The matcha market is projected to expand significantly over the forecast period, rising from USD 3,373.6 million in 2025 to USD 6,717.5 million by 2035.
This reflects a compound annual growth rate (CAGR) of 7.1%, driven by growing consumer demand for functional, antioxidant-rich products that align with wellness, energy, and mindfulness trends. Matcha, a finely ground powder of specially grown green tea leaves, is increasingly recognized not only as a traditional beverage but as a modern superfood. This dual appeal, rooted in both cultural heritage and contemporary health awareness, has propelled its adoption across multiple sectors.
The culinary grade segment, which accounts for 56.2% of the global market in 2025, continues to dominate due to its cost-effectiveness and versatility in applications ranging from smoothies and bakery items to frozen desserts and ready-to-drink (RTD) beverages.
As global food manufacturers pursue clean-label innovations, matcha has emerged as a natural colorant, flavor enhancer, and health-boosting ingredient. Ceremonial-grade matcha, although smaller in volume, is experiencing high-value growth, particularly in premium foodservice and direct-to-consumer channels that focus on authenticity and experience.
| Attributes | Description |
|---|---|
| Estimated Global Matcha Industry Size (2025E) | USD 3,373.6 million |
| Projected Global Matcha Industry Value (2035F) | USD 6,717.5 million |
| Value-based CAGR (2025 to 2035) | 7.1% |
Regionally, the Asia Pacific remains the traditional hub of matcha production, particularly in Japan, which holds a strong reputational edge due to its historical expertise and strict quality control standards. However, demand is expanding most rapidly in North America and Europe, where consumers are embracing matcha as an alternative to coffee and a nutrient-dense ingredient in holistic diets. The proliferation of vegan, gluten-free, and organic food trends has further facilitated the integration of matcha into plant-based product lines and dietary supplements.
Key companies, such as Aiya Co. Ltd., The Matcha Reserve, ITO EN, Ltd., and Marukyu-Koyamaen Co., Ltd., are investing in sustainable farming methods, transparent sourcing, and innovative functional products. The new launches of flavored matcha beverages, matcha-infused protein bars, and even matcha-based skincare products reflect the ingredient’s expanding influence beyond traditional tea ceremonies.
In the future, the market will benefit from continued product diversification and aggressive global branding strategies. As consumers increasingly prioritize natural energy, stress reduction, and longevity, matcha’s adaptogenic and antioxidant properties position it as a compelling addition to the functional food and beverage sector. Strategic investments in certified organic cultivation, e-commerce distribution, and education-driven marketing will be critical to unlocking the next stage of growth across global consumer segments.
The table below 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, thereby providing stakeholders with a clearer understanding 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 expected to surge at a compound annual growth rate (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.
Holding a commanding 56.2% share of the global market in 2025, the culinary-grade segment of matcha is projected to grow steadily in line with the overall market's CAGR of 7.1% through 2035. This segment’s dominance reflects its strategic role as the most accessible and versatile form of matcha, suited to both foodservice innovation and retail product development.
Culinary grade matcha has become the industry’s workhorse, offering a cost-effective solution without compromising the essential health benefits and flavor complexity associated with traditional matcha. Its widespread use in smoothies, bakery items, frozen desserts, and RTD functional beverages makes it particularly appealing to large-scale manufacturers seeking clean-label, plant-based, and naturally functional ingredients. Its integration as a natural flavoring and coloring agent also aligns with ongoing reformulation efforts to eliminate artificial additives across processed foods.
As demand shifts from ceremonial purity to functional practicality, culinary matcha is evolving beyond its roots. Emerging applications in sports nutrition (e.g., matcha protein powders), confectionery (e.g., matcha chocolates), and convenience foods are expanding their value proposition.
Global players are expected to build on this momentum through the development of tailored blends, enhanced solubility, and targeted health claims. With Western consumers increasingly associating matcha with energy, focus, and antioxidant support, the culinary segment is poised to solidify its position as a daily-use staple in modern health-forward lifestyles.
While representing a smaller share of total volume, the ceremonial grade segment is poised for accelerated value growth, outpacing other categories due to rising global demand for premium, experiential wellness products. With an estimated CAGR slightly above the market average of 7.1% through 2035, ceremonial matcha is being redefined not as a niche cultural artifact but as a symbol of authenticity, mindfulness, and high-quality living.
This segment has benefited from the convergence of luxury food trends, meditative consumption rituals, and direct-to-consumer channels promoting transparency and provenance. Primarily sourced from Japan’s heritage-producing regions, ceremonial grade matcha is increasingly positioned as an indulgent yet healthful daily ritual among wellness enthusiasts, particularly in North America and Europe. These consumers are drawn not only to its superior umami-rich profile and vibrant green hue but also to its ceremonial roots, which offer a moment of intentionality amid hectic modern lifestyles.
Growth is also being catalyzed by high-end tea lounges, premium foodservice establishments, and e-commerce platforms focused on heritage-rich storytelling and educational content. Brands that leverage single-origin sourcing, organic certifications, and artisanal production narratives are seeing higher margins and stronger consumer loyalty.
As premiumization continues to shape consumer choices across the functional beverage and self-care sectors, ceremonial grade matcha is expected to evolve into a lifestyle staple synonymous with elevated wellness and conscious living.
In Tier 1, there is a small number of known Japanese manufacturers with a heritage extending over centuries, backed by exceptional quality control and international distribution networks. ITO EN Ltd. is the largest company in this tier because it is a fully integrated green tea company in Japan, spanning cultivation, processing, and global marketing. It is very severe quality standards and technology innovations in processing set industry standards and furnish a scale that would be difficult to replicate by most traditional producers.
