A decade ago, Matcha was something you’d spot in glossy travel magazines or on the menus of upscale cafés in Tokyo. But today, India’s urban millennials are sipping it cold, blending it into smoothies, and even baking it into desserts. Matcha is seemingly becoming one of this country’s newest wellness obsessions, and brands are capitalising on this green gold rush. “With its origins in Japan and China, Matcha tea is gaining significant traction in India, Its market size is projected to grow at a robust CAGR of 8.6%, from approximately USD 104 million in 2024 to an impressive USD 167 million by 2030,” Anand Ramanathan, partner and consumer industry leader, Deloitte India, told financialexpress.com. The nearly 9% CAGR is propelled by consumers who are trading in sugar-laden beverages for functional, health-focused options. The transformation is especially visible in metropolitan and Tier-1 cities, where aspirational lifestyles meet global trends, Ramanathan added.
Who’s drinking Matcha?
The early adopters are a familiar set: urban millennials and Gen Z consumers looking for clean energy boosts and Instagrammable experiences. “Matcha remains a niche product with an acquired taste, primarily attracting those who already appreciate its unique flavour,” Adnan Sarkar, founder, Easy Boba, said. His brand has stayed true to authentic Matcha, but plans are in place to introduce localised flavours to woo a broader audience. Consumers adopting matcha are often fitness enthusiasts, yoga practitioners, and individuals seeking natural, organic, and functional beverages as part of a clean and health-focused lifestyle. Experts opine that Indian consumers are more inclined to matcha lattes and supplements. The traditional way of drinking and appreciating matcha is a trend that may take some time however it’s growing.
At Rush, the numbers tell their own story. Women form nearly 70% of their Matcha customer base, with most buyers between 22 and 35 years old. “Our customers are trend-followers who appreciate the aesthetic and the health benefits,” Nityam Chhabra, co-founder, Rush, commented.
For some, Matcha is no longer a side note; it’s core to their business. According to industry experts, the top five consumers of matcha are Japan, USA, China, Germany, and the UK. India is quickly catching up but is still price-sensitive. GotTea has seen Matcha’s contribution to its beverage sales grow from 6-7% in its early days to around 20% now. “Beyond fitness enthusiasts, we’re seeing strong interest from trend-seekers and traditional tea drinkers alike,” YuSung Eo, founder, GotTea, said. The brand’s lineup has expanded to include Matcha smoothies, desserts, and soon, ready-to-drink formats.
Rush has also been quick to innovate. Since relaunching, they claim to have sold over 1,000 cups in just one month, with signature offerings like honey-lavender Matcha and coconut Matcha floats winning over the summer crowd.
Where do they source the Matcha from?
Quality remains at the heart of the Matcha business. GotTea sources from Shizuoka, Japan, while Rush relies on Kyoto’s famed tea estates, and Nasi and Mee sources its gourmet-grade Matcha from Malaysia. “Authentic Matcha must be bright neon green, smooth to the touch, and packed airtight. Anything less, and the experience turns bitter. Furthermore, it takes 6kg of fresh tea leaves to make 1kg of Matcha. Although high-quality Matcha is expensive to source, the Indo-Japanese trade agreement with zero duty on Japanese origin import makes it easier to sell authentic Matcha,” Rupali Ambegaonkar, Business Head, Tea Culture of the World, noted.
Matcha in FMCG
The future, say industry leaders, lies in Matcha-based FMCG products. “RTD Matcha beverages and Matcha-infused protein bars are the next big frontier,” Eo added. Rush is also working on a direct-to-consumer product line, with plans to experiment later this year. Ambegaonkar envisions Matcha finding its way into ice creams, salad dressings, and energy snacks. “Matcha KitKats are already popular globally — the potential here is immense,” she added.
Social platforms are proving to be Matcha’s best marketing partners. “Its vibrant colour and elaborate preparation make it naturally engaging content,” Eo said. Rush has partnered with yoga communities and running clubs to position Matcha as part of a wellness lifestyle.
Matcha or Chai and Coffee?
While India’s beverage culture is dominated by chai and coffee, Matcha isn’t necessarily competing; it’s complementing. “We position Matcha as an aspirational product with health benefits,” Chhabra said. Pricing remains a tightrope: too low risks diluting its premium appeal, while too high could alienate potential consumers.
One of Matcha’s biggest barriers is its perceived bitterness. Dilip Krishnan of Nasi and Mee has tackled this head-on, introducing Matcha panna cotta and Matcha French toast. “In just six weeks, three out of five tables order one of our Matcha-based items,” he said.
What’s next for Matcha in India?
It’s almost poetic — a drink so unapologetically green, once dismissed as “grassy” or “bitter,” now sitting at the centre of café menus and social media feeds. In a country where brown chai and frothy coffee reign supreme, this vibrant emerald powder has found its way into the hands (and hearts) of India’s young and curious. As YuSung Eo, founder of GotTea, puts it, “Its vibrant green colour and unique preparation process make it highly engaging on platforms like Instagram and YouTube.” Watching that vivid swirl of matcha blend into milk, topped with foam, served in tall glasses — it’s theatre in a cup.