According to projections of the world sales, between 2025 and 2035, world sales are to increase by a compound annual growth rate (CAGR) of 7.1% and by the end of 2035, total sales will aggregate to USD 6,717.5 million.
Matcha is drawing health-conscious consumers, promising high nutrients such as concentrated antioxidants, amino acids, and chlorophyll that are perceived functional superfoods. A company like ITO EN presents matcha as its natural source of energization devoid of jitters or crashes, compared to typical sources of caffeine, claiming balance and endurance on energy it provides.
The culinary versatility much expanded matcha's promised use beyond traditional tea making with brands like Aiya Co. developing specialized grades optimized for incorporation into beverages, baked goods, and savoury dishes. Matcha's visual identity is photogenic with its bright green hues thus making highly ''photogenic'' applications in food and drinks that even create social media visibility thanks to companies such as Matcha Love with their Instagram-worthy presentation of such products.
The mindfulness movement has caused interest to be revived in matcha as an ancient connection of Zen Buddhism and meditation practices, with premium brands such as Marukyu Koyamaen putting an emphasis on the meditative qualities of traditional preparation.
Global café chains created a wider awareness and availability for matcha-based beverages that could be lent to the masses by incorporating this specialty item into their mainstream offerings while innovative ready-to-drink products from companies such as The AOI Tea Company have removed preparation barriers for consumers who would go for convenience.
| Attributes | Description |
|---|---|
| Estimated Global Matcha Industry Size (2025E) | USD 3,370.5 Million |
| Projected Global Matcha Industry Value (2035F) | USD 6,717.5 Million |
| Value-based CAGR (2025 to 2035) | 7.1% |
The changing perception of matcha has opened its market reach well beyond its traditional methods of consumption, up until then considered some ceremonial Japanese tea requiring preparation methods, it is now an understood versatile ingredient known for its functional benefits and applications in culinary practice. Midori Spring has best branded its product as an accessible superfood for everyday routines of wellness, highlighting much easier preparation methods that still retain benefits while fitting with modern lifestyles.
In this way, growing scientific evidence attesting to the health properties of green tea gave credence to functional claims of matcha-such as what DoMatcha has done in emphasizing research on antioxidant content and metabolic benefits. At the same time, in concurrent upticks in keen interest regarding plant-based diets, matcha is considered another nutrient-dense additive into dairy-free beverage and dessert applications creating completely new categories of application other than conventional ways of consuming it.
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The below table presents a comparative assessment of the variation in CAGR over six months for the base year (2024) and current year (2025) for the global matcha industry. This analysis reveals crucial shifts in performance and indicates revenue realization patterns, thus providing stakeholders with a better vision of the growth trajectory over the year. The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December.
| Particular | Value CAGR |
|---|---|
| H1 | 6.5% (2024 to 2034) |
| H2 | 6.9% (2024 to 2034) |
| H1 | 6.8% (2025 to 2035) |
| H2 | 7.1% (2025 to 2035) |
In the first half (H1) of the decade from 2024 to 2034, the business is predicted to surge at a CAGR of 6.5%, followed by a higher growth rate of 6.9% in the second half (H2) of the same decade. Moving into the subsequent period, from H1 2025 to H2 2035, the CAGR is projected to increase to 6.8% in the first half and remain high at 7.1% in the second half. In the first half (H1) the sector witnessed an increase of 30 BPS while in the second half (H2), the business witnessed an increase of 20 BPS.
There is, in Tier 1, a small number of the known Japanese manufacturers with heritage extending over centuries, backed by exceptional quality control and international distribution networks. ITO EN Ltd. is the largest of such companies in this tier because it is a fully integrated green tea company in Japan - from cultivation through processing to global marketing. It is very severe quality standards and technology innovations in processing set industry standards and furnish scale that would be difficult to replicate by most traditional producers.
Likewise, within the Tier 1 segment indicating premium characteristics is the Marukyu Koyamaen package, which has been involved in specialized production of over three hundred years of tea and carries several imperial warrants validating its exceptionally lofty standards of quality.
The producers included in Tier 2 would be those that have established specialty Departments that operate well regionally with some strength but tend to concentrate on certain quality niches or distribution channels. The AOI Tea Company, for example, has captured a good part of the market through organic certification and sustainable cultivation practices which resonate well with health-conscious Western consumers.
Aiya Co., Ltd. developed specialized formulations of matcha for culinary use, thus acquiring a good chunk in the food service and ingredients markets. Midori Spring Ltd. gained more room for growth through direct-consumer models and their educational marketing explaining to new consumers the benefits of matcha.
In Tier 3, there are new specialty brands and producers doing private labels, which are interested to open matcha to more mainstream markets through newer formats and more accessible marketing. Companies like Encha and DoMatcha have incorporated strong digital-first business models with important direct-to-consumer sales via channels and platforms of e-commerce and social media marketing.
Pure Matcha concentrates on culinary-grade products for common use rather than ceremonial applications. A state of ready-to-drink products designed to eliminate barriers to preparation is the focus of Matcha Love, while Mizuba Tea Co. promotes direct trade relationships with Japanese farmers and transparency of its sourcing.
