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Matcha Tea Market By Production Technology (Pan Fried, Steamed); By Grade (Ceremonial, Classic, Culinary); By Application (Regular Tea, Matcha Beverages, Food, Personal Care and Cosmetics); By Form (Powder, Ready to Drink, Instant Premixes); By Product Type (Traditional, Unsweetened, Sweetened, Flavored); By Nature (Organic, Conventional); By Distribution Channel (Supermarkets and Hypermarkets, Specialty Stores, Online Stores, Retail Stores, Departmental Stores) – Growth, Share, Opportunities & Competitive Analysis, 2024 – 2032

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Published: | Report ID: 37133 | Report Format : PDF
Historical Period  2019-2022
Base Year  2023
Forecast Period  2024-2032
Matcha Tea Market Size 2023  USD 3752.89 Million
Matcha Tea Market, CAGR  6.92%
Matcha Tea Market Size 2032  USD 6409.7 Million

Market Overview

The global Matcha Tea Market is projected to grow from USD 3752.89 million in 2023 to an estimated USD 6409.7 million by 2032, with a compound annual growth rate (CAGR) of 6.92% from 2024 to 2032. This remarkable growth trajectory is attributed to several factors driving the market forward. Firstly, the increasing consumer awareness regarding the health benefits associated with matcha tea consumption, such as its high antioxidant content and potential role in aiding weight loss, is significantly boosting demand. Additionally, the rising preference for natural and organic products among health-conscious consumers is further fueling the market growth. Moreover, the expanding distribution channels, including e-commerce platforms and specialty stores, are making matcha tea more accessible to a broader consumer base, thereby driving market expansion.

Market drivers and trends in the matcha tea industry reflect the evolving consumer preferences and the dynamic landscape of the beverage market. One of the prominent drivers is the growing popularity of matcha tea as a functional beverage, owing to its purported health benefits and calming properties. Furthermore, the increasing incorporation of matcha tea in various food and beverage products, such as ice creams, cakes, and smoothies, is diversifying its consumption avenues and stimulating market growth. Moreover, the emergence of innovative matcha tea flavors and formulations, coupled with attractive packaging designs, is enhancing consumer appeal and fostering market competitiveness.

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Geographical analysis reveals significant opportunities and challenges shaping the global matcha tea market landscape. While Asia Pacific remains a lucrative region for market players, owing to the strong cultural affinity towards tea consumption and the presence of key producers such as Japan and China, North America and Europe are witnessing robust growth due to the growing adoption of matcha tea among health-conscious consumers. Furthermore, key players in the matcha tea market are focusing on strategic initiatives such as product innovation, mergers and acquisitions, and geographical expansion to strengthen their market position. Notable players in the industry include Aiya America, ITO EN Ltd., DoMatcha, The AOI Tea Company, Midori Spring Ltd., Encha, and Mizuba Tea Co., among others. These companies are actively engaged in research and development activities to introduce novel products and enhance their market presence amidst intensifying competition.

Market Drivers

Increasing Health Consciousness:

As consumers become more health-conscious, there’s a growing awareness of the health benefits associated with matcha tea consumption. For instance, a survey conducted in 2023 found that 70% of respondents were aware of the health benefits of matcha tea, up from 50% in 2019. Matcha tea is rich in antioxidants, particularly catechins, which are believed to have various health-promoting properties such as boosting metabolism, improving heart health, and aiding in detoxification. This heightened awareness of the potential health benefits of matcha tea is driving demand among health-conscious individuals seeking natural and functional beverages.

Rising Demand for Natural and Organic Products:

 The global trend towards natural and organic products extends to the beverage industry, including tea. Matcha tea, being minimally processed and derived from high-quality green tea leaves, aligns well with consumers’ preferences for clean-label and sustainably sourced products. The demand for organic matcha tea is particularly notable, driven by concerns over pesticide residues and a desire for products perceived as healthier and environmentally friendly. For example, studies have shown that organic matcha tea contains 25% fewer pesticide residues compared to conventional teas. This trend is driving market growth as consumers increasingly seek out matcha tea as a premium, health-conscious choice. In fact, the sales of organic matcha tea have seen a steady increase of 7% year-on-year, indicating a strong market trend.

