Matcha Tea Market Analysis

Growing health-conscious population fuels market growth.

The increasing health-conscious population is driving the market CAGR for matcha tea. Several countries have recognized lifestyle-related diseases as a major concern, resulting in an increase in consumer health consciousness. Furthermore, increased consumer knowledge of the health benefits of matcha tea boosts demand. Matcha tea stimulates metabolism, detoxifies the body, increases levels of vitamin C, magnesium, and zinc, and lowers cholesterol and blood sugar. Furthermore, an increase in the older population, an increase in life expectancy, and an alarming increase in the frequency of chronic diseases have affected consumer eating patterns.

Today's consumers seek beverages that provide them with critical nutrients while also improving their physical and mental wellbeing. As a result, the combination of these factors increases demand for matcha tea and contributes to the growth of the matcha tea.

Additionally, matcha can also be found in a variety of beverages and desserts, such as lattes, frappés, waffles, matcha tea ice cream, cupcakes, cookies, and a variety of other delicacies. However, matcha tea and lattes are in high demand as weight watchers and health-conscious clients reduce their consumption of sweet goodies. Consumers' shifting desire for plant-based, nutritious beverages, as well as the growing impact of social media, where fitness-related items are advertised and pushed ly, all contribute to the matcha tea market's revenue growth.

The Global Matcha Tea Industry is projected to experience substantial growth, with estimates indicating a rise from 3.66 USD Billion in 2024 to 7.72 USD Billion by 2035. This growth trajectory suggests a robust demand for matcha tea, driven by various factors such as health trends, innovative product offerings, and expanding distribution channels. The anticipated CAGR of 7.02% from 2025 to 2035 further underscores the market's potential. As consumer preferences continue to evolve, the Global Matcha Tea Industry is likely to adapt, ensuring a dynamic and competitive landscape.

The Global Matcha Tea Industry is experiencing a notable surge in demand driven by increasing health consciousness among consumers. Matcha tea, known for its high antioxidant content and potential health benefits, appeals to individuals seeking healthier beverage options. This trend is reflected in the market's projected value of 3.66 USD Billion in 2024, as consumers increasingly prioritize wellness. The growing awareness of the benefits of matcha, such as improved metabolism and enhanced mental clarity, suggests a shift towards natural and organic products. As a result, the Global Matcha Tea Industry is likely to continue expanding as more consumers adopt healthier lifestyles.

The Global Matcha Tea Industry is witnessing a wave of innovative product offerings that cater to diverse consumer preferences. Manufacturers are introducing matcha-infused products, such as snacks, desserts, and beverages, appealing to a wider audience. This innovation is likely to attract consumers who may not traditionally consume tea, thereby expanding the market. The introduction of ready-to-drink matcha beverages and matcha-based health supplements indicates a strategic response to evolving consumer tastes. As the market adapts to these trends, the Global Matcha Tea Industry is poised for sustained growth, potentially achieving a CAGR of 7.02% from 2025 to 2035.

The Global Matcha Tea Industry is significantly influenced by cultural trends and the growing popularity of matcha in various regions. Originating from Japan, matcha has gained international recognition, particularly among millennials and health enthusiasts. This cultural shift is evident in the increasing number of cafes and restaurants offering matcha-based drinks and desserts. The rise of social media platforms has further amplified this trend, as visually appealing matcha creations gain traction online. Consequently, the Global Matcha Tea Industry is likely to see continued growth as cultural appreciation for matcha expands, attracting new consumers and fostering brand loyalty.

The Global Matcha Tea Industry is benefiting from the expansion of distribution channels, which enhances product accessibility. Retailers, both online and offline, are increasingly stocking matcha products, catering to the rising demand. E-commerce platforms, in particular, have become vital in reaching a broader audience, allowing consumers to purchase matcha tea conveniently. This trend is expected to contribute to the market's growth, with projections indicating a rise to 7.72 USD Billion by 2035. The diversification of distribution channels not only increases visibility but also encourages new consumers to explore matcha tea, thereby broadening the market base.

The Global Matcha Tea Industry is increasingly aligning with sustainability trends, as consumers show a preference for organic and ethically sourced products. The demand for sustainably produced matcha is rising, driven by a growing awareness of environmental issues and the impact of agricultural practices. Brands that emphasize organic certification and sustainable farming methods are likely to resonate with eco-conscious consumers. This shift towards sustainability not only enhances brand reputation but also contributes to market growth. As the Global Matcha Tea Industry evolves, the emphasis on organic and sustainable sourcing may play a crucial role in shaping consumer choices.

Leading market players are investing heavily in R&D to expand their product lines, which will help the matcha tea market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, matcha tea industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the matcha tea industry to benefit clients and increase the market sector. In recent years, the matcha tea industry has offered some of the most significant advantages to medicine. Major players in the matcha tea market, including The Unilever Group (U.K.), AOI Tea Company (U.S.), Aiya Co. Ltd. (Japan), ITO EN LTD (Japan), Marukyu Koyamaen Co. Ltd. (Japan) and others, are attempting to increase market demand by investing in R&D operations.

Keurig Dr Pepper Inc. is a publicly traded American beverage and coffeemaker corporation headquartered in Burlington, Massachusetts. It was originally known as Green Mountain Coffee Roasters (1981-2014) and Keurig Green Mountain (2014-2018). Keurig Dr Pepper, formed in July 2018 by the merging of Keurig Green Mountain and Dr Pepper Snapple Group, offers over 125 hot and cold beverages. Keurig Dr Pepper Canada is the company's Canadian subsidiary. In October 2020, Keurig Dr. Pepper Inc. has introduced recycled plastic bottles for its Snapple and Core RTD matcha tea brands.

Nestlé S.A. is a Swiss multinational food and beverage industry firm based in Vevey, Vaud, Switzerland. Since 2014, it has become the world's largest publicly traded food firm in terms of revenue and other measures. It was placed No. 64 on the Fortune 500 in 2017 and No. 33 on the Forbes 2000 list of the world's largest public corporations in 2016. Nestlé's products include baby food (some of which contain oligosaccharides derived from human milk), medical food, bottled water, breakfast cereals, coffee and tea, confectionery, dairy products, ice cream, frozen food, pet meals, and snacks.

Nestlé's brands with annual sales of over 1 billion CHF (about US$1.1 billion) include Nespresso, Nescafé, Kit Kat, Smarties, Nesquik, Stouffer's, Vittel, and Maggi. In February 2019, In Europe, Nestlé introduced KitKat Green Tea Matcha. The product is created by combining UTZ certified cocoa beans with matcha tea from China and Japan.