Rising Health Awareness Fuels Global Matcha Tea Market Growth

The Matcha Tea Market is expected to grow from an estimated USD 4.5 billion in 2024 to USD 0.9 billion in 2033, at a CAGR of 0.8%. The latest report, titled 'Global Matcha Tea Market,' comprises a profound analysis of the fundamental parameters contributing to the global Matcha Tea market scenario. The research report provides the reader with an in-depth interpretation of the Matcha Tea market dynamics, including the crucial drivers, opportunities, threats, and challenges. The report also describes the key business strategies, demand and supply ratios, leading regions, and the renowned market players, in a nutshell, offering a futuristic outlook of the overall Matcha Tea industry. The market intelligence report is a prototype of the 360° overview of the global Matcha Tea industry, shedding light on the estimated market value, share, growth trends, gross revenue, competitive overview, prominent manufacturers and buyers, available product types, and end-use applications.

The global matcha tea market is witnessing strong growth, driven primarily by increasing health awareness among consumers. Matcha tea, known for its vibrant green color and distinct taste, is gaining popularity due to its numerous health benefits. Rich in antioxidants, especially catechins like epigallocatechin gallate (EGCG), matcha helps reduce oxidative stress, supports weight management, and promotes heart health.

One of the standout features of matcha tea is its combination of caffeine and L-theanine. This blend provides a calm yet focused energy boost, offering an alternative to coffee without the common side effects like jitteriness. As more people opt for natural and plant-based remedies, matcha has become a favorite in the health and wellness beverage market.

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Supporting this trend, governments are also stepping in to improve public health. In May 2023, India's Union Ministry of Health and Family Welfare launched a large-scale program aiming to screen and treat 75 million individuals with hypertension and diabetes by 2025. This initiative includes expanding health coverage through over 150,000 Health and Wellness Centres and strengthening telemedicine services, further promoting the demand for healthier drink options like matcha tea.

Green Tea Demand Drives Matcha Popularity

The growing preference for green tea is another major driver for matcha's rise. Unlike regular green tea, matcha is made by finely grinding whole leaves, allowing consumers to absorb the full nutritional value. Matcha is known to have significantly higher antioxidant content than traditional green tea, making it even more appealing to health-conscious consumers.

Matcha's strong antioxidant profile, especially its high catechin levels, supports anti-inflammatory, anti-cancer, and heart-health benefits. With more consumers turning to green tea for health reasons, matcha is gaining momentum as a premium, more potent option. In a move to further boost tea production and quality, the Indian government approved a 82% increase in funding for its Tea Development Scheme in October 2024, raising the budget to ₹528.97 crore for 2024-25 and 2025-26.

Competitive Terrain:

The global Matcha Tea industry is highly consolidated owing to the presence of renowned companies operating across several international and local segments of the market. These players dominate the industry in terms of their strong geographical reach and a large number of production facilities. The companies are intensely competitive against one another and excel in their individual technological capabilities, as well as product development, innovation, and product pricing strategies.

The Leading Market Contenders Listed In The Report Are:

Aiya America Inc.

The AOI Tea Company

Ippodo Tea USA

Vivid Vitality Ltd

DoMatcha

Encha

Garden To Cup Organics

TEAJA Organic

Midori Spring

Jade Monk

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Cost Still a Hurdle for Mass Adoption

Despite its growing popularity, the high price of matcha remains a key challenge. The production process is both labor-intensive and time-consuming, as it involves shading the Camellia sinensis plant for several weeks before harvesting to increase its chlorophyll and nutrient content. This special cultivation method leads to lower yields and higher prices.

In addition, global tea prices have been rising. In January 2025, tea prices increased by over 12%, driven by higher demand for healthier beverages and ongoing supply chain pressures. These price trends contribute to matcha being positioned as a premium product, making it less accessible for budget-conscious consumers.

Regular Tea Segment Leads, Beverages Show Fastest Growth

By application, regular tea held the largest share of the matcha market in 2024. Adding matcha to traditional green or black teas enhances both flavor and nutrition. Many modern tea blends now include matcha combined with hibiscus or jasmine, offering new flavor experiences for consumers.

Matcha beverages, however, are expected to grow the fastest. Matcha lattes-made with milk or plant-based alternatives-are especially popular for their creamy texture and balanced taste. During warmer seasons, iced matcha lattes are in high demand. In June 2024, cafes worldwide started offering innovative matcha-based drinks with tropical flavors like watermelon, mango, and yuzu, boosting matcha's appeal to a wider audience.

Recent financial data from Tata Consumer Products, makers of Tetley tea, reflect shifting consumer preferences. While the company faced a decline in profits during the first quarter of 2024 due to rising expenses, a strong rebound in the second quarter was fueled by increased demand for packaged food and beverages, including matcha products.

Matcha Tea Market Segmentation Analysis

By Grade Outlook (Revenue, USD Billion; 2020-2033)

Ceremonial Grade

Classic Grade

Culinary Grade

By Application Outlook (Revenue, USD Billion; 2020-2033)

Regular tea

Matcha beverages

Food

Personal Care

By Distribution Channel Outlook (Revenue, USD Billion; 2020-2033)

Hypermarket/Supermarket

Specialty Stores

Online Retail Stores

Others

Regional Segmentation:

North America

Latin America

Europe

Middle East & Africa

Asia Pacific

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Report Highlights:

Besides offering a vivid depiction of the global Matcha Tea business sphere and its fundamental operations, the latest report provides the industrial chain analysis and list down the current and future market trends and growth opportunities.

The report includes information on the present and historical market scenarios, which helps forecast the market conditions over the next eight years (2020-2027).

The report scrutinizes the salient factors influencing the growth of the market in the near future.

The strategic marketing recommendations, crucial information related to the new market entrants, and expansion plans of various businesses are poised to provide the reader with a competitive edge in the market.

Key Benefits of the Report:

Comprehensive analysis of the competitive scenario and its changing dynamics

Analytical data with detailed SWOT analysis and Porter's Five Forces analysis

In-depth 8 year analysis of the Global Matcha Tea Market

Critical assessment of the key market segments

Comprehensive analysis of the drivers, restraints, trends, and opportunities

Detailed regional analysis and extensive company profiling

Extensive assessment of current and emerging trends of the market

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