Japan Matcha Tea Market Size, Share, and COVID-19 Impact Analysis, By Product (Powder, RTD Beverage, and Instant Premixes), By Grade (Classic, Ceremonial, and Culinary), and Japan Matcha Tea Market Insights, Industry Trend, Forecasts to 2035

Japan Matcha Tea Market Insights Forecasts to 2035

• The Japan Matcha Tea Market Size Was Estimated at USD 361.1 Million in 2024
• The Market Size is Expected to Grow at a CAGR of Around 7.53 % from 2025 to 2035
• The Japan Matcha Tea Market Size is Expected to Reach USD 802.9 Million by 2035

According to a research report published by Spherical Insights & Consulting, The Japan Matcha Tea Market Size is anticipated to reach USD 802.9 million by 2035, growing at a CAGR of 7.53 % from 2025 to 2035. The matcha tea market in Japan is driven by various factors, including rising awareness of health and fitness products, rising demand for nutrient-rich products, rising application in several savory and sweet recipes, and rising awareness of its health benefits.

Market Overview

Matcha tea is a finely ground powder made from specially grown and processed green tea leaves, primarily from the Camellia sinensis plant. Matcha is ingesting the entire leaf in powdered form, whisked into water or milk, as opposed to ordinary green tea, where the leaves are steeped and thrown away. The Japan matcha tea market encompasses the production, processing, distribution, and consumption of matcha—a finely milled, shaded green tea powder deeply rooted in Japanese tradition. It is available in various product types such as powder, RTD beverage, and instant premixes. Matcha is prized for its ceremonial use, unique umami flavor, and noteworthy health benefits, including its high antioxidant content in the form of theanine and catechins. The traditional tea ceremony and other aspects of Japan's cultural legacy continue to have a significant impact on the country's matcha tea market. Deeply ingrained in Japanese culture, these rituals always include matcha, highlighting its dual function as a daily beverage and a cultural relic. About 55% of people actively engage in traditional tea consumption, according to data from the Japan Tea Association, which supports the ongoing demand. Additionally, tea ceremony workshops are often held by educational institutions to introduce the cultural and historical value of matcha to younger generations. These rituals' continued existence supports market stability by establishing matcha as a product that embodies social and cultural tradition in addition to its practical value, which promotes long-term market growth. The rising demand for organic and natural products is a key trend in this market. Opportunities in the Japanese matcha tea market are growing as businesses put more of an emphasis on creating cutting-edge products that satisfy changing customer tastes and broaden their range of applications.

Report Coverage

This research report categorizes the market for the Japan matcha tea market based on various segments and regions, and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan matcha tea market. Recent market developments and competitive strategies, such as expansion, product launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Japan matcha tea market.

Driving Factors

The people are becoming more health-conscious is driving up the demand for matcha because of its potential health advantages, which include antioxidant qualities and possible weight-loss effects. Matcha's appeal is boosted by the emergence of a tea culture that prioritizes traditional methods, particularly among younger generations who are concerned with sustainability and wellbeing. A solid foundation for matcha usage in tea and sweets is created by this cultural respect. The growing diversification of matcha-based products in Japan’s food and beverage industry is boosting market expansion. Additionally, rising demand for organically farmed matcha, with a 30% increase in certified organic tea cultivation (2018–2023), is boosting domestic and international market growth.

Restraining Factors

The price of matcha tea is higher than regular tea due to labor-intensive cultivation and processing, which is a notable restraint for this market. Additionally, the competition from substitute products like herbal teas, green teas further limits the market expansion.

Market Segmentation

The Japan matcha tea market share is classified into product and grade.   

• The powder segment held the largest market share in 2024 and is expected to grow at a rapid CAGR during the forecast period.    

The Japan matcha tea market is segmented by product into powder, RTD beverage, and instant premixes. Among these, the powder segment held the largest market share in 2024 and is expected to grow at a rapid CAGR during the forecast period.  This is due to the rising popularity of the product, due to its health benefits. Additionally, powdered tea's antioxidant content protects against damaging UV rays and helps avert the development of chronic illnesses.

• The classic segment held the highest share in 2024 and is expected to grow at a significant CAGR during the forecast period.   

The Japan matcha tea market is segmented by grade into classic, ceremonial, and culinary. Among these, the classic segment held the highest share in 2024 and is expected to grow at a significant CAGR during the forecast period. This segmental growth is attributed to its low cost and easy blend with a wide range of food and beverages. Additionally, the expansion of the segment is expected to be driven by rising consumption by both new users and regular tea drinkers due to its delicate, fresh flavor.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan matcha tea market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Yukiwatari
• Marukyu Koyamaen
• Aiya Tea
• Ippodo Tea
• Ito En
• AOI Tea Company
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at the Japan, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the Japan matcha tea market based on the below-mentioned segments:

Japan Matcha Tea Market, By Product

• Powder
• RTD Beverage
• Instant Premixes

Japan Matcha Tea Market, By Grade

• Classic
• Ceremonial
• Culinary