Matcha Tea Market – Growth, Latest Trend & Forecast 2025 | ITO EN ltd., Tata Global Beverages Ltd., Starbucks Corporation


The evolution of a new breed of tea lovers that search for new flavor variants has led to a skyrocketing growth of several tea varieties. Companies offering matcha tea have responded positively to this new consumption trend. As black tea consumers are migrating to newer options such as yerba matte and matcha tea, an array of new matcha tea brands can be seen flocking retail shelves to tap into these new consumer dynamics. The availability of matcha tea in multiple packaging formats and different price ranges encourages customers of every income group to try them.

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The introduction of on-the go matcha tea has been trending, which is likely to create a strong pool of new customers who seek convenience of carrying them. On the back of these dynamics, global matcha tea market is projected to garner an absolute dollar opportunity of over US$ 400 Mn during the forecast period (2019 and 2025).

Key Takeaways of Global Matcha Tea Market

  • Unsweetened matcha tea accounted for approximately half of the market share in 2018, and this segment is also projected to garner the highest CAGR.
  • The organic variant of matcha tea is estimated to create an absolute $ opportunity of around US$ 90 Mn between 2019 and 2025. This variant is also expected to witness higher growth as compared to conventional matcha tea.

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  • The market for stand up pouches is projected to grow by 1.7X during the forecast period. Matcha tea in stand-up pouches generated both the highest volume as well as highest value sales in 2018.
  • Retail sales accounted for over 80% of the matcha tea revenue in 2018, in which sales through supermarkets was the highest.

“While North American and European matcha tea markets are slated to witness double digit-projected growth, companies here should focus on increasing production capacities to eradicate the possibilities of demand-supply gap.”, says the Fact.MR analyst

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Matcha Tea Competitors are optimizing their Portfolio with a Mix of Premium, Mid-Range and Economic Matcha Tea Offerings

Matcha tea manufacturers are offering their products in a price range of US$ 20 – US$ 130, which varies between sales channels. Companies including ITO EN Ltd, The Hain Celestial Group Inc., Aiya-Co. Ltd., and The AOI Tea Company are offering matcha tea in premium, mid and economic ranges, while the other players are offering them mostly in mid and economic ranges. While, the demand for premium matcha tea is expected to increase at a faster pace as compared to the mid and economic ranges, manufacturers will focus more on premium variants.

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