Market Overview
The global matcha tea market size was valued at USD 3.95 billion in 2023. It is expected to reach USD 7.33 billion in 2032, growing at a CAGR of 7.12% over the forecast period (2024-32). Matcha tea is rich in antioxidants, particularly catechins like EGCG, and is known for its potential health benefits, such as boosting metabolism, improving heart health, and aiding in weight loss. This health-conscious consumer trend has significantly driven the demand for matcha tea products.
Matcha tea is a form of green tea produced by harvesting young tea leaves and crushing them into a bright green powder. On the market, powdered and liquid forms are available. It has a mild and delicate flavor. Matcha is derived from the Camellia sinensis plant, like green tea. However, it is cultivated uniquely and has a distinct nutrient profile. Matcha contains the minerals from the entire tea leaf, resulting in a higher concentration of caffeine and antioxidants than regular green tea. Catechins, exclusive to matcha tea, are a solid antioxidant class not found in other foods. Catechins help lower excessive blood pressure, increasing the risk of heart disease, heart attack, and stroke, among other complications.
In addition, these matcha teas are easily accessible through various distribution channels, including online stores, supermarkets/hypermarkets, specialty stores, and others. The global matcha tea market's value sales are anticipated to increase due to the expansion of online retailers during the forecast period. Growth in the population of health-conscious consumers across the globe drives market expansion. In addition, new product developments made by manufacturers promote the growth of the matcha tea industry. However, the high price of matcha tea is anticipated to hinder global matcha market expansion. However, during the projection year, an increase in consumer awareness of organic products and the growing penetration of online retail platforms are expected to present enormous potential opportunities.
Market Dynamics
Market Drivers
Growing Health-Conscious Population and Product Innovation to Drive Market
In recent years, several nations have acknowledged lifestyle-related diseases as a significant concern, which has led to a surge in consumer health consciousness. In addition, a rise in consumer awareness of the health advantages of matcha tea promotes its global demand. Matcha tea promotes metabolism, detoxifies the body, boosts vitamin C, magnesium, and zinc levels, and reduces cholesterol and blood sugar. In addition, the rise in the elderly population, the growth in life expectancy, and the alarming rise in the frequency of chronic diseases have altered the dietary habits of consumers. Today's consumers seek beverages that can directly offer them essential nutrients and improve their physical and mental health. Thus, these factors combined increase the demand for matcha tea and contribute to the global matcha tea market expansion.
In addition, as a growth driver, players in the match tea business are offering new matcha-based goods to the market and focusing on the continuous innovation of their products. Ikeda Tea World, a maker of matcha tea, introduced a variety of flavored, ready-to-drink matcha tea that attracted the consumers' attention and is popular on the market. Thus, such advancements will boost the global matcha tea market's expansion.
Market Restraints
Threat of Substitution to Restrict Market Growth
There are already various alternatives to match tea on the market, including white tea, oolong tea, and herbal tea. These market-available alternatives provide similar benefits to matcha tea and are most apparently available at competitive pricing. Therefore, consumers can easily transition to these available alternatives. Consequently, such stated facts pose a potential threat of substitution to the industry, which is anticipated to impede global matcha market expansion.
Market Opportunities
Growth in Demand from Cosmetic, Culinary, and Food Industry to Spur Market Opportunities
During the forecast period, the raised demand for matcha tea from the cosmetics and food industries is anticipated to present enormous opportunities for the global match tea market. This results from the anti-inflammatory and anti-aging effects that matcha tea possesses. Thus, cosmetic makers increasingly use matcha powder in products such as face masks, creams, and toners. In addition, food sector firms are introducing new and unique food products, including matcha, such as matcha-flavored wafer sticks, matcha fresh chocolate ice cream, and matcha salted caramel jam. Consequently, it is anticipated that the cosmetic, culinary, and food businesses will be able to capitalize on matcha's benefits.
Regional Analysis
The regional segmentation includes North America, Europe, Asia-Pacific, and LAMEA.
What is the Performance of Matcha Tea Market in Different Geographical Regions?
North America is likely to hold a market share of USD 1,496 million with a CAGR of 7.8%. An increase in the number of health-conscious customers in North America, particularly in the United States, is anticipated to propel the expansion of the matcha tea market in terms of revenue. In addition, an increase in consumer preference for organic matcha tea is anticipated to present enormous prospects for the global market throughout the forecast period. The hectic lifestyles of consumers in the region have led to a preference for convenience and ready-to-eat products, such as matcha tea that can be drunk immediately after purchase. This fact contributes significantly to the expansion of the global matcha tea market in terms of value sales.
Asia-Pacific will grow with a CAGR of 7.1% and command the largest share of USD 2,755 million. This is attributable to the increased consumption of healthy beverages, such as matcha tea, in China, Japan, Vietnam, and Indonesia. China accounted for around 33% of worldwide matcha tea consumption in 2019 and is anticipated to experience a rise in demand for matcha tea during the projected period. In addition, Asia-Pacific is predicted to experience robust growth due to an increase in the number of working individuals ready to spend on ready-to-eat products and health beverages. This is projected to present enormous development opportunities for the global market. In addition, urbanization and a rise in disposable income are boosting sales of slimming tea and wellness beverages such as matcha tea, which is anticipated to provide a tremendous opportunity for global matcha tea market growth throughout the projection.
