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Matcha Tea Market Trends and Forecast

The future of the global matcha tea market looks promising with opportunities in the food additive and beverage additive markets. The global matcha tea market is expected to grow with a CAGR of 8% from 2025 to 2031. The major drivers for this market are the increasing awareness of health benefits, the growing demand for natural beverages, and the rising popularity of japanese culture.

• Lucintel forecasts that, within the type category, drinking-use matcha tea is expected to witness higher growth over the forecast period.
• Within the application category, beverage additive is expected to witness higher growth.
• In terms of region, North America is expected to witness the highest growth over the forecast period.

Gain valuable insights for your business decisions with our comprehensive 150+ page report. Sample figures with some insights are shown below.

Emerging Trends in the Matcha Tea Market

The matcha tea market around the world is experiencing a dynamic shift, stimulated by changing consumer tastes and creative uses. Matcha is no longer just a traditional flavoring, but a wellness icon and a diverse ingredient. These emerging trends indicate a greater understanding of matcha's wellness potential, its visual appeal, as well as the demand for easy, eco-friendly, and diversified product presentation. The market is becoming more mass oriented, shifting from specialty tea aficionados to mainstream consumers looking for functional and pleasure lifestyle products.

• Diversification into Food and Beverage Applications: A key trend is the diversification of matcha tea from traditional beverages to a broad set of food and beverage products. This encompasses ready-to-drink matcha latte, packaged tea, snack food, sweets, baked products, and even savory foods. The diversification stems from matcha's colorful appearance, distinct taste, and healthiness, which makes it a promising ingredient in product innovation. The effect is a large expansion in market size and availability, enabling consumers to make matcha a part of their dietary patterns in different convenient forms.
• Focus on Health and Wellness Benefits: Consumers are increasingly looking for functional foods and beverages that provide certain health benefits. Matcha, rich in antioxidants, L-theanine for relaxed alertness, and metabolism, checks all the boxes for this trend. Companies are actively promoting these benefits through marketing, positioning matcha as a superfood. The result is ongoing demand for matcha, especially among wellness-oriented consumers, propelling product development within nutraceuticals, supplements, and wellness-driven product lines.
• Ascension of Convenience and Ready-to-Drink Formats: Convenience is the hallmark of today's lifestyles, resulting in the growth of ready-to-drink matcha drinks and instant matcha premixes. These formats provide a convenient and hassle-free means of consuming matcha without the need for traditional whisking preparation. The result is greater accessibility and greater usage, particularly among younger generations and busy lifestyles. This trend widens the appeal of matcha beyond classical tea consumers, making matcha a more convenient and portable wellness solution.
• Ethical and Sustainable Sourcing: As people become more environmentally and socially conscious consumers, demand for sustainable and ethically sourced matcha rises. This encompasses open supply chains, organic certification, and fair trade. Consumers will pay a premium for sustainably and ethically produced products that fit their values. The effect is a pressure to adopt environmentally friendly cultivation practices and open sourcing for farmers and suppliers, improving the reputation of the brand and consumer confidence in the quality and authenticity of their matcha products.
• Premiumization and Ceremonial Grade Demand: In spite of the growth of culinary-grade matcha used in food products, there exists an intense parallel trend of premiumization, as ceremonial-grade matcha is increasingly popular. Consumers are demanding high-quality, genuine matcha for ancient preparation methods and for the richer taste and intense color. The effect is an expanding marketplace of discriminating consumers who are willing to pay more for premium matcha, fueling demand for delicate, carefully cultivated matcha varieties and specialty preparation equipment, developing deeper respect for the cultural heritage of matcha.

These new trends are all combined to reshape the global matcha tea market by broadening its uses, foregrounding its health appeal, and improving its convenience and accessibility. The premiumization and focus on sustainability highlight a consumer desire for both ethical sourcing and high-quality experiences. This dynamic change makes matcha a versatile and increasingly mainstream superfood that continues to drive innovation and market growth.

Recent Developments in the Matcha Tea Market

The international market for matcha tea has witnessed significant recent evolution, turning the once niche traditional drink into a worldwide popular health-aware commodity. Such evolution is fueled by a combination of circumstances such as growing health awareness, technological advancements in manufacturing, and intelligent marketing strategies. The emphasis is being made on product diversification, increasing access, and tapping into a wider consumer base appreciative of both the distinct sensory experience and the strong health benefits of matcha.

