Matcha mania: how big can the trend get?

Matcha mania is here to stay. So says Ryan Moore, co-founder of Blendsmiths, who baulks at the idea of the green brew being a ‘trend’. “How can something that’s been around for thousands of years be a trend?” he asks.

He’s right, of course. In Japan, matcha is part of an ancient ritual involving samurai, who consumed ceremonial-grade cups before battle.

It’s only in the past few years western markets have cottoned on to its benefits of mental clarity and slow energy release. But rather than going into battle, consumers are using the jitter-free caffeine boost to prepare presentations or smash through spreadsheets.

The appeal has proven so powerful that matcha has become a hot fixture in high streetcoffee chains as well as supermarket aisles. Bird & Blend Tea Co has even hailed it as “the new coffee”.

The only fly in the ointment is supply. It can take up to seven years to develop a fully commercial ceremonial-grade matcha tea field – and, as producers scramble to keep up with demand, shortages loom.

So just how big can matcha get? Will the brew stay the course as a healthy coffee alternative? Or will supply shortages push consumers towards other options?

Matcha goes mainstream

One look at the high street suggests matcha has hit the mainstream. The likes of Caffè Nero and Gail’s have rolled out lines in time for summer, while the green drink is a mainstay at smaller chains like Blank Street and Grind.

Caffè Nero is confident in the prospects of its iced matcha duo. The coffee chain cites statistics suggesting the global matcha market will grow from $2.3bn (£1.7bn) to $2.9bn (£2.1bn) by 2028.

Meanwhile, Gail’s is reaping the rewards of putting matcha on its menus in late 2024. “Matcha has brought new customers into bakeries and existing customers have taken to it as well,” says head of coffee Jessica Worden. That success prompted the launch of an Iced Matcha Refresher line this summer, which Gail’s says is “flying off the shelves”.

Gail’s partnered with organic Japanese matcha brand Sayuri to create its brews, while Caffè Nero is working with PerfectTed. The latter is particularly worthy of note. PerfectTed – which also supplies the likes of Blank Street, Joe & the Juice, and Black Sheep Coffee – has been a driving force behind the growth of matcha in the UK.

The brand made headlines in 2023 when it secured £50k in investment from Steven Bartlett on Dragons’ Den. That was followed up by a further £1m cash injection from the entrepreneur last year.

As well as the out-of-home sector, PerfectTed has been busy building its presence in retail, where year-on-year sales of matcha shot up 91% to £1.6m in the first quarter of 2025 [IRI 12 w/e 17 May 2025]. PerfectTed says it is responsible for 83% of that growth, meaning it now represents over half of the matcha market.

“When we launched PerfectTed, there was no real matcha category in UK retail,” says co-founder Marisa Poster. “It was either missing entirely from supermarket shelves or sold at prohibitively high prices in specialist health stores.”

The growth of matcha – which PerfectTed now describes as a “fixture in both grocery and foodservice” – comes down to several factors.

First are the purported health benefits. Matcha is lauded as being high in antioxidants, which can help to reduce cell damage and prevent chronic disease. The green brew also contains caffeine and L-theanine, which are said to work together to create a state of focus – without the jitters that can accompany coffee and energy drinks.

Those properties were of personal importance to Poster. “PerfectTed was born from desperation, honestly. As someone with ADHD and anxiety, I was stuck in a cycle: needing energy to function, but every coffee or energy drink made my symptoms worse,” she says.

“That first cup was a revelation – sustained energy without the chaos in my head,” Poster adds. “For the first time, I could think clearly without feeling wired.”

Even for your average consumer, that proposition is powerful in today’s fast-paced world. Gail’s says it is seeing increased demand for “a more mindful way of enjoying caffeine”, while Bird & Blend sees matcha as part of a “growing interest in wellness, clean energy and mindful rituals”.

“Making yourself a matcha invites you to slow down and savour the moment, and that’s something we believe more people are craving today,” says Mike Turner, founder and MD of Bird & Blend.

