Market Overview:


The global matcha tea market size was USD 1.98 billion in 2020, which is expected to expand at a CAGR of 5% during the forecast period. Major factors driving market revenue growth include increasing awareness about the health benefits of matcha tea and the unique flavor that matcha tea can add to various foods. Matcha tea is high in antioxidants and vitamins, and demand is expected to increase owing to rising awareness regarding the benefits among an expanding base of health-conscious consumers. Furthermore, matcha tea market growth is expected to be supported by increased demand for nutrient-dense, organic, and natural products.

Green tea leaves are ground into a fine powder called matcha. It has a deep, vegetal flavour and a vivid, emerald green colour. Matcha is made from tea bushes that have been shaded for a period of time before harvest, resulting in a dark green tea leaf with increased quantities of chlorophyll, caffeine, and l-theanine. Specialty Japanese green teas like Gyokuro and Kabusecha are made from these tea leaves. After the tea leaves have been collected, they are steamed to prevent oxidation. The leaves are stone-ground into a fine powder and packaged for sale thereafter. Matcha, or powdered green tea, was first produced in China during the Tang Dynasty, but is currently predominantly associated with Japan, where it has a long history and cultural significance.

Market Dynamics:
Driver: Rising health awareness and social factors

Globally, there has been an increase in health and wellness awareness, which has contributed significantly to rising demand for superfoods such as matcha tea. While health and wellness remain major motivators for driving demand for super foods, emphasis is shifting away from physical benefits and more toward mental health benefits. Matcha tea, for example, is gaining popularity because in addition to its physical benefits, it is a super food that has been understood to provide a calmer effect than coffee without jitteriness, spikes, and crashes otherwise associated with caffeine.

Matcha tea industry is expected to continue to grow as demand continues to increase at a robust rate among tea connoisseurs as well as health-conscious customers. Matcha tea's increased popularity is due in part to technological advancements. For example, Tea Drops, which is a producer of bag-less tea blends, closed a USD 5 million Series A investment round in 2021, led by BrandProject and including Siddhi Capital and other existing investors. Till now, Tea Drops has raised a total of USD 8.4 million. Matcha tea is one of Tea Drops' best-selling items, thanks to its pre-measured, pressed shape, which makes it simple to prepare and consume.

In the United States, sales of matcha-flavored beverages has risen by 202 percent, while in the United Kingdom, sales have grown by 114 percent. Matcha smoothies, cakes, ice creams, biscuits, and tea smoothies are steadily becoming increasingly popular in the United States. Matcha tea, powder, and latte are more widely consumed in the United Kingdom than matcha cake, ice cream, and coffee.

It is also used in a variety of beverages and sweets, including matcha lattes, matcha frappés, matcha waffles, green tea ice cream, cupcakes, cookies, and a variety of other treats. Highest demand, however, is for matcha tea and matcha lattes, since weight watchers and health-oriented customers are steadily reducing consumption of sugary treats.

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Some Key Highlights in the Report:

  • In 2020, powder matcha tea segment accounted for largest revenue share and revenue growth is expected to increase further due to rising popularity of tea, driven by potential health benefits.
  • In 2020, the classic grade segment accounted for largest revenue share in 2020, and growth is driven by rising consumption among habitual tea drinkers and new users due to the mild fresh flavor of these products.
  • In 2020, Asia Pacific accounted for largest revenue share. The robust revenue share is mainly driven by high consumption of matcha tea in countries such as Japan and China.
  • Availability of a broad variety of matcha tea products in the United States and Canada is a major factor driving growth of the North American matcha tea market.
  • Some major players in the global matcha tea market include The AOI Tea Company, aiya-THE TEA, Nestlé, Tata Global Beverages Ltd., Unilever, ITO EN, LTD., Marukyu-Koyamaen, Encha, Tenzo Tea, Inc., and Green Foods Corporation.

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Segments Covered in the Report:

For this study, Reports and Data has segmented the global matcha tea market report based on product, grade, and region:

Product Outlook (Revenue, USD Million, 2018 – 2028)

  • Powder
  • RTD Beverage
  • Instant Premixes

Grade Outlook (Revenue, USD Million, 2018 – 2028)

  • Classic
  • Ceremonial
  • Culinary

Regional Outlook (Revenue, USD Billion; 2018 – 2028)

  • North America
    • US
    • Canada
    • Mexico
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • South Africa
    • Rest of Middle East & Africa

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