Matcha Market Size, Share, Trends, Industry Analysis Report
By Grade (Ceremonial Grade, Classic Grade, Culinary Grade), By Application, By Distribution Channel, By Region – Market Forecast, 2025–2034
- Published Date:Sep-2025
- Pages: 126
- Format: PDF
- Report ID: PM6402
- Base Year: 2024
- Historical Data: 2020-2023
Overview
The global matcha market size was valued at USD 4.28 billion in 2024, growing at a CAGR of 7.8% from 2025 to 2034. Key factors driving demand include rising demand for natural ingredients and clean label products, growing health and wellness consciousness, growth of modern retail and e-commerce, increasing disposable income, and the trend of premiumization.
Key Insights
- The classic grade segment held a dominant revenue share of 57.1% in 2024, attributed to its balanced quality and adaptability for both traditional tea ceremonies and contemporary beverages.
- The food segment is projected to be the fastest-growing segment, driven by the increasing incorporation of matcha as a natural colorant and functional ingredient in various culinary applications like baked goods and desserts.
- The hypermarkets and supermarkets segment led the market in 2024, as their one-stop shopping model offers consumers extensive product variety, convenience, and immediate accessibility.
- The North American market is anticipated to experience rapid growth, fueled by rising consumer health consciousness and a well-established trend of integrating functional superfoods into daily diets.
- The U.S. captured a substantial market share in 2024, driven by high consumer demand for wellness-oriented products and the widespread popularity of functional beverages.
- Asia Pacific dominated the global market with a 57.76% share in 2024, primarily due to its profound historical and cultural connection to green tea consumption.
- The market in Japan is expected to grow rapidly, supported by its deep-rooted tea heritage and the successful innovation of traditional products for modern consumers.
Industry Dynamics
- The expansion of contemporary retail networks and digital commerce platforms significantly contributes to matcha market development by improving product availability and elevating brand exposure to broader demographic segments.
- Rising household purchasing power and consumer preferences for premiumization created favorable conditions for matcha market expansion.
- Supply chain fragility and climate change threaten matcha quality and consistent supply, creating price volatility and potential shortages.
- Growing global health consciousness creates massive potential for innovative matcha-infused products in functional foods, beverages, and supplements beyond traditional tea.
Market Statistics
- 2024 Market Size: USD 4.28 billion
- 2034 Projected Market Size: USD 9.03 billion
- CAGR (2025–2034): 7.8%
- Asia Pacific: Largest market in 2024
Matcha, a finely ground powder made from specially grown green tea leaves, has emerged as a premium beverage and functional ingredient across global markets. The rising demand for natural ingredients and clean-label products drives the growth of matcha. Consumers are increasingly prioritizing authenticity, transparency, and minimal processing in their food and beverage choices, and matcha aligns perfectly with these preferences. Its single-ingredient composition and natural origin make it an attractive alternative to synthetic additives and artificial flavorings. Moreover, food and beverage manufacturers are integrating matcha into a wide range of products, such as lattes, smoothies, desserts, and nutritional supplements, to meet the demand for cleaner, plant-based offerings. This shift reflects a broader consumer movement toward products that balance functionality with natural authenticity.
The growing health and wellness consciousness among consumers drives the expansion opportunities. Matcha is renowned for its rich nutritional profile, particularly its high antioxidant content, L-theanine, and natural caffeine, which contribute to improved focus, energy, and overall well-being. Consumers consider matcha as a healthy beverage as it is a functional superfood that supports immunity, stress reduction, and weight management. Thus, as consumers increasingly adopt healthier lifestyles, demand for matcha increases. A November 2024 report by the Global Wellness Institute stated that the global wellness economy reached USD 6.3 trillion in 2023, accounting for 6.03 percent of GDP. This rising awareness is fueling its acceptance in both traditional consumption formats and modern applications within the health foods sector. The perception of matcha as a wellness-oriented product continues to strengthen its positioning in the market, making it a favored choice for health-conscious individuals worldwide.
Drivers & Opportunities
Growth of Modern Retail and E-commerce: The growth of modern retail and e-commerce has become a major contributor to the matcha market as it enhances accessibility and visibility of premium tea products to a wider consumer base. According to a U.S. Census Bureau report, second quarter 2025 retail e-commerce sales reached USD 304.2 billion, a 1.4% increase from the previous quarter. Total retail sales reached USD 1,865.4 billion, a 0.4% increase. Supermarkets, specialty stores, and online platforms provide a diverse range of matcha products, from traditional ceremonial-grade powders to ready-to-drink formats, making them more available across global markets. The convenience of e-commerce, with targeted digital marketing and subscription models, has allowed brands to reach health-conscious and younger consumers who are actively seeking innovative and functional beverages. This expansion in distribution channels boosts sales and also strengthens consumer awareness, thereby driving the adoption of matcha across both developed and emerging economies.
