The global Matcha Market is expected to develop at a 7.8% CAGR from 2024 to 2031. The market value is predicted to rise from USD XX billion in 2024 to USD YY billion in 2031.
Asia-Pacific is expected to lead the market, driven by traditional consumption patterns, rising health consciousness, and matcha's expanding popularity in the food and beverage industry. Key variables include expanding demand for natural and organic products, increased knowledge of matcha's health advantages, and a global café culture. The market is rising rapidly because to the increasing use of matcha in areas other than traditional tea, such as food, drinks, cosmetics, and personal care. The expanding trend of 'clean label' products, increased consumer interest in functional foods, and the growing popularity of matcha as a natural energy booster are all driving market growth.
Market Trend: Rising adoption of matcha in the beauty and personal care industry reshapes product offerings
The Matcha Market is seeing a significant trend towards integration in beauty and personal care products, driven by rising consumer demand for natural and antioxidant-rich ingredients in cosmetics and skincare. This trend is especially noticeable in premium skincare lines and organic cosmetic products. For example, a large worldwide cosmetics business reported a 35% rise in sales of its matcha-infused skincare line in 2023 over the previous year. Matcha's strong antioxidant content, notably catechins, makes it a desirable ingredient in anti-aging and skin-protecting products. Beauty items using matcha, such as face masks, lotions, and body washes, are gaining popularity among customers looking for natural alternatives to synthetic components. This movement not only broadens the applications of matcha, but it also creates new revenue sources for both matcha farmers and beauty firms.
Market Driver: Growing health consciousness and awareness of matcha's nutritional benefits boost demand
The expanding global emphasis on health and wellness, combined with increased awareness of matcha's nutritional benefits, has emerged as a significant driver of the Matcha Market. Matcha is known for its strong antioxidant content, particularly epigallocatechin gallate (EGCG), as well as its potential advantages to metabolism, cognition, and overall health. According to recent consumer studies, 68% of matcha drinkers claimed health benefits as their top reason for consumption, up from 55% in 2020. This health-conscious demand has resulted in a greater use of matcha in food and beverage products other than traditional tea. In 2023, the number of new product launches containing matcha increased by 22% globally, with a focus on functional beverages and snacks. Matcha's reputation as a natural energy booster and attention enhancer has boosted its popularity among younger customers and working professionals, fuelling demand for matcha-based energy drinks and supplements.
Market Restraint: Price volatility and limited production capacity impact market growth
The Matcha Market has issues due to price volatility and production capacity constraints, particularly for high-quality ceremonial matcha. High-quality matcha is labour-intensive and geographically constrained, with the best grades produced in select regions of Japan. This concentration of production leaves the market vulnerable to supply changes caused by factors such as weather, labour availability, and changing farming practices. For example, unfavourable weather conditions in important matcha-producing districts of Japan in 2023 resulted in a 15% increase in the wholesale price of premium grade matcha. Furthermore, rising worldwide demand has put pressure on traditional manufacturing methods, raising concerns about maintaining quality standards while increasing production. These supply-side limits have resulted in price fluctuation, particularly in overseas markets, which may limit matcha's availability to price-sensitive customers and adoption by food and beverage makers for mass-market products. While attempts are being made to expand output to additional locations and enhance cultivation techniques, the business continues to face challenges in balancing expanded production with conventional quality standards.
The Culinary Grade segment dominates the Matcha Market, driven by versatile applications in food and beverage industries:
The Culinary Grade sector has emerged as the leading force in the Matcha Market, accounting for around 65% of total market share by 2023. This domination is partly due to the versatility of culinary grade matcha in a variety of food and beverage products, its lower price point as compared to ceremonial grade, and its suitability for large-scale industrial applications. Culinary grade matcha provides a nice blend of flavour, colour, and nutritional advantages, making it suitable for use in a variety of items such as baked goods, ice creams, smoothies, and ready-to-drink drinks.
Food and beverage makers have recently been more imaginative in their usage of culinary grade matcha. For example, a major worldwide coffee chain recently released a line of matcha-based beverages and food products, resulting in a 25% boost in matcha category sales in the first quarter after introduction. The popularity of matcha-infused goods has spread beyond beverages to snacks, desserts, and even savoury entrees, increasing demand for culinary grade matcha.
The rising popularity of home baking and cooking, aided by recent world events, has also contributed to the segment's domination. Retail sales of culinary grade matcha for home use increased 30% year on year in 2023, as consumers experimented with matcha in their own kitchens. The availability of matcha-focused recipes and information on social media platforms has aided this trend, popularising its use in everyday cooking and baking.
Asia-Pacific dominates the Matcha Market, driven by traditional consumption patterns, growing health awareness, and increasing adoption in food and beverage industries.
