The global black tea extracts market is expected to reach USD 153.0 million by 2025, growing at a CAGR of 4.8%, according to a new report by Grand View Research, Inc. The market for black tea extracts is anticipated to grow with the rising awareness among population regarding the health benefits offered by the product. In addition, rising groceries, retail stores, and supermarkets, which offer the products, are expected to trigger the market growth.
Black tea extracts are used in dietary supplements owing to the superior concentration of vitamins and minerals. The product contains antioxidants and polyphenols, which are responsible for improving metabolism and inhibiting the bacterial growth. It is also effective in reducing lifestyle induced diseases such as diabetes and blood pressure as it helps in reducing the stress levels in the body.
Black tea extracts industry is anticipated to grow on account of efforts undertaken by manufacturers to engage in backward integration coupled with the adoption of contract farming as a tool to improve the yield. The adoption of contract farming aids in stabilizing the fluctuating market conditions and changing consumption patterns, which in turn is expected to aid the market growth. In addition, manufacturers are inclined toward using innovative extraction methods such as UAE, MAE, and SCFE to increase the concentration of polyphenols in the extract in an attempt to increase the customer base.
Further key findings from the report suggest:
- Powdered form of black tea extracts is expected to be the fastest-growing segment, in terms of revenue, indicating a CAGR of 5.1% from 2017 to 2025 owing to the superior health benefits offered by the product and rising product sales through e-commerce platforms
- Hot water soluble product segment is expected to denote a CAGR of 4.3%, in terms of revenue, on account of high demand for the product for use as an ingredient in the nutraceutical products.
- Asia Pacific is anticipated to emerge as the fastest-growing region, indicating a CAGR of 5.9% from 2017 to 2025 on account of growing population coupled with rising sales of the product in the region.
- A large number of black tea extract producing companies are present in Asia Pacific on account of favorable climatic conditions and inexpensive resources, which is anticipated to drive the production in the regional market.
- The demand in volume for black tea extracts in the manufacture of beverages, such as RTDs, accounted for 45.8% of the global consumption in 2016, in terms of volume, on account of high demand for such products by the younger population
- Key companies in the industry are involved in the production of advanced tea extracts in accordance with the requirements listed by the consumer industries. The companies involved in the manufacturing of black tea extracts are adopting innovative technologies to increase yield.