Matcha Market to Grow with a CAGR of 9.51% through 2029

Growing health awareness, culinary innovation, globalization, and the influence of e-commerce are key drivers propelling the global matcha market, fostering increased demand and market expansion.

According to TechSci Research report, “Matcha Market - Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2029”, the global matcha market stood at USD 4.09 billion in 2023 and is anticipated to grow with a CAGR 9.51% in the forecast period, 2025-2029. The matcha market is thriving globally, fueled by a surge in health consciousness and wellness trends. Renowned for its rich antioxidant content and unique flavor profile, matcha has transcended traditional tea boundaries. The market witnesses diverse culinary applications, from beverages to desserts, driving innovation. Globalization and the adoption of matcha in Western markets contribute to its widespread popularity. Additionally, the rise of e-commerce facilitates accessibility, while premiumization and sustainability trends shape consumer preferences. Despite challenges such as supply chain constraints and market saturation, the matcha market remains dynamic, reflecting evolving consumer demands and culinary creativity.

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The matcha market has become a thriving segment in the global beverage industry, propelled by a convergence of factors that appeal to the modern consumer's preferences and lifestyles. At the heart of matcha's rise to prominence is the escalating awareness of health and wellness. As consumers increasingly prioritize products that offer both flavor and functional benefits, matcha has emerged as a superstar, celebrated for its rich concentration of antioxidants, vitamins, and minerals. This makes matcha not only a delightful beverage but also a potential contributor to improved heart health, boosted metabolism, and overall well-being.

Culinary innovation has played a pivotal role in reshaping the matcha landscape. Traditionally confined to tea ceremonies, matcha has broken free from its traditional mold, finding its way into an array of culinary delights. From matcha-flavored lattes and smoothies to decadent desserts and savory dishes, the adaptability of matcha has made it a favorite among chefs and food enthusiasts alike. Its vibrant green hue and distinctive flavor have turned matcha into a sought-after ingredient, elevating both the visual and gastronomic appeal of a wide range of food and beverage creations.

The globalization of the matcha market is another influential factor, with matcha transcending cultural boundaries and becoming a global phenomenon. While Japan and China remain integral players in the matcha scene, the Western world has embraced this green elixir with fervor. The incorporation of matcha into various Western markets has been facilitated by the expansion of specialty tea shops, cafes, and health-conscious consumer choices. As matcha has become a symbol of sophistication and a healthier alternative to traditional tea and coffee, it has found a place in the daily routines of individuals seeking a flavorful and healthful beverage option.

The matcha market has also been shaped by the digital age, with e-commerce platforms playing a crucial role in its growth. Online sales have surged as consumers seek the convenience of purchasing matcha products from the comfort of their homes. These platforms provide a plethora of options, allowing consumers to explore different matcha grades, formulations, and brands. The digital space has become a hub for not only sales but also education, with consumers learning about the diverse world of matcha, its grades, and preparation methods. The accessibility of online channels has expanded the reach of matcha products, allowing enthusiasts worldwide to access a broad range of authentic and specialty offerings.

Despite its impressive growth, the matcha market is not without its challenges. Supply chain constraints pose a significant hurdle, with the meticulous cultivation and harvesting process of matcha leaves susceptible to climate conditions and environmental factors. Ensuring a consistent supply of high-quality matcha, especially in regions known for premium production like Uji in Kyoto, requires overcoming these challenges to meet the escalating demand. Market saturation and increased competition also present concerns, as the popularity of matcha has led to a crowded landscape where differentiation becomes critical for sustained success.

The global matcha market is segmented into product type, form, nature, distribution channel, regional distribution, and company.

Based on distribution channel, the market is segmented into supermarkets/hypermarkets, departmental stores, convenience stores, online, others.

Online sales are burgeoning in the matcha market as consumers increasingly turn to digital platforms for convenient and diverse matcha product offerings. The ease of purchasing matcha online, coupled with the ability to explore various grades, flavors, and brands, has fueled this growth. The digital space not only provides a convenient shopping experience but also serves as an educational hub, allowing consumers to learn about different matcha varieties and preparation methods. The surge in online sales reflects the dynamic shift in consumer behavior, emphasizing the pivotal role of e-commerce in shaping the contemporary matcha market.

Major companies operating in global matcha market are:

• Matcha Maiden Pty Ltd
• Mizuba Tea Co.
• Aiya Europe GmbH
• AOI Tea Company
• Ippodo Tea Co., Ltd.
• Ito En, Ltd.
• McCormick & Company, Inc.
• Tata Consumer Products Limited
• Green Foods Corp.
• Encha Life LLC’s

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“The matcha market is experiencing robust growth driven by factors such as increasing health awareness, culinary innovation, and globalization. Matcha, celebrated for its rich antioxidants and versatile flavor, has transcended traditional boundaries, finding its way into various culinary applications beyond tea ceremonies. The market's globalization has seen widespread adoption in Western countries, aided by specialty tea shops and health-conscious trends. Furthermore, e-commerce has played a pivotal role, with online sales witnessing a significant uptick, offering consumers convenience and access to diverse matcha products. Despite challenges like supply chain constraints and market saturation, the matcha market continues to evolve, catering to dynamic consumer preferences.” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based management consulting firm.

Matcha Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type (Regular Tea, Flavored Tea), By Form (Powder, Liquid), By Nature (Conventional, Organic), By Distribution Channel (Supermarkets/Hypermarkets, Departmental Stores, Convenience Stores, Online, Others), By Region, By Competition, 2019-2029”, has evaluated the future growth potential of global matcha market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the global matcha market.

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