Global Matcha Market to Double by 2035, Driven by Wellness Trends and Culinary Innovation

The global matcha market is poised for robust growth over the next decade, with its value projected to surge from USD 3,373.6 million in 2025 to USD 6,717.5 million by 2035, representing a compound annual growth rate (CAGR) of 7.1%. This growth is fueled by rising consumer preference for functional, antioxidant-rich products that promote holistic wellness, energy, and mindfulness. Matcha’s transformation from a ceremonial drink to a sought-after superfood ingredient across various sectors underlines its evolving market appeal.

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Market Trends Highlighted:

1. Health and Wellness at the Core:
   Matcha’s high antioxidant content and functional benefits align with growing consumer demand for clean-label, natural, and health-enhancing ingredients. As awareness of immune support, mental clarity, and sustained energy increases, matcha is increasingly favored for its versatility and nutritional profile.
2. Culinary Grade Dominates Usage:
   In 2025, culinary-grade matcha will represent 56.2% of global demand, driven by its affordability and adaptability in applications such as smoothies, confections, dairy alternatives, and ready-to-drink beverages. Its use as a natural flavoring and coloring agent further supports demand among food manufacturers seeking cleaner ingredient lists.
3. Ceremonial Grade Sees Premium Uptake:
   While smaller in volume, ceremonial-grade matcha is experiencing rapid growth in premium segments. This is especially true within foodservice and direct-to-consumer markets, where authenticity, tradition, and quality are paramount. Premium cafés, specialty tea brands, and e-commerce channels are contributing to this segment’s high-value expansion.
4. Expansion Beyond Beverages:
   The market is witnessing increased matcha adoption in cosmetics, nutraceuticals, and functional snacks, reflecting a broader trend of cross-category innovation. Brands are leveraging matcha’s wellness positioning to tap into lifestyle-focused consumer preferences.

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Key Takeaways of the Report:

• Global Market Growth: The matcha industry is forecasted to nearly double in value over a ten-year period, reflecting strong global consumer interest in wellness-centric food and beverage choices.
• CAGR of 7.1%: This rate of growth is sustained by matcha’s reputation as a natural, clean-label ingredient with broad culinary applications and health benefits.
• Segment Leadership: The culinary-grade matcha segment will remain dominant due to its widespread use and economic viability for food producers and cafés.
• Premiumization and Experience: Growth in ceremonial-grade matcha underlines a shift towards authentic experiences and premium offerings, appealing to discerning consumers willing to pay more for quality and heritage.
• Functional Food Momentum: Matcha’s multifunctional appeal—ranging from energizing beverages to calming rituals—is central to its integration across diverse product categories.

Regional Market Outlook:

1. Asia-Pacific Remains a Key Hub:
   Japan, the origin country of matcha, continues to play a central role, with a CAGR of 5.8%, driven by tradition and domestic innovation. China and India show the highest growth prospects at 8.3% and 8.6% CAGR, respectively, due to growing middle-class wellness trends and increased consumption of natural health beverages.
2. Western Markets Embrace Innovation:
   In North America and Europe, matcha is gaining popularity as a superfood. The USA (6.2% CAGR) and Germany (6.8% CAGR) are adopting matcha in clean-label beverages, functional foods, and beauty products, indicating sustained market development and increasing consumer familiarity.

Competition Outlook:

The global matcha market is attracting a dynamic and increasingly competitive landscape, with new entrants and established brands capitalizing on evolving consumer trends. Players are focusing on product differentiation, sourcing authenticity, and innovative formulations to gain market share.

Leading Brands

• ITO EN Ltd.
• The AOI Tea Company
• Marukyu Koyamaen
• Aiya Co. Ltd.
• Midori Spring Ltd.
• Encha
• DoMatcha
• Pure Matcha
• Matcha Love
• Mizuba Tea Co.
• Others

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Key Segments

By Grade Classification:

As per grade classification, the industry has been categorized into Ceremonial, Culinary, Classic, and Ingredient Grade.

By Production Region:

This segment is further categorized into Japanese Origin, Chinese Origin, Other Asian, and Western-Produced.

By Product Format:

This segment is further categorized into Traditional Powder, Ready-to-Drink, Instant Formulations, and Supplement Forms.

By Application:

This segment is further categorized into Traditional Tea Ceremony, Modern Beverages, Culinary Applications, and Beauty & Wellness.

By Region:

Industry analysis has been conducted in key countries of North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia & Pacific, and the Middle East & Africa.