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Matcha Tea Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global matcha tea products market was valued at USD 6.5 billion in 2022 and is projected to expand at a CAGR of 8.2% from 2023 to 2030. Matcha tea has become increasingly popular in recent years due to its potential health benefits such as improved brain health, increased energy and endurance, and improved fat burning. Matcha products are also gaining traction due to the high antioxidant content, which makes it a healthier alternative to other beverages. Furthermore, the growing focus on wellness and nutrition is driving the demand for matcha tea in the beverage industry, as it is believed to be a natural energy booster and a great source of essential vitamins and minerals.
Product innovation is one of the key trends being witnessed in the global matcha tea products market. For instance, in October 2020, ITO EN launched a new matcha-infused sparkling tea drink. The drink contains 100% natural ingredients that are free from artificial colors, flavors, and sweeteners. Furthermore, the company is continuously introducing new flavors to its portfolio. For instance, in June 2021, ITO EN launched a new matcha-infused sparkling tea drink in a strawberry flavor. Apart from that, in March 2021, Aiya launched a new range of matcha tea with a unique blend of green tea, lemon, and ginger for a more flavorful experience.
Furthermore, the increasing demand for ready-to-drink (RTD) tea beverages is expected to bolster the growth of the market. For instance, in March 2021, Aiya launched a new range of RTD matcha tea drinks available in green tea, lemon, and ginger flavors. Additionally, the growing popularity of matcha in the foodservice sector is anticipated to propel the demand for the product in the near future. For instance, in April 2021, Starbucks launched a new matcha-infused beverage called the Matcha Coconutmilk Latte.
The rising popularity of matcha-infused confectionaries is also driving the market growth. For instance, in April 2021, Godiva launched a new range of matcha-flavored chocolates. In addition, the increasing number of vegan and gluten-free food products is also expected to bolster the demand for matcha-infused confectionaries. Furthermore, the growing demand for organic matcha tea is also likely to drive the market in the coming years. For instance, in June 2021, Aiya launched a new range of organic matcha tea, which is expected to be popular among health-conscious consumers.
Product Insights
The traditional segment led the market and accounted for a share of around 33.3% in 2022. The growing popularity of matcha tea as a health drink has been driving the traditional demand. According to an article published by Matcha Source, matcha tea has been gaining traction as it contains high levels of antioxidants, vitamins, and minerals that are beneficial to the body. Matcha tea is also known to be a great source of caffeine and therefore, helps in energizing the body. Furthermore, macro-level factors such as rising disposable income among consumers and mushrooming growth of distribution channels are bolstering the demand for matcha tea products worldwide.
The flavored segment is anticipated to expand at the fastest CAGR of 8.8% over the forecast period. Flavored matcha tea has been gaining traction in the market as it offers a unique taste and flavor. According to an article published by Forbes, flavored matcha tea is becoming increasingly popular among millennials as it has a distinct taste and is known to possess several health benefits. In addition, increasing fashion trends and the emergence of new flavors are some of the key factors driving the flavored matcha tea market growth revenue.
Distribution Channel Insights
The supermarkets and hypermarkets segment held the largest share of the matcha tea products market in 2022. This segment is expected to continue to dominate the market due to the rising number of supermarkets and hypermarkets established in the recent years. Supermarkets and hypermarkets are a popular buying destination for matcha tea products due to the presence of a wide variety of products and the convenience of shopping. Moreover, it is the most preferred retail format among consumers due to the availability of discounted prices, frequent promotional campaigns, and convenient shopping options.
The online segment is expected to witness the highest CAGR of 11.7% over the forecast period. The growing penetration of internet and smartphones, along with the availability of a wide range of matcha tea products on e-commerce websites, are the major factors driving the growth of this segment. Furthermore, several manufacturers are launching their products on their e-commerce websites and applications to promote their products and attract more customers. For instance, in November 2020, ITO EN launched an online store to sell its matcha tea products.
