Matcha Market Projected To Reach USD 7.46 Billion by 2032, to Grow at a CAGR of 6.03% From 2025 To 2032

Matcha Market revenue is expected to grow at a CAGR of 6.03% from 2025 to 2032, reaching nearly USD 7.46 Bn by 2032.

MIAMI, FL, UNITED STATES, July 1, 2025 /EINPresswire.com/ -- Matcha Market Size was valued at USD 4.67 billion in 2024 and is projected to reach USD 7.46 billion by 2032, growing at a CAGR of 6.03% during the forecast period.

Matcha Market Outlook

The worldwide Matcha Market is full of traditions but is driven by modern-day demand for functional health beverages and superfoods. Matcha is a bright green, finely powdered tea processing tea which is very rich in antioxidants. Matcha has gone from ceremony and traditional use to shops, skincare, energy drinks, and functional foods around the world. Possibly driven by consumer demand for natural energy, detoxification, and wellness, matcha is redefining global tea. With metros finding success through foodservice conversions, new RTD products, and the Millennial conquest, the matcha market is primed for continued growth, although there are now some emerging constraints of supply based on its traditional artisanal products.

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Matcha Market Dynamics

Drivers:

Demand for Functional Food: Matcha has 137x more antioxidants than traditional green tea (which has antioxidants); the healthy properties of L-theanine improve energy, focus, and detox, which supports wellness-focused modern living.

Product Development: Matcha has quickly moved into different product categories, including lattes, RTD beverages, bakery, protein bars, and skin care (moving the consumer appeal significantly).

Partnerships: Big brands like Starbucks and KitKat have launched matcha offerings around the world, which will contribute to more mainstream acceptance and increase demand for matcha products.

Restraints:

Supply Chain Constraints: Ceremonial-grade matcha utilizes a single harvest in spring and is literally made through stone-milling, creating restrictions. These restrictions have recently created shortages and price uncertainty as demand increases significantly.

High expense: Labor-intensive processing and sourcing of raw materials only from good quality in Japan leads to difficulties in scaling, which increases prices and then limits affordability for mass consumption.

Opportunities:

B2B Expansion via F&B Giants: Partnership with PepsiCo, Starbucks, and Unilever is enhancing global distribution, driving consumer education, and commencing integration of matcha into broader foodservice channels.

Sustainability and Traceability: Growth in demand for organically sourced, transparent, and heritage matcha is making a place for premiumization and differentiation within developed markets.

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Matcha's Explosive Search Popularity & Seasonal Opportunity

Searching "matcha" in Google will show millions of results in just 0.46 seconds, which means that matcha is becoming one of the most popular digital trends worldwide. Matcha search interest has only increased since 2010, with peaks at the end of each summer. This seasonal surge shows a major market opportunity. Iced Matcha Lattes, a combination of health-forward trends & cooling refreshment, can serve as a perfect seasonal driver for cafés, retailers, and beverage brands. To connect with today’s consumers and capitalize on organic search demand and consumer interest.

Matcha Market Segmentation

By Product Type:

Regular Matcha (Dominates with >60% share – widely used in RTD and baked goods)
Organic Matcha
Ceremonial-Grade Matcha
Flavoured Matcha

By Form:

Powdered Matcha (Leads the market with >80% share)
Matcha Tea Bags
Liquid Matcha
Matcha Capsules

By Application:

Food & Beverage (Largest application segment)
Nutraceuticals & Supplements
Cosmetics & Personal Care
Others

By Distribution Channel:

Supermarkets & Hypermarkets
Online Retail (Fastest-growing)
Specialty Stores
Convenience Stores
Foodservice
Others

Regional Insights

Asia-Pacific leads the worldwide matcha market, particularly Japan, which is the center of production for ceremonial-grade matcha, and China, which is the destination of choice for mass exports of culinary-grade matcha. Cultural heritage as an ‘ingredient’. The region benefits from cultural heritage, strong domestic consumption, and the global bubble tea boom. North America Natural Wellness Drink Market is experiencing rapid demand from both consumers who are the Millennials having a penchant for wellness natural drinks and usage by coffee chains, bakeries, and functional drink brands.

Matcha love is taking Europe by storm through clean-label and gourmet trends, with everyone from KitKat to Selfridges reporting almost an 80% YoY increase in matcha-related sales. The area is also known for sustainable and organic matcha production. low but growing adoption in the Middle East & Africa and South America as retailers expand their distribution, cafes start to emerge, and awareness of specialty tea increases, with Argentina and South Africa as examples of niche players.

Competitive Landscape

Key Players in the Matcha Market:

Aiya America (U.S.)
AOI Tea Company (U.S.)
DoMatcha (Canada)
Green Foods Corp. (U.S.)
Unilever (U.K.)
Vivid Vitality Ltd. (U.K.)
Matcha & More GmbH (Germany)
Tè Matcha Italia (Italy)
Aiya Co. (Japan)
Ippodo Tea Co. (Japan)
Fujian Anxi Tea Factory (China)
Tata Consumer Products (India)
myMatcha (South Africa)
Mambila Beverages (Nigeria)
Al Arusa Tea (Egypt)
Grupo Nutresa (Colombia)
Ajegroup (Peru)
Establecimiento Las Marías (Argentina)

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Recent Developments

Aiya Co. & PepsiCo Partnership (2024): For ceremonial-grade matcha to be used in a new functional beverage line, which is expected to add $500M in revenues by 2026.
Ippodo Expansion (2024): $20 M invested in a new Kyoto facility to produce 40% more tea, given booming global demand.
Starbucks Matcha Latte Growth: Global matcha drink expansion fueled by Millennial popularity and the Japan-U.S. rollout.
Nestlé KitKat Matcha Expansion: UK and Europe.lypr.co.kr has been a part of countless media relations across the globe, launches deliver 80% YoY revenue growth, establishing matcha as the leader of flavor innovation.

Matcha Market Summary

The global Matcha market will reach 7.46 billion USD by 2032 from 4.67 billion USD in 2024, with a CAGR of 6.03%. With the advent of the functional food revolution, the need for cultural authenticity and a growing health-conscious consumer market, matcha is transcending from an artisanal Japanese tradition to a global wellness staple. APAC is still the manufacturing powerhouse, while North America and Europe quickly add through partnerships, cafes, and retail chains. As advancements in RTD beverages, desserts, and supplements continue, the versatility of matcha means there is a long growth trajectory. Supply is limited because matcha is a crafted product, but forward-thinking inventory management, partnership building, and consumer education are proving the bedrock of the matcha value chain’s sustainable growth.

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