9% in forecast period 2020-2025. Rising use of black tea extracts for many cosmetics including creams, moisturizing lotions, tonics, shower gel, hair product as well as cosmetic facial masks is poised to increase its market growth.

Geography- Segment Analysis

APAC contributed to the largest market share of more than 35% owing to the presence of large dominant players in the region including Cymbio Pharma Private Limited and AVT Natural Products Limited. Increasing consumption of ready of drink-beverages trend in that region is contributing to its market growth. Moreover, Cymbio Pharma offers high quality assortment of black tea extracts, which is made using high-grade herbal ingredient pure in nature, effective and longer shelf-life. North America Black Tea Extract market is another dominant market owing to the presence of big players like Amax NutraSource.

Drivers – Black Tea Extract Market

  • Growing Awareness Among Consumers Regarding Black Tea Benefits

Growing awareness among consumers regarding black tea health benefits is a major driving the Black Tea Extract Market during the forecast period 2020-2025. Besides, black tea extract also reduces the cancer risk to a great extent. For instance, National Cancer Institute (NCI) suggest that polyphenols in tea decrease the risk of tumor growth. Moreover, regular drinking of black tea reduces the risk of diabetes, high cholesterol, kidney disease, Parkinson’s disease and osteoporosis. Therefore, these are key benefits driving the black tea extracts market during the forecast period 2020-2025.

  • Wide Application of Black Tea Extracts in Cosmetic and Beverage Industry

Wide application of black tea extracts in cosmetic and beverage industry is a major factor driving the Black Tea Extract Market during the forecast period 2020-2025. Moreover, Apex Flavors offers tea extracts for use in a wide range of application, including ready-to-drink-tea and other beverages. In addition, its liquid tea extracts are available in both hot and cold-water soluble version, providing product clarity and authentic brewed-tea flavor, mouth feel, color with no kettle brewing required.

Challenges – Black Tea Extract Market

  • Side-Effects of Black Tea Extract

Side-Effects of Black Tea Extract serves as a major setback for the growth of the Black Tea Extract Market during the forecast period 2020-2025. For instance, the most common side-effects are cardiac arrhythmia or an irregular heartbeat, diarrhea and irritable bowel syndrome, an increase or decrease in blood pressure disrupting the smooth flow of Black Tea Extract market during the forecast period 2020-2025

Black Tea Extract Market Industry Outlook

Product Launches, Merger & Acquisition, joint ventures and R&D activities are key strategies adopted by the players in Black Tea Extract Market. Black Tea Extract Market top 10 companies are Amax NutraSource Inc., Avt Natural Product Ltd, Blueberry Agro Product Pvt Ltd, Cymbio Pharma Pvt Ltd, Finlays, Firsd Tea, Hayleys Beverage, Kemin, Martin Bauer Group and Phyto Life Science P Ltd.

Developments:

  • October 2017: Lipton launched organic black tea. The Rainforest Alliance Certified black tea leaves, sourced from the Kenyan Highlands, adhere to USDA Organic standards.