Have you ever wondered what exactly is driving the rise of matcha globally? Why is this green powder booming? Continue to read and find the answer.
Introduction
Over the last decade, matcha has transformed from a traditional tea ceremony component in Japan to a worldwide wellness trend. Matcha can be found in beverages, desserts, cosmetics, and functional products. Let’s decode the global rise of matcha by exploring the current situations, reasons for the rise, its challenges, and future.
Understanding the global matcha market
Overview
Recently, matcha drinks have witnessed an explosion on a global scale. In 2024, the record for global matcha market size was USD 4.23 billion and is expected to continue to grow at a CAGR of 7.12% from 2025 to 2033. Matcha is available in powdered and liquid forms in the market. Its unique cultivation brings it an appealing color and a distinct nutrient profile. Because of the rising demand, you can easily find matcha-based products in various distribution channels, such as online stores, supermarkets, convenience stores, and coffee or tea shops. In which, the supermarket remained the market leader in 2023 with a wide range of products and brands.
What is behind matcha color:
Analytic insights
Regarding product types, the regular matcha still dominates. It is a popular choice for ceremonial and daily use because of its genuine flavor and traditional appeal. In contrast, the flavored matcha is estimated to rise in the following years, driven by millennials and Gen Z consumers.
On the other hand, matcha in powder form also has the largest market share in form segmentation. Matcha liquid and other on-the-go versions have witnessed a rising demand because of the busy lifestyle. They can become the ideal alternatives for traditional powder as there is no need to prepare, and they can be enjoyed immediately after purchasing.
Besides, in terms of grade classifications, culinary grade is more affordable for most consumers. It also has a balanced flavor, cost, and versatility. Therefore, it is more common for food and beverage businesses.
The Asia Pacific region is expected to continue to dominate the global matcha market because of the long-standing tea culture, especially in Japan and China. In addition, its popularity witnessed rapid growth in Europe and other countries and areas, driven by health awareness and increasing disposable income.
The reasons for the rise of matcha
Matcha’s health benefits
One of the primary reasons for the growth of matcha worldwide is its wealth of health benefits. Because consumers are getting more health-conscious, the demand for functional and healthy food and beverages increases. Matcha is well-known for its antioxidants, especially catechins, vitamins, and minerals. Therefore, drinking matcha is believed to help reduce the risk of cancer, support heart health, and boost metabolism.
Moreover, matcha can provide sustained energy without the jittery crash, which is often seen in coffee. This is because tea leaves contain L-theanine, a substance that can slow down the absorption of caffeine while promoting relaxation. The combination of caffeine and L-theanine can offer an ideal balance of calm and concentration. Because consuming matcha means consuming whole tea leaves, the caffeine content in matcha is higher than in traditional green tea.
Additionally, matcha is drawing much attention in the beauty industry. Its antioxidant properties are believed to have anti-aging effects, leading to the introduction of many skin care products using matcha. Besides, with metabolism-boosting effects, matcha can be a perfect option to add to your diet.
Cultural appeal and the rise of social media
Matcha is a cultural icon in Japan and has a long history associated with the tea ceremony. However, matcha is more than just a popular beverage, it is linked with mental discipline and relaxation. For those who are attracted by Japanese culture, enjoying matcha is a way to experience one of this nation’s essence.
The spread of Asian pop music, drama, anime, and beauty has increased the curiosity of Westerners about Asian traditions. Matcha also benefits from this wave and has become even more famous because of influencer culture and celebrity endorsement. This green powder has been promoted as a healthy drink for energy and mental focus by many experts and celebrities, resulting in a ripple effect among their fans. Besides celebrities, matcha has been widely adopted thanks to the widespread use of social media, particularly Instagram and TikTok.
Versatility across categories
Another reason for matcha’s rapid growth is its versatility. Matcha is not only consumed as a drink but is also a common ingredient in cakes, sweets, and other desserts. Its slightly bitter taste complements the desserts’ sweetness, making it appealing to various age groups. Consumers can easily find matcha in many products, such as lattes, smoothies, milk tea, ice cream, chocolate, cakes, and cookies.
Furthermore, matcha is gradually making its mark in the beauty industry. Its antioxidants and anti-aging properties make it a popular component in face masks, lotions, and serums, especially those aimed at cleansing and brightening the skin. The widespread use of matcha in various categories has attracted and maintained consumer interest.
Challenges ahead and the future of matcha
Challenges of matcha market
Will the matcha trend continue to grow in the future? Are there any challenges in this industry? Because of the remarkable growth, Japan is facing a ceremonial matcha shortage. Ceremonial matcha requires high-quality tea leaves, which are strictly cultivated and harvested in season. The sudden surge of the global matcha demand has quickly exhausted available supplies, beyond the capacity to restock them.
The rising demand and limited supply can also lead to unqualified matcha with lower quality, bitter taste, and uncertain effects. Therefore, it is crucial to guarantee sustainable farming methods and ethical sourcing. The supply shortage could force matcha prices up, affecting price-sensitive consumers.
The future of matcha
Currently, there are no signs that the global matcha boom will slow down. Its long history, wonderful flavor, and potential health benefits further strengthen its position across generations worldwide. Matcha’s future is brighter than ever, thanks to the increased interest of Gen Z customers and the booming of social media. New recipes and product innovations using matcha will emerge, diversifying its versatility. Matcha is getting popular not only in the food and beverage industry but also in the beauty and wellness sectors.
Conclusion
The matcha market is expected to grow in the next 10 years. This phenomenon results from health consciousness, cultural appeal, global curiosity, matcha versatility, and social media virality. Matcha’s expansion is not only introducing a bright green beverage to new markets but also bringing consumers to centuries of creation, culture, and serenity.
About Future Generation Co.,Ltd
Future Generation Company Limited is one of the largest beverage suppliers in Vietnam, with 30 years of experience in production and export. FGC is equipped with modern machines such as Hotfill PET and TetraPak, ensuring high-capacity production. FGC strives to achieve our mission to become Vietnam’s leading healthy beverage company. Our factories also meet international standards such as FSSC, ISO, HACCP, etc. In addition, we constantly innovate our machinery system, strengthen production capacity, and increase productivity.
FGC also provides Private Label Services. With this service, we can help customers in researching and formulating beverages, designing product label packaging, and creating their own brands. This is an ideal solution for small and medium enterprises. Moreover, FGC provides free samples for customers to test before bulk orders. We also ensure delivery as fast as possible.
Contact
Address: R4 building, Office Quarter 02, Royal City, 72A Nguyen Trai St., Thanh Xuan Dist., Hanoi.
Phone: +84 24 73 000 125/ +84 24 73 063 369
Mail: info@vietnam-tea.com
Website: https://vietnam-tea.com/ – https://oem-fgc.com/
Facebook: https://www.facebook.com/fgcvietnamtea