Global Matcha Tea Market Assessment, By Product [Classic, Ceremonial, Culinary], By Specialty [Natural, Organic], By Type [Flavored, Unflavored], By Price Range [Value Segment, Premium Segment], By End-user [Institutional, Household, Others], By Industry Type [Food Processing, Beverage Processing, Personal care, Others], By Distribution Channel [Supermarkets and Hypermarkets, Specialty Stores, Convenience Stores, Online Stores, Others], By Region, Opportunities and Forecast, 2017-2031F

Global matcha tea market was valued at USD 3.51 billion in 2023, expected to reach USD 6.11 billion in 2031, with a CAGR of 7.17% for the forecast period between 2024 and 2031. The market has witnessed robust growth in recent years, driven by increasing consumer awareness regarding the health benefits associated with matcha consumption. Matcha has gained popularity due to its high antioxidant content, potential weight management benefits, and perceived energy-boosting properties. Additionally, the increasing trend of incorporating matcha into various food and beverage products, such as smoothies, desserts, and savory dishes has increased market growth.

Asia-Pacific, especially Japan, has traditionally been the largest consumer and producer of matcha tea. In 2022, 76 percent of powdered Japanese teas were exported to the United States market. The proliferation of cafes, specialty tea shops, and health-conscious consumers in the region has fueled the demand for matcha-based products.

Innovation in product offerings, such as flavored matcha blends, convenient ready-to-drink formats, and organic variants, has broadened the appeal of matcha tea beyond traditional tea drinkers. Furthermore, the increasing adoption of e-commerce platforms has facilitated a wide range of matcha products, resulting in market penetration and consumer engagement. Aligning with the trend, in March 2023, Kataoka & Co., Ltd., well-known in Japan for matcha and other ventures, introduced Matcha Direct, an e-commerce platform offering freshly ground matcha from a Kyoto tea factory.

Despite the growth opportunities, the market faces challenges such as fluctuating raw material prices, concerns regarding product authenticity and quality, and competition from other health beverages. However, strategic collaborations, product diversification, and marketing initiatives emphasize the unique nutritional profile and cultural heritage of matcha, anticipated to sustain the market growth.

In May 2023, the well-known brand The Coffee Bean & Tea Leaf in Southern California serving fine coffee and tea for the past 60 years, introduced a new range of drinks for its summer seasonal menu to complement its signature matcha cocktails. The newly launched products include Iced Mango Matcha Latte, Matcha Cookies & Cream Ice Blended drink, and Mint Chocolate Ice Blended drink.

Download Free Sample Report

Calming and Energizing Effects of Matcha Driving the Demand

The energizing and soothing effects of matcha are significant factors behind the growing matcha tea market. Matcha has a unique combination of compounds, including caffeine and L-theanine, which work synergically to produce these effects. The energizing mixture appeals to individuals seeking a healthier alternative to traditional caffeinated drinks, and reduces the stimulating effects of caffeine, resulting in a sustained and balanced sense of mental clarity and alertness.

Consumers are drawn to matcha tea for its potential to increase energy levels and its ability to promote a state of relaxation and mental well-being. The unique combination of energizing and calming effects makes it a versatile beverage choice suitable for various occasions and preferences, resulting in its increasing popularity in the market.

For instance, in February 2023, UK-based PerfectTed launched a matcha green tea range in the form of canned energy drinks. Each can contain 80 mg of caffeine and 7 kcal per 100ml. The beverage is natural and has no added sugar, preservatives, or additives. The company sources its organic ceremonial grade matcha from Uji, Japan, and offers it in three distinct flavor combinations, Pear Ginger, Apple Raspberry, and Pineapple Yuzu. The superior-grade matcha has a bright green color and a sweet, umami flavor.

Versatile Applications of Matcha Tea in Diverse Industries

The diverse applications of matcha tea products are a crucial factor in accelerating the matcha market's growth. Beyond traditional tea consumption, matcha is increasingly incorporated into various food and beverage products, catering to evolving consumer preferences and culinary trends. Matcha's vibrant green color and earthy flavor make it a versatile ingredient in culinary dishes as well as cosmetic formulations. It is commonly used in baked goods such as cakes, cookies, and pastries, and even as a seasoning or garnish in dishes such as noodles, rice, and salads. Its impressive profile enhances the taste profile of savory dishes, contributing to its widespread adoption in various cuisines.

Moreover, matcha's antioxidant properties, including vitamins and minerals, make it a popular ingredient in skincare and haircare formulations. For instance, in June 2023, the popular hair care brand, IGK, and the leading coffee lifestyle brand Chamberlain Coffee collaborated to release a limited-edition Matcha Dry Shampoo. The matcha-infused dry shampoo claims to create a subtle, touchable texture without being gritty, absorb oil from hair, and maintain style.

Matcha without Caffeine Gaining Momentum in the Market

Decaffeinated matcha, catering to the needs of health-conscious consumers and those with caffeine sensitivities, has gained traction in the market. Its popularity is based on numerous factors, including the growing awareness of the potential health risks associated with excessive caffeine intake and the desire for a beverage that is suitable for consumption throughout the day, including in the evening. Additionally, decaffeinated matcha is an attractive option to pregnant women, individuals with certain medical conditions, and those seeking to minimize caffeine consumption for personal reasons. With its milder flavor profile and caffeine-free formulation, decaffeinated matcha offers a viable alternative for those who still wish to enjoy the taste and potential health benefits of matcha without the stimulant effects of caffeine.

For instance, in November 2023, Japan-based Clearspring launched Organic Japanese Kuwa Matcha made using mulberry leaves containing no caffeine. The product is a fine green powdered matcha, the same as the traditional one. It is specifically targeted at customers who enjoy matcha but do not want to consume caffeine.

