Matcha Tea Market Size, Share & Trends Analysis Report By Product (Powder, RTD Beverage, Instant Premixes), By Grade (Classic, Ceremonial, Culinary), By Region, And Segment Forecasts, 2019 - 2025

Report Overview

The global matcha tea market size to be valued at USD 2.26 billion by 2025 and is expected to grow at a compound annual growth rate (CAGR) of 4.7% during the forecast period. Rising awareness regarding the health and fitness of the product coupled with the popularity of healthy beverages rich with antioxidants and vitamins is projected to boost the growth. Furthermore, rising demand for nutrient-rich, organic, and natural products is projected to fuel the demand. Matcha is a high-grade green tea obtained from tencha leaves that are grounded into a fine powder. It is a staple ingredient in Japanese traditional tea ceremonies and has been witnessing a surge in popularity owing to its health benefits and distinct flavor. Rising application in several savory and sweet recipes including cocktails, lattes, macarons, cakes, doughnuts, and salad dressings is projected to fuel the market growth. The product has also been gaining popularity in the beauty sector owing to its high antioxidant content.

The raging popularity of matcha tea owing to its various health benefits is anticipated to drive the global market. The product enhances concentration, focus, calmness along with boosting metabolism, immune system, gastrointestinal functioning, natural detoxification, and cancer cell inhibition. It is also consumed as a pre-workout supplement for an energy boost. Rising focus on wellness, self-care, mental peace, and yoga among other aspects of healthy living are projected to fuel the product demand in the forthcoming years.

Constant product innovations and the introduction of new blends and mixes are anticipated to bode well for the growth of the matcha tea market. For instance, in February 2019, Nestlé launched KitKat Green Tea Matcha in Europe. The product is produced in combination with UTZ certified cocoa beans with the green tea acquired from China and Japan. In October 2017, Unilever’s Pure Leaf brand launched two new flavors, namely, Pure Matcha and Ginger Matcha. In January 2019, A. Loacker Spa/AG launched matcha green tea wafers called Tortina Triple Dark.

Matcha Tea Market Trends

The increase in consumer preference for adopting a healthy lifestyle and the health benefits related to matcha tea is contributing to the product demand. Moreover, matcha tea offers health benefits such as weight loss, lowering cholesterol levels, relieves body pain and headache, and reduces the risk of heart attack and stroke which is further anticipated to propel the market growth.

One of the primary factor driving the growth of the market is the rise in demand for organic foods, and beverages around the world. It is also used in a variety of meals such as oatmeal, latte popsicles, desserts, granola, bars, smoothies, and salad dressings all of which contribute to the market's growth.

The rising health awareness, demand for clean label, changing lifestyles, increased urbanization, and the growth in the number of health-related problems benefit the matcha tea industry. In addition, with the changing trend, matcha tea is used in the manufacturing of bakery products, chocolates, coffee, snacks, ice creams, and a variety of other things, providing potential opportunities for the global market.

However, the high cost of labor in the matcha tea sector is restraining the market as the market is highly which is a labor-intensive. Furthermore, the factor limiting the markets growth include the occurrence of stringent regulations in the food and beverage industry in the forecast period.

Product Insights

Powder matcha tea held the largest market share of more than 51.8% in 2018. The rising popularity of the product owing to its health benefits is anticipated to drive the segment growth. The anti-oxidant composition of powdered tea helps prevent the occurrence of chronic disease and protection against harmful UV radiation. The presence of Epigallocatechin Gallate (EGCG) in the product can potentially prevent the brain, bladder, cervix, and prostate cancer. The product is considered as a superfood owing to the presence of abundant nutritional properties. The introduction of innovative food and beverage using the product is anticipated to bode well for the demand. For instance, in February 2018, Aktienbrauerei Kaufbeuren (ABK Beer) launched Matcha Green Lager Beer Mix.

