Matcha Market

Matcha Market: Ceremonial Grade Matcha to Capture Palates of Discerning Consumers: Global Industry Analysis (2013 - 2017) & Opportunity Assessment (2018 - 2028)

  • 2018-12-05
  • REP-GB-7863
  • 265 pages
  • Format: PDF/PPT/Excel

An Incisive, In-depth Analysis on the Matcha Market

This study offers a comprehensive, 360 degree analysis on the Matcha market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Matcha market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.

Matcha is a traditional Japanese powdered tea that has been an essential part of tea preparation ceremonies for hundreds of years. The leaves of the green tea variety, known as tencha in Japan, are ground using a stone mill to produce a bright green powder, which is then used in the preparation of tea. Since the entire leaf is used in matcha, the nutritional benefits offered by matcha are significantly higher as compared to green tea or other infused tea. In addition to being rich in antioxidants, matcha also contains the amino acid theanine (stress relief and enhanced relaxation), vitamin C, flavonoids such as catechin, minerals, fiber, and other health-boosting compounds.

Super-premium ‘Ceremonial’ Grade Matcha Preferred by Tea Enthusiasts

Matcha produced from early harvest leaves produce complex taste notes, and is creamier as compared to other available grades of matcha. The texture is extremely fine, and this grade of matcha is predominantly used for drinking. This grade has also been traditionally used in Japanese tea ceremonies, and variations of preparation include usucha and koicha. Despite the significantly higher price tag of ceremonial matcha as compared to other variants, it is expected to grow at a robust growth rate of 11.2% in terms of revenue over the forecast period, given the tendency of consumers in North America and Western Europe to prefer high quality, premium products, especially in the functional and health beverages segment.

Versatility of Matcha Propelling Utilization in Different Applications

In addition to its consumption as tea, matcha is also used as an ingredient in food products and ready-to-drink (RTD) beverages to lend flavour and colour, as well as provide a nutritional boost. The number of product launches using matcha as an ingredient has steadily increased over the past several years. Typically, culinary grade matcha finds its way into the food and beverage processing industry due to its relatively inexpensive price tag. However, premium grades have also continued to be used in packaged foods. Matcha is a preferred ingredient in sweet baked goods such as rolls, cakes, and cookies, among other product segments. The incorporation of matcha in desserts, ice cream, chocolate, and other confectionery products has proven to lend a boost to the indulgence category: consumers are willing to trade off unhealthy ingredients to some extent, as long as the labels include beneficial ingredients such as matcha. NY-based Fay Da Bakery offers a Japanese Matcha Cheesecake at its 10+ outlets across New York. ROYCE, a Japanese-based confectioner, offers a range of matcha-based products, including chocolate wafers, bar chocolates, and pralines, among others.

At-home Consumption in Stiff Competition with Cafés for Location Preference

Despite the burgeoning number of cafés and foodservice establishments offering matcha tea and other food and drink options on their menus, matcha purists tend to prefer at-home consumption, since it is relatively easy to prepare matcha tea as compared to other hot beverages such as coffee and traditional green tea. The matcha offered at tea shops and cafés tend to contain milk, sweeteners, and other additives that typically mask the original flavour of the matcha, and sometimes, unintentionally negate the functional health effects. In fact, mass-produced matcha offered by large café chains are produced using a blend of different grades, typically called 'café grade', and do not consist of the trademark bitterness of premium or ceremonial matcha. Additionally, in an effort to diversify their portfolio of offerings containing matcha, café chains offer lattes, smoothies, shakes, and other variants typically produced with conventional tea or even coffee. In terms of revenue, matcha sales for the café segment are expected to account for approximately US$ 100 million in 2018, globally.

Branding Takes on a Whole New Meaning with the Unique Packaging of Matcha

Matcha sold at retail is expected to account for approximately 75% of all sales in terms of revenue in 2018, and key participants are diversifying their product packaging to enhance appeal and brand loyalty. Catchy text, bright colours, product origin, certifications, and other highlights are used to ensure that products stand out from the rest on retail shelves. Obviously, the primary objective in choosing a specific format of packaging is to enhance product freshness and limit discoloration due to exposure. Matcha sold in tins achieves most of these objectives, and is anticipated to be the preferred format by manufacturers, thereby expected to expand at a robust growth of 12.1% in revenue terms over the forecast period.

