Matcha Report 2021: Will Matcha Rule the Tea World?

There has been a general rise in health and wellness awareness across the globe over the past year, and this has significantly contributed towards the increasing demand for superfoods. While health and wellness remain a key driver for the superfood market, the focus is shifting from the solely physical benefits to brain-health benefits as well. Drinks like matcha tea are therefore finding a lot of fans who are taking to the beverage for reasons beyond just physical benefits. Matcha tea, of course, is a superfood that has been found to offer a calmer “buzz” without the jitteriness, spikes and crashes associated with caffeine or coffee.

Matcha Tea Market and Its Phenomenal Growth

According to a new study published by Reports and Data, the matcha tea market size is expected to cross the U.S. $1 billion mark in 2020 and keep growing as the tea registers robust demand from not only tea enthusiasts but health conscious consumers who are becoming increasingly impressed with the long list of benefits that matcha tea offers.

Innovation is also playing a significant part in the growing popularity of matcha tea. For instance, in 2021, Tea Drops, the maker of bag-less tea blends, closed a U.S. $5 million Series A funding round led by BrandProject, with participation from Siddhi Capital and other existing investors. Tea Drops has raised a total of U.S. $8.4 million to date. Matcha tea is one of the highest selling products of Tea Drops, as the pre-measured, pressed form of the tea makes it easier to prepare and consume.

Green tea has been around for a long time, but matcha tea's popularity has exploded in recent years, as many in the tea industry know. Matcha has been purchased in bulk and wholesale batches by café owners and tea connoisseurs alike. As a result, the wholesale matcha industry has become flooded with a plethora of rivals selling a variety of items.

Matcha-flavored beverages have registered a 202 percent growth in the United States, while they have grown by 114 percent in the United Kingdom. In the United States, searches for matcha smoothies, cakes, ice creams, cookies and tea smoothies are increasing steadily. In UK, matcha tea, powder and latte are searched for more often tha matcha cake, ice cream and coffee.

What Else Makes Matcha So Popular?

There are many reasons for this, in addition to health and wellness – one of them being social. 

As in matcha tea, the leaves are ingested directly, it is likely that the healthy compounds found in matcha are more easily absorbed by the body. For instance, the calm buzz provided by matcha tea comes from the L-theanine (an amino acid). Some research suggests this amino acid may help improve brain function and reduce the symptoms of anxiety. L-theanine and caffeine in matcha tea may improve attention, alertness and memory. Matcha powder can increase thermogenesis (body’s rate of burning calories) from eight to 10 percent, to 35 to 34 percent of your daily energy expenditure.

There are other social aspects behind the popularity of matcha tea. In 2020, matcha lattes were the big drink trend that replaced the dalgona coffee, and it was made healthier by health influencers and vloggers by replacing sugar with coconut sugar and cream with vegan alternatives. A spike in interest level in matcha tea has been registered every time a celebrity has mentioned it on their social media, as well. Influencers and health gurus have been vocal about the goodness of matcha, and it has been observed that more women than men are becoming avid matcha tea drinkers.

However, there are concerns about the actual benefits of matcha tea. While some of experts are of the opinion only a limited amount of antioxidants in the matcha tea are actually absorbed by the body, others have pointed out that in China and Japan – from where matcha tea originates and has been widely consumed for thousands of years – is a part of a larger lifestyle. Matcha tea itself may not be answer to all the health woes faced by consumers who believe in its benefits.

Matcha: Will It Rule the Tea World?

Matcha’s complex flavor allows it to be incorporated in desserts, in addition to matcha lattes, matcha frappes, matcha waffles, green tea ice cream, cupcakes, cookies and a plethora of other offerings. However, the highest demand is for matcha tea and matcha lattes because weight watchers and health-conscious consumers have preferred to stay away from the sugar loaded desserts.

While the earthy, rich and bold flavour of matcha tea is paired well with anything ranging from a pastry to a savoury snack, More consumers are discovering the goodness of matcha tea every day, and matcha is expected to rule the tea world in the coming years.

To learn more, see the matcha report by Reports and Data here.

Researcher Paroma Bhattacharya is with Reports and Data, a company of individuals who passionately seek to provide the world with an understanding that evolution is part of the natural process that ushers in radical changes across industries. To learn more, visit