Global "Matcha Market" is expected to grow at a high CAGR of 9.6% during the forecasting period (2022-2029).
Matcha is finely ground powder of specially grown and processed green tea leaves. Unlike green tea, which is consumed by steeping in water, matcha is consumed by dissolving in water, which results in higher nutrient intake.
Matcha has high content of antioxidants which helps in boosting immunity in the body. oxygen radical absorbance capacity (ORAC) of matcha is approximately 1384 units per gram, which is higher than other popular antioxidant-rich foods like goji berry (253 units per gram), dark chocolate (227 units per gram), pecans (180 units per gram), walnuts (135 units per gram), pomegranates (105 units per gram). Matcha also contains vitamins, minerals, and amino acids. Matcha is especially high in epigallocatechin-3-gallate (EGCG), a type of catechin that has been shown to have powerful anti-cancer properties. the concentration of epigallocatechin gallate (EGCG) available from drinking matcha is 137 times greater than the amount of EGCG available from China Green Tips green tea, and at least three times higher than the largest literature value for other green teas. Since matcha is dissolved directly into water, the nutrients are not lost which results in higher nutritional intake than other beverages like green tea.
Increasing chronic diseases across the globe are expected to boost the health beverages market in turn boosting the matcha market. More than 10% of Americans have diabetes, according to center for disease control and prevention (CDC). Matcha could prevent liver damage and decrease the risk of liver disease. Matcha contains theanine, an amino acid, which helps in stress reduction. The nutritional benefits and the health benefits associated with matcha are expected to drive the global matcha market. It also provides steady energy, unlike coffee which provides a caffeine crash.
Significantly higher price of matcha over its other counterparts will hinder the market. Matcha comes from shade-grown tencha leaves of the plant called Camellia sinensis and could only be grown in Uji in the Kyoto region and Nishio in the Aichi region of Japan due to the constraints in soil and environment type, which increases the production cost. It could be as high as 3-6 times more expensive than regular green tea. Although it should be fine for most people, higher caffeine content than green tea would mean it is not for everybody. For instance, people with a heart conditions should also stick to the 200 mg of caffeine daily limit, according to Harvard Health Publishing.
Covid-19 Impact Analysis:
While the global trade came to halt during the lockdowns imposed to control the spread of novel coronavirus, the food industry has been impacted by severe freight challenges. Most of the food categories including matcha witnessed decline in sales volume due to lack of demand and supply chain disruptions. The sales declined in the food industry, particularly in foodservice and HoReCas. This weakened business in global honey market imposed a negative impact on the matcha market. Adding to this, matcha is only grown in specific regions of Japan and since the international exports had been shut down, there was a huge negative impact. However, the general health awareness has increased among consumers across the globe which is expected to massively increase the demand for matcha, owing to its health benefits, once the condition gets back to normal.
By grade, the global matcha market is segmented into culinary and ceremonial. Culinary grade leads the market owing to its extensive applications and cheaper price tag. Ceremonial grade matcha is the highest quality grade of matcha. It tends to be slightly more subtle and nuanced than culinary grade matcha and should be consumed on its own rather than added to lattes and other confections. Culinary grade matcha is a slightly lower grade of matcha than ceremonial grade matcha. It is usually less expensive and is designed to be added to lattes, smoothies, baked goods, and other recipes. Culinary-grade matcha tends to have a less nuanced flavor designed to stand up to other ingredients. Culinary is further segmented into premium, café, ingredient, kitchen, classic.
By Application, matcha market has been segmented into regular tea, matcha beverages, food, personal care. Regular tea leads the market with more than 50% market share owing to the extensive health benefits of matcha while consumed as regular tea. Rising demand for low-calorie beverages has increased the usage of matcha in cafes owing to the detoxifying and energy-enhancing properties of matcha. Popular cafes like Starbucks Corporation are including matcha beverages in their menu.
By Geography, the global matcha market has been segmented into North America, Asia Pacific, Europe, Middle East, and Africa, South America. Asia Pacific leads the market with more than 50% of the market share owing to the extensive traditional usage of matcha in China and Japan. Australia, Singapore, and India are also expected to see a rise in matcha usage owing to its health benefits.
North America is expected to see the highest growth rate in the forecast period owing to the rise in health-conscious people in the developed countries of U.S., and Canada. Matcha has become a regular item in many cafes in this region which will boost the beverage segment of matcha market. Europe, mainly Western European countries, is also expected to see a massive growth rate owing to the same reasons.
The global matcha market is highly competitive with the presence of several international and local players. Product diversification, revenue generation, and opportunities intensify the market competition. Matcha Maiden, AIYA America Inc., Ippodo Tea Co., and Ito En Ltd are the leading market players with significant market share. Innovation in terms of packaging and marketing of matcha is the key focus of these companies.
On the other side the matcha market has been consolidated in terms of production of matcha with established, majorly Japanese, companies dominating the market. Since matcha is grown and imported only from a few regions of Japan, there is lesser scope on production side. However, with increasing demand for matcha in recent times, especially in Europe and North America, there is scope for research in finding new methods to grow matcha or related hybrids in other conditions.
Family-owned and operated since 1888, Aiya is the largest producer of premium Japanese Matcha green tea. Based in Nishio, Japan, Aiya oversees all phases of the Matcha production process. Aiya America supports the North American market by supplying Matcha powder in bulk to manufacturers, wholesale quantities to small businesses and cafés, and Aiya Matcha branded products to retail customers. Currently, Aiya holds over 80% of the exclusive harvesting rights to Nishio’s tea plantations.
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