FMI has compiled a study on matcha, which offers an analysis and forecast of the matcha market in its publication titled Matcha Market: Global Industry Analysis 2013 – 2017 and Opportunity Assessment 2018 – 2028. This report on matcha market covers some of the vital facets which are key influencing factors on the demand and supply for matcha over the next several years. An in-depth review of growth drivers, potential challenges, unique trends, and opportunities for market participants equip readers to fully comprehend the overall landscape of the matcha market. The report on matcha market also covers analysis of key regions and countries of particular interest which are anticipated to become frontrunners or remain laggards over the forecast period. The report covers a historical analysis of the market from 2013 to 2017 and provides forecasts from 2018 to 2028 in terms of volume in metric tons and revenue in US$.

Matcha is a powdered variant of green tea with its roots in Japanese culture. While it is predominantly used for drinking as tea, it has also found its way into recipes as an ingredient. Matcha has a sophisticated flavour and is power-packed to the brim with antioxidants, amino acids, and other nutrients. One of the unique aspects of matcha lies in its cultivation: it is shade-grown towards the end of its harvest, thereby increasing the chlorophyll content and resulting in a vibrant, green colour. Matcha cultivated in Japan is different from matcha produced elsewhere, due to soil characteristics, micro-climate, and processing techniques used post-harvest that results in enhanced nutritional content, better taste, and brighter colours.

This report on matcha market has been broken down into different chapters to enhance clarity and provide context. A brief executive summary at the beginning of the report consists of some of the key findings of the study on matcha market, as well as market estimates and growth rates for important segments. The following chapter presents the definitions and scope of the study, as well as the coverage in terms of the way the matcha market is structured. Subsequently, the chapter on market background presents the evolution of matcha, relevant economic indicators such as GDP and per capita consumption, including an assessment of the supply chain, policy developments and regulatory scenario, dynamics impacting the matcha market as well as an explanation of the factors considered important to develop forecasts and estimates. The report on matcha market also includes a chapter on pricing analysis, highlighting price point variations between different regions and products, including pricing forecasts. The following chapters dive deep into the global matcha market, covering detailed information based on grade, nature, end use, packaging, and sales channel. The next set of chapters provide region-wise analysis and forecasts of the matcha market, covering vital aspects of the market in North America, Latin America, Western Europe, Eastern Europe, China, Japan, Southeast Asia and rest of Asia Pacific, and the Middle East and Africa.

A dashboard view of some of the key companies operating in the matcha market in terms of their offerings, regional presence, and other metrics is a precursor to detailed profiles of these participants including financial information, strategy overview, and SWOT analysis, market share, as well as analyst commentary. Some of the key players analyzed in the matcha market report include ITO EN Ltd., Tata Global Beverages Ltd., Starbucks Corporation, The Hain Celestial Group Inc., Unilever PLC, Aiya-Co. Ltd., The AOI Tea Company, McCormick & Company, Inc., Matchaah Holdings Inc., and The Republic of Tea.

To develop the market estimates for matcha, the overall production of matcha in different regions and countries have been taken into account, which is followed by tracking the trade of matcha and imports by major consuming countries. This is then cross-referenced by understanding the average per capita consumption of matcha in different forms for top countries globally. Prices of matcha have been obtained from manufacturers, distributors, and wholesalers for bulk quantities at a country-level.

Our team of analysts reviews and interpret data from a variety of sources. Data attributed to ‘FMI’ are derived by using a combination of various approaches, which are then consolidated, interpreted, and extrapolated by FMI analysts. Data is sourced from government statistics, trade associations, company annual reports and investor presentations, press articles and directories, technical publications, and online databases which are cross-referenced with FMI’s reports and internal repository of data to filter and validate the collected information. Intelligence gathered from desk research is supplemented by extensive interviews with selected key expert participants across the value chain not only to gain information specific to their role and operations but also to obtain their perspective and insights of the issues impacting the matcha market.

Global Matcha Market: Segmentation

Analysis by Grade

  • Ceremonial

  • Classic

  • Café

  • Culinary

Analysis by Nature

  • Organic

  • Conventional

Analysis by End Use

  • Food Processing

  • Beverage Processing

  • Personal Care

  • Foodservice

    • Tea Shops/Café

    • Restaurants

  • Institutional

  • Household

Analysis by Packaging

  • Bulk Bags

  • Cartons

  • Sachets

  • Stand Up Pouches

  • Tins

Analysis by Sales Channel

  • Direct Sales

  • Indirect Sales

    • Hypermarkets/Supermarkets

    • Convenience Stores

    • Specialty Stores

    • Online Retailing

Analysis by Region

  • North America

  • Latin America

  • Western Europe

  • Eastern Europe

  • China

  • Japan

  • Southeast Asia and rest of Asia Pacific

  • Middle East & Africa

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