Matcha Global Market Opportunities and Strategies to 2033

This report describes and explains the matcha market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global matcha market reached a value of nearly $2.86 billion in 2023, having grown at a compound annual growth rate (CAGR) of 5.45% since 2018. The market is expected to grow from $2.86 billion in 2023 to $4.69 billion in 2028 at a rate of 10.39%. The market is then expected to grow at a CAGR of 11.56% from 2028 and reach $8.11 billion in 2033.

Growth in the historic period resulted from increased consumer preference for tea, growing demand for dietary supplements and rise in disposable income. Factors that negatively affected growth in the historic period was high cost and limited availability.

Going forward, rise in health-conscious consumers and lifestyles, increasing adoption of herbal tea and rising demand for food and beverages will drive the growth. Factor that could hinder the growth of the matcha market in the future include lack of substantial standards.

The matcha market is segmented by product into regular and flavored. The regular market was the largest segment of the matcha market segmented by product, accounting for 74.50% or $2.13 billion of the total in 2023. Going forward, the flavored segment is expected to be the fastest growing segment in the matcha market segmented by product, at a CAGR of 11.37% during 2023-2028.

The matcha market is segmented by grade into cafe, ceremonial, classic and other culinary. The classic market was the largest segment of the matcha market segmented by grade, accounting for 57.3% or $1.64 billion of the total in 2023. Going forward, the other culinary segment is expected to be the fastest growing segment in the matcha market segmented by grade, at a CAGR of 11.7% during 2023-2028.

The matcha market is segmented by distribution channel into hypermarket and supermarket, specialty retail stores, online retail stores and other distribution channels. The hypermarket and supermarket market was the largest segment of the matcha market segmented by distribution channel, accounting for 42.66% or $1.22 billion of the total in 2023. Going forward, the online retail stores segment is expected to be the fastest growing segment in the matcha market segmented by distribution channel, at a CAGR of 13.14% during 2023-2028.

The matcha market is segmented by application into regular tea, matcha beverages, food, personal care and other applications. The regular tea market was the largest segment of the matcha market segmented by application, accounting for 36.60% or $1.04 billion of the total in 2023. Going forward, the personal care segment is expected to be the fastest growing segment in the matcha market segmented by application, at a CAGR of 12.52% during 2023-2028.

The matcha market is segmented by form into powder and liquid. The powder market was the largest segment of the matcha market segmented by form, accounting for 64.35% or $1.84 billion of the total in 2023. Going forward, the liquid segment is expected to be the fastest growing segment in the matcha market segmented by form, at a CAGR of 11.2% during 2023-2028.

Asia-Pacific was the largest region in the matcha market, accounting for 91.98% or $2.6 billion of the total in 2023. It was followed by North America, Western Europe and then the other regions. Going forward, the fastest-growing regions in the matcha market will be North America and Western Europe where growth will be at CAGRs of 11.47% and 10.67% respectively. These will be followed by Asia Pacific and Eastern Europe where the markets are expected to grow at CAGRs of 10.43% and 9.72% respectively.

The matcha market is fairly fragmented, with a large number of small players in the market. The top ten competitors in the market made up to 19.16% of the total market in 2022. ITO EN, LTD was the largest competitor with 10.66% share of the market, followed by Nestlé S.A. with 7.39%, the AOI Tea Company with 0.56%, Ikeda Tea World with 0.24%, Kissa Tea GmbH Company with 0.12%, IPPODO TEA with 0.06%, DoMatcha with 0.04%, Harney & Sons Fine Teas with 0.03%, Mizuba Tea Co with 0.03%, and The Republic of Tea with 0.02%.

The top opportunities in the matcha market segmented by product will arise in the regular segment, which will gain $1.3 billion of global annual sales by 2028. The top opportunities in the matcha market segmented by distribution channel will arise in the hypermarket and supermarket segment, which will gain $722.09 million of global annual sales by 2028. The top opportunities in the matcha market segmented by application will arise in the regular tea segment, which will gain $712.62 million of global annual sales by 2028. The top opportunities in the matcha market segmented by form will arise in the powder segment, which will gain $1.12 billion of global annual sales by 2028. The top opportunities in the matcha market segmented by grade will arise in the classic segment, which will gain $1.06 billion of global annual sales by 2028. The matcha market size will gain the most in China at $623.72 million.

Market-trend-based strategies for the matcha market include launch of new products with focus on functional drinks, introduction of matcha toasted rice green tea, increased focus on organic matcha to cater to consumer demand for natural and sustainable choices, growing investments to support expansion of matcha product portfolio and strategic partnerships and collaborations among market players.

Player-adopted strategies in the matcha market include focus on expanding operational capabilities through strategic partnerships and collaborations and strengthening operational capabilities through new product launches.

To take advantage of the opportunities, the analyst recommends the matcha companies to focus on innovation in matcha product offerings, focus on expanding product portfolio with matcha toasted rice tea, focus on organic matcha to meet growing consumer demand, focus on strategic investments to diversify product portfolio, focus on the flavored segment for accelerated growth, expand in emerging markets, continue to focus on developed markets, focus on strategic partnerships for market expansion, focus on the online retail stores segment for unprecedented growth, provide competitively priced offerings, focus on strategic pricing for sustainable growth, participate in trade shows and events, continue to use B2B promotions, focus on holistic promotion strategies, focus on matcha beverages and personal care application segments for optimal growth and focus on targeted engagement strategies to reach matcha enthusiasts.