• Ready-to-Drink (RTD) Matcha Drinks Expansion: One of the major recent happenings is the quick expansion and development in the ready-to-drink matcha drinks category. Manufacturers are launching an assortment of flavored matcha lattes, sparkling matcha tea, and cold brew matcha with functional ingredients such as probiotics or adaptogens added to them. The effect is greater convenience and access to consumers, which makes matcha a practical on-the-go beverage and extends its reach beyond conventional tea consumers, largely driving market growth.
• Matcha Integration into Functional Foods and Supplements: Matcha is being used more and more in numerous functional food items and dietary supplements. This extends to matcha-flavored protein bars, energy balls, nutritional powders, and even cosmetics, taking advantage of its antioxidant and energy-enhancing properties. The result is a diversification of the applications of matcha so that consumers can enjoy its health benefits through means other than a traditional drink. This trend makes matcha a multi-purpose ingredient within the overall wellness sector.
• Improved Cultivation and Processing Technologies: New technological advances in matcha cultivation and processing methods are improving quality and efficiency. These include advanced shade-growing technologies, higher-quality stone-grinding technologies, and advanced preservation processes that more effectively preserve matcha's fresh green color, subtle taste, and nutrient molecules. The result is the supply of higher-quality matcha with more uniform sensory characteristics, fulfilling the needs of quality-conscious consumers and food and beverage processors.
• Growth of Organic and Sustainably Produced Matcha: The availability and demand for organic and sustainably produced matcha has been on the rise. There is growing concern among consumers for environmental and ethical sourcing, and hence companies are shifting to organic farming and transparent supply chains. The effect is a stronger market position for sustainable brands, creating trust and loyalty among consumers. This also promotes responsible farming within the matcha sector.
• Expansion of Matcha within Foodservice and Cafes: Matcha has grown beyond specialty tea houses and is now a menu standard in mainstream cafes, restaurants, and fast-casual eateries. Matcha lattes, smoothies, and desserts can be found everywhere, fueled by social media influences and consumer interest. The effect is greater visibility and widespread acceptance of matcha, opening it up to more people and reinforcing its image as a fashionable and healthy drink ingredient, helping greatly to increase its overall market penetration.

These new advancements are collectively influencing the matcha tea industry by increasing its availability, broadening its uses across industries, and increasing its appeal to a wider consumer market. The emphasis on convenience, functionality, sustainability, and widespread accessibility through foodservice channels is making matcha more ubiquitous and essential in the global health and wellness scene.

Strategic Growth Opportunities in the Matcha Tea Market

The matcha tea market offers strong strategic growth prospects in different applications, fueled by its special health advantages and increasing consumer demand. Opportunities arise from extending beyond conventional uses into innovative formats and capitalizing on its versatility in different industries. Building on these spaces involves a visionary strategy, concentrating on market diversification, product innovation, and good consumer engagement to serve changing needs and unlock new top-line potential in the global health and wellness landscape.

• Ready-to-Drink (RTD) Drinks: The RTD space holds significant growth potential for matcha. Creating new RTD matcha drinks, such as flavored lattes, sparkling teas, and functional beverages with added health benefits (e.g., probiotics, adaptogens), appeals to the convenience-oriented consumer. The prospect is to create engaging flavor profiles and convenient packages that appeal to a mass market beyond tea traditionalists. This can make a big jump in matcha usage by providing a healthy and refreshing drink alternative to sweetened soft drinks and energy drinks.
• Food and Confectionery Products: Adding matcha to more food and confectionery products is a valuable growth prospect. This can include matcha-flavored chocolates, candies, ice creams, baked foods (e.g., cookies, cake), and savory snacks. The bright color and distinctive umami taste of matcha provide unique sensory experiences. The potential is in product development that brings matcha into mainstream food categories as a premium, healthy, and aesthetically pleasing ingredient that consumers who are adventurous and health-savvy can get behind.
• Nutraceuticals and Dietary Supplements: Considering matcha's abundance in antioxidants, L-theanine levels, and other health-giving compounds, there is immense opportunity in the nutraceutical and dietary supplement markets. Formulating matcha-contained capsules, powders, and functional blends for targeted health issues (e.g., energy, concentration, detoxification, immunity) can appeal to consumers looking for natural wellness options. The opportunity is to utilize scientific evidence to validate health benefits, establishing matcha as a highly effective natural ingredient for comprehensive well-being.
• Personal Care and Cosmetics: Matcha's high antioxidant and anti-inflammatory content present an unusual growth potential in the personal care and cosmetics sector. Creating skin care products, masks, cleansers, and even hair care products with matcha can entice consumers seeking natural and functional beauty products. The potential is selling matcha as an integral component of skin well-being and anti-aging, capitalizing on the increase in demand for clean beauty and natural content formulations.
• Foodservice and Hospitality Growth: Growing the presence of matcha in cafes, restaurants, hotels, and other foodservice outlets across the world is a strategic growth opportunity. This includes promoting matcha as a multi-purpose ingredient for hot and cold drinks, culinary recipes, and dessert menus. The opportunity is to train chefs and baristas to use matcha in versatile culinary contexts based on its usability and distinct flavor profile. This raises consumer exposure to matcha and solidifies its position as a premium, sought-after ingredient.