Functional Food Integration
Shift: Matcha has way more extended applications in today's drinks; it is now being used as a functional ingredient integrated into diverse foods for improved nutrition and taste. Matcha offers the most significant health benefits consumers want and is also considered by many as a new, incredibly unique flavor property when added to most everyday foods.
Strategic response: Aiya Co., Ltd. has introduced their Culinary Ecosystem program, providing food manufacturers with specific grades of matcha catered for each kind of application, optimizing for the different processing conditions and finished product applications. ITO EN also expanded their ingredient division with novel matcha powders at fixed standard color intensity along with flavor profiles engineered in detail for the purposes of commercial food production.
Ready-to-Drink Convenience
Shift: The present consumer requirements are met by matcha in terms of offerings in the existing convenience-focused ready-to-drink avenues. It also infers the accessibility and integration into everyday life taking priority over one that may have been ceremoniously prepared. Such change is expected to open this segment to entirely new consumer characters valuing function and convenience.
Strategic Response: ITO EN was the pioneer in shelf-stable matcha beverages using proprietary processing methods that preserved antioxidants for flavor while boasting a longer shelf life. Matcha Love launched a line of cold-brewed matcha products, subtly sweetened and not too dissimilar to mainstream beverages, targeting energy drink converters into the mainstream fold.
Sustainability and Ethical Sourcing
Shift: Consumers are now more aware of how products are manufactured and how they affect the environment, which has led to the emergence of matcha regarded as sustainable. This pattern of change is now moving sourcing transparency and ecological responsibility from being a marketing point into core purchase considerations, especially among premium matcha consumers.
Strategic Response: Encha implemented a direct-trade model integrating only organic Japanese farms, offering full traceability from specific fields to final product while also guaranteeing fairness to the farmers. DoMatcha implemented their Heritage Program conserving traditional cultivation methods that maintain biodiversity in tea-growing regions while also supporting multigenerational farming families.
From the Ritual to Everyday
Shift: Matcha has been converted from a few ceremonial occasions to a daily wellness routine, which now requires adaptations in the products to ensure they have all that is necessary while easily fitting into modern lifestyles. This democratization of matcha now has a far more extensive consumer base beyond the traditional enthusiasts of tea to include consumers of mainstream wellness products looking for practical health benefits.
Strategic Response: The AOI Tea Company now has its Daily Ritual line, complete with user-friendly preparation instructions and moderate prices that encourage regular drinking rather than consumption only on special occasions. Single-serve packets have been created by Midori Spring Ltd. featuring the sampling of portions already pre-measured to eliminate the measurement work that would assure proper consistency in results with less experienced users.
Specialized Culinary Applications
Shift: Matcha is increasingly becoming an exciting element for the professional and the home chef. Consumers are looking for extremely specific performance characteristics for different applications and do not simply consider matcha to be a beverage base. Such specific applications are creating demand for application-optimized products beyond some basic ceremonial/culinary distinctions.
Strategic Response: Aiya Co., Ltd. developed an application-specific product line with distinct matcha formulations optimized at various levels for dairy integration strength, cold applications, and baking stability- each one engineered for the specifications within food manufacturing. With bitterness profiles controlled, Marukyu Koyamaen launched the series entitled Patisserie, developed for sweet applications that require balanced flavor without overwhelming astringency.
Beauty and Wellness Extensions
Shifting: Increasing interest in topical responses and wellness formulations with the antioxidant properties and novel composition of matcha. This progress indicates the evolution of matcha from a primarily culinary ingredient to a multi-faceted wellness ingredient with many uses.
Strategic Response: Midori Spring Ltd., working with skincare formulators, found a way to produce a cosmetic-grade matcha powder appropriate for facial masks and body treatments to draw on antioxidant properties for external applications. DoMatcha has created a supplement line that combines concentrated matcha extracts with additional supportive ingredients to address specific wellness areas, such as stress management and immune support.
The following table shows the estimated growth rates of the top five territories. These are set to exhibit high consumption through 2035.
| Countries | CAGR, 2025 to 2035 |
|---|---|
| USA | 6.2% |
| Germany | 6.8% |
| China | 8.3% |
| Japan | 5.8% |
| India | 8.6% |
The USA market for matcha keeps on developing beyond its wellness positioning for more sophisticated and integrative patterns of consumption. Specialty cafés are crucially relevant in both the introduction of matcha into the mainstream and the signature matcha lattes and specialty beverages provide accessible entry points for consumers new to the ingredient. This exposure at cafés affords huge openings at retail, where brands, such as ITO EN, have created at-home products to replicate the café experience.
The trend of functional beverages matches beautifully with the natural appeal of matcha, allowing brands like Matcha Love to position their offerings right beside energy and performance drinks but shouting out all its natural appeal and sustained energy attributes. Culinary applications have grown, with matcha appearing in products spanning a myriad of food categories, ranging from ice cream and baked goods to energy bars and breakfast cereals.
Huge organic and natural products sectors provide effective distribution channels for premium matcha, consumers willing to pay extra for certified organic matcha varieties with a transparent supply chain. Clear communication of cultivation standards and processing methods to the German consumer group via companies like Encha has been rewarded with success.
