Global Matcha Market - 2025-2032

The global matcha market reached US$ 3,650.0 million in 2024 and is expected to reach US$ 7,835.5 million by 2032, growing at a CAGR of 10.02% during the forecast period 2025-2032.

The global matcha market is witnessing strong growth due to rising health awareness and the demand for functional, natural beverages. Matcha's unique umami flavor, high antioxidant levels and energizing properties have driven its inclusion in lattes, smoothies, desserts and alcoholic drinks. Its popularity continues to expand as consumers seek healthier, plant-based alternatives across food and beverage categories. Matcha is valued for its health benefits, including high levels of catechins and polyphenols, which help combat inflammation and oxidative stress.

Manufacturers are responding by launching new matcha-based products that cater to clean-label and sugar-free preferences. For example, in May 2024, Aiya Matcha introduced its Sugar Free Sweetened Matcha to Go, a convenient, stevia-sweetened alternative to its original blend, catering to health-conscious consumers. The product offers an easy-to-mix format ideal for lattes, smoothies and blended drinks-hot or cold-without the need for sifting or whisking, supporting on-the-go wellness trends.

Matcha Market Trend

The functional beverages market is witnessing significant growth as health-conscious consumers seek products that deliver more than basic hydration. The beverages offer added benefits such as sustained energy, immunity support and stress relief, often leveraging natural ingredients like antioxidants, adaptogens and plant-based compounds. This demand is being driven by busy lifestyles, a shift toward preventive health and growing interest in clean-label, low-sugar alternatives.

For example, in March 2023, PerfectTed is leveraging the growing demand for functional beverages with its matcha-based energy drinks, now available at Tesco in Meal Deals and multipacks. Made with ceremonial-grade matcha, sparkling water and real fruit juice, each drink offers 80mg of natural caffeine and L-theanine for sustained, balanced energy. Award-winning flavors like Apple Raspberry cater to health-conscious consumers seeking clean, functional and flavorful alternatives to traditional energy drinks.

Dynamics

Rising Health and Wellness Consciousness

The growing global focus on health and wellness is significantly accelerating demand in the matcha market. Consumers are increasingly seeking products that support mental clarity, sustained energy and overall well-being, leading to a strong preference for natural, functional ingredients. Matcha, known for its rich antioxidant profile, natural caffeine and L-theanine content, aligns well with these expectations. As a result, it is being embraced not only as a traditional tea but also as a versatile superfood ingredient in modern health-focused diets.

This trend has spurred innovation across the food and beverage industry, with manufacturers incorporating matcha into lattes, smoothies, energy drinks and functional snacks. Its ability to deliver both energizing and calming effects positions it as a unique alternative to conventional caffeinated products. The demand is further reinforced by clean-label and organic consumption trends, making matcha a strategic ingredient in the development of premium wellness-oriented offerings worldwide.

High Price of Premium-Grade Matcha

Ceremonial and organic matcha, which are sourced from specific regions like Uji, Japan, require labor-intensive cultivation and meticulous processing, resulting in significantly higher prices compared to conventional teas. This cost barrier limits accessibility for price-sensitive consumers and restricts adoption in price-competitive markets.

Moreover, the premium pricing of high-quality matcha poses challenges for manufacturers and retailers aiming to offer affordable functional beverage options. While demand for clean-label and natural products continues to rise, the cost of sourcing authentic, high-grade matcha can impact profit margins and hinder widespread product expansion, particularly in emerging economies.

Segment Analysis

The global matcha market is segmented based on grade, form, application and region.

Growing Market Demand for Premium Ceremonial-Grade Matcha

Ceremonial-grade matcha leads the grade segment in the global matcha market due to its superior quality, vibrant color and rich umami flavor. Sourced from the youngest, shade-grown leaves during the first harvest, this grade offers higher concentrations of antioxidants, L-theanine and caffeine-appealing to health-focused consumers seeking clean energy and cognitive support.

For example, in March 2023, Cymbiotika launched organic, ceremonial-grade matcha. Made from first-harvest leaves grown on family-run farms in Uji and Kagoshima, Japan, the product delivers a refined flavor and premium nutritional profile. Marketed as a clean energy alternative to coffee, it reinforces the growing demand for high-quality, functional wellness products.

Geographical Penetration

Asia-Pacific Emerges as the Leading Region in Global Matcha Demand

Asia-Pacific dominates the global matcha market, driven by strong cultural roots, high consumption levels and established production hubs, particularly in Japan. Regions like Uji and Kagoshima are renowned for producing premium ceremonial-grade matcha, which continues to influence global quality standards and demand. The region's leadership is further reinforced by rising health awareness, expanding applications in food and beverages and growing consumer preference for natural, antioxidant-rich products.

Emerging markets such as China and South Korea are also witnessing increased adoption, solidifying Asia-Pacific's position as the primary growth engine for the matcha market. For example, in March 2023, Kataoka & Co., Ltd. launched Matcha Direct, a ground-to-order e-commerce service. By shipping freshly milled matcha directly from its Kyoto factory within three business days, the company ensures product freshness while expanding its international reach. It highlights Japan's role as a premium matcha supplier and strengthens the region's dominance in high-quality matcha exports.

Sustainability Analysis

The matcha market is growing rapidly as sustainability becomes a key priority for consumers and businesses. Environmental sustainability plays a major role, with natural farming methods minimizing pesticide use, though challenges like water consumption and logistics emissions remain. Social sustainability is also gaining importance, with ethical sourcing and fair trade certifications driving consumer demand. Economically, matcha's premium value promotes innovation, but issues such as price volatility and monoculture farming present barriers to sustainable growth.

To address these challenges, Elitez Group and The Matcha Initiative (TMI) have launched the Sustainability Masterclass Series, designed to equip businesses and individuals with essential sustainability knowledge. The program focuses on key areas such as carbon management, circular economy and climate risk mitigation. By participating organizations can align with sustainability regulations, reduce operational costs and drive innovation, positioning themselves as leaders in the evolving sustainability landscape.

Competitive Landscape

The major global players in the market include Aiya Co., Ltd., Mizuba Tea Co., Keicha Tea World, The AOI Tea Company, ITO EN, LTD., Jade Monk, Midori Spring, DoMatcha, IPPODO TEA and Encha.

Key Developments

• In February 2025, PerfectTed launched Strawberry and Vanilla Matcha Lattes, expanding its RTD range across Tesco, Waitrose, Holland & Barrett, Amazon and DTC from April. Made with ceremonial-grade matcha from Uji, Japan, the oat milk-based drinks offer 60mg of slow-release caffeine and are naturally sweetened with agave, with no refined sugar or artificial sweeteners.
• In October 2024, ITO EN introduced new Matcha Banana Latte and Matcha Cacao Latte flavors under its matcha LOVE range in convenient SIG SmileSmall cartons. Designed for on-the-go consumption, these barista-style beverages blend traditional matcha with trending flavors, catering to growing global demand for healthy, functional drinks and enhancing matcha's appeal beyond Japan.
• In May 2024, Aiya Matcha introduced its Sugar Free Sweetened Matcha to Go, a convenient, stevia-sweetened alternative to its original blend, catering to health-conscious consumers. Made with premium culinary-grade matcha and free from sugar and artificial additives, the product offers an easy-to-mix format ideal for lattes, smoothies and blended drinks-hot or cold-without the need for sifting or whisking, supporting on-the-go wellness trends.

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Target Audience 2024

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