These strategic growth prospects are set to affect the matcha tea market heavily by broadening its uses beyond conventional tea, making it widely available in convenient formats, and tapping into its health virtues in multiple industries. Targeting RTD drinks, foodstuff, nutraceuticals, cosmetics, and foodservice, business organizations can capitalize on emerging consumer needs for health, convenience, and natural ingredients, eventually leading to extensive market growth and innovation.

Matcha Tea Market Driver and Challenges

The international matcha tea market is driven by a combination of strong drivers, principally based on a change in consumer health trends and cultural popularity. The market also has significant challenges, such as ensuring the quality standards and stabilizing price fluctuations. The evolution of the market is influenced by production technological advancements, rising global trade, and changing consumer attitudes. A complete comprehension of these challenges and drivers is imperative for stakeholders to transit the market environment, facilitating sustainable growth and customer satisfaction.

The factors responsible for driving the matcha tea market include:

1. Emerging Health and Wellness Trend: The global push for health and wellness is the top driver for the matcha tea industry. Consumers are actively looking for natural products with functional attributes, and matcha, with its high antioxidant content, L-theanine for soothing energy, and metabolic stimulation benefits, is perfectly positioned to meet these needs. This trend fuels both consistent use and inclusion of matcha in numerous health-oriented products, spurring ongoing market growth.

2. Growing Demand for Specialty Drinks: Increasing global demand for specialty and gourmet drinks, especially among the youth, is strongly propelling the matcha market. Matcha lattes, smoothies, and other matcha-based novel beverages have become extremely trendy in food service settings and cafes. This trend, frequently fueled by social media, exposes matcha to a broader public and drives experimentation with its distinctive taste, increasing consumption rates.

3. Diversification of Matcha Usage: Matcha's versatility to be used beyond tea into food, confectionery, cosmetics, and supplements is the key driver in the market. Matcha is being introduced by manufacturers into a broad range of products, from chocolates and ice creams to protein powders and skincare products. Diversification broadens matcha's market coverage and addresses various consumer demand and preferences, generating more revenue streams for manufacturers and distributors.

4. Growing Disposable Incomes and Urbanization: Growing disposable incomes in developing markets, coupled with urbanization, drive market expansion. With more health-conscious lifestyles in urban populations and exposure to international trends, their potential for spending money on premium and functional offerings such as matcha is higher. This shift in population opens up a larger base of consumers for matcha, especially in areas where it was previously not as popular.

5. Growth of E-commerce and Digital Marketing: The growth of e-commerce websites and success of digital marketing efforts are the prime drivers. Online shopping increases access to matcha for global customers, and social media and digital advertising successfully promote its health effects, visual attractiveness, and wide range of uses. It makes brand establishment, customer education, and direct sales to customers easier, greatly increasing market penetration.

Challenges in the matcha tea market are:

1. High Price and Price Volatility: One major challenge facing the matcha market is its comparatively high price when compared to conventional green tea or other drinks. The unique cultivation, shade-growing, and stone-grinding techniques used in producing good-quality matcha make it a costly product. Also, weather patterns, yields from harvesting, and import duties may cause price volatility, which could restrict accessibility for some consumers and affect profit margins for companies.

2. Quality Control and Authenticity Issues: Ensuring the quality and authenticity of matcha goods is a serious issue. The market is at risk of adulteration or misbranding of inferior green tea as matcha, diluting consumer confidence and weakening the high-end image of authentic matcha. It is imperative to put in place tough quality control systems, detailed grading rules, and open sourcing information to handle these issues and safeguard the integrity of the market.

3. Limited Consumer Knowledge (Outside Major Markets): Although matcha's popularity is increasing, limited knowledge and awareness of its subtle flavors, correct preparation techniques, and full scope of health benefits still exist in many parts of the world outside of established tea-consumption cultures and established wellness markets. Addressing this lack of knowledge necessitates broad-based marketing and education efforts to educate and activate prospects, which can be time-consuming and costly.

In summary, the worldwide matcha tea market is highly fueled by the dominant health and wellness trend, the increasing popularity of specialty drinks, and the universal appeal of matcha in multiple product categories. Growing disposable incomes as well as the widespread penetration of e-commerce and digital marketing contribute to its growth. But the market also confronts major challenges in the form of high price and possible price fluctuation of high-grade matcha, difficulty in upholding high quality standards and ascertaining authenticity, and ongoing need for extensive consumer education in less developed markets. Resolution of these difficulties through planning investments, transparent operations, and focused marketing shall be important for the long-term growth and more widespread acceptance of matcha tea in general.

List of Matcha Tea Companies

Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies matcha tea companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the matcha tea companies profiled in this report include-

• Guizhou Tongren Guitea
• Aiya
• Marushichi Seicha
• Shaoxing Royal Tea Village
• Zhejiang Hua's Tea Industry
• Marukyu Koyamaen
• Yanoen
• DoMatcha
• Uji Matcha
• AOI Seicha

Matcha Tea Market by Segment

The study includes a forecast for the global matcha tea market by type, application, and region.