Proper technique and cultural authenticity have given rise to strong demand for traditional ceremonial-grade matcha and proper tools for preparation, with Marukyu Koyamaen's success resting in educating the market about whisking methods imparted with water temperature considerations. A developed tea culture in Germany provides a knowledgeable consumer base that is open to the complex flavor profile of matcha and is eager to learn how to prepare it right instead of taking the cheap way out.
The tradition of tea ceremony guarantees the stable demand for premium ceremonial grades, while producers such as Marukyu Koyamaen still use the technology accumulated through centuries but have gradually modified the marketing approach to suit modern consumers. This cultural legacy provides some continuity for the market which does not exist in other areas where matcha is a new ingredient, but not a cultural tradition.
In parallel, innovation in products is speeding ahead with companies such as ITO EN creating convenient formats in ready-to-drink beverages and instant preparation to fit modern lifestyles of Japan. Premium positioning remains robust despite a mature market, with high-end matcha sustaining a kind of luxury status due to limited seasonal harvests, exquisite artisanship, and distinguished agricultural designations that reflect wine appellations.
| Segment | Value Share (2025) |
|---|---|
| Culinary (By Grade Classification) | 45.8% |
Culinary-grade matcha in the market remains the king due to its extremely versatile usage that allows diverse products to be made with them and its attractive price-performance ratio in support of frequent consumption. Moderate price relative to ceremonial, culinary matcha is therefore available for daily consumption and experimentation by consumers wishing to integrate it into their routines, as opposed to occasional use in special settings.
Aiya Co. Ltd. has developed several formulations in the culinary category suited to various applications to perform consistently in finished goods whether imparted into baked goods, smoothies, or lattes. The culinary-grade matcha is friendly in flavor and light on bitterness; therefore, consumers newly introduced to the brand will have a positive impression while being contextualized by the matcha's intensity. The vivid color retention during cooking and processing makes culinary matcha even more valuable to food manufacturers and home cooks craving visual impact in any finished product.
| Segment | Value Share (2025) |
|---|---|
| Japanese Origin (By Production Region) | 67.2% |
Japanese-origin matcha is now recognized as the market leader based on its established reputation for quality and purity standards, and the authenticity embodied in its historical production methodologies that carry premium pricing in world markets. The centuries of experience in growing concentrated in traditional matcha-growing areas of Japan such as Uji, Nishio, and Yame provide production expertise that is unmatched in modern-growing areas, with companies like Marukyu Koyamaen employing techniques refined over generations.
The unique growing characteristics present in Japan's traditional tea-growing areas, including extremely specific soil compositions, morning mists, and shade-growing practice, produce flavor profiles and chemical compositions that are impossible to create in any other place in the world. Stringent quality control processes enforced by Japanese producers lend themselves to consistency in consumer assurance, with organizations like ITO EN engaging in testing from start to finish.
The global matcha market pits highly sophisticated competition characterized by quality differentiation, heritage positioning, and evolutional distribution strategies against each other as they extend beyond the traditional premium value). Authenticity remains the key point of competition to date, with the long-established Japanese producers, Marukyu Koyamaen and ITO EN, using their connectedness with history as a verification for production methods that commit to value at a premium.
Quality certification and testing protocols became, increasingly, lines of competitive differentiation, with companies establishing universal quality systems that check purity and authenticity as production is steadily sought outside the traditional regions with differing standards.
The role of educational marketing is thus critical for category development; accordingly, The AOI Tea Company and Midori Spring Ltd. have made large investments in content explaining matcha's unique properties, proper preparation methods, and various applications to expand consumption beyond traditional opportunities.
Vertical integration is more positive for larger producers like ITO EN that take control of the whole supply from cultivation to processing and packaging, thus assuring consistent quality while building their margin retention over companies depending upon external suppliers.
For example:
The global industry is estimated at a value of USD 3,370.5 million in 2025.
The market is projected to grow at a CAGR of 7.1% between 2025 and 2035.
Leading manufacturers include ITO EN Ltd., The AOI Tea Company, Marukyu Koyamaen, Aiya Co. Ltd., and Midori Spring Ltd., among others.
Ceremonial grade is produced from the youngest tea leaves with stems and veins removed, resulting in smoother flavor ideal for traditional preparation, while culinary grade typically uses slightly more mature leaves with greater robustness for cooking applications.
Key quality factors include harvest timing (first harvest being superior), shade-growing duration, stone-grinding precision, particle size consistency, color vibrancy, and proper oxidation prevention during processing.
As per grade classification, the industry has been categorized into Ceremonial, Culinary, Classic, and Ingredient Grade.
This segment is further categorized into Japanese Origin, Chinese Origin, Other Asian, and Western-Produced.
This segment is further categorized into Traditional Powder, Ready-to-Drink, Instant Formulations, and Supplement Forms.
This segment is further categorized into Traditional Tea Ceremony, Modern Beverages, Culinary Applications, and Beauty & Wellness.
Industry analysis has been conducted in key countries of North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia & Pacific, and the Middle East & Africa.
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Matcha Market
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