Matcha moment: A Japanese tea brews up a $96 million flavour in India

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The Economic Times daily newspaper is available online now. Read Today's Paper Matcha moment: A Japanese tea brews up a $96 million flavour in IndiaBy Manvi Pant, ET OnlineLast Updated: Nov 03, 2026, 11:53:00 AM ISTSynopsis

Matcha tea market India: The country's matcha market is set to expand, with projected revenue growth from $45.7 million in 2025 to $96.4 million by 2033. Café chains like Tata Starbucks are already seeing increased sales from matcha products, catering to evolving consumer preferences. Instagram and social media have played a significant role in the rising popularity of matcha drinks and recipes.

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Loading...×Matcha, a green drink traditionally associated with Japanese tea ceremonies, is increasingly showing up in Indian cafe orders, fruit-flavoured lattes and online searches for recipes to make at home.

The growing interest is opening up a new opportunity for beverage companies, with the Indian matcha market projected to more than double in value over the next eight years.

India’s matcha tea market generated revenue of $45.7 million in 2025 and is projected to reach $96.4 million by 2033, implying a compound annual growth rate (CAGR) of 9.8% between 2026 and 2033, according to a report by Grand View Research.

Also Read: Assam produces Matcha tea for first time, fetches Rs 3,000 per kg at auction

The country accounted for 4.7% of global matcha tea market revenue in 2025, the research showed.

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India’s matcha market growth, as projected by Grand View Research

Google India’s search data offers a glimpse of this growing consumer interest, with searches for “how to make matcha” rising 1,300% over the past year, while “matcha protein” searches jumped 2,500% and “matcha health” increased 1,000%.

More tangible signs of this growing demand are beginning to emerge at the Cafe counters.

Tata Starbucks told ET Online that sales from its matcha portfolio have nearly doubled over the past decade, while matcha accounts for an average of about 24% of beverage sales at Subko’s cafes across Mumbai, Bengaluru and Delhi.

The opportunity is to take matcha beyond premium cafe menus and build a wider consumer category, one that includes packaged drinks, instant mixes and food products, as well as the iced beverages that have helped popularise it.

Matcha google search trends

A centuries-old tea finds a new audience

Matcha’s journey began long before social media made its bright-green colour instantly recognisable. Powdered tea was consumed in China during the Song Dynasty, from 960 to 1279.

Also Read: Meet ube, the purple yam hoping to become India’s next matcha

The matcha familiar today developed in Japan between roughly 1300 and 1600, as stone grinders and bamboo whisks were introduced from China, according to Rebecca Corbett, an associate professor of teaching in history at the University of Southern California, in her 2026 research paper, titled ‘Matcha: A Short History from the Song Dynasty to Social Media’.

In Japan, matcha became closely associated with chanoyu, the tea ceremony.

Traditionally, the powder is whisked into hot water without milk or sweeteners. The modern cafe version which is cold, sweetened and often mixed with milk, fruit or espresso, is a considerable departure from that preparation.

That reinvention has helped make matcha more approachable to consumers unfamiliar with its original form, Corbett noted.

Cafe chains have offered an easy introduction, while social media has helped turn the drink’s colour, preparation and customisable flavours into part of its appeal. Starbucks’ introduction of matcha to its menu in 2006 is often cited as a milestone in its global rise.

India is now seeing that global trend translated into local menus. The question is whether the market can move beyond a relatively expensive cafe drink to formats that people can buy and consume more regularly.

The business is moving beyond the cup

Tata Starbucks has served matcha in India for more than a decade, well before its latest surge in popularity, said Adrit Mishra, the company’s Chief Operating Officer. What has changed, he said, is the breadth of consumer interest, particularly among younger customers looking beyond traditional coffee.

Tata Starbucks and Subko sales trends“Sales from our matcha portfolio have nearly doubled, with iced and cold formats emerging as particularly popular choices,” Mishra said.

The company has introduced Iced Strawberry Matcha, Iced Coconut Matcha, mango-matcha combinations and espresso-matcha fusions.

It has also extended the flavour into food, with the Mango Matcha Pastry receiving a strong response, according to Mishra.

For Subko, matcha has become a substantial part of the beverage business since it was introduced in December 2025. It now accounts for about 24% of beverage sales on average across its outlets in Mumbai, Bengaluru and Delhi, Neha Joshi, Partner for Strategic Growth and Operations at Subko, told ET Online.

Gen Z makes up the majority of its matcha consumers, she added, with millennials and people seeking beverages with less caffeine also contributing to demand.

Bengaluru is Subko’s strongest market for matcha. Joshi said demand at the chain had plateaued after its initial growth, although the company continued to see potential for the category. Consumers have been willing to pay a premium, she said, and Subko has held retail prices steady since December 2025.

That willingness to pay matters because matcha is not an inexpensive ingredient. Joshi said its beverages were priced at par with coffee, or higher in some cases, and that the raw ingredient cost significantly more than many other beverage ingredients.

The category is also expanding beyond cafes into packaged products. Tata Consumer Products said its portfolio includes Tetley Matcha and the Tetley Matcha Latte range, positioning them as part of its broader innovation and premiumisation strategy.

“Matcha is moving beyond its niche, cafe-led image as more consumers discover and experiment with new flavours, formats and global food trends,” a Tata Consumer Products spokesperson told ET Online.

Packaged products and instant mixes could bring matcha to consumers who want to try it at home without buying specialist equipment or visiting a cafe. Matcha-flavoured pastries, ice cream and other foods offer another route for companies to expand its use. Google’s rising searches for preparation tools and recipes suggest curiosity about home consumption, though search data alone cannot show how many people are actually buying the products.

Can India make the trend stick?

The market’s growth will depend on more than consumer curiosity.

Matcha is made from tencha, tea leaves that are shaded before harvest, steamed, dried and ground into a fine powder. Securing consistent quality and verifying authenticity are important challenges for businesses sourcing it.

At Subko, quality and documentation have been the biggest sourcing hurdles, Joshi said. The company uses what it describes as ceremonial-grade J2 matcha and prioritises quality and consistency over lowering ingredient costs. It has not faced significant problems with imports or supply continuity, she added.

Even the language around matcha quality can be confusing. Corbett notes that “ceremonial grade” and “culinary grade” are relatively recent marketing labels, rather than traditional Japanese grading categories. There is no global body overseeing matcha grading, she writes, so the label alone does not guarantee a uniform standard.

Globally, rising demand has put pressure on producers and contributed to shortages and price increases, Corbett’s account says. For Indian businesses, sourcing reliable supplies at prices that support wider distribution could become a key factor in how quickly the category expands.

There is also a question of who will buy matcha beyond the premium cafe customer. The current signals are strongest in specialist cafes and online interest, but India’s established tea-drinking habits and price sensitivity mean brands may have to work harder to make matcha a regular purchase. The $96.4 million forecast points to potential growth; it does not guarantee that matcha will become a mass-market staple.

Matcha has already made the leap from a traditional tea preparation to a global cafe favourite. India’s opportunity is to make the next leap, from a drink people try because it is trending to one they choose often enough to sustain a much larger market.
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