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    Matcha Tea Market

    ID: MRFR/FnB/1757-CR
    129 Pages
    Pradeep Nandi
    February 2021

    Matcha Tea Market Research Report Information By Application (Regular Tea, Food, Cosmetics, Matcha Beverages, Personal Market), By Form (Ready-To-Drink, Instant Premixes, Powder Form), By Type (Traditional, Sweetened, Unsweetened), By Formulation (Plain, Flavored), By Distribution Channel (Store-Based Distribution Channels And Non-Store-Based Distribution Channels.) And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) –Market Forecast Till 2035

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    Matcha Tea Market Infographic
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    Matcha Tea Market Summary

    As per MRFR analysis, the Matcha Tea Market Size was estimated at 3.66 USD Billion in 2024. The Matcha Tea industry is projected to grow from 3.916 USD Billion in 2025 to 7.705 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 7.0 during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

    The Matcha Tea Market is experiencing robust growth driven by health trends and product innovation.

    • The health and wellness focus continues to propel the demand for matcha tea, particularly in North America, the largest market.
    • Product innovation is evident as brands introduce diverse matcha beverages, catering to evolving consumer preferences.
    • In the Asia-Pacific region, the market is rapidly expanding, with instant premixes emerging as the fastest-growing segment.
    • Rising demand for functional beverages and the culinary versatility of matcha are key drivers influencing market dynamics.

    Market Size & Forecast

    2024 Market Size 3.66 (USD Billion)
    2035 Market Size 7.705 (USD Billion)
    CAGR (2025 - 2035) 7.0%

    Major Players

    Ippodo Tea Co (JP), Matcha Konomi (JP), Encha (US), Aiya (JP), Jade Leaf Matcha (US), Kiss Me Organics (US), The Matcha Maiden (US), Matchaful (US), DoMatcha (US)

    Matcha Tea Market Trends

    The Matcha Tea Market is currently experiencing a notable transformation, driven by a growing consumer awareness of health benefits associated with matcha. This green tea variant, known for its vibrant color and unique flavor, is increasingly favored for its potential antioxidant properties and calming effects. As individuals become more health-conscious, the demand for organic and premium matcha products appears to rise, suggesting a shift towards higher quality offerings. Additionally, the versatility of matcha in various culinary applications, from beverages to desserts, enhances its appeal, potentially attracting a broader audience. Moreover, the Matcha Tea Market is witnessing a surge in innovative product development. Companies are exploring diverse formats, such as matcha-infused snacks and ready-to-drink beverages, which may cater to the evolving preferences of consumers. This trend indicates a strategic response to the fast-paced lifestyle of modern consumers, who seek convenience without compromising on health. As the market continues to evolve, it seems likely that sustainability will play a crucial role, with brands increasingly focusing on eco-friendly packaging and sourcing practices. Overall, the Matcha Tea Market appears poised for continued growth, driven by health trends, innovation, and sustainability initiatives.

    Health and Wellness Focus

    The Matcha Tea Market is increasingly influenced by a heightened emphasis on health and wellness. Consumers are gravitating towards products that offer perceived health benefits, such as antioxidants and stress relief, which matcha is believed to provide.

    Product Innovation

    Innovation within the Matcha Tea Market is evident as brands introduce new formats and applications. From matcha-infused snacks to ready-to-drink options, companies are diversifying their offerings to meet the demands of modern consumers.

    Sustainability Initiatives

    Sustainability is becoming a pivotal concern in the Matcha Tea Market. Brands are likely to adopt eco-friendly practices, focusing on sustainable sourcing and packaging, which may resonate with environmentally conscious consumers.

    Matcha Tea Market Drivers

    Culinary Versatility of Matcha

    The culinary versatility of matcha tea is emerging as a key driver in the Matcha Tea Market. Beyond traditional consumption as a beverage, matcha is increasingly being incorporated into various culinary applications, including desserts, smoothies, and savory dishes. This trend is supported by data showing that the food service sector is increasingly adopting matcha as a trendy ingredient, with a reported increase in menu items featuring matcha. The versatility of matcha not only appeals to health-conscious consumers but also attracts food enthusiasts looking for innovative flavors. As restaurants and cafes continue to experiment with matcha-infused dishes, the Matcha Tea Market is likely to see a boost in demand, as consumers seek new and exciting ways to enjoy this unique ingredient.