Increasing Disposable Income and Premiumization: Increasing disposable income and the trend of premiumization boost the growth of the matcha market, as consumers are more willing to spend on high-quality, functional products that align with their lifestyle preferences. According to data released by the Bureau of Economic Analysis in March 2025, Disposable Personal Income in the U.S. increased by 0.6%. Matcha, often associated with premium quality and health benefits, fits seamlessly into the growing appetite for indulgent yet wellness-oriented choices. As incomes rise, consumers tend to prefer products that offer a balance of luxury, authenticity, and perceived health value, positioning matcha as a desirable option. Premiumization also drives product differentiation, with brands offering higher-grade ceremonial matcha and innovative blends to cater to sophisticated palates. This willingness to pay a premium for quality ensures matcha’s continued expansion in both niche and mainstream consumer segments.
Segmental Insights
Grade Analysis
Based on grade, the segmentation includes ceremonial grade, classic grade, and culinary grade. The classic grade segment accounted for 57.1 % revenue share in 2024 due to its versatility and wide appeal across both traditional and modern consumption patterns. Classic grade matcha creates a balance between quality and affordability, making it suitable for daily use in beverages, lattes, and functional food products. Its smoother flavor compared to culinary grade, yet more accessible price point than ceremonial grade, drives strong demand among mainstream consumers. This positioning allows it to serve as the most popular choice for regular consumption, fueling its dominance in the overall grade segmentation.
Application Analysis
In terms of application, the segmentation includes regular tea, matcha beverages, food, and personal care. The food segment is expected to witness fastest growth with a CAGR of 10.4% in 2024 due to the rising adoption of matcha as a functional ingredient in bakery, confectionery, and dairy products. The growing consumer preference for healthier amenities has encouraged manufacturers to integrate matcha into snacks, desserts, and ready-to-eat tea and coffee items, creating strong opportunities for market expansion. Matcha also enhances the visual appeal and flavor profile of food products, making it an attractive natural additive beyond its nutritional value. This combination of health benefits and versatility positions the food segment as an important driver of future growth.
Distribution Channel Analysis
The segmentation, based on distribution channel, includes hypermarket/supermarket, specialty stores, online retail stores, and others. The hypermarket/supermarket segment dominated the market in 2024. The dominance is driven by their ability to provide consumers with a wide variety of matcha products under one roof, ensuring both convenience and accessibility. These outlets allow shoppers to compare grades, packaging formats, and brands, which enhances purchasing confidence. Moreover, strong merchandising, promotional activities, and product visibility further reinforce their position as the leading sales channel. The presence of established retail networks ensures that matcha is readily available to a broad consumer base, sustaining the channel’s market dominance.
Regional Analysis
The North America matcha market is expected to witness rapid growth during the forecast period, owing to increasing consumer awareness of health benefits and a strong culture of adopting functional foods and beverages. Rising interest in plant-based nutrition and premium wellness products aligns with the positioning of matcha as a superfood, making it highly appealing to the region’s health-conscious consumers. Additionally, the influence of modern retail, digital platforms, and innovative product launches has accelerated consumer exposure to matcha in diverse forms. For instance, in August 2025, Barrett Distribution Centers announced a partnership with beverage brand CHUH Matcha. Barrett will supply comprehensive logistics services, such as warehousing, fulfillment, and transportation, to facilitate the brand's direct-to-consumer market entry. This combination of lifestyle trends and distribution strength positions North America as one of the fastest-growing regional markets.
U.S. Matcha Market Insights
The U.S. held a substantial market share in the North America matcha landscape in 2024 due to increasing consumer awareness about functional beverages and the strong adoption of health-focused lifestyles. The rising demand for natural, clean-label ingredients has positioned matcha as a preferred alternative to traditional caffeinated drinks. Additionally, the expansion of retail channels and product innovations, such as ready-to-drink matcha beverages and matcha-infused snacks, has further strengthened its market presence across the country.
Asia Pacific Matcha Market Trends
The market in Asia Pacific dominated with a 57.76% share in 2024 due to the region’s deep-rooted cultural association with green tea and its derivatives. Matcha consumption has long been an integral part of traditional practices, ensuring a strong foundation for sustained demand. In recent years, the rising popularity of functional beverages, modern retail growth, and product innovation have further boosted its market share. The availability of a wide range of grades, coupled with increasing use of matcha in food and beverages, supports the region’s leading position. This blend of cultural heritage and modern consumer trends cements Asia Pacific as the largest regional market.
