Matcha Tea Powder Industry Set for 7.9% CAGR Growth, Driven by Health and Wellness Trends - Analysis by TMR

The global matcha tea powder market has been gaining considerable momentum in recent years, riding the wave of rising health consciousness, clean-label preferences, and the popularity of traditional wellness beverages across mainstream consumer segments. According to recent market analysis, the global matcha tea powder industry was valued at US$ 11.0 billion in 2022. With an expected compound annual growth rate (CAGR) of 7.9% from 2023 to 2031, the market is projected to reach US$ 21.6 billion by 2031. This robust growth is attributed to several key drivers, including the growing demand for plant-based and antioxidant-rich products, increasing penetration of specialty tea products in Western markets, and evolving consumer preferences toward premium and functional beverages.

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Market Size and Growth

From a valuation of US$ 11.0 billion in 2022, the matcha tea powder market is on a compelling upward trajectory, aiming for US$ 21.6 billion by the end of 2031. This represents a CAGR of 7.9%, reflecting both organic expansion in key markets and increased adoption among new consumer bases. Notably, the market has witnessed exponential growth across North America and Europe, where matcha has gained prominence as a healthy alternative to coffee and soft drinks. Furthermore, the expansion of e-commerce channels and health food subscription services has significantly broadened consumer access to high-quality matcha products, contributing to the market's aggressive growth pace.

Market Segmentation

The global matcha tea powder market is segmented by grade, application, distribution channel, and end-use industry. By grade, the market is categorized into ceremonial grade, culinary grade, and others, with ceremonial grade commanding a premium owing to its superior quality and taste profile. In terms of application, beverages lead the segment, encompassing traditional tea, matcha lattes, and energy drinks, followed by cosmetics, food products, and dietary supplements. Distribution channels include online retail, specialty stores, supermarkets/hypermarkets, and direct-to-consumer (D2C) brands. The growing preference for online shopping, especially among millennials and Gen Z consumers, is reshaping traditional sales dynamics, with brands investing heavily in digital-first strategies.

Regional Analysis

Asia Pacific continues to dominate the global matcha tea powder market, spearheaded by Japan and China, where matcha has been a cultural staple for centuries. Japan, in particular, remains the hub of authentic matcha production and innovation, with established supply chains and centuries-old cultivation practices. However, the fastest-growing markets are North America and Europe, driven by the rising influence of health-focused diets, clean-label preferences, and the integration of Eastern wellness philosophies into Western lifestyles. North American consumers are embracing matcha as part of wellness routines, often incorporating it into smoothies, baked goods, and functional beverages. Meanwhile, the European market is experiencing a surge in demand through upscale cafes and wellness-focused retail chains.

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Market Drivers and Challenges

The growth of the matcha tea powder market is underpinned by several powerful drivers. Foremost is the rising health consciousness among global consumers, leading to a preference for natural, antioxidant-rich, and minimally processed foods. The surge in popularity of plant-based diets and the increasing awareness of matcha's role in improving metabolism, detoxification, and mental clarity are further propelling demand. Additionally, the versatility of matcha powder-used in beverages, snacks, cosmetics, and supplements-broadens its appeal across industries.

Despite its upward trajectory, the market faces several challenges. Price sensitivity and product adulteration remain key concerns, especially with the influx of low-quality or counterfeit matcha products. Authentic ceremonial-grade matcha is often expensive, limiting its accessibility to a broader demographic. Furthermore, supply chain disruptions and environmental factors, including soil degradation and climate change, could impact the long-term sustainability of matcha cultivation.

Competitive Landscape

Encha, Harney & Sons Tea Company, Kusmi Tea, Mizuba Tea Co., R.C. Bigelow Inc., Tata Consumer Products, The Hain Celestial Group, The Republic of Tea, Unilever N.V., and Yamamotoyama Co. Ltd. are key companies in the matcha tea powder sector. Each of these companies has been profiled in the matcha tea powder market report based on parameters such as company overview, business strategies, financial overview, business segments, product portfolio, and recent developments.

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Future Outlook

Looking ahead, the matcha tea powder market is set to experience sustained growth driven by continued consumer interest in health and wellness, product diversification, and global expansion. Emerging markets in Latin America and the Middle East represent untapped opportunities for growth, especially as awareness of matcha's benefits increases through digital media and influencer marketing. Additionally, technological advancements in cultivation and processing may help standardize quality, reduce costs, and improve scalability for mass-market adoption. The market is expected to evolve into a broader functional wellness segment, integrating cross-category innovations that blend matcha with adaptogens, nootropics, and other superfoods.

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