Matcha Market, by Grade, Application, Distribution Channel

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Matcha is a ground powder obtained from specially processed and grown tea leaves. The tea leaves used in the manufacturing of matcha are specially grown in darkness for three weeks before being harvested, to stimulate higher levels of chlorophyll. The veins and stems of these leaves are then removed during the process, while preparation of matcha lasts up to 20 days. Matcha involves a slow grinding process, with aim to keep the aroma intact. It takes at least one hour to yield 30 grams of matcha. The flavor of matcha leaves depends upon its amino acid levels, the highest grades of which are recognized by intense sweetness and aroma. Matcha is primarily produced in China and Japan.

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Increasing health awareness regarding the health benefits of matcha tea among the populace is driving growth of the matcha market. Matcha contains high antioxidant content, mainly EGCG, which aids in the prevention of bladder, prostate, cervix, and brain cancer. High amino acid content in matcha helps reduce stress, enhance alertness and mental calmness, and prevents chronic diseases such as diabetes and gastrointestinal illnesses. Matcha is also known to boost metabolism and burn calories, due to which is it widely used for weight loss management. Growing health consciousness and figure consciousness globally, is increasing the demand for matcha tea, in turn boosting growth of the matcha market.  Easy availability of matcha tea in retail stores, online stores, and hypermarkets, among others is further fueling growth of matcha market.

Among grades, the classic segment accounts for the largest segment and is expected to retain its dominance throughout the forecast period. The subtle flavor of the grade and rich nutrient content are the major factors driving demand for classic grades. Among applications, the regular tea segment holds a dominant position in the market, owing to increased influence of the Japanese tradition and increasing purchasing power of the populace.

Growing prevalence of diabetes, in turn, is expected to boost demand for matcha tea. For instance, according to a research study published in American Journal of Clinical Nutrition, 2008, regular consumption of green matcha tea can increase fat oxidation during moderate-intensity exercise and can improve insulin sensitivity and glucose tolerance.

Asia Pacific holds the largest market share and is expected to retain its dominant position in the market over the forecast period. Owing to the strong tea culture in Japan and China, the matcha market is highly dominant in these countries. Moreover, health benefits associated with matcha is expected to fuel growth of the market in India, Singapore, and Australia over the forecast period. Additionally, Japan being the home to matcha tea, as well as low production and processing costs in these countries are the major factors boosting growth of the matcha market in the region.
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North America is the second-largest market and is expected to expand at a rapid pace. Growing awareness of health benefits associated with matcha and growing influence of Japanese tradition are contributing to growth of the market in the region. Major cities in the U.S. such as Miami and Los Angeles have wide range of cafes providing mactha food and beverages.

Key players in the Matcha Market

Some of the major players operating in the global matcha market are The AOI Tea Company Ltd, DoMatcha, Encha, Midori Spring Ltd., Ippodo Tea Co., AIYA America, and Vivid Vitality Ltd.


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