Matcha Tea Market by Type [Value from 2019 to 2031]:

• Drinking-use Matcha Tea
• Additive-use Matcha Tea

Matcha Tea Market by Application [Value from 2019 to 2031]:

• Food Additives
• Beverage Additives
• Others

Matcha Tea Market by Region [Value from 2019 to 2031]:

• North America
• Europe
• Asia Pacific
• The Rest of the World

Country Wise Outlook for the Matcha Tea Market

The matcha tea industry is witnessing a major global upsurge, led by rising consumer knowledge of its health benefits, such as high antioxidant levels, long-lasting energy, and mental acuity. Culturally Japanese in origin, matcha has moved beyond its ceremonial beginnings to emerge as a value-added ingredient in a range of food and beverage applications. Current trends point to a move towards convenience, variety of products, and sustainable sourcing, appealing to a wider base of consumers looking for functional and natural wellness solutions. The growth represents an increased incorporation of traditional superfoods into contemporary lifestyles.

• United States: The US matcha market is experiencing strong growth, largely driven by the health and wellness movement and the food and beverage trend for specialty drinks. New trends involve the growth in ceremonial-grade and organic matcha offerings by top suppliers with an emphasis on sustainable sourcing. There is also a remarkable increase in ready-to-drink (RTD) matcha drinks and instant premixes, appealing to convenience-seeking consumers. In addition, matcha is being used more and more in different food products such as snacks, baked foods, and even skincare, broadening its use beyond that of traditional tea.
• China: China, the largest green tea-producing nation, is seeing a thriving matcha market, fueled by escalating health awareness and a rising middle class. Recent efforts have involved substantial investments in new matcha manufacturing facilities, intended to satisfy both domestic and global demand. Chinese manufacturers are concentrating on enhancing quality to international standards and actively expanding the industrial chain by creating new matcha-related products. There is also a governmental strategy at the regional level to position China as a top player in high-end matcha production and integrate it with rural revitalization through tourism.
• Germany: matcha tea is becoming increasingly popular in Germany, transcending a niche following to mass appeal. Trends have indicated increased consumer demand for matcha due to its health properties and visual appeal, especially among young consumers. The market is also witnessing growth in the availability of different matcha grades, ranging from ceremonial to culinary, through multiple distribution channels. German firms are emphasizing the incorporation of matcha into diversified offerings, such as functional teas and cold brew formats, in line with the country's robust demand for natural and health-based drinks.
• India: India's matcha tea market is growing in incredible ways, particularly among Gen Z and urban millennials who are looking for clean energy picks and better-for-you alternatives to traditional drinks. Trends currently include a shift toward cold consumption, inclusion in smoothies, desserts, and even cocktails. Diverse menu options in local cafes and brands are increasingly featuring matcha-based offerings, ranging from lattes to innovative food uses. Although still a niche, the market is growing, with a concentration on product innovation and removing the perceived bitterness to extend its scope of appeal.
• Japan: Being the traditional homeland of matcha, Japan remains a market leader with recent action centered around fulfilling booming international demand and further innovation. This comprises huge investments by Japanese tea giants to expand manufacturing facilities, boosting output for export. There is a high premium on upholding authenticity and quality, especially for ceremonial-grade matcha. Japanese firms are also experimenting with "instant ceremonial matcha" lines and strategic collaborations with international beverage firms to bring matcha into new product segments, capitalizing on its health benefits and distinctive taste.

Features of the Global Matcha Tea Market

Market Size Estimates: Matcha tea market size estimation in terms of value ($B).

Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.

Segmentation Analysis: Matcha tea market size by type, application, and region in terms of value ($B).

Regional Analysis: Matcha tea market breakdown by North America, Europe, Asia Pacific, and Rest of the World.

Growth Opportunities: Analysis of growth opportunities in different types, applications, and regions for the matcha tea market.

Strategic Analysis: This includes M&A, new product development, and competitive landscape of the matcha tea market.

Analysis of competitive intensity of the industry based on Porter’s Five Forces model.

This report answers following 11 key questions:

Q.1. What are some of the most promising, high-growth opportunities for the matcha tea market by type (drinking-use matcha tea and additive-use matcha tea), application (food additives, beverage additives, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?

Q.2. Which segments will grow at a faster pace and why?

Q.3. Which region will grow at a faster pace and why?

Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?

Q.5. What are the business risks and competitive threats in this market?

Q.6. What are the emerging trends in this market and the reasons behind them?

Q.7. What are some of the changing demands of customers in the market?

Q.8. What are the new developments in the market? Which companies are leading these developments?

Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?

Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?

Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?

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