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Matcha Market

The market for Matcha was estimated at $3.5 billion in 2025; it is anticipated to increase to $5.0 billion by 2030, with projections indicating growth to around $7.1 billion by 2035.

Report ID:DS1901192
Author:Debadatta Patel - Senior Consultant
Published Date:
Datatree
Food & Beverage
Packaged & Processed F&B
Matcha
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Report Summary
Market Data
Methodology
Table of Contents

Global Matcha Market Outlook

Revenue, 2025

$3.5B

Forecast, 2035

$7.1B

CAGR, 2026 - 2035

7.4%

The Matcha industry revenue is expected to be around $3.5 billion in 2026 and expected to showcase growth with 7.4% CAGR between 2026 and 2035. This trajectory underscores Matcha’s solidification as a high-value category in global health and wellness markets, supported by growing awareness of its antioxidant profile, sustained-release caffeine, and perceived mental focus benefits. Demand for premium matcha tea is being amplified by consumers’ shift toward natural energy sources, interest in digestive and metabolic health, and the proliferation of café-style beverages in both home and out-of-home settings. Supermarket/Hypermarkets and Specialty Stores jointly account for 69.9% of distribution, demonstrating how mainstream chains and niche retailers alike are expanding shelf space for matcha powder, ready-to-drink formats, and fortified formulations aligned with functional beverages and clean-label products. Within product types, Powder Grade remains the dominant revenue contributor to the Matcha market, generating approximately $2.56 billion in sales in 2025 as it underpins most beverage, dessert, and culinary innovations

Matcha is a finely milled green tea powder made from shade-grown leaves, characterized by its vivid green color, high concentration of catechin antioxidants, and a caffeine-L-theanine synergy that promotes calm alertness and sustained energy. These attributes make Matcha highly attractive for a broad range of applications, from traditional hot tea and modern lattes to smoothies, bakery items, confectionery, nutraceutical supplements, and beauty formulations where its natural color and perceived detox benefits are valued. Producers increasingly differentiate offerings through ceremonial grade matcha for premium consumption, organic matcha targeting environmentally and health-conscious buyers, and culinary matcha tailored for foodservice and packaged food manufacturers. Recent trends driving demand include growing adoption of plant-based and wellness-centric lifestyles, the rise of social media-driven beverage aesthetics, and continuous product innovation in cross-category formats such as snacks, instant mixes, and on-the-go formats featuring matcha tea

Matcha market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2025-2035
Matcha Market Outlook

Market Key Insights

  • The Matcha market is projected to grow from $3.5 billion in 2025 to $7.1 billion in 2035. This represents a CAGR of 7.4%, reflecting rising demand across Culinary Delights and Health Supplements.

  • AIYA America Inc., Marukyu Koyamaen, and ITO EN are among the leading players in this market, shaping its competitive landscape.

  • Japan and U.S. are the top markets within the Matcha market and are expected to observe the growth CAGR of 4.7% to 6.9% between 2025 and 2030.

  • Emerging markets including Brazil, Russia and India are expected to observe highest growth with CAGR ranging between 8.3% to 9.9%.

  • Transition like The Green Revolution has greater influence in Japan and U.S. market's value chain; and is expected to add $149 million of additional value to Matcha industry revenue by 2030.

  • The Matcha market is set to add $3.5 billion between 2025 and 2035, with manufacturer targeting key segments projected to gain a larger market share.

  • With

    rising health consciousness, and

    Culinary Exploration, Matcha market to expand 100% between 2025 and 2035.

matcha market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
Matcha - Country Share Analysis

Opportunities in the Matcha

Rising demand for premium wellness beverages in North America is also creating strong headroom for ceremonial grade Matcha, positioned as an antioxidant-rich Japanese tea for mindful, low-sugar lifestyles. Specialty cafés, boutique fitness studios, and beauty-led retailers are integrating Matcha lattes and functional beverages, but supply partnerships with smaller tea farms and private-label brands remain fragmented. Ceremonial Matcha is set to expand from $2.56 billion in 2025 to $3.56 billion by 2030, outpacing other grades in absolute value within beverage applications.

