Matcha has grow to be a profitable alternative for espresso outlets, however there’s extra operational complexity behind the intense inexperienced beverage than first meets the attention, says Lee Fitzgerald, Director, Matcha Wholesale
A lot of matcha’s preliminary attraction got here from its affiliation with antioxidants, sustained vitality and general wellness, which has drawn numerous health-conscious shoppers searching for a substitute for espresso.
As soon as persons are launched to matcha, its versatility drives additional demand. It really works properly throughout a variety of codecs, from conventional tea to lattes, desserts and flavoured drinks, which has helped it transfer from a distinct segment product right into a mainstream café staple.
The Matcha Report 2026 is your information to constructing a successful technique for the vastly standard beverage class in 2026, that includes:
- 12 pages of in-depth matcha market evaluation
- Client information from the UK, US, India and China
- Business insights from senior espresso trade leaders
- Professional commentary from main matcha operators, together with Clean Avenue and Suki Tea
- Sizzling + chilly beverage desire evaluation for the UK market
Japan’s tea sector has been attempting to maintain tempo with hovering matcha demand. But it surely has concurrently been going through elementary provide points for years as an ageing farming inhabitants retires and rural areas proceed to urbanise. This leaves fewer growers producing tea annually.
On the similar time, matcha manufacturing can’t be scaled shortly.
New tea crops sometimes require round 5 years to mature earlier than they are often harvested, and the specialised gear used for harvesting, producing tencha and grinding matcha is dear and sluggish to fabricate.
Manufacturing itself can also be inherently restricted. The crops are shade-grown for roughly 20 to 50 days earlier than harvest and are often picked just one to a few occasions per 12 months. Many patrons demand first flush matcha particularly, which additional restricts volumes accessible to them. Crop yields range relying on pure circumstances akin to daylight and rainfall.
Whereas manufacturing in Japan has been rising progressively, it can’t reply shortly to the sudden spike in demand.
Matcha was as soon as largely reserved for tea ceremonies in Japan, however has grow to be a world on a regular basis ingredient. It now seems not solely as tea however in lattes, bubble tea, chocolate, ice cream, pastries, dietary supplements and wonder merchandise, fuelled by youthful and health-conscious shoppers.
This surge in curiosity has tightened availability, pushed costs larger, and led many producers to boost minimal order portions whereas prioritising long-term clients.
Some options are being promoted, notably hojicha, which suppliers are more and more positioning as a complementary or caffeine-free possibility. Different substitutes embrace powdered inexperienced tea, gyokuro, sencha, moringa and mulberry leaf. Nonetheless, these are produced in a different way and don’t replicate matcha’s flavour profile, heritage or well being advantages.
The rise of flavoured and pre-blended matcha powders has positively modified the panorama. Many of those merchandise permit suppliers to include cheaper components, akin to flavourings, sugars or different powders, whereas nonetheless promoting at matcha degree pricing. In these blends, the underlying matcha is usually a decrease grade, and its origin, traceability and testing can grow to be much less clear for the operator.
A big share of matcha at the moment is being utilized in blends. Suppliers typically combine smaller portions of real matcha with flavourings or with lower-grade matcha, typically sourced from each Japan and China, to create ‘home blends’ which can be nonetheless marketed and priced as ceremonial grade.
This may increasingly create the impression that there’s plenty of provide, when in actuality the quantity of high-quality Japanese matcha accessible in the marketplace is way extra restricted.
In my expertise, pre-blended powders restrict flexibility and might create a poor buyer expertise. In a single café, I ordered a easy matcha tea and was served a candy cinnamon-flavoured inexperienced drink as a result of the café solely stocked a flavoured mix!
Operators who wish to serve high-quality matcha are often higher off sourcing pure matcha and including flavourings themselves if wanted. That strategy offers far larger flexibility, from conventional usucha to flavoured lattes, whereas guaranteeing the matcha itself stays the main target.
It additionally ensures that they’re paying the best worth for every ingredient, not an inflated ‘ceremonial matcha worth’ for low-quality matcha and low-cost flavourings and sweeteners.
Given the imbalance between provide and demand, these looking for dependable, high-quality matcha additionally must plan forward, securing provide early and committing to quantity the place doable to lock in availability and pricing.
That’s as a result of world demand for matcha is hovering.
In response to information from the Japanese Ministry of Finance, the USA is by far the most important driver of worldwide matcha demand. Between January and November 2025 alone, the US imported roughly 3.3 million kilograms of matcha from Japan, placing it properly forward of every other market.
In Europe, Germany is presently the most important purchaser, adopted by the UK, which has been increasing at an exceptionally quick tempo. UK imports have elevated by round 333% in quantity and greater than 640% in worth year-on-year.
In Asia, Thailand and Taiwan are additionally main demand centres. Taiwan, nevertheless, imports far bigger volumes of non-powdered inexperienced tea, whereas Western markets such because the US, Germany and the UK are inclined to skew rather more closely towards powdered tea, particularly matcha.
Ask what grade of matcha is being equipped and whether or not it’s really suited to your supposed use, whether or not that’s conventional tea, lattes or different purposes. A educated provider ought to have the ability to clarify clearly why a specific grade suits your menu and goal buyer.
Origin and traceability are equally vital. Operators ought to know the place the matcha is grown and produced, ideally all the way down to the area or farm, relatively than merely “product of Japan”.
It is usually value asking whether or not every batch is independently examined for contaminants akin to pesticides, heavy metals and microbiology, and suppliers ought to have the ability to offer you a replica of the take a look at outcomes.
Lastly, reliability issues. With demand persevering with to outpace provide, cafés ought to ask about lead occasions, consistency and continuity of provide to allow them to be assured the product on their menu will stay accessible and constant over time.
Demand has elevated not solely in quantity however within the sophistication of purchaser conversations. Clients are asking much more detailed questions on origin, harvest, grade, and, particularly, traceability, testing and consistency as decrease grades and blended merchandise start to enter the market.