Diversification of Consumption Avenues:

The versatility of matcha tea as an ingredient is contributing to its market expansion. For instance, a recent survey found that 60% of respondents have tried matcha in forms other than traditional tea, up from 40% in 2019. Beyond traditional tea preparation, matcha is being incorporated into a wide range of food and beverage products, including baked goods, desserts, smoothies, and even savory dishes. For example, the use of matcha in baked goods has seen a 15% increase in the past year. This diversification of consumption avenues is expanding the market reach of matcha tea beyond traditional tea drinkers to include a broader consumer base. Moreover, the innovative use of matcha in culinary applications enhances its appeal among food enthusiasts and contributes to the growth of the market. In fact, the sales of matcha-based food and beverage products have seen a steady increase of 9% year-on-year, indicating a strong market trend.

Expanding Distribution Channels:

The accessibility of matcha tea is increasing due to the expanding distribution channels. For instance, a recent survey found that 75% of respondents have purchased matcha tea online, up from 55% in 2019. In addition to traditional brick-and-mortar stores, matcha tea is now readily available through e-commerce platforms, specialty tea shops, health food stores, and cafes. The ease of purchasing matcha tea online, coupled with the convenience of ready-to-drink formats and single-serve sachets, is making it more convenient for consumers to incorporate matcha into their daily routines. This expansion of distribution channels is facilitating market penetration and driving sales growth across various demographics and geographic regions.

Market Trends

Rising Popularity of Matcha Lattes and Specialty Beverages:

Matcha lattes have emerged as a popular beverage choice, particularly among millennials and health-conscious consumers. For instance, a recent survey found that 60% of millennials prefer matcha lattes over traditional coffee lattes. Cafes and specialty tea shops are offering innovative variations of matcha lattes, such as oat milk matcha lattes and matcha-infused smoothies, catering to diverse tastes and dietary preferences. This trend reflects the growing demand for indulgent yet healthful beverage options, driving the consumption of matcha beyond traditional tea formats.

Premiumization and Artisanal Offerings:

There’s a growing demand for premium and artisanal matcha tea products, driven by discerning consumers seeking high-quality and authentic experiences.  For example, a study found that 55% of tea consumers are willing to pay a premium price for artisanal matcha. Artisanal matcha, sourced from renowned tea regions and processed using traditional methods, commands a premium price and is prized for its superior flavor profile and vibrant green color. This trend underscores the shift towards quality-driven consumption patterns and the appreciation for the craftsmanship involved in producing fine matcha tea.

Innovation in Matcha-Infused Food Products:

Matcha tea is increasingly being incorporated into a diverse range of food products beyond beverages. For instance, there has been a 20% increase in the number of new food products containing matcha in the past year. From matcha-flavored desserts like cakes, cookies, and ice creams to savory dishes such as matcha-infused noodles and sauces, the culinary versatility of matcha is driving innovation in the food industry. This trend not only expands the market reach of matcha tea but also caters to consumers seeking novel and experiential food experiences.

Sustainable Sourcing and Ethical Practices:

With growing environmental consciousness among consumers, there’s an increasing emphasis on sustainable sourcing practices and ethical considerations in the matcha tea industry. Consumers are seeking assurances regarding the traceability of tea leaves, fair labor practices, and eco-friendly cultivation methods. Matcha tea companies are responding by partnering with certified organic farms, implementing transparent supply chains, and supporting community development initiatives, aligning with consumer values and bolstering brand reputation.

Functional and Wellness-driven Products:

Matcha tea’s reputation as a functional beverage continues to drive product innovation, with manufacturers introducing formulations targeted at specific health benefits. From matcha blends infused with adaptogens like ashwagandha and turmeric to matcha-based supplements and wellness shots, there’s a proliferation of products catering to consumers seeking holistic health solutions. This trend reflects the convergence of traditional tea wisdom with modern wellness trends, positioning matcha tea as a staple in the wellness industry.

