Matcha Tea Market Share

Global Matcha Tea Market Overview

Matcha Tea Market Size was valued at USD 3.4 billion in 2023. The matcha tea industry is projected to grow from USD 3.66 Billion in 2024 to USD 6.3 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.00% during the forecast period (2024 - 2032). Increasing consumer awareness and matcha tea import and export are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Matcha Tea Market Trends

• 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.

Segment Insights

Matcha Tea Application Insights

The matcha tea market segmentation, based on application includes regular tea, food, cosmetics, matcha beverages, personal market. In 2022, the regular tea category is predicted to have the largest market share. Matcha tea use is expanding among consumers. Growing consumer health awareness around the world is likely to drive matcha market growth during the forecast period.

Matcha Tea Form Insights

The matcha tea market segmentation, based on form, includes ready-to-drink, instant premixes, powder form. Over the forecast period, the powder form category is expected to account for a significant revenue share. According to multiple studies, various teas have the ability to enhance the immune system, reduce inflammation, and even prevent cancer and heart disease. There is abundant evidence that drinking tea on a daily basis can improve one's health, while some varieties have more health benefits than others. The powdered form of tea is one of the most traditional types of tea, and it provides a variety of health benefits, leading in revenue growth for this category.

Matcha Tea Type Insights

The matcha tea market segmentation, based on type, includes traditional, sweetened, unsweetened. The sweetened category held a significant market share. Sweetened matcha is another simple approach to improve its taste. Non-flavored sweeteners like sugar and agave syrup will preserve matcha's natural flavour, whereas sweets like honey and chocolate will disguise it well. Drinking matcha has numerous health benefits, but going overboard with sweets can sometimes have the opposite impact. If at all feasible, use a natural sweetener or one with as little sugar as possible.

Matcha Tea Formulation Insights

The matcha tea market segmentation, based on formulation, includes plain, flavoured. Flavoured category has the largest market share in 2022. This is primarily due to the wide variety of flavoured teas on the market, which is driving demand based on consumer preferences and taste. Lemon, aloe Vera, cinnamon, wild berry, jasmine, basil, and more flavours are created in response to market demand. Furthermore, this market is expected to grow at the quickest rate of 6.2% between 2022 and 2032, as the combination of health and flavour entices buyers to acquire the product in order to experience both the taste and the benefits.

Figure1: Matcha Tea Market, by Formulation, 2022&2032 (USD billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Matcha Tea Distribution Channel Insights

The matcha tea market segmentation, based on distribution channel, includes store-based distribution channels, non-store-based distribution channels. The market was dominated by store-based distribution channels. Store-based distribution channels are further classified as specialized stores and hypermarkets/supermarkets. Supermarkets/Hypermarkets are expected to create a greater proportion of USD 1,735 million, with a GAGR of 6.4%. Hypermarkets and supermarkets are becoming more popular as a result of their large assortment of consumer goods under one roof, ample parking space, and convenient business hours.

Matcha Tea Regional Insights

By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. Asia Pacific dominated the matcha tea market with a substantial share of 42.4% in 2022 as a consequence of expanded vast potential in production from nations such as Hong Kong, Taiwan, Japan, India, and China, and thus there is growing demand for matcha tea in Asia Pacific.

Further, the major countries studiedin the market reportare The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure2: MATCHA TEA MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe’s matcha tea market accounts for the second-largest market share due to rising demand for fortified, nutrient-dense beverages. Further, the German matcha tea held the largest market share, and the UK matcha tea industry was the fastest-growing market in the European region.

The North America Matcha Tea Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the increased prevalence of diabetes and obesity prompting consumers to focus more on healthy living, which is driving up demand for organic and healthy ingredients. Moreover, China’s matcha tea held the largest market share, and the Indian matcha tea industry was the fastest-growing market in the North American region.

Matcha Tea Key Market Players& Competitive Insights

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.

Key Companies in the matcha tea market include

• Nestle SA (Switzerland)


• Tata Beverages Ltd. (India)


• The Unilever Group (U.K.)


• AOl Tea Company (U.S.)


• Aiya Co. Ltd. (Japan)


• ITO EN LTD (Japan)


• Marukyu Koyamaen Co. Ltd. (Japan)

Matcha Tea Industry Developments