Matcha Market Size, Share & Trends Analysis Report By Grade, By Application (Regular Tea, Matcha Beverages, Food, Personal Care), By Distribution Channel, By Region, And Segment Forecasts, 2024 - 2030

Matcha Market Size & Trends  

The global matcha market size was valued at USD 4.3 billion in 2023 and is projected to grow at a CAGR of 7.9% from 2024 to 2030. Growing health consciousness, coupled with consumer awareness regarding the health benefits of the product, is expected to drive the market over the forecast period.  Matcha is an unprocessed green tea full of antioxidants, especially catechins, which are associated with better metabolism, lower risk of chronic diseases, and improved cognitive function. As per the study published in National Institutes of Health, 2023, matcha green tea may have positive effects on gut bacteria due to its high nutrient content of tea catechins and insoluble dietary fiber. This benefit, along with an increasing awareness of negative effects of sugary beverages, is driving demand.

Moreover, growing interest from consumers, the food industry, and the nutritional supplement sector in knowledge about the chemical composition and biological effects of matcha tea infusions are contributing to growth. In addition to being suitable for vegetarians and vegans it has low calorie content as well. Furthermore, the aesthetic visual and the beneficial health properties align with the ongoing preference for organic and nutritious foods. In addition to being enjoyed as a traditional brewed beverage, matcha tea is also available in a powdered form for immediate consumption.

The product has a high content of antioxidants, vitamins, minerals, and amino acids. The oxygen radical absorbance capacity (ORAC) count of the product is estimated to be 1,384 units per gram, which is higher than the average ORAC count of 94 units per gram of other nutritious fruits and vegetables, such as pomegranates, goji berry, walnuts, broccoli, spinach, and blueberries.

The anti-oxidant composition of the product enables it to prevent various chronic diseases and provide protection from the harmful effects of UV radiation. The antioxidants present in the product, known as EGCG (epigallocatechin gallate), can prevent various types of cancer including brain, bladder, prostate, and cervix. It prevents the proliferation of malignant cells and thus regulates angiogenesis and metastasis.

The amino acid content in the product is approximately five folds higher than regular black and green tea. The amino acid ‘L-theanine’ present in the product has the potential to reduce stress and promote a state of relaxation; enhance mental alertness and mental calmness; and prevent chronic diseases, including type-2 diabetes and gastrointestinal problems.

The superior health benefits of the product have accelerated its acceptance among consumers across the globe. The worldwide incidence of lifestyle diseases has motivated consumers to increase the intake of healthy and nutrient-rich food and beverages in their diet. This, in turn, is expected to increase the product demand owing to their nutrient composition.

Grade Insights

Classic grade dominated the market and accounted for a share of 57.1% in 2023 due to its perfect balance of flavor, cost and versatility. Moreover, the smooth texture and enjoyable taste of classic grade make it very adaptable. It can be traditionally consumed as a tea or mixed into lattes, smoothies, and baked goods for enjoyment. This flexibility appeals to a wider range of people preferring to include matcha in their everyday lives. Moreover, Classic grade in contrast to ceremonial grade, is more affordable for everyday use and stands out with its brighter color and more delicate sweetness, this perfect blend of price, and quality makes classic grade suitable for beginners and for various purposes.  

Culinary grade is expected to register the fastest CAGR of 11.0% during the forecast period. The growing trend of experimenting with unique and flavorful food and beverage is fostering a demand for versatile ingredients like culinary grade matcha. It is used for baking and cooking due to its less vibrant color and slightly more bitter taste. In addition, affordability in comparison to higher quality grades makes it an appealing choice for food service businesses and bakeries looking to add a bright green color and delicate matcha taste to their products without a substantial rise in expenses.

Application Insights

Regular tea accounted for the largest market revenue share of 53.1% in 2023. Regular tea is a recognized form of hot drink and appeals to long-time tea drinkers looking for a fresh and stimulating taste. Furthermore, integrating matcha tea into their daily schedules also fits with the increasing focus on proactive healthcare and overall health. Moreover, the sensory aspect of consuming matcha tea and the traditional tea ceremony rituals enhance the cultural and mindful experience, contributing to the increasing popularity of matcha tea in everyday tea consumption.

Food is expected to register the fastest CAGR of 10.4% during the forecast period due to rising consumer preference to include functional and flavorful ingredients in their diets. Matcha's special combination of nutrients, high in antioxidants and offering potential health advantages, fits well with this trend. Additionally, the growing innovation in the food processing sector is leading to a wide variety of food items containing matcha, such as baked goods, desserts, savory meals, and snacks. In addition, the increasing impact of social media is generating excitement about matcha-infused culinary creations.  