Japan Matcha Market Overview
The market in Japan is expanding due to its long-standing cultural heritage and the growing modernization of traditional tea consumption practices. Matcha continues to hold significance in ceremonial and everyday use, but its applications are diversifying into food, confectionery, and wellness products. Additionally, increasing domestic demand for high-grade ceremonial matcha, coupled with a rising focus on exports, is further driving the growth of the Japanese market.
Europe Matcha Market
The matcha landscape in Europe is projected to hold a substantial share by 2034, due to growing health and wellness trends, coupled with the rising preference for plant-based and natural products. According to a March 2025 report from the Government of the Netherlands, sales of plant-based foods across six major European markets reached approximately USD 5.8 billion in 2023. European consumers are increasingly aiming for functional ingredients that align with clean-label and sustainability values, which matcha fulfills effectively. The expanding use of matcha in premium food and beverage categories, along with its incorporation into personal care products, highlights its widening appeal. Strong demand for natural antioxidants and energy-boosting products further fuels its adoption. These factors collectively position Europe as an effective regional market with long-term growth potential.
UK Matcha Market
The UK market growth is driven by the rising popularity of premium teas and growing consumer preference for plant-based wellness products. Matcha has gained traction as a functional superfood, particularly among health-conscious and younger demographics seeking natural energy boosters. The integration of matcha into cafés, specialty beverages, and innovative food formats has also contributed to its rising acceptance. These trends are reinforcing the UK’s position as a promising market within Europe.
Key Players & Competitive Analysis
The global matcha landscape presents revenue opportunities for both established players and new entrants, though it requires refined competitive intelligence and strategy to navigate effectively. Industry trends show rising consumer demand for functional foods and premium beverages, creating substantial expansion opportunities, particularly in developed markets where health consciousness is accelerating adoption. Vendor strategies increasingly focus on sustainable value chains and premiumization to differentiate offerings. For small and medium-sized businesses, successful market entry strategies must include robust pricing insights and clear understanding of supply chain disruptions affecting premium tea sourcing. Technological advancement in processing and cultivation continues to reshape product offerings, while economic and geopolitical shifts influence raw material availability. Expert's insight indicates that future success will depend on creating authentic connections with health-focused consumers and developing innovative applications beyond traditional beverages.
A few major companies operating in the matcha market include Aiya America Inc., DoMatcha, Encha, Garden To Cup Organics, Ippodo Tea USA, Jade Monk, Midori Spring, TEAJA Organic, The AOI Tea Company, and Vivid Vitality Ltd.
Key Players
- Aiya America Inc.
- DoMatcha
- Encha
- Garden To Cup Organics
- Ippodo Tea USA
- Jade Monk
- Midori Spring
- TEAJA Organic
- The AOI Tea Company
- Vivid Vitality Ltd
Matcha Industry Developments
- May 2025: Dutch Bros introduced three new matcha-based beverages, a Lavender Matcha Latte, a Raspberry Matcha Latte, and a Paradise Matcha Lemonade. The lineup features layered iced drinks combining matcha with fruit and floral flavors.
- October 2024: ITO EN launched two new ready-to-drink matcha flavors—Matcha Banana Latte and Matcha Cacao Latte. The beverages are packaged in SIG SmileSmall cartons, designed for portable, on-the-go consumption.
Matcha Market Segmentation
By Grade Outlook (Revenue, USD Billion, 2020–2034)
- Ceremonial Grade
- Classic Grade
- Culinary Grade
By Application Outlook (Revenue, USD Billion, 2020–2034)
- Regular tea
- Matcha Beverages
- Food
- Personal Care
By Distribution Channel (Revenue, USD Billion, 2020–2034)
- Hypermarket/Supermarket
- Specialty Stores
- Online Retail Stores
- Others
By Regional Outlook (Revenue, USD Billion, 2020–2034)
- North America
- U.S.
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Netherlands
- Russia
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Malaysia
- South Korea
- Indonesia
- Australia
- Vietnam
- Rest of Asia Pacific
- Middle East & Africa
- Saudi Arabia
- UAE
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Mexico
- Brazil
- Argentina
- Rest of Latin America
Matcha Market Report Scope
|
Report Attributes |
Details |
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Market Size in 2024 |
USD 4.28 Billion |
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Market Size in 2025 |
USD 4.61 Billion |
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Revenue Forecast by 2034 |
USD 9.03 Billion |
|
CAGR |
7.8% from 2025 to 2034 |
|
Base Year |
2024 |
|
Historical Data |
2020–2023 |
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Forecast Period |
2025–2034 |
|
Quantitative Units |
Revenue in USD Billion and CAGR from 2025 to 2034 |
|
Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Industry Trends |
|
Segments Covered |
|
|
Regional Scope |
|
|
Competitive Landscape |
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Report Format |
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Customization |
Report customization as per your requirements with respect to countries, regions, and segmentation. |
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