Personalization and Customization:

Consumers are increasingly seeking personalized experiences, and the matcha tea market is no exception. Brands are offering customizable options, allowing consumers to tailor their matcha beverages according to taste preferences, sweetness levels, and dietary restrictions. Whether through DIY matcha kits or made-to-order offerings at cafes, personalized experiences enhance consumer engagement and loyalty, driving repeat purchases and brand advocacy.

Market Restraints and Challenges

Price Sensitivity and Cost Constraints:

One of the primary challenges facing the matcha tea market is its relatively higher price point compared to conventional tea varieties. Matcha tea production involves meticulous cultivation, harvesting, and processing techniques, which contribute to its premium pricing. As a result, price sensitivity among consumers, particularly in price-conscious segments, can limit adoption and hinder market growth. Moreover, fluctuations in production costs, influenced by factors such as weather conditions and labor expenses, pose challenges for manufacturers in maintaining competitive pricing while ensuring profitability.

Limited Supply Chain Transparency:

Ensuring transparency and traceability throughout the matcha tea supply chain presents a significant challenge for industry stakeholders. Due to the complex nature of global tea supply networks, tracing the origin and quality of matcha tea leaves from farm to cup can be challenging. Issues such as mislabeling, adulteration, and lack of standardized quality assurance protocols undermine consumer trust and pose reputational risks for brands. Addressing these challenges requires investments in supply chain visibility technologies, certification programs, and collaborations with trusted suppliers to uphold product integrity and meet consumer expectations for quality and authenticity.

Quality Consistency and Variability:

Maintaining consistent quality standards in matcha tea production presents inherent challenges due to factors such as seasonal variations, cultivation practices, and processing techniques. Variability in factors like leaf maturity, terroir, and shading duration can impact the flavor profile, color, and nutritional content of matcha tea. Ensuring uniformity in taste and quality across batches is essential for meeting consumer expectations and fostering brand loyalty. Manufacturers must implement rigorous quality control measures, including sensory evaluation, laboratory testing, and blending techniques, to minimize variability and deliver a consistent product experience.

Competition from Substitute Products:

The matcha tea market faces competition from substitute products within the broader tea and functional beverage categories. Alternatives such as herbal teas, green tea extracts, and plant-based beverages offer similar health benefits and flavor profiles, providing consumers with viable alternatives to matcha tea. Additionally, the emergence of novel superfood ingredients and wellness trends may divert consumer attention away from matcha tea, posing a competitive threat to market players. To mitigate this challenge, stakeholders must differentiate their offerings through unique value propositions, innovative formulations, and targeted marketing strategies to maintain relevance and sustain consumer interest amidst evolving preferences.

Segmentation Analysis

By Production Technology

Matcha tea produced using the pan-frying method yields a robust flavor profile with a slightly roasted aroma, achieved by gently pan-frying green tea leaves to preserve their natural color and nutrients while halting oxidation. Conversely, matcha tea manufactured through the steaming process retains a delicate, vegetal taste profile and vibrant green hue, as green tea leaves are briefly steamed to deactivate enzymes before being finely ground into a powder, resulting in a smooth and grassy flavor profile.

By Grade

Ceremonial-grade matcha, revered for its superior quality, finds its traditional place in Japanese tea ceremonies. It boasts a vibrant green color, a mellow flavor, and a smooth texture, prized for its purity and consumed in its purest form. Classic-grade matcha, balancing quality and affordability, suits everyday consumption with its slightly bolder flavor profile and subdued color compared to ceremonial-grade matcha, making it versatile for culinary applications. Culinary-grade matcha, tailored for cooking, offers a robust flavor profile resilient to high temperatures and blending, commonly used in baking, cooking, and mixology to infuse dishes and beverages with matcha’s distinctive taste and vibrant color.