Distribution Channel Insights

Hypermarket/supermarket dominated the market in 2023. This is attributable to several factors, including their high foot traffic and wide reach, which cater to a diverse range of consumers and producers. Additionally, supermarkets and hypermarkets usually offer a wide range of brands and products, including ceremonial-grade matcha, traditional tea, culinary-grade matcha for baking, and ready-to-drink beverages. Moreover, hypermarkets and supermarkets provide a streamlined distribution system, enabling them to reach a broad audience efficiently.

The online retail stores segment is projected to grow at the fastest CAGR over the forecast period due to factors such as convenience, information accessibility, targeted marketing, subscription models, and global reach. Online retail offers convenience and accessibility. Consumers can explore a wide range of products from different brands and origins around the world, regardless of geographical boundaries.

Regional Insights

The North America matcha market is anticipated to grow rapidly during the forecast period owing to its various applications. The U.S. matcha market held substantial market share in 2023 due to increasing understanding of the health benefits of matcha as a food item. Matcha is rich in antioxidants, vitamins, and minerals, providing numerous health benefits.

Asia Pacific Matcha Market Trends

The Asia Pacific matcha market dominated the global market 57.76% in 2023 due to cultural association with tea consumption. Japan and China are acknowledged as historical centers of matcha production. This deep rooted culture has led to a large and knowledgeable group of consumers who are known to brewing methods and characteristics. Furthermore, the region is home to many producers and sellers, ensuring a readily available and diverse range grades to cater different preferences and budgets. In addition, growing disposable incomes and a rising focus on health in developing nations are expected to propel the market growth.

The Japan matcha market is expected to grow rapidly in the coming years. Japan has the perfect environment for growing matcha, with certain areas known for their skill in producing shaded tencha leaves, which are essential for high-quality matcha.

The matcha market in China is held a substantial market share in 2023 driven by the expanding domestic middle class with increasing disposable income. Additionally, the increasing interest in discovering healthy and functional beverages complements matcha's perceived health advantages.

Europe Matcha Market Trends

The Europe matcha market was identified as a lucrative region in 2023 driven by health awareness, creative cooking techniques, and easy-to-use product options. The rising popularity of ready-to-drink beverages and pre-packaged products cater to busy European lifestyles, driving market expansion even further.

The UK matcha market is expected to grow rapidly in the coming years. Black tea consumption is historically popular in the UK, but there is a rising demand for matcha tea due to its various health benefits and increasing variety of products available in the market.

The matcha market in Germany is held a substantial market share in 2023. Increasing awareness towards health, an established tea tradition, and a surge of creative matcha-based items are driving the market growth.

Key Matcha Company Insights

Some of the key companies in the matcha market include The AOI Tea Company, Ippodo Tea US, DoMatcha and others. Organizations are focusing on increasing customer base to gain a competitive edge in the industry. Therefore, key players are taking several strategic initiatives, such as mergers and acquisitions, and partnerships with other major companies. 

• DoMatcha specializes in Japanese matcha, providing both ceremonial and culinary grade matcha powders. It serves traditional tea lovers as well as those looking to use matcha in different recipes and drinks.

• Jade Monk specializes in handy matcha packets designed for easy consumption while on the move. Its matcha powder is available in traditional and flavored options such as Palau Peach and Lime Blossom, appealing to a broader range of consumers seeking a more easily enjoyable matcha experience.

Recent Developments

• In June 2024, Aiya America, Inc. recently revealed its distribution expansion to Whole Foods Market stores. The well-known natural foods chain now has 5 Aiya Matcha products, including Sweetened Matcha To Go, Organic Ceremonial Grade Matcha, Matcha To Go, Organic Culinary Grade Matcha, and Sweetened Roasted Matcha To Go.

• In May 2024, Goli Nutrition Inc. announced the launch of its new Matcha Mind Cognitive Gummies. It combines clinically studied Cognizin and matcha to help support focus, attention and cognitive health.

• In February 2024, Starbucks launched Iced Strawberry Matcha Tea Latte, a classic matcha mixed with vanilla syrup, ice and thick creamy strawberry cold foam.

• In February 2023, Kataoka & Co., Ltd. launched Matcha Direct, an e-commerce platform enabling customers to purchase ground-to-order fresh matcha from tea factory located in Kyoto’s. This indicates that once the organization receives the order, for both professional and home use, it starts preparing the matcha.

• In December 2022, MatchaKo launched the first Non-GMO Project Verified, certified organic, and vegan ready-to-drink premium matcha drink.

Matcha Market Report Scope

Global Matcha Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global matcha market report based on grade, application, distribution channel, and region.

• Grade Outlook (Revenue, USD Billion, 2018 - 2030)

  • Ceremonial Grade

  • Classic Grade

  • Culinary Grade

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Regular tea

  • Matcha beverages

  • Food

  • Personal Care

• Distribution Channel Outlook (Revenue, USD Billion, 2018 - 2030)

  • Hypermarket/Supermarket

  • Specialty Stores

  • Online Retail Stores

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

  • Latin America

    • Brazil

  • Middle East and Africa (MEA)

    • UAE

    • South Africa