Likewise, within the Tier 1 segment, the Marukyu Koyamaen package, which has been involved in the specialized production of tea for over three hundred years, is distinguished by its premium characteristics. It carries several imperial warrants that validate its exceptionally high 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, thereby acquiring a significant share of the food service and ingredients markets. Midori Spring Ltd. gained more room for growth through direct-consumer models and its educational marketing, explaining to new consumers the benefits of matcha.
In Tier 3, new specialty brands and producers are introducing private labels, which aim to open matcha to more mainstream markets through innovative formats and more accessible marketing. Companies like Encha and DoMatcha have incorporated strong digital-first business models, with significant direct-to-consumer sales through e-commerce and social media marketing channels.
Pure Matcha concentrates on culinary-grade products for common use rather than ceremonial applications. Matcha Love focuses on ready-to-drink products designed to eliminate barriers to preparation. At the same time, Mizuba Tea Co. promotes direct trade relationships with Japanese farmers and transparency of its sourcing.
Functional Food Integration
Shift: Matcha has a wide range of applications in today's drinks; it is now being used as a functional ingredient integrated into diverse foods for enhanced nutrition and taste. Matcha offers the most significant health benefits that consumers want, and is also considered by many to be a new, incredibly unique flavor when added to most everyday foods.
Strategic response: Aiya Co., Ltd. has introduced its Culinary Ecosystem program, providing food manufacturers with specific grades of matcha tailored to each type of application, optimizing for different processing conditions and finished product requirements. ITO EN also expanded its ingredient division with novel matcha powders of fixed standard color intensity, along with flavor profiles carefully engineered for 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 implies the accessibility and integration into everyday life, taking priority over one that may have been ceremoniously prepared. Such a change is expected to open this segment to entirely new consumer characters valuing function and convenience.
Strategic Response: ITO EN was a pioneer in shelf-stable matcha beverages, utilizing proprietary processing methods that preserved antioxidants for flavor while extending the shelf life. Matcha Love launched a line of cold-brewed matcha products, subtly sweetened and not too dissimilar from mainstream beverages, targeting energy drink enthusiasts who are transitioning into the mainstream fold.
Sustainability and Ethical Sourcing
Shift: Consumers are now more aware of how products are manufactured and their environmental impact, which has led to the emergence of matcha as a sustainable product. This pattern of change is now shifting sourcing transparency and ecological responsibility from a marketing point to a core purchase consideration, especially among premium matcha consumers.
Strategic Response: Encha implemented a direct-trade model that integrates only organic Japanese farms, offering full traceability from specific fields to the 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 evolved from a few ceremonial occasions to a daily wellness routine, which now requires adaptations in products to ensure they meet all requirements while easily fitting into modern lifestyles. The democratization of matcha has now expanded to a far more extensive consumer base, beyond traditional tea enthusiasts, to include consumers of mainstream wellness products seeking 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 pre-measured portions that eliminate the need for manual measurement, ensuring proper consistency in results for less experienced users.
Specialized Culinary Applications
Shift: Matcha is becoming an increasingly exciting element for both professional and home chefs. Consumers are seeking extremely specific performance characteristics for various applications and do not simply consider matcha to be a beverage base. Such specific applications are creating demand for application-optimized products that go beyond some basic ceremonial or 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 to meet the specific requirements within food manufacturing. With bitterness profiles controlled, Marukyu Koyamaen launched the Patisserie series, 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., in collaboration with skincare formulators, developed a cosmetic-grade matcha powder suitable for facial masks and body treatments, harnessing its 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 US market for matcha continues to develop beyond its wellness positioning, embracing more sophisticated and integrative patterns of consumption. Specialty cafés are crucially relevant in both the introduction of matcha into the mainstream and in providing signature matcha lattes and specialty beverages that offer 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 aligns perfectly with the natural appeal of matcha, enabling brands like Matcha Love to position their offerings alongside energy and performance drinks, while highlighting their natural appeal and sustained energy benefits. Culinary applications have expanded, with matcha appearing in a wide range of products across various food categories, including ice cream, baked goods, energy bars, and breakfast cereals.
Huge organic and natural products sectors provide effective distribution channels for premium matcha, and consumers are 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 driven strong demand for traditional ceremonial-grade matcha and suitable tools for preparation, with Marukyu Koyamaen's success resting on educating the market about whisking methods, incorporating 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 correctly, rather than taking the easy way out.
The tradition of the tea ceremony ensures stable demand for premium ceremonial grades, while producers such as Marukyu Koyamaen continue to utilize the technology accumulated over centuries, but have gradually modified their marketing approach to suit modern consumers. This cultural legacy provides some continuity for the market, which is lacking in other areas where matcha is a new ingredient, but not a cultural tradition.
In parallel, innovation in products is accelerating, with companies such as ITO EN creating convenient formats in ready-to-drink beverages and instant preparations to cater to the modern lifestyles of Japan. Premium positioning remains robust despite a mature market, with high-end matcha maintaining a certain luxury status due to limited seasonal harvests, exquisite artisanship, and distinguished agricultural designations that reflect those of wine appellations.
The global matcha market is characterized by highly sophisticated competition, with quality differentiation, heritage positioning, and evolving distribution strategies competing 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, leveraging their connection to history as a verification of production methods that prioritize value at a premium.
Quality certification and testing protocols have become increasingly important lines of competitive differentiation, with companies establishing universal quality systems that verify purity and authenticity as production is steadily sought outside 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 that depend upon external suppliers.
For example:
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.
The global industry is estimated at a value of USD 3,373.6 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.
Explore Beverages Insights
Matcha Market
Thank you!
You will receive an email from our Business Development Manager. Please be sure to check your SPAM/JUNK folder too.
