India may be a chai nation, but matcha is steadily making space on its menus. Once reserved for Japanese tea ceremonies, the green tea has become a global lifestyle product and young Indians are driving its entry here through cafés, online brands, and social media.
In Japan, matcha is part of a ceremony. The bright green powder is whisked with a bamboo brush until it turns into a smooth, frothy drink. This ritual made matcha a symbol of respect and mindfulness in Japanese culture.
Over the past two decades, matcha has moved from tea rooms in Kyoto to café counters in New York and wellness aisles in London. The global matcha market was valued at US$ 3.4 billion in 2023 and is expected to cross US$ 6 billion by 2030. No longer confined to tradition, it is now sold in lattes, smoothies, cookies, protein bars, and even skincare products turning an ancient ritual into a worldwide lifestyle trend. Unlike coffee, which gives a quick jolt of energy and often a crash, matcha delivers a slower, steadier release of caffeine which is due to the amino acid L-theanine. That’s why many young consumers see it as a “smarter coffee” and giving the bursts of energy without the jitters.
Interestingly, matcha is now making waves in India which has forever been ruled by tea. For India, a nation of cutting chai at tapris, spiced masala brews at home, and steaming cups passed around office canteens, matcha is both familiar and foreign
The Matcha craze: Health, aesthetics, aspiration
In the 2000s, coffee chains changed how urban India drank coffee and matcha is beginning to do something similar for today’s youth. Millennials and Gen Z are driving the demand in pursuit of building a lifestyle.
Part of the appeal lies in matcha’s image: clean, energising, and Insta-friendly. Its distinct green hue makes it camera-ready, and its antioxidant-rich reputation makes it a popular choice. In a world where wellness is taking over matcha is a badge. This blend of health consciousness, global exposure, and social media trends is what’s propelling the matcha wave. It’s no surprise then that the matcha tea market in India, valued at US$ 104 million in 2024, is projected to grow at a CAGR of 8.6% to reach US$ 167.8 million by 2030.
Unlike chai, which is deeply local, matcha’s rise in India is powered by both cafés and clicks. Chains like Starbucks and Third Wave Coffee introduced matcha lattes as aspirational beverages the kind you try when you want to look adventurous or get a taste of International beverages.
At the same time, online-first brands have been educating consumers on how to buy, whisk, and cook with it. In 2024, 41% of India’s matcha sales came from online channels, as D2C brands tapped into Instagram reels, YouTube tutorials, and influencer tie-ups to tell the “green gold” story. The offline retail story is catching up too. Modern grocery stores and organic food shops in metros now stock multiple matcha brands, often placed next to green teas and herbal infusions turning curiosity into impulse buys.
In 2024, the powdered form of matcha held a 53.75% revenue share of the Indian matcha tea market in 2024, making it the largest product segment. Beyond whisked tea, it’s slipped into ice creams, cookies, protein bars, health supplements, and fusion desserts.
The instant premix category is growing fastest for first time buyers designed for young urban professionals who want the benefits followed by the ceremonial high grade matcha for the regular drinkers. And in India, where taste matters as much as health, brands are experimenting with local twists — from matcha kulfi to cardamom matcha blends.
Still, challenges remain. High-quality ceremonial matcha is expensive, often imported from Japan. That makes it several times costlier than regular tea, restricting it to urban elites. Taste is another hurdle. For a country raised on sweet and spiced chai, matcha’s earthy, slightly bitter flavour is unfamiliar. Brands are trying to bridge the gap with sweetened lattes, flavoured blends, and dessert-style infusions.
Interestingly, there’s an untapped opportunity in domestic cultivation. With tea-growing belts in Assam, Darjeeling, and Nilgiris, India has the potential to produce its own matcha. Local production could cut costs, create a “Made in India” identity, and even open doors to exports.
Will matcha replace chai?
Will matcha replace chai? Probably not. But it doesn’t need to. What’s happening instead is coexistence. Chai remains comfort, routine, and nostalgia. Matcha represents aspiration, wellness, and global belonging.
Over the next few years, expect three big shifts:
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Mass reach: affordable matcha premixes targeting tier-2 and tier-3 cities.
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Diversification: more matcha in nutraceuticals, beauty, and even fitness products.
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Localisation: Indian-grown matcha building both domestic and global credibility.
As India’s youth balance heritage with modern lifestyles, matcha captures that tension perfectly, it’s global, aspirational, and just experimental enough to feel fresh. But for matcha to truly move beyond cafés and Instagram and become part of everyday life, it will need innovation. Brands will have to create formats that are easy to adopt and simple to fold into daily routines.
FAQs on Matcha Tea in India
1. Why is matcha becoming popular in India?
Matcha is gaining popularity in India because it combines health benefits with lifestyle appeal. Its antioxidant-rich profile, steady energy release (without coffee jitters), and Instagram-friendly aesthetic make it especially attractive to millennials and Gen Z.
2. How is matcha different from green tea and coffee?
Unlike regular green tea, matcha uses whole tea leaves ground into a fine powder, making it richer in nutrients and antioxidants. Compared to coffee, matcha provides a calmer, longer-lasting energy boost thanks to the amino acid L-theanine, which balances caffeine.
3. What is the size of the matcha tea market in India?
India’s matcha tea market was valued at US$ 104 million in 2024 and is expected to reach US$ 167.8 million by 2030, growing at a CAGR of 8.6%. This growth is driven by rising health awareness, café culture, and online-first brands.
4. Is matcha grown in India or imported?
Currently, most high-quality ceremonial-grade matcha is imported from Japan, making it expensive. However, India’s tea-growing regions like Assam, Darjeeling, and the Nilgiris have potential to cultivate matcha locally, reducing costs and creating a “Made in India” matcha identity.
5. Will matcha replace chai in India?
No, chai remains India’s cultural staple and comfort drink. Matcha is carving a complementary niche, representing wellness, aspiration, and global exposure. The future is likely to be coexistence, with matcha growing as a premium, lifestyle-driven alternative alongside chai.