    Expansion of E-commerce Platforms

    The Matcha Tea Market is witnessing a significant transformation due to the expansion of e-commerce platforms. As online shopping becomes increasingly prevalent, consumers are more inclined to purchase matcha tea products through digital channels. This shift is supported by data indicating that e-commerce sales in the food and beverage sector have seen a substantial increase, with projections suggesting a growth rate of over 10% annually. The convenience of online shopping, coupled with the ability to access a wider variety of matcha products, enhances consumer engagement and drives sales. Furthermore, e-commerce platforms often provide detailed product information and customer reviews, which can influence purchasing decisions. This trend indicates that the Matcha Tea Market is likely to benefit from the ongoing digitalization of retail, as more consumers turn to online platforms for their matcha tea needs.

    Growing Interest in Organic Products

    The Matcha Tea Market is significantly influenced by the growing interest in organic products among consumers. As awareness of the benefits of organic farming practices increases, more consumers are seeking out organic matcha tea options. Data indicates that the organic food market has been expanding at a rate of approximately 9% annually, reflecting a broader trend towards sustainable and health-conscious consumption. This shift is likely to enhance the appeal of matcha tea, particularly among environmentally aware consumers who prioritize organic certifications. The demand for organic matcha not only supports the health benefits associated with the product but also aligns with consumers' values regarding sustainability and ethical sourcing. As a result, the Matcha Tea Market is poised to benefit from this growing preference for organic offerings.

    Rising Demand for Functional Beverages

    The Matcha Tea Market experiences a notable surge in demand for functional beverages, driven by consumers' increasing preference for health-oriented products. This trend is reflected in the growing awareness of the health benefits associated with matcha tea, such as its high antioxidant content and potential metabolism-boosting properties. According to recent data, the functional beverage market is projected to grow at a compound annual growth rate of approximately 8% over the next five years. This growth is likely to bolster the Matcha Tea Market, as consumers seek alternatives to sugary drinks and opt for beverages that offer both taste and health benefits. The alignment of matcha tea with the wellness trend positions it favorably in a competitive market, suggesting that its popularity will continue to rise as more consumers prioritize health in their beverage choices.

    Influence of Social Media and Health Trends

    The Matcha Tea Market is increasingly shaped by the influence of social media and emerging health trends. Platforms such as Instagram and TikTok have played a pivotal role in popularizing matcha tea, showcasing its vibrant color and versatility in various recipes. This social media exposure has led to a surge in interest, particularly among younger demographics who are more likely to engage with health trends online. Data suggests that products featured in social media campaigns can experience a sales increase of up to 30%. As influencers and health advocates promote matcha tea as a superfood, the Matcha Tea Market is likely to see continued growth, driven by the viral nature of social media and the desire for aesthetically pleasing, health-oriented products.

    Market Segment Insights

    Segment Insights

    Matcha Tea Market Application Insights

    The matcha tea market segmentation, based on application includes regular tea, food, cosmetics, matcha beverages, personal market. In 2022, the regular tea category is predicted to have the largest market share. Matcha tea use is expanding among consumers. Growing consumer health awareness around the world is likely to drive matcha market growth during the forecast period.

    Matcha Tea Market Form Insights

    The matcha tea market segmentation, based on form, includes ready-to-drink, instant premixes, powder form. Over the forecast period, the powder form category is expected to account for a significant revenue share. According to multiple studies, various teas have the ability to enhance the immune system, reduce inflammation, and even prevent cancer and heart disease. There is abundant evidence that drinking tea on a daily basis can improve one's health, while some varieties have more health benefits than others.

    The powdered form of tea is one of the most traditional types of tea, and it provides a variety of health benefits, leading in revenue growth for this category.

    Matcha Tea Market Type Insights

    The matcha tea market segmentation, based on type, includes traditional, sweetened, unsweetened. The sweetened category held a significant market share. Sweetened matcha is another simple approach to improve its taste. Non-flavored sweeteners like sugar and agave syrup will preserve matcha's natural flavour, whereas sweets like honey and chocolate will disguise it well. Drinking matcha has numerous health benefits, but going overboard with sweets can sometimes have the opposite impact. If at all feasible, use a natural sweetener or one with as little sugar as possible.

