Matcha Tea Market to Eyewitness Massive Growth by $4,480.5 million with a growing CAGR of 7.1% from 2021 to 2027.

Matcha Tea Market

Allied Market Research published a report, titled, “Matcha Tea Market By Product Type (Regular and Flavored), Form (Powder and Liquid), Nature (Conventional and Organic), and Sales Channel (Supermarket/Hypermarket, Specialty store, Foodservice, Online Store, and Others): Global Opportunity Analysis and Industry Forecast, 2021–2027.” According to the report, the global matcha tea industry was estimated at $2.45 billion in 2019, and is expected to hit $4.48 billion by 2027, registering a CAGR of 7.1% from 2021 to 2027.

Matcha tea is one of the types of green tea that is prepared from Camellia sinensis plant by picking young tea leaves and subsequently grinding these tea leaves into a bright green powder. Matcha tea is available in two different forms, which include powder and liquid. Expansion of distribution channels such as online stores, supermarkets, hypermarkets, and foodservice has made matcha tea easily available to customers, which, in turn, contributes toward the growth of the matcha tea market. Moreover, ready-to-drink matcha tea is gaining high popularity among the consumers. In addition to this, Matcha tea market analysis includes the analysis of the regional as well as global market, key players and market segments. 

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Frontrunners in the industry-

  • Ikeda Tea World
  • AOI Tea Company
  • Unilever
  • The Hain Celestial Group Inc.
  • Marukyu Koyamaen
  • ITO EN Ltd.
  • Encha
  • Grace & Green
  • Green Foods
  • TATA Consumers products Ltd.

Drivers, restraints, and opportunities-

Rise in number of health-conscious consumers globally, product innovations, and surge in demand for organic products drive the growth of the global matcha tea market. On the other hand, potential threat of substitution and availability of counterfeit products impede the growth to some extent. However, increase in demand from the cosmetic, culinary, and food industry globally and rapid growth of online retail platforms are expected to pave the way for lucrative opportunities in the industry.

Covid-19 scenario-

  • The outbreak of the pandemic has made consumers across the world seek health and wellness food & beverages, including matcha tea to boost their immunity.
  • This shift is likely to continue post-pandemic, since the properties in matcha tea are proven to keep individuals hearty and healthy.

The regular segment to lead the trail by 2027-

Based on product type, the regular segment accounted for more than half of the global matcha tea market share in 2019, and is expected to rule the roost by the end of 2027. Rise in consumption of wellness tea such as match tea on daily basis fuels the segment growth. The flavored segment, on the other hand, would register the fastest CAGR of 7.7% from 2021 to 2027. The flavored matcha tea offers additional health benefits of spices, herbs, and fruits, thus providing maximum advantages. This factor propels the segment growth.

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The powder segment to dominate during the forecast period-

Based on packaging, the powder segment contributed to more than half of the global matcha tea market revenue in 2019, and is anticipated to lead the trail by 2027, due to its multiple health benefits. Simultaneously, the liquid segment would grow at the fastest CAGR of 7.5% throughout the forecast period. This is because of the rise in popularity of ready-to-drink matcha tea in the beverage market, as it is made available in different flavors, in sweetened or unsweetened form, and can be consumed chilled as well.

Asia-Pacific, followed by North America, held the major share in 2019-

Based on region, Asia-Pacific, followed by North America, held the major share in 2019, garnering around half of the global matcha tea market. Surge in the number of health-conscious consumers in North America is expected to drive the growth of the market. At the same time, the market across North America would exhibit the fastest CAGR of 7.5% from 2021 to 2027. This is attributed to increase in consumption of wellness beverages, including matcha tea in countries such as China, Japan, Vietnam, and Indonesia.

Key findings of the study

  • By product type, the regular segment garnered the highest share in 2019, and is expected to grow at a CAGR of 6.6% from 2021 to 2027.
  • Depending on nature, the conventional segment accounted for the highest matcha tea market share in 2019 and is estimated to exhibit a CAGR of 6.8%.
  • On the basis of form, the powder segment dominated the market in 2019, and is likely to grow at a CAGR of 6.8%.
  • As per sales channel, the online store segment led the market, in terms of share, in 2019, and is projected to register a CAGR of 9.7%.
  • Region wise, Asia-Pacific occupied the maximum share in the matcha tea market in 2019, and is expected to dominate the market during the forecast period.

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