Type Insights
The traditional segment dominated the matcha tea products market and accounted for 67.4% revenue share in 2022. The rise in the number of tea shops and cafes that offer a variety of matcha tea products and the increasing availability of traditional products in supermarkets, hypermarkets, and local stores is driving the growth of the segment. In addition, the rising demand for traditional matcha tea products among health-conscious consumers is also propelling the growth of the segment.
The organic segment is expected to expand at a significant CAGR of 11.5% over the forecast period. The increasing awareness of the health benefits of organic products and the rising disposable incomes of the middle-class population are driving the growth of the segment. In addition, growing environmental concerns and the increasing demand for certified organic products are also contributing to the growth of the segment.
Regional Insights
Asia Pacific dominated the market and accounted for the largest revenue share of over 40% in 2022. An increase in demand for matcha tea ingredients, due to its health benefits, is a key factor driving the growth in the region. Moreover, the rising consumption of matcha tea along with its expanding presence in various product categories, such as ready-to-drink beverages, desserts, and snacks, is expected to further propel the growth of the market. For instance, in October 2021, the Japanese Tea Company launched a range of matcha teas in India.
Europe is expected to witness the second-fastest growth in the coming years. An increase in demand for matcha tea ingredients, along with the rising consumption of green tea in the region, is expected to drive the growth of the market. Moreover, the rising popularity of matcha tea among health-conscious consumers is also expected to contribute to the growth of the market. For instance, in April 2022, British specialty tea brand Bird & Blend launched a range of matcha teas in the U.K.
Financial Projections
In this part of the Matcha Tea products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for the business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main sources of revenue for a Matcha Tea products business comes from selling matcha tea products and ingredients, matcha tea subscriptions, and retail sales. Other possible sources of profit include wholesale and bulk sales, online sales, and selling matcha tea related merchandise.
Projecting Expenses
In this section, all the regular expenses related to keeping the Matcha Tea products business running will be described. The list of operating expenses includes website fees, packaging costs, wages, marketing, advertising, and other promotional activities, utilities, and insurance policies.
Key companies & market share insights
Some of the key companies operating in the matcha tea market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In June 2022, Ito En launched a Matcha Infused Tea with a unique flavor profile.
– In August 2022, Aiya America launched a new line of Matcha tea powder in various flavors, including Matcha Latte, Matcha Green Tea, and Matcha Latte with Coconut Milk.
– In October 2022, MatchaBar launched a line of Matcha energy drinks, designed to provide a natural energy boost.
Some of the prominent players in the matcha tea market include:
– Ito En
– Aiya America
– MatchaBar
– Jade Leaf Matcha
– Encha Organic Matcha
– DoMatcha
– Matchaful
– MatchaSource
– Matcha Ninja
– Mizuba Tea Co.
Global Matcha Tea Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global matcha tea products market based on product, distribution channel, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Matcha Powder
– Matcha Tea Bags
– Matcha Drinks
– Matcha Accessories
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Specialty Stores
– Others
3. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What is the Potential for Matcha Tea Products?
[A]: The potential for matcha tea products is growing, as the health benefits of matcha tea become more widely known. Matcha tea is a powerful antioxidant, and has been linked with improved mental clarity, better metabolism, and even anti-aging benefits. Matcha tea products are becoming increasingly popular, as consumers look for healthier alternatives to other beverages.
[Q]: Who are the Key Players in the Matcha Tea Products Market?
[A]: Key players in the matcha tea products market include ITO EN, Inc., Aiya, AOI Tea Company, Marukyu Koyamaen Co., Ltd., and Enlightened Tea Company.
[Q]: What Regions Offer the Largest Opportunity for Matcha Sales?
[A]: Asia Pacific is the largest regional market for matcha tea, and is expected to show the highest growth rate in the coming years. China and Japan are the two leading countries in the region, and are expected to be key drivers of demand.
[Q]: What are the Factors Driving Growth in the Matcha Tea Products Market?
[A]: The growth of the matcha tea products market can be attributed to increasing consumer awareness of the health benefits of matcha tea, the growing popularity of specialty teas, and rising health consciousness. Additionally, the increasing availability of matcha tea products in supermarkets and convenience stores is driving sales.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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