    Matcha Tea Market Formulation Insights

    The matcha tea market segmentation, based on formulation, includes plain, flavoured. Flavoured category has the largest market share in 2022. This is primarily due to the wide variety of flavoured teas on the market, which is driving demand based on consumer preferences and taste. Lemon, aloe Vera, cinnamon, wild berry, jasmine, basil, and more flavours are created in response to market demand.

    Furthermore, this market is expected to grow at the quickest rate of 6.2% between 2022 and 2032, as the combination of health and flavour entices buyers to acquire the product in order to experience both the taste and the benefits.

    Figure1: Matcha Tea Market, by Formulation, 2022&2032 (USD billion)

    Matcha Tea Market Distribution Channel Insights

    The matcha tea market segmentation, based on distribution channel, includes store-based distribution channels, non-store-based distribution channels. The market was dominated by store-based distribution channels. Store-based distribution channels are further classified as specialized stores and hypermarkets/supermarkets. Supermarkets/Hypermarkets are expected to create a greater proportion of USD 1,735 million, with a GAGR of 6.4%. Hypermarkets and supermarkets are becoming more popular as a result of their large assortment of consumer goods under one roof, ample parking space, and convenient business hours.

    Get more detailed insights about Matcha Tea Market

    Regional Insights

    North America : Health-Conscious Consumer Base

    The North American matcha tea market is experiencing significant growth, driven by increasing health consciousness among consumers and the rising popularity of matcha as a superfood. The region holds approximately 35% of the global market share, making it the largest market for matcha tea. Regulatory support for organic products and health claims further fuels this demand, as consumers seek natural and beneficial alternatives to traditional beverages. The United States is the leading country in this market, with a growing number of specialty tea shops and online retailers offering a variety of matcha products. Key players such as Encha and Jade Leaf Matcha are capitalizing on this trend, providing high-quality matcha sourced from Japan. The competitive landscape is characterized by a mix of established brands and emerging startups, all vying for a share of the expanding market.

    Europe : Emerging Market for Wellness

    Europe is rapidly becoming a significant player in the matcha tea market, driven by a surge in health and wellness trends. The region accounts for approximately 25% of the global market share, making it the second-largest market. Factors such as increasing awareness of the health benefits of matcha and the rise of vegan and organic lifestyles are key drivers of this growth. Regulatory frameworks supporting organic certification are also enhancing consumer trust in matcha products. Leading countries in this region include the United Kingdom, Germany, and France, where matcha is increasingly featured in cafes and health food stores. The competitive landscape is marked by both local and international brands, with companies like Matcha Konomi and Aiya establishing a strong presence. The market is expected to continue expanding as more consumers seek out premium, health-oriented beverages.

    Asia-Pacific : Cultural Heritage and Growth

    The Asia-Pacific region, particularly Japan, is the birthplace of matcha tea and continues to dominate the global market, holding approximately 30% of the share. The growth is fueled by a blend of traditional consumption and modern trends, as younger consumers embrace matcha for its health benefits and versatility in various culinary applications. Regulatory support for organic farming practices is also a catalyst for market expansion in this region. Japan remains the leading country, with a rich cultural heritage surrounding matcha. Key players like Ippodo Tea Co and Aiya are well-established, offering premium products that cater to both domestic and international markets. The competitive landscape is robust, with numerous local brands and an increasing number of international entrants looking to capitalize on the growing global interest in matcha tea.

    Middle East and Africa : Emerging Health Trends

    The Middle East and Africa region is witnessing a gradual rise in the popularity of matcha tea, driven by increasing health awareness and a growing interest in wellness products. This region currently holds about 10% of the global market share, with potential for significant growth as consumers become more health-conscious. Regulatory initiatives promoting healthy lifestyles are also contributing to the market's expansion, encouraging the adoption of matcha as a preferred beverage choice. Countries like South Africa and the UAE are leading the way in matcha consumption, with a growing number of cafes and health food stores introducing matcha products. The competitive landscape is still developing, with both local and international brands entering the market. Key players are beginning to establish their presence, aiming to meet the rising demand for health-oriented beverages in this region.