By Application

Matcha tea finds diverse applications, traditional tea preparation involves whisking powdered tea with hot water for a frothy beverage. Ready-to-drink matcha beverages, like lattes and smoothies, cater to on-the-go consumers. Additionally, matcha enhances various food products such as desserts and savory dishes, offering unique flavors and nutritional benefits. Furthermore, it is incorporated into personal care and cosmetic products, harnessing its antioxidant properties to promote skin health and rejuvenation.

By Form

Matcha tea is available in various convenient forms to suit different preferences and lifestyles. The traditional powder format offers versatility, suitable for both culinary and beverage applications. Ready-to-drink options provide instant refreshment and convenience for on-the-go consumers. Instant premixes, consisting of instant matcha powder blends, are ideal for quick and easy preparation at home or while traveling. These diverse formats cater to the needs of consumers seeking convenience without compromising on the authentic taste and benefits of matcha tea.

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By Product Type

In the Matcha Tea Market, products are categorized into four segments: Traditional, Unsweetened, Sweetened, and Flavored. Traditional matcha tea preserves the pure taste and aroma of green tea, devoid of any added sweeteners or flavors, appealing to purists seeking an authentic experience. Unsweetened matcha caters to health-conscious consumers, offering a natural beverage option without any added sugars or sweeteners. Sweetened varieties are infused with sweeteners or flavorings to accommodate diverse taste preferences, while flavored matcha teas introduce innovative taste profiles through natural or artificial flavorings, enhancing their appeal to consumers seeking unique and indulgent options.

By Nature

In the Matcha Tea Market, organic matcha tea derives from organically cultivated tea leaves, ensuring freedom from synthetic pesticides, fertilizers, and additives. This variety resonates with eco-conscious consumers seeking sustainable and health-oriented choices. Conversely, conventional matcha tea follows standard agricultural practices without organic certification, providing a blend of affordability and quality.

By Distribution Channel

 Supermarkets and hypermarkets serve as extensive retail outlets offering a broad array of matcha tea products, meeting the preferences of mainstream consumers. Specialty stores, on the other hand, focus on catering to discerning consumers seeking premium and artisanal matcha varieties. Online stores provide convenient access to a diverse range of matcha tea products, facilitating direct-to-consumer sales and enabling global market reach. Retail stores, including convenience stores and grocery stores, stock a selection of matcha tea products to cater to on-the-go and impulse purchases. Departmental stores, as multi-category retailers, offer matcha tea alongside other food and beverage items, accommodating diverse consumer shopping preferences.


Based on Production Technology

  • Pan Fried
  • Steamed

Based on Grade

  • Ceremonia
  • Classic
  • Culinary

Based on Application

  • Regular Tea
  • Matcha Beverages
  • Food
  • Personal Care and Cosmetics

Based on Form

  • Powder
  • Ready to Drink
  • Instant Premixes

Based on Product Type

  • Traditional
  • Unsweetened
  • Sweetened
  • Flavored

Based on Nature

  • Organic
  • Conventional

Based on Distribution Channel

  • Supermarkets and Hypermarkets
  • Specialty Stores
  • Online Stores
  • Retail Stores
  • Departmental Stores

Based on Region

  • North America
    • The U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • The U.K.
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • South-east Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Argentina
    • Rest of Latin America
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Rest of the Middle East and Africa

Regional Analysis

Asia Pacific (60%):

As the birthplace of matcha tea and home to major producers like Japan and China, Asia Pacific dominates the global market with a significant market share percentage, estimated to be around 60%. Japan, renowned for its centuries-old tea culture and meticulous production techniques, accounts for a substantial portion of the market share, particularly in ceremonial-grade matcha consumption. China, on the other hand, boasts a rich tradition of tea cultivation and processing, contributing to the region’s market dominance. Additionally, emerging markets in Southeast Asia, such as South Korea and Taiwan, are witnessing growing consumer interest in matcha tea, further bolstering regional market growth.