Growth Opportunities in Asia-Pacific and North America

In Asia-Pacific, Matcha demand is propelled by the convergence of deep-rooted tea culture, modern café formats, and rising plant-based wellness trends, with supermarkets/hypermarkets remaining the most influential distribution channel for everyday Matcha tea and culinary Matcha powder, while specialty stores capture the most engaged consumers for premium Matcha and ceremonial-grade assortments. Globally, supermarkets/hypermarkets still generate the largest revenue in Matcha, but the accelerating growth of online stores is mirrored regionally by rapid adoption of e-commerce platforms in markets such as China, South Korea, and Southeast Asia, creating high-potential opportunities for direct-to-consumer subscription boxes, limited-edition organic Matcha launches, and storytelling around origin and terroir. Competitive intensity is escalating as local tea houses, regional beverage conglomerates, and digitally native Matcha brands compete on authenticity, safety standards, and flavor innovation, driving a shift toward traceable supply chains, pesticide-residue transparency, and sustainable farming narratives. Top regional opportunities include expanding ready-to-drink Matcha lines in convenience-driven urban markets, positioning functional beverages with brain-health and energy support claims for younger consumers, and co-developing Matcha desserts and bakery items through foodservice partnerships with regional café and bakery chains. Strategically, brands should prioritize supermarket/hypermarket penetration with clear segmentation between culinary and premium Matcha SKUs, use specialty stores to showcase high-margin artisanal blends with in-store education and tasting, and leverage e-commerce to scale cross-border sales, influencer-led education on Matcha tea preparation, and bundled offerings that combine powder, accessories, and recipe content.
In North America, the growth of the Matcha market is being driven by consumer trends toward clean-label energy solutions, coffee alternatives, and holistic plant-based wellness. Online retail channels are emerging as the most dynamic and strategically critical avenue for distribution, while specialty stores and natural retailers serve as discovery hubs for premium and organic Matcha. Supermarkets and hypermarkets, meanwhile, provide the scale necessary to reach mainstream consumers. The competitive landscape is characterized by a dense mix of imported Matcha brands, local wellness startups, and retailer private labels, which intensifies the need for differentiation. Brands are increasingly emphasizing verifiable quality grades, flavor consistency, and transparent sourcing. Positioning around ceremonial-grade Matcha, third-party testing, and clear communication of product versatility such as use in lattes, smoothies, and baking has become essential for brand credibility. Key growth opportunities include premiumizing the ready-to-drink Matcha segment with low-sugar, functional beverages that promote focus and reduce fatigue; developing barista-friendly formats for coffee chains and independent cafés through targeted foodservice programs; and expanding Matcha into fortified blends that align with nootropics and protein-based recovery products. Strategically, investments should focus on e-commerce optimization, including strong SEO-around Matcha tea recipes and usage occasions, differentiated online-exclusive SKUs, and educational content that simplifies preparation and grading. Specialty stores can be leveraged to promote curated premium assortments and in-aisle education, while supermarkets and hypermarkets should be used to scale core SKUs, positioned alongside better-for-you beverages and plant-based categories, to effectively capture health-conscious shoppers.

Market Dynamics and Supply Chain

01

Driver: Health-Centric Beverage Innovation and Premiumization of Functional Plant-Based Ingredients

The matcha market is also strongly driven by rising health-conscious consumption and rapid premiumization within functional beverages. Growing awareness of antioxidants, L-theanine, and sustained energy benefits has also positioned matcha as a preferred alternative to coffee among wellness-focused consumers. Simultaneously, beverage manufacturers are also innovating with ready-to-drink matcha lattes, protein blends, and adaptogenic formulations to capture urban and younger demographics. Premiumization further accelerates demand, as consumers increasingly value ceremonial-grade matcha, origin transparency, and clean-label positioning. also advances in stone-grinding technology and nitrogen-flushed packaging preserve color, flavor, and nutrient integrity, enabling premium offerings at scale. Together, health-driven demand and product innovation are also expanding matcha’s presence across cafés, functional drinks, and nutraceutical-infused food categories.
Matcha’s versatility is also a key driver supporting market growth. Beyond beverages, it is also increasingly adopted in bakery, confectionery, dairy alternatives, and dietary supplements. Foodservice operators leverage matcha’s vibrant color and flavor to create premium desserts and seasonal offerings, enhancing menu differentiation. In nutraceuticals, matcha is also incorporated into capsules, gummies, and powdered blends targeting metabolism, focus, and detox benefits. Improved solubility and micro-milling technologies have also enabled smoother texture and consistent taste across applications, supporting wider commercial adoption and stable long-term demand.
02

Restraint: High Production & Distribution Costs

Matcha is widely known for its health advantages and versatility in cooking; however it faces challenges due to rising costs involved in its production process. Well each step of growing match from shading the plants to picking them by hand and grinding them is not only time consuming but also requires a lot of effort and specialized tools. On top of that transportation and distribution costs play a role in driving up the final price that consumers see on the shelves.that'swhy the higher price point often makes it difficult for regular consumers to afford matcha products resulting in availability, in the mainstream market. The popularity of Match rests with wealthy or health conscious buyers and neglects a large portion of the market which hinders its growth.
03

Opportunity: Classic Matcha ready-to-drink products targeting time-poor professionals in Asia-Pacific and Culinary Matcha ingredients for plant-based confectionery manufacturers across Western Europe

In Asia-Pacific, busy professionals and commuters are shifting from sugary energy drinks to convenient ready-to-drink Matcha formats, driving strong momentum for classic Matcha in cans and PET bottles. Brands are investing in micro-milling technologies to keep green tea powder suspended, as well as aseptic filling lines that preserve flavor without excess sugar. With classic grade Matcha already on an 8.28% global CAGR trajectory, Asia-Pacific ready-to-drink applications are poised to deliver the fastest incremental volume growth and deepen supermarket and convenience-channel penetration.
European confectionery and bakery manufacturers are increasingly reformulating around clean-label, plant-based recipes, opening a niche for culinary Matcha as a natural colorant and flavoring in ice cream, chocolate, and patisserie. Matcha-based fillings, coatings, and toppings remain underused beyond a few flagship brands, leaving room for co-branded launches and contract manufacturing partnerships. Although classic Matcha is projected to grow from $0.92 billion in 2025 to $1.37 billion by 2030 at 8.28% CAGR, culinary Matcha should outpace it regionally in indulgent yet permissible snacking.
04

