Global Matcha market set for 7.1% CAGR growth in 2035

Aashima Sharma | June 24, 2025

The global matcha market is brewing up strong growth, set to double in size from US$ 3.37 billion in 2025 to US$ 6.71 billion by 2035, according to Future Market Insights. Driven by rising demand for clean-label, functional, and plant-based wellness products, matcha is evolving from a traditional tea into a global superfood embraced across food, beverage, skincare, and supplements.

matcha - pixabay

Image credit: Pixabay

The global matcha market is on the cusp of a significant expansion, projected to grow from US$ 3,373.6 million in 2025 to US$ 6,717.5 million by 2035, according to insights from Future Market Insights (FMI). This represents a robust compound annual growth rate (CAGR) of 7.1%, underscoring a powerful and sustained global shift toward wellness-driven consumption.

Matcha’s rise as a functional superfood

At the heart of this growth is matcha’s evolving role from a traditional Japanese tea to a modern superfood, championed by health-conscious consumers around the world. Derived from shade-grown Camellia sinensis leaves that are stone-ground into a fine green powder, matcha is rich in antioxidants, amino acids, and chlorophyll. Its ability to deliver a sustained energy boost, mental clarity, and detoxification benefits without the jitters of coffee has made it a preferred choice among millennials, Gen Z, and working professionals.

FMI’s research indicates that this demographic shift is being driven by the desire for functional, clean-label, and plant-based products that support physical and mental wellness. Matcha seamlessly fits into these priorities, offering not just nutritional benefits but also aligning with broader lifestyle movements such as mindfulness, Zen-inspired routines, and natural energy enhancement.

Strong performance in food and beverage sector

The food and beverage sector continues to dominate matcha applications, accounting for the lion’s share of global revenues. FMI notes a surge in ready-to-drink (RTD) matcha products, including lattes, smoothies, cold brews, and sparkling teas, particularly in metropolitan areas. These are being widely adopted in cafés, restaurants, and health food stores, meeting demand for convenient yet health-forward beverage options.

Matcha’s versatility is also being explored across a growing range of innovative food formats, such as matcha-infused chocolates, cookies, dairy products, breakfast cereals, and energy bars. Its distinct umami flavor, vibrant green color, and functional health halo make it an appealing ingredient for food technologists and chefs alike.

With the rise of vegan and organic food trends, matcha’s natural origin and compatibility with plant-based recipes further enhance its attractiveness to consumers seeking ethical and eco-conscious food choices.

Global markets embrace the Matcha movement

While Asia Pacific, led by Japan, China, and South Korea, remains the cornerstone of global matcha consumption, North America and Europe are rapidly narrowing the gap. FMI attributes this momentum to factors such as growing awareness of adaptogens, increasing café culture, and the influence of digital wellness influencers who advocate matcha for its calming and energizing properties.

In the United States, matcha has firmly established itself in third-wave coffee shops and wellness-focused retail chains as a “better-for-you” coffee alternative. In Europe, particularly in the UK, Germany, and the Nordic countries, matcha is gaining ground among consumers who are embracing clean eating and holistic health practices.

As consumers become more selective, product transparency, quality sourcing, and eco-friendly practices are emerging as major purchase drivers. Companies are meeting this demand by offering organic-certified matcha, highlighting geographic origin—such as premium varieties from Uji and Nishio in Japan—and investing in sustainable packaging.

The rise of direct-to-consumer (D2C) models, including subscription boxes and curated wellness kits, is enabling brands to connect directly with consumers, offering personalized matcha experiences. Influencer-led storytelling and digital marketing campaigns are further fueling consumer engagement and brand loyalty.

Online marketplaces now feature a wide array of matcha types—ceremonial, premium, and culinary grades—catering to different usage preferences, from daily beverages to gourmet recipes and beauty routines.

Expanding horizons: From nutraceuticals to skincare

Beyond food and drink, matcha is making waves in nutraceuticals and personal care. Its high levels of epigallocatechin gallate (EGCG) and L-theanine have been linked to anti-aging, anti-inflammatory, and cognitive benefits. This has led to a growing portfolio of matcha-based capsules, serums, facial masks, soaps, and wellness supplements targeting health-conscious and eco-aware consumers.

FMI highlights that technological innovations, such as microencapsulation and cold processing techniques, are helping preserve matcha’s bioactive compounds. These advancements are improving shelf life and maximizing potency across delivery formats, adding further value to matcha-based products.

The global matcha market is experiencing a dynamic transformation, underpinned by shifting consumer preferences, technological advancements, and expanding application areas. With its potent combination of health benefits, clean-label credentials, and versatile usage, matcha is well-positioned to become a cornerstone of the global wellness economy.

As brands continue to innovate and align with the values of sustainability, transparency, and holistic living, matcha’s vibrant green presence is set to shine brighter across the global marketplace in the decade ahead.