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Matcha - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2018 - 2029

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  • 145 Pages
  • February 2024
  • Region: Global
  • Mordor Intelligence
  • ID: 4622262
The Matcha Market size is estimated at USD 4.25 billion in 2024, and is expected to reach USD 6.68 billion by 2029, growing at a CAGR of 9.46% during the forecast period (2024-2029).

The rising chronic diseases have increased the demand for healthy and nutritious food and beverage products. The antioxidant properties and vitamin composition of matcha have fuelled the matcha demand worldwide. Additionally, the rising number of health-conscious consumers and consumer awareness about the health benefits of matcha ingredients are expected to fuel the market growth during the forecast period. Other functional properties and increased application of matcha are also likely to support the market's growth. Matcha is high in antioxidants and catechins, which help protect the liver, boost brain function, promote heart health, and support weight loss goals.

Furthermore, matcha has a lot of positive effects on the skin, due to which many manufacturers of natural skincare products are incorporating matcha as an ingredient in their products. Matcha tea is increasingly used in skin care products, including lotions, cleansers, and balms, as consumer demand for natural and organic skincare products is rising. All these factors are expected to boost the market's growth during the forecast period gradually.

However, factors like increased cost and availability of matcha in only very few parts of the globe are expected to hamper the market growth. Due to the product's superior production method, it costs much more than its substitutes. The product's high price is a result of meticulous grinding and processing, premium extraction methods, and strict cultivation under controlled conditions. The product is made from Camellia sinensis tencha leaves grown in the shade. Due to Japan's unique soil and environmental conditions, only tea plants are grown there. The main tencha cultivators in Japan are Uji in the Kyoto region and Nishio in the Aichi region.

Matcha Market Trends

Increasing Popularity of Matcha Tea

Matcha's popularity has increased recently owing to its remarkable health advantages and delicious flavor. Matcha green tea is Matcha'strendy due to its excellent nutritional benefits, which include a balanced amount of the amino acid L-Theanine. In reality, the plant's inherent qualities help people relax and concentrate for extended periods. Matcha has a distinctive flavor that makes it enjoyable and straightforward to add to desserts or other drinks. For instance, matcha can flavor desserts like cakes, bread, cookies, ice cream, and popsicles and alcoholic beverages like smoothies and cocktails.

Furthermore, many large cafe chains in the United States are expanding their businesses and offerings. They have put green tea lattes using matcha on their menus, and the ingredient is increasingly popular in desserts. For instance, in August 2021, the Cha Cha Matcha chain opened its seventh hub in the Los Angeles neighborhood of Century City, which joins two other stores in Los Angeles and four in New York. It also claimed that it aims to add at least five more stores across both metros by the end of the fourth quarter of 2022. Over the last 25 years, matcha sales in the United States have increased fivefold to more than USD 10 billion. This depicts the increasing popularity of matcha tea across different regions of the world.

Moreover, owing to the increasing popularity, the exports and imports of matcha have increased over the past few years. Amongst the various kinds of Japanese tea, matcha has a unique position, due to which Japan's export of green tea has significantly increased. The significant importers of matcha from Japan are China, Sri Lanka, India, and the United States. The increasing demand for matcha powdered green tea in the United States drove Japan's exports of green tea in 2021. For instance, according to UN Comtrade, the United States was the leading importer of green tea, in packaging not exceeding three kilograms, worldwide in 2021, importing just under 110 million USD worth. China, Hong Kong SAR ranked second with an import value of around 80 million USD. Hence such developments in the market are expected to boost other matcha tea's popularity, which eventually aids in raising its sales.

Asia-Pacific has the Largest Market Revenue

India is one of the leading markets for matcha in the Asia-Pacific region owing to the importance and awareness about the benefits of natural products for a very long time. As matcha complements both sweet and savory dishes, it has become a common ingredient used in ice creams, tea cakes, crêpes, and even macaroons in India. The restaurants in India are confident that Indian plates are ready for advanced matcha delicacies. Some of them are, steamed and fried mantou bun with a matcha cream cheese and desserts, such as cakes, éclairs, mille-feuilles, milkshakes, and smoothies. The younger audiences are indulging in wellness that came due to the pandemic.

Furthermore, green tea has gained the attraction of Indian consumers over the past few years, mainly due to its health benefits which are expected to ultimately propel the demand for matcha in the country. Owing to this, brands are now focussing on expansion and launches of products with holistic wellness which covers an active lifestyle for which such tea blends are gaining popularity. For instance, in March 2022, EIJ Consulting Pvt. Ltd., announced that it is bringing Shizuru's ocha green tea to India in three distinct flavors including Sencha, Genmaicha, and Gyokuro. Additionally, it also stated that EIJ Consulting Pvt. Ltd. will sell Shizuru's "Ocha" in India in collaboration with importer Mittal Teas, as well as introduce Indians to the rich tea culture of Japan and introduce them to the green tea's savory flavors and an array of health advantages.

Matcha is also slowly gaining popularity in China as there are many matcha from China that has a green color similar to culinary-grade Japanese Matcha too. But the flavor profile is significantly different. The majority of China's matcha powder comes from Chinese tea, not Japanese green tea. However, matcha is expected to immensely grow its popularity in the Asia-Pacific region owing to its health benefits and consumers' interest.

Matcha Industry Overview

The matcha market is a developing market with new players emerging with innovative strategies. Matcha Maiden, AIYA America Inc., Ippodo Tea Co., and Ito En Ltd are some companies leading the product innovation in the matcha market in terms of packaging, particularly teabags. The companies that produce matcha, such as Midori Spring Ltd and Encha Life LLC, are increasingly procuring the production techniques, securing technical assistance from Japanese farmers for the improved production of matcha, and even extracting matcha leaves from Japan. Some of the top brands in the market are Matcha Maiden, Mizuba Tea, Kissa tea, AOI Tea, and Ippodo Tea Co. Few other emerging players include Encha Matcha, MatchaDNA, Midori Spring Ceremonial Emerald, Epic Matcha, Enzo's Private Selection, Kiss Me Organics, Zen Spirit, Matcha Konomi, Kenko Tea, and Jade Leaf Matcha, among others.

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Table of Contents

1.1 Study Assumptions and Market Defination
1.2 Scope of the Study
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products and Services
4.3.5 Degree of Competition
5.1 Product Type
5.1.1 Regular
5.1.2 Flavored
5.2 Form
5.2.1 Powder
5.2.2 Liquid
5.3 Distribution Channel
5.3.1 Hypermarket/Supermarket
5.3.2 Speciality Retail Stores
5.3.3 Online Retail Stores
5.3.4 Others
5.4 Geography
5.4.1 North America United States Canada Mexico Rest of North America
5.4.2 Europe United Kingdom Germany Spain France Italy Russia Rest of Europe
5.4.3 Asia-Pacific China Japan India Australia Rest of Asia-Pacific
5.4.4 South America Brazil Argentina Rest of South America
5.4.5 Middle East & Africa Saudi Arabia South Africa Rest of Middle East & Africa
6 Competitive Landscape
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Matcha Maiden
6.3.2 Mizuba Tea
6.3.3 Kissa Tea
6.3.4 AOI Tea
6.3.5 AIYA America Inc.
6.3.6 Midori Spring
6.3.7 Ippodo Tea
6.3.8 Matcha DNA
6.3.9 Kiss Me Organics
6.3.10 DoMatcha

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Matcha Maiden
  • Mizuba Tea
  • Kissa Tea
  • AOI Tea
  • AIYA America Inc.
  • Midori Spring
  • Ippodo Tea
  • Matcha DNA
  • Kiss Me Organics
  • DoMatcha