Second is the increasingly easy method of making matcha. Whipping up the brew used to involve powder and a whisk – not exactly an arduous process, but one that could put off the unfamiliar. Today, there are matcha Nespresso capsules, powders designed to be used with a blender, or even contraptions specifically designed to create a matcha in seconds, such as Bird & Blend’s Matcha Latte Magic Whisk.

“The popularity of matcha has taken the entire Japanese tea industry by surprise”

Anna Poian, Global Japanese Tea Association

Third is the Instagram appeal. PerfectTed’s feed is full of photogenic shots of matcha in long glasses next to models with glowing skin. On TikTok, the #matcha hashtag has amassed over 15 billion views.

“With its vibrant green colour and the multitude of preparation methods, matcha is an incredibly aesthetic drink,” says Bird & Blend’s Turner. “That has been an undeniable driver of its popularity on social media.”

The point is echoed by Mintel. “Social media and influencer marketing have played a key role in driving matcha’s desirability, especially among younger demographics,” says Emma Clifford, associate director of food and drink research.

Still, Clifford sees it as far more than just a clickable fad. “Several factors suggest matcha has staying power. Its versatility and alignment with broader health and wellness trends provide a solid foundation for continued growth,” she explains.

Room to grow

Plus, there is plenty of untapped potential. Although matcha is well known in foodie circles, a sizeable proportion of the population remains unfamiliar with it.

As many as 20% of UK consumers haven’t heard of matcha and 8% were unsure, found a poll of 1,840 adults conducted by Vypr exclusively for The Grocer. And only 34% have tried the drink.

Perhaps fuelled by the social media element, younger consumers are more likely to be converts. “Matcha is most popular with those aged 25 to 34, followed by 18 to 25, and less than 10% aged 65-plus have tried it,” says Ben Davies, founder of Vypr. “This is unsurprising as the younger demographics skew more towards using supplements and unusual ingredients to boost the nutritional value of their diets.”

There are admittedly some perception barriers to overcome. Most notably, 37% of those who’d heard of matcha said they were dubious about the taste. Among those who have given it a whirl, half said they liked the flavour – leaving half who disliked it or were unsure.

Still, brands are blending matcha with more familiar flavours to widen its appeal. PerfectTed, whose portfolio houses flavours such as peach, vanilla and summer berry, launched a blueberry flavour in May. Bird & Blend, meanwhile, has over 50 different matcha lines. Blendsmiths has a similarly wide variety, having started out with a blend combining cinnamon and coconut sugar.

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Popcorn, protein, chocolate and more: A wave of innovative matcha launches have hit the market, including Popcorn Shed’s Matcha Latte Popcorn, More Nutrition’s Protein Iced Matcha Latte and Sayuri’s Matcha Chocolate

The aim was to appeal to UK tastebuds, says Moore. “Flavour is our number one priority because we want people to enjoy the experience,” he explains.

Purists might say flavours such as these are detracting from matcha’s traditional roots. Moore doesn’t buy that argument. “My thought is: everything has a place,” he says. “It’s fine to be a purist but it’s also fine to enjoy things that are layered.”

Moore’s only concern is the use of matcha as a token ingredient. For example, in blends that don’t contain enough of the tea to warrant its presence. “Is it just a banana flavour with 1% matcha? Leaning on an ingredient as a selling point has happened for as long as time, but it’s a slightly dangerous game to play,” he says.

More on matcha:

• Oatly launches Matcha Latte Oat Drink

• Grind bets on matcha trend with new DTC collection

• Monin adds matcha concentrates to tap growing TikTok trend

• PerfectTed to launch flavoured RTD matcha latte duo

Those warnings are echoed by Yureeka Yasuda, CEO of Sayuri. She’s pleased the UK market has evolved since she first launched the brand, when matcha “was still very much a curiosity, often misunderstood”.

However, the growing popularity of matcha