    Matcha Tea Market Regional Image

    Key Players and Competitive Insights

    Leading market players are investing heavily in R&D to expand their product lines, which will help the matcha tea market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, matcha tea industry must offer cost-effective items.

    Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the matcha tea industry to benefit clients and increase the market sector. In recent years, the matcha tea industry has offered some of the most significant advantages to medicine. Major players in the matcha tea market, including The Unilever Group (U.K.), AOI Tea Company (U.S.), Aiya Co. Ltd. (Japan), ITO EN LTD (Japan), Marukyu Koyamaen Co. Ltd. (Japan) and others, are attempting to increase market demand by investing in R&D operations.

    Keurig Dr Pepper Inc. is a publicly traded American beverage and coffeemaker corporation headquartered in Burlington, Massachusetts. It was originally known as Green Mountain Coffee Roasters (1981-2014) and Keurig Green Mountain (2014-2018). Keurig Dr Pepper, formed in July 2018 by the merging of Keurig Green Mountain and Dr Pepper Snapple Group, offers over 125 hot and cold beverages. Keurig Dr Pepper Canada is the company's Canadian subsidiary. In October 2020, Keurig Dr. Pepper Inc. has introduced recycled plastic bottles for its Snapple and Core RTD matcha tea brands.

    Nestlé S.A. is a Swiss multinational food and beverage industry firm based in Vevey, Vaud, Switzerland. Since 2014, it has become the world's largest publicly traded food firm in terms of revenue and other measures. It was placed No. 64 on the Fortune 500 in 2017 and No. 33 on the Forbes 2000 list of the world's largest public corporations in 2016. Nestlé's products include baby food (some of which contain oligosaccharides derived from human milk), medical food, bottled water, breakfast cereals, coffee and tea, confectionery, dairy products, ice cream, frozen food, pet meals, and snacks.

    Nestlé's brands with annual sales of over 1 billion CHF (about US$1.1 billion) include Nespresso, Nescafé, Kit Kat, Smarties, Nesquik, Stouffer's, Vittel, and Maggi. In February 2019, In Europe, Nestlé introduced KitKat Green Tea Matcha. The product is created by combining UTZ certified cocoa beans with matcha tea from China and Japan.

    Key Companies in the Matcha Tea Market market include

    Industry Developments

    March 2024- India's most trusted FMCG brand, Pansari Group, is now ready to blaze the audience with its launch of TVOY GREEN TEA at AAHAR 2024. Lately, the company introduced its new tea range, Pansari Chai, which comes in four distinct flavors, each of which provides an intense tea-drinking experience. After getting a massive response from their customers for Pansari Chai, the team thought of bringing their green tea range to the market as well. 

    The company is now ready to enter the world of excellent green tea sourced from the prestigious Nilgiris in Tamil Nadu, South India. The TVOY GREEN TEA is expanded in one of the top-tier tea estates, situated at an altitude of 1900 meters above MSL. Set by crystal-clear streams and natural forests, this eco-friendly sanctuary offers the ideal setting for responsible tea farming. The director of Pansari Group, Shammi Agarwal, shows his pursuit of the launch by mentioning that the launch of TVOY GREEN TEA is not just about introducing a product but about supporting a lifestyle.

    In a time when health awareness is on the ascent, TVOY provides a mix of wellness and culture. 

    The distinct flavors of these products include Classic green tea, Kahwa green tea, and chamomile. At present, no leading players are in the green tea market. Hence, the brand thinks it is high time it entered the market. Everyone is quite excited about the journey ahead and believes that TVOY GREEN TEA will become an indication of health and indulgence for our consumers. In addition, Pansari's products are ISO 9001 2008 certified, HACCP 2006 certified, and Fair Trade Certified by the Fair Trade Labeling Organization.

    In March 2023, Tenzo Tea, a luxury line of matcha tea, will be partnering with boutique tequila brand Lo Siento to create three exclusive match-infused cocktails. In this alliance, both brands are committed to providing exceptional quality and pioneering taste experiences.