Asia-Pacific has established itself as the dominant region in the worldwide Matcha Market, accounting for nearly YY% of the market share by 2023. Several factors contribute to this dominance, including the region's long-standing tradition of matcha consumption, particularly in Japan, rising consumer health consciousness, and the growing adoption of matcha in a variety of food and beverage applications across other Asian countries.
Japan, the traditional home of matcha, is the region's largest market, with a centuries-old matcha culture. Other nations in the region, particularly China, South Korea, and Taiwan, have experienced a significant increase in matcha consumption in recent years. For example, matcha-flavored product launches in China climbed by YY% in 2023 compared to the previous year, owing to the burgeoning café culture and rising consumer interest in Japanese cuisine and beverages.
The region's good performance is boosted by growing consumer health awareness, particularly in metropolitan regions. According to industry analysis, 72% of urban consumers in Asia-Pacific regard matcha as a healthy ingredient, resulting in its adoption into a variety of health and wellness products. This trend has resulted in the rise of matcha-based functional beverages, dietary supplements, and health foods throughout the region.
In terms of recent developments, the Asia-Pacific market has seen an increase in novel matcha-based product introductions. For example, a renowned South Korean beauty brand recently launched a line of matcha-infused skincare products, capitalising on the growing trend of employing antioxidant-rich substances in cosmetics. Within its first year of launch, this product line captured 15% of the green tea-based cosmetics industry.
The region has also seen tremendous progress in matcha production and processing technology. Several Japanese matcha companies have invested in modern processing facilities that uphold traditional quality standards while expanding production capacity to suit rising worldwide demand. According to a recent industry assessment, matcha production capacity in Japan's key matcha-growing regions will increase by 10% by 2023, with an emphasis on maintaining quality while boosting efficiency.
Traditional Japanese matcha manufacturers, huge international food and beverage firms, and various specialised matcha brands make up the Matcha Market. Key market leaders have maintained their positions by combining product quality, brand heritage, and innovation in product applications. These enterprises have been investing in increasing production capacity, upgrading cultivation and processing techniques, and inventing new matcha-based products to fulfil the different needs of their customers.
In terms of market share, the top five competitors control over 35% of the global market. The dominant firm, a traditional Japanese matcha producer, retains a market share of approximately 10%, owing to its reputation for high-quality ceremonial and premium grade matcha, as well as its strong presence in both domestic and international markets. The second-largest player, with a 7% market share, is a multinational food and beverage firm that has grown through its extensive distribution network and successful integration of matcha into other product lines.
Recent mergers and acquisitions have changed the competitive landscape. A big global beverage business made a significant acquisition in 2023, acquiring a specialised matcha brand as part of a strategic drive to increase its foothold in the booming functional beverage industry. Furthermore, some companies have made significant investments in organic and sustainable matcha production, with the industry's average investment in sustainable practices increasing by 15% year on year.
The sector has also seen an increase in collaborations between matcha growers and food and beverage firms. These collaborations aim to create unique matcha-based goods and broaden market reach. For example, a top Japanese matcha producer recently collaborated with a global coffee chain to develop a trademark matcha mix for use in the chain's beverages, resulting in a 20% boost in matcha-based drink sales.
Looking ahead, the competitive landscape is projected to shift, with a greater emphasis on product differentiation, sustainability, and health-related advances. In the coming years, market players are expected to differentiate themselves by developing new matcha variants with distinct flavour profiles and creating handy, ready-to-use matcha products.
The Matcha Market is at an interesting juncture, with tremendous growth and diversification opportunities beyond its traditional usage. We expect matcha's footprint to grow further across product categories, owing to its perceived health benefits and varied flavour profile. However, this expansion will most likely be accompanied by hurdles in maintaining quality standards and ensuring sustainable manufacturing processes.
The rise of "terroir-focused" matcha products is a unique trend to keep an eye on. Similar to the wine business, we anticipate an increased emphasis on matcha's individual geographic origins and cultivation methods, with premium products exhibiting distinct flavour characteristics based on their growth locations. This tendency may result in the creation of a more sophisticated matcha consumer base, as well as chances for product differentiation in the premium market segment.
Another significant development is the potential for technical advances in matcha production. While traditional cultivation and processing methods are critical to matcha's quality and cultural significance, we anticipate selective adoption of technologies that can improve consistency, increase production efficiency, and ensure quality control while preserving the essence of traditional matcha. This could involve breakthroughs in controlled environment agriculture for tea growth, as well as precision grinding and blending processes.
ITO EN, Ltd.
Aiya Co., Ltd.
The AOI Tea Company
Marukyu Koyamaen
Midori Spring Ltd.
Ippodo Tea Co., Ltd.