Segmental Analysis
The global matcha tea market is categorized into several segments: product type, form, nature, distribution channel, and region.
On the Basis of Product Type
Based on product type, the segmentation includes regular and flavored.
Regular matcha tea is expected to hold the largest market share during the forecast period with USD 2,908 million and a CAGR of 6.9%. Without any flavoring or additives, regular or pure matcha tea is utilized as a regular drinking tea or as an ingredient in the food service, culinary, and cosmetic industries. Due to the health benefits, increasing everyday intake of wellness teas like matcha tea is a significant element boosting the demand for regular matcha tea. In addition, the increase in demand for regular matcha tea from the food, cosmetics, and culinary sectors to use it as a nutritious ingredient in their products such as face cream, sweets, beverages, and cookies is projected to present a tremendous opportunity for the expansion of the global matcha tea market.
Flavored matcha tea is anticipated to grow at a higher CAGR of 8% and reach USD 2,741 million during the forecast period. Flavored matcha tea combines regular matcha tea with fruit, herb, spice, cinnamon, and chocolate flavors. Compared to regular matcha tea, flavored matcha tea provides additional health advantages from spices, herbs, and fruits and a distinct flavor. In turn, this is expanding its popularity among consumers worldwide. In addition, market-leading manufacturers are regularly releasing new match tea flavors and ready-to-drink matcha tea mixed with various flavors, which is anticipated to fuel the expansion of the global matcha tea market throughout the forecast period.
On the Basis of Form
Based on form, the segmentation includes powder and liquid.
The powder form is likely to have the largest market share of USD 2,940 million with a CAGR of 7%. Matcha tea powder dissolves easily in milk or water and is used to flavor pastries, smoothies, and beverages. This has raised its appeal among consumers, which adds further to the expansion of the market. The popularisation of powdered matcha tea due to its numerous health advantages is the primary factor driving the expansion of the powder segment. For example, the antioxidant component of powdered matcha tea aids in the prevention of chronic diseases and protects against UV radiation. In addition, matcha tea powder is considered a superfood because of its robust nutritional profile, increasing global demand.
The liquid form is estimated to advance with a higher CAGR of 7.8% during the forecast period. Matcha liquid or ready-to-drink is sold in a prepared state and is ready for drinking. In contrast to matcha tea powder and brew-it-yourself, ready-to-drink matcha tea is sold in bottles and can be drunk immediately following purchase. The demand for ready-to-drink matcha tea is rising fast in the beverage industry since it is available in various tastes, may be consumed chilled, and can be sweetened or unsweetened. Additionally, ready-to-drink matcha tea and other matcha on-the-go beverages are perfect alternatives to conventional matcha tea powder because they require no preparation and may be drunk immediately following purchase.
On the Basis of Nature
The global market is segmented as conventional and organic based on nature.
The conventional form segment is estimated to project a CAGR of 7.1% and a share of USD 4,518 million by 2030. Chemicals, herbicides, and fertilizers are used to grow conventional matcha tea. Due to its widespread availability in supermarkets, specialty stores, and convenience stores, the conventional matcha tea segment accounts for a more significant value portion of the market. In addition, this segment's product catalog is more extensive than the organic segment, which significantly helps market expansion.
The organic form is estimated to show a higher growth rate of CAGR of 9% and reach USD 1,147 million by 2030. The organic label on matcha tea implies that the product was made with organically farmed ingredients. In the past couple of years, there has been an increase in demand for organic matcha tea, which can be attributed to increased knowledge of the health advantages connected with its use and its use as an ingredient in industries including food & beverage, cosmetics, and gastronomy. In addition, numerous market-active enterprises specialize in producing organic matcha tea. In addition, growth in health concerns due to a hectic lifestyle and a rise in consumer knowledge of the health benefits associated with organic food and cosmetics boost the usage of organic matcha tea.
On the Basis of Distribution Channel
The segmentation includes supermarkets/hypermarkets, online stores, specialty stores, food services, and others based on the distribution channel.
Supermarkets/Hypermarkets are estimated to generate a larger share of USD 1,735 million with a CAGR of 6.4%. Hypermarkets and supermarkets are rising in popularity due to a wide selection of consumer items under one roof, abundant parking space, and convenient business hours. In addition, urbanization, working-class population growth, and competitive pricing are increasing supermarkets and hypermarkets' popularity in both developed and emerging nations. In addition, these stores carry several brands within a specific product category, which includes matcha tea, thereby providing customers with more flavor-specific purchasing alternatives.
Online stores are expected to show a higher CAGR of 10% and reach USD 981 million. Customers increasingly turn to online platforms to acquire wellness beverages, slimming tea, and functional meals. This is due to the easy availability of matcha tea and its benefits, including information about the product's health benefits and usage instructions, a time-saving feature, and the option for home delivery to clients. In addition, the online distribution channel has expanded the consumer base, which has led to its emergence as a crucial revenue source for many businesses. In addition, the market for online sales is anticipated to expand due to the rapid growth of online businesses and the rise in mobile users in emerging nations.
