Matcha Market Analysis

Matcha Market Analysis

The pan-fried production technology is predicted to witness significant gains from 2023 to 2032, driven by the high demand for variety of tea flavors with added nutritional properties, such as selenium, zinc, vitamin C, magnesium, vitamins, and fibers. Of late, there is rising preference for toasty & smoky flavors in comparison to the vegetal taste of other green teas. Pan-fried matcha offers smoother and more mellow flavor as the pan-frying process helps in preserving the natural sweetness of tea leaves and reducing the bitterness and astringency. The influx of several innovative technologies in tea-beverage processing to facilitate quality improvement will add to the market growth.

The regular tea application segment is anticipated to showcase significant revenue share of the matcha industry by 2032. The growth can be attributed to the higher consumer purchasing power and the limitations of regular green tea in combating bacteria, viruses, and fungi. The consumption of matcha tea renders various advantages, such as concentrated antioxidants, reduced risk of cancers, and faster burning of calories. The growing emphasis on new flavors and formulations for product portfolio expansions will also drive the segment growth. For example, in November 2022, Numi Organic Tea introduced its roasted Japanese green tea line, comprising Matcha Toasted Rice Green Tea.

North America matcha market is poised to witness appreciable CAGR between 2023 and 2032 due to the surging preference for nutritional health drinks owing to the emerging fitness trends. The growing consumer inclination for convenient and on-the-go options, especially tea is driving the popularity of ready-to-drink matcha beverages in the region. The increasing consumption of desserts is also leading to the higher adoption of matcha in waffles, pancakes, popcorns, and puddings. Rising interest in gluten-free food along with the ease of online shopping of matcha powder and products through e-commerce platforms will prove favorable to the regional industry growth.