Challenge: Quality Inconsistency and Adulteration Risks Affecting Consumer Confidence Globally

The global matcha market faces challenges from inconsistent quality standards and adulteration with fillers or lower-grade green tea powders. Variations in color, taste, and caffeine levels confuse consumers and impact repeat purchases. In export-heavy markets, lack of unified certification weakens brand credibility. This restraint limits demand growth, particularly in emerging markets, where consumers struggle to differentiate authentic matcha from substitutes.

Supply Chain Landscape

1

Organic Matcha Cultivation

Marukyu KoyamaenIppodo Tea Co LtdAOI Tea Company
2

Ceremonial Matcha Processing

AOI Tea CompanyAIYA America Inc.Marukyu Koyamaen
3

Global Matcha Distribution

ITO EN Ltd.AIYA America Inc.AOI Tea Company
4

Consumer Applications

Food & BeverageFunctional BeveragesDietary Supplements
Matcha - Supply Chain

Use Cases of Matcha in Culinary Delights & Health Supplements

Culinary Delights : Matcha, particularly the culinary grade, is extensively used in the food industry for its unique flavor and vibrant color. It is included in a variety of delicacies - from smoothies and lattes to pastries and chocolates, offering a healthful twist to these delights. The superior quality of Matcha, combined with its diverse culinary applications, has been leveraged by top players like The AOI Tea Company and Aiya creating a distinct market positioning for them with their flavourful and nutritious offerings.
Health Supplements : In the health and wellness sector, ceremonial grade Matcha is frequently utilized due to its unmatched purity and high antioxidant content. Supplement manufacturers incorporate this green tea powder to formulate tablets, capsules, and drink mixes - promoting weight loss, enhancing focus, and boosting overall health. Esteemed brands like DoMatcha and Ippodo Tea leverage the health benefits of Matcha, making their position formidable in this fast-growing market segment.

Recent Developments

The global matcha market has recently seen a surge in premium and ready-to-drink offerings, driven by growing health-conscious and wellness-focused consumers. Brands are emphasizing ceremonial-grade matcha, antioxidant-rich formulations, and functional beverage blends, while cafes and bakeries innovate with matcha-infused desserts and lattes. Sustainability and origin transparency are emerging as key differentiators, with nitrogen-flushed packaging and stone-ground processing enhancing quality. This trend reflects a shift toward lifestyle-oriented consumption, boosting demand for high-quality, authentic matcha across foodservice, nutraceuticals, and retail channels.

November 2025 : ITO EN Ltd. established a dedicated Matcha Business Department and expanded production lines at its Shizuoka facility to strengthen raw material procurement, production capacity, and global matcha supply structures amid rising demand.
October 2024 : Ippodo Tea Co., Ltd. (reported alongside Marukyu Koyamaen) limited or halted sales of certain matcha products due to exceptional demand and constrained supply, reflecting production capacity challenges and global market pressure on premium matcha availability.
February 2024 : AIYA America Inc. acquired a majority stake in UK-based OMGTea, a matcha brand, to scale presence in the United Kingdom and build broader distribution channels for matcha products in European markets.

Impact of Industry Transitions on the Matcha Market

As a core segment of the Packaged & Processed F&B industry, the Matcha market develops in line with broader industry shifts. Over recent years, transitions such as The Green Revolution and Localization of Processing and Blending have redefined priorities across the Packaged & Processed F&B sector, influencing how the Matcha market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

The Green Revolution

Driven by escalating health and wellness awareness, consumers in core markets are rapidly substituting traditional caffeinated drinks with antioxidant-rich Matcha tea, which is emerging as a daily lifestyle beverage and versatile ingredient in modern food and beverage formulations. This "Green Revolution" has strongest traction in Japan and the U.S., where deep cultural affinity for green tea supplements and rising demand for functional beverages are accelerating modernization of the Matcha value chain, from farm-level cultivation to branded premium beverages and clean-label food applications. As Matcha penetrates mainstream retail, cafés, and plant-based product portfolios, the global Matcha market is expected to unlock an additional $149 million in industry revenue by 2030, consolidating its position as a high-growth segment within the broader tea industry and reinforcing strategic investment in product innovation, supply-chain efficiency, and market expansion across health-oriented consumer segments.
02

Localization of Processing and Blending

Another major transition involves localized processing and blending outside Japan. While leaf cultivation remains concentrated, international players are investing in regional blending, flavor customization, and private-label production to reduce costs and improve responsiveness. This transition impacts beverage manufacturers and bakery chains by enabling faster innovation cycles and localized taste profiles. However, it also raises concerns around authenticity, prompting stricter sourcing disclosures and quality assurance practices across the supply chain.