Organic Matcha to Dominate Over Natural Matcha

Organic matcha holds a dominant position in the market, particularly in areas where consumers prioritize organic certification and environmental sustainability. With increasing awareness of the potential health risks associated with synthetic pesticides and fertilizers, there is a growing demand for organic products, such as matcha. It is produced without the use of synthetic chemicals, ensuring that it meets strict organic standards and resonates with health-conscious consumers seeking wholesome and environmentally friendly options. Additionally, organic matcha reflects broader trends toward sustainable agriculture and responsible consumption, further bolstering its dominance in the market.

For instance, in January 2024, Australia-based Happy Matcha launched a 100% organic matcha tea powder. The company claims to import the tea leaves directly from Uji, Kyoto, Japan. The product, which claims to be vegan friendly, contains no chemicals and is JAS certified. It has an emerald color and is being offered in the country with a 30-day money back guarantee in case the customer is not satisfied with the product.

Future Market Scenario (2024 – 2031F)

·         The matcha tea market is likely to place a greater emphasis on sustainability practices throughout the supply chain. It includes sustainable farming methods, ethical sourcing of tea leaves, and eco-friendly packaging solutions.

·         Matcha tea is expected to continue to be a functional beverage, with an increasing emphasis on incorporating additional health-promoting ingredients and adaptogens. Manufacturers may explore blends with ingredients such as collagen, probiotics, or botanical extracts to enhance the nutritional profile and wellness benefits of matcha.

·         The future of matcha tea market is likely to be shaped by digitalization and the expansion of e-commerce platforms. As online shopping becomes increasingly popular, matcha producers and retailers will invest in digital marketing strategies, e-commerce platforms, and personalized online experiences to reach customers directly.

Report Scope

"Matcha Tea Market Assessment, Opportunities and Forecast, 2017-2031F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of the global matcha tea market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry mentioning their respective market share, business model, competitive intelligence, etc.

Report Attribute	Details
Base Year of the Analysis	2023
Historical Period	2017-2022
Forecast Period	2024-2031
Projected Growth Rate	CAGR of 7.17% from 2024-2031
Revenue Forecast in 2031	USD 6.11 billion
Segments Covered	Product, Specialty, Type, Price Range, End-user, Industry Type, Distribution Channel
Regions Covered	North America, Europe, South America, Asia-Pacific and Middle East & Africa
Key Companies Profiled	MARIAGE FRÈRES, Harney & Sons Tea Corp., R. Twining and Company Limited (Associated British Foods plc), The AOI Tea Company, Matcha Maiden Pty Ltd, Aiya America Inc., Midori Spring, Sasaki Green Tea Company, Ippodo Tea Co., Ltd., Mizuba Tea Co.
Customization Scope	15% free report customization with purchase
Pricing and Purchase Options	Avail the customized purchase options to fulfil your precise research needs
Delivery Format	PDF and Excel through email (subject to the license purchased). We can also provide the editable version of the report in PPT/PDF format on special request

In this report, global matcha tea market has been segmented into following categories:

·         By Product

o   Classic

o   Ceremonial

o   Culinary

·         By Specialty

o   Natural

o   Organic

·         By Type

o   Flavored

o   Unflavored

·         By Price Range

o   Value Segment

o   Premium Segment

·         By End-user

o   Institutional

o   Household

o   Others

·         By Industry Type

o   Food Processing

o   Beverage Processing

o   Personal care

o   Others

·         By Distribution Channel

o   Supermarkets and Hypermarkets

o   Specialty Stores 

o   Convenience Stores

o   Online Stores

o   Others

·         By Region

o   North America

o   Europe

o   South America

o   Asia-Pacific

o   Middle East and Africa

Key Players Landscape and Outlook

The global matcha tea market has a diverse range of key players, ranging from established tea producers to innovative startups. Leading companies in the market include The AOI Tea Company, Ippodo Tea Co., Ltd, Midori Spring, and Aiya America Inc. These companies are renowned for their high-quality matcha products and have a strong presence in key regions such as Asia-Pacific, North America, and Europe.

The outlook for key players in the matcha tea market is optimistic, fueled by increasing consumer awareness of matcha's health benefits, increasing demand for natural and functional beverages, and expanding distribution channels such as e-commerce. To maintain their competitive advantage, key players are expected to focus on product innovation, sustainability initiatives, and strategic collaborations and acquisitions to capitalize on emerging market trends and meet evolving consumer preferences.

In February 2024, Japan’s Aiya America Inc. acquired the Matcha green tea brand OMGTea to expand its footprint in the United Kingdom market. The acquisition is expected to lead to a wider selection of matcha products available in stores and improved access for customers.

Key Players Operating in Global Matcha Tea Market are:

·         MARIAGE FRÈRES

·         Harney & Sons Tea Corp.

·         R. Twining and Company Limited (Associated British Foods plc)

·         The AOI Tea Company

·         Matcha Maiden Pty Ltd

·         Aiya America Inc.

·         Midori Spring

·         Sasaki Green Tea Company

·         Ippodo Tea Co., Ltd.

·         Mizuba Tea Co.

Markets and Data’s reports answer the following questions:

·         What is the current and future market size of the product/service in question globally or specific to different countries?

·         How are the markets divided into different product/service segments and each segment’s market size and growth? 

·         What is the market potential of different product segments and their investment case?

·         How are the markets predicted to develop in the future and what factors will drive or inhibit growth?

·         What is the business environment and regulatory landscape specific to the product/service?

If you can't find what you're searching for or have any custom requirements for global matcha tea market, you may approach our team at info@marketsandata.com.