Instant Premixes is anticipated to register the fastest CAGR of 5.1% from 2018 to 2025. These premixes are used for preparing lattes, ice drinks, ice creams, milkshakes, smoothies, and alcoholic beverages such as liqueurs and beers. In September 2016, PANATEA, LLC. launched on-the-go packets of Instant Matcha Original Blend that instantly dissolve in hot and cold water. In November 2017, the company launched a new product Glow, which is a single-serve instant packet for a matcha latte. The product is fortified with biotin and is available in vanilla latte flavor made with oat-milk powder that forms a super creamy latte.

Grade Insights

Classic grade held the largest market share of more than 56.9% in 2018. Rising consumption by regular tea drinkers and new users on account of its subtle fresh flavor is anticipated to drive the segment growth. The classic grade is costlier than the culinary grade but is cheaper than the ceremonial grade. The classic grade is easily blended into a wide range of food and beverages, which in turn is projected to fuel the segment growth. The complex yet the astringent flavor of the product makes it suitable for smoothies and other milk-based beverages. This factor is projected to further fuel the demand for classic grade products.

Culinary grade is projected to expand at the fastest CAGR of 5.3% from 2019 to 2025 owing to the increasing adoption of this grade for food and beverage recipes. Culinary grade matcha tea has a smooth texture and high nutritional content, driving its application in desserts, smoothies, lattes, green tea-based baked goods, and other food products. Furthermore, factors such as economic price, premium taste, and unique flavor are anticipated to further fuel the segment growth. The grade is robust compared to ceremonial grade and is less sweet with higher bitter notes.

Regional Insights

The Asia Pacific held the largest market share of 48.1% in 2018. High consumption in countries such as Japan and China is anticipated to drive the growth. Major tea producers are located in the Asia Pacific and drinking tea is a part of the ancient tradition in Japan and China. Countries such as India, Singapore, and Australia are expected to witness significant growth on account of rising population and health consciousness.

North America is expected to expand at the fastest CAGR of 5.3% over the forecast period on account of increasing health consciousness and the availability of a wide variety of products. Increasing penetration of the product through Japanese and Chinese grocery chains is anticipated to further fuel the growth. The rising popularity and easy availability of the products in restaurants and cafes across prominent cities such as Los Angeles, Miami, and New York are anticipated to fuel the regional market.

Key Companies & Market Share Insights

Key manufacturers 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. Leading companies focus on product innovation and development to gain a greater market share.

For instance, in March 2019, Matcha Works introduced Sparkling Matcha, a natural matcha tea-based energy drink. The product is available in different flavors such as Lemon and Lime, Watermelon, and Straight Up. Moreover, in June 2017, ITO EN, LTD., a premium green tea company, launched new flavors of premium Matcha LOVE Tea Bags, available in two new flavors, namely, lemon verbena with peppermint and apple with ginger infusing fruity flavors.

Recent Developments

• In Feb 2022, Nestlé Health Science bought some stakes from Orgain. With this collaboration, the emergence of nutrition products from Nestlé Health Science would complement the company's existing line of products

• In January 2022, The Matcha Infused Tea Line by Aiya America is the company's newest line. Organic Matcha Infused Sencha, Organic Matcha Infused Gyokuro, and Organic Matcha Infused Genmaicha are three superior Japanese green teas in the collection that provide consumers with a unique and delightful tea taste experience.

• In November 2021, Tata Consumer Products Limited stated that it has signed agreements to purchase 100% of Tata SmartFoodz Limited's equity interests from Tata Industries Limited for INR 395 crore. This move is in line with TCPL's long-term strategy of expanding into value-added areas.

Matcha Tea Market Report Scope

Global Matcha Tea Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2015 to 2025. For this study, Grand View Research has segmented the global matcha tea market report based on the product, grade, and region.

• Product Outlook (Revenue, USD Million, 2015 - 2025)

  • Powder

  • RTD Beverage

  • Instant Premixes

• Grade Outlook (Revenue, USD Million, 2015 - 2025)

  • Classic

  • Ceremonial

  • Culinary

• Regional Outlook (Revenue, USD Million, 2015 - 2025)

  • North America

    • The U.S.

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa (MEA)

    • South Africa