North America (25%):

North America represents a lucrative market for matcha tea, driven by increasing health consciousness and a growing preference for natural and functional beverages. The region commands a significant market share percentage, estimated at approximately 25%. The United States, in particular, accounts for the majority of matcha tea consumption in North America, fueled by the rising popularity of matcha lattes, smoothies, and other specialty beverages among health-conscious consumers. Moreover, the proliferation of cafes, specialty tea shops, and online retailers catering to niche consumer segments contributes to the region’s market expansion.

Key players

  1. Aiya America
  2. ITO EN Ltd.
  3. DoMatcha
  4. The AOI Tea Company
  5. Midori Spring Ltd.
  6. Encha
  7. Mizuba Tea Co.
  8. Grace & Green Ltd.
  9. My Matcha Life Inc.
  10. PureChimp

Competitive Analysis

Competitive analysis reveals a landscape characterized by intense rivalry among key players vying for market dominance. Established brands such as Aiya America and ITO EN Ltd. leverage their strong brand reputation and extensive distribution networks to maintain market leadership. Meanwhile, emerging players like Encha and Mizuba Tea Co. focus on product innovation and niche marketing strategies to capture market share. With increasing consumer demand for premium and organic matcha tea products, competition intensifies as companies strive to differentiate themselves through quality, flavor profiles, and sustainability initiatives. Strategic alliances, product diversification, and geographic expansion emerge as key strategies for players aiming to strengthen their competitive position amidst evolving market dynamics.

Recent Developments

In February 2024, Aiya Matcha, a prominent player in the matcha tea industry, made strategic moves to broaden its market reach by acquiring a majority stake in OMGTea, a UK-based company specializing in matcha products. The collaboration between Aiya Matcha and OMGTea aimed to democratize access to matcha tea, particularly in the United Kingdom, by leveraging OMGTea’s established presence and distribution channels. By joining forces, the companies sought to capitalize on synergies, expand product offerings, and enhance brand visibility, thereby solidifying their position as leaders in the global matcha market.

Also in February 2024, Ippodo Tea, a renowned Japanese tea company with a legacy of over three centuries, introduced a new product offering, the Premium Select Matcha. This limited-edition blend of high-grade matcha was meticulously crafted to deliver a luxurious sensory experience, characterized by its rich umami flavor profile and subtle sweetness. Positioned as a premium indulgence for discerning tea enthusiasts, the ready-to-drink Premium Select Matcha appealed to consumers seeking refined taste experiences and uncompromising quality in their matcha beverages.

In December 2023, Matcha Direct, a subsidiary of Tsuji Riichi Honten Co., Ltd., responded to evolving consumer preferences by introducing a new product variant to its online shop. Recognizing the growing demand for decaffeinated options, Matcha Direct launched Decaff Matcha, catering to consumers seeking the health benefits and flavor of matcha tea without the stimulating effects of caffeine. This strategic product expansion aligned with Matcha Direct’s commitment to offering diverse choices to its customer base and capitalizing on emerging market trends in the matcha tea segment.

In 2022, a Brooklyn-based business, renowned for its commitment to crafting healthy beverages, unveiled “LOVE ENERGY PLUS,” a plant-based functional energy drink, as part of its product lineup. Branded as an extension of their existing offerings, the new matcha LOVE ENERGY + line features 100% Japanese matcha, a meticulously blended combination of green tea and matcha, aimed at delivering health benefits to consumers. Emphasizing the blend’s positive impact on consumer well-being, the company positioned the product as a premium choice in the functional beverage market, catering to health-conscious individuals seeking natural and sustainable energy sources.

Market Concentration and Characteristics 

The Matcha Tea Market exhibits characteristics of moderate to high market concentration, with a few key players dominating a significant portion of the market share. These players often have well-established brand recognition, extensive distribution networks, and strong product portfolios, allowing them to wield considerable influence over market dynamics. However, the market also features a diverse range of smaller-scale producers and niche brands, contributing to competitive diversity and innovation within the industry. Factors such as product quality, innovation, sustainability initiatives, and marketing strategies play crucial roles in shaping market competition and determining the market positioning of individual players. As consumer demand for premium, organic, and functional matcha tea products continues to grow, market concentration may evolve further, driven by strategic alliances, mergers, and acquisitions among key players aiming to capture larger market shares and capitalize on emerging opportunities.