     In November 2023, Hojicha Co., responding to client requests for reliable brands of matcha online, partnered with Marukyu Koyamaen to provide genuine Uji matcha on their website. The partnership will make available different customer preferences ranging from ceremonial occasion cocktails like ‘Match Yugen’ or ‘Match Isuzu Latte’ lattes, etc.

    February 2022, Nestlé Health Science acquired a stake in Orgain. Nestlé Health Science's nutrition products would complement the company's existing product line as a result of this agreement.

    January 2022, Aiya America's newest product line is the Matcha Infused Tea Line. Three superb Japanese matcha teas in the collection are Organic Matcha Infused Sencha, Organic Matcha Infused Gyokuro, and Organic Matcha Infused Genmaicha.

    Future Outlook

    Matcha Tea Market Future Outlook

    The Matcha Tea Market is projected to grow at a 7.0% CAGR from 2024 to 2035, driven by increasing health awareness, product innovation, and expanding distribution channels.

    New opportunities lie in:

    • Development of premium organic matcha product lines
    • Expansion into ready-to-drink matcha beverages
    • Implementation of subscription-based matcha delivery services

    By 2035, the Matcha Tea Market is expected to achieve robust growth and diversification.

    Market Segmentation

    Matcha Tea Market Form Outlook

    • Ready-To-Drink
    • Instant Premixes
    • Powder Form

    Matcha Tea Market Type Outlook

    • Traditional
    • Sweetened
    • Unsweetened

    Matcha Tea Market Application Outlook

    • Regular Tea
    • Food
    • Cosmetics
    • Matcha Beverages
    • Personal Market

    Matcha Tea Market Formulation Outlook

    • Plain
    • Flavored

    Matcha Tea Market Distribution Channel Outlook

    • Store-Based Distribution Channels
    • Non-Store-Based Distribution Channels

    Report Scope

    MARKET SIZE 20243.66(USD Billion)
    MARKET SIZE 20253.916(USD Billion)
    MARKET SIZE 20357.705(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR)7.0% (2024 - 2035)
    REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR2024
    Market Forecast Period2025 - 2035
    Historical Data2019 - 2024
    Market Forecast UnitsUSD Billion
    Key Companies ProfiledMarket analysis in progress
    Segments CoveredMarket segmentation analysis in progress
    Key Market OpportunitiesGrowing consumer preference for health-oriented beverages enhances opportunities in the Matcha Tea Market.
    Key Market DynamicsRising consumer preference for health-oriented beverages drives demand for premium matcha tea products and innovative blends.
    Countries CoveredNorth America, Europe, APAC, South America, MEA

    Market Highlights

    Author
    Pradeep Nandi
    Senior Research Analyst

    I have a bachelor's degree in mechanical engineering and an MBA. I have more than two years of expertise in the retail, food, and beverage, chemical, and material industries, and hence have developed a sound cross-domain expertise. A firm believer in lifelong learning and sharing of knowledge. Having a proclivity for hatching ideas and trying to absorb as much information as possible in a short amount of time. Introducing corporates to the data and insight, which enables them to move from probability to possibility, has been my key areas of interest. 

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    FAQs

    What is the current valuation of the Matcha Tea Market as of 2024?

    The Matcha Tea Market was valued at 3.66 USD Billion in 2024.

    What is the projected market size for the Matcha Tea Market by 2035?

    The market is projected to reach 7.705 USD Billion by 2035.

    What is the expected CAGR for the Matcha Tea Market during the forecast period 2025 - 2035?

    The expected CAGR for the Matcha Tea Market during 2025 - 2035 is 7.0%.

    Which segments are included in the Matcha Tea Market analysis?

    The segments include Application, Form, Type, Formulation, and Distribution Channel.

    What are the projected values for Matcha Beverages in 2025?

    Matcha Beverages are projected to grow from 1.1 USD Billion in 2024 to 2.3 USD Billion by 2035.

    How does the market for flavored Matcha compare to plain Matcha?

    Flavored Matcha is expected to grow from 1.46 USD Billion in 2024 to 3.205 USD Billion by 2035, while plain Matcha is projected to increase from 2.2 USD Billion to 4.5 USD Billion.

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