DoMatcha
Encha
Tata Consumer Products Limited
Unilever PLC
June 2023: ITO EN, Ltd. introduced a new range of ready-to-drink matcha beverages supplemented with useful ingredients, aimed at the burgeoning health and wellness industry.
In August 2023, Aiya Co., Ltd. announced a strategic agreement with a top European food ingredient supplier to expand its distribution network and boost market penetration in European countries.
1. INTRODUCTION
1.1. Market Definitions & Study Assumptions
1.2. Market Research Scope & Segment
1.3. Research Methodology
2. EXECUTIVE SUMMARY
2.1. Market Overview & Insights
2.2. Segment Outlook
2.3. Region Outlook
3. COMPETITIVE INTELLIGENCE
3.1. Companies Financial Position
3.2. Company Benchmarking -- Key Players
3.3. Market Share Analysis -- Key Companies
3.4. Recent Companies Key Activities
3.5. Pricing Analysis
3.6. SWOT Analysis
4. COMPANY PROFILES (Key Companies list by Country) (Premium)
5. COMPANY PROFILES
5.1. ITO EN, Ltd.
5.2. Aiya Co., Ltd.
5.3. The AOI Tea Company
5.4. Marukyu Koyamaen
5.5. Midori Spring Ltd.
5.6. Ippodo Tea Co., Ltd.
5.7. DoMatcha
5.8. Encha
5.9. Tata Consumer Products Limited
5.10. Unilever PLC (LIST NOT EXHAUSTIVE)
6. MARKET DYNAMICS
6.1. Market Trends
6.1.1. Rising adoption of matcha in the beauty and personal care industry reshapes product offerings
6.1.2. Emergence of "terroir-focused" matcha products
6.1.3. Technological innovations in matcha production and processing
6.2. Market Drivers
6.2.1. Growing health consciousness and awareness of matcha's nutritional benefits boost demand
6.2.2. Expanding applications in food and beverage industries
6.2.3. Rising cafe culture and popularity of matcha-based beverages
6.3. Market Restraints
6.3.1. Price volatility and limited production capacity impact market growth
6.3.2. Challenges in maintaining quality standards with increasing demand
6.4. Market Opportunities
6.5. Porter's Five Forces Analysis
6.5.1. Threat of New Entrants
6.5.2. Bargaining Power of Buyers/Consumers
6.5.3. Bargaining Power of Suppliers
6.5.4. Threat of Substitute Products
6.5.5. Intensity of Competitive Rivalry
6.6. Supply Chain Analysis
6.7. Value Chain Analysis
6.8. Trade Analysis
6.9. Pricing Analysis
6.10. Regulatory Analysis
6.11. Patent Analysis
6.12. SWOT Analysis
6.13. PESTLE Analysis
7. BY GRADE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
7.1. Ceremonial
7.2. Premium
7.3. Culinary
8. BY APPLICATION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
8.1. Regular Tea
8.2. Matcha Beverages
8.2.1. Lattes
8.2.2. Smoothies
8.2.3. Ready-to-drink
8.3. Food
8.3.1. Bakery Products
8.3.2. Confectionery
8.3.3. Ice Cream & Desserts
8.4. Personal Care
8.4.1. Skincare
8.4.2. Hair Care
9. BY DISTRIBUTION CHANNEL (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
9.1. Supermarkets/Hypermarkets
9.2. Specialty Stores
9.3. Online Retail
9.4. Others
9.4.1. Convenience Stores
9.4.2. Tea Shops
10. BY END-USER (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
10.1. Households
10.2. Cafes & Restaurants
10.3. Food & Beverage Industry
11. REGION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
11.1. North America
11.1.1. United States
11.1.2. Canada
11.1.3. Mexico
11.2. South America
11.2.1. Brazil
11.2.2. Argentina
11.2.3. Rest of South America
11.3. Europe
11.3.1. Germany
11.3.2. United Kingdom
11.3.3. France
11.3.4. Italy
11.3.5. Spain
11.3.6. Russia
11.3.7. Rest of Europe
11.4. Asia-Pacific
11.4.1. Japan
11.4.2. China
11.4.3. India
11.4.4. South Korea
11.4.5. Australia
11.4.6. Rest of Asia-Pacific
11.5. Middle-East
11.5.1. UAE
11.5.2. Saudi Arabia
11.5.3. Turkey
11.5.4. Rest of Middle East
11.6. Africa
11.6.1. South Africa
11.6.2. Egypt
11.6.3. Rest of Africa
*NOTE: All the regions mentioned in the scope will be provided with (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
By Grade:
Ceremonial
Premium
Culinary
By Application:
Regular Tea
Matcha Beverages
Food
Personal Care
By Distribution Channel:
Supermarkets/Hypermarkets
Specialty Stores
Online Retail
Others
By End-User:
Households
Cafes & Restaurants
Food & Beverage Industry
By Region:
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa
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