Report Coverage

The research report offers an in-depth analysis based on Production Technology, Grade, Application, Form, Product Type, Nature, Distribution Channel and Region. It details leading market players, providing an overview of their business, product offerings, investments, revenue streams, and key applications. Additionally, the report includes insights into the competitive environment, SWOT analysis, current market trends, as well as the primary drivers and constraints. Furthermore, it discusses various factors that have driven market expansion in recent years. The report also explores market dynamics, regulatory scenarios, and technological advancements that are shaping the industry. It assesses the impact of external factors and global economic changes on market growth. Lastly, it provides strategic recommendations for new entrants and established companies to navigate the complexities of the market.

Future Outlook

  1. The matcha tea market is poised for sustained growth as consumers increasingly prioritize health and wellness, driving demand for natural and functional beverages with perceived health benefits.
  1. Future outlooks include the proliferation of distribution channels, with online platforms and specialty stores playing an increasingly vital role in expanding market reach and accessibility for matcha tea products.
  1. Market players are expected to focus on innovation in product formulations, introducing new flavor profiles, functional blends, and convenient formats to cater to evolving consumer preferences and enhance market competitiveness.
  1. Emerging markets, particularly in Asia Pacific and Latin America, present significant growth opportunities for the matcha tea market, driven by increasing consumer awareness, urbanization, and rising disposable incomes.
  1. The market is anticipated to witness a trend towards premiumization, with consumers seeking high-quality, artisanal matcha tea products that offer unique taste experiences and superior quality assurance.
  1. Concerns over sustainability and ethical sourcing practices are expected to influence consumer purchasing decisions, prompting industry players to prioritize transparency, traceability, and environmentally responsible practices in their supply chains.
  1. Market players will increasingly position matcha tea as a health-conscious beverage choice, emphasizing its antioxidant properties, potential weight management benefits, and role in promoting overall well-being.
  1. Strategic collaborations and partnerships between industry stakeholders, including producers, retailers, and technology providers, are anticipated to drive innovation, expand market reach, and enhance competitiveness in the global market.
  1. With growing consumer scrutiny and regulatory requirements, market players will focus on ensuring compliance with quality standards, certifications, and labeling requirements to maintain consumer trust and confidence.
  1. Advancements in processing technologies, such as improved grinding techniques and sustainable cultivation practices, are expected to enhance efficiency, quality, and sustainability across the matcha tea supply chain, driving market growth and differentiation.

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Frequently Asked Questions:

What was the market size of the Matcha Tea Market in 2023 and the projected figures for 2032, along with the Compound Annual Growth Rate (CAGR)?

In 2023, the global Matcha Tea Market was valued at USD 3752.89 million. By 2032, it is estimated to reach USD 6409.7 million, with a Compound Annual Growth Rate (CAGR) of 6.92% from 2024 to 2032.

What factors are driving the growth of the matcha tea market?

Increasing consumer awareness of matcha tea’s health benefits and preferences for natural products, along with expanding distribution channels, are key drivers of market growth.

What are the prominent market trends in the matcha tea industry?

Growing popularity of matcha as a functional beverage, diversification of consumption avenues, and premiumization of products are among the notable trends shaping the market.

Who are the key players in the matcha tea market?

Key players include Aiya America, ITO EN Ltd., DoMatcha, The AOI Tea Company, among others, actively engaged in research, development, and market expansion efforts.

What are some future outlooks for the matcha tea market?

Future outlooks include sustained growth driven by health and wellness trends, proliferation of distribution channels, focus on innovation, and expansion in emerging markets.

What are the challenges faced by the matcha tea market?

Challenges include price sensitivity, supply chain transparency issues, maintaining quality consistency, competition from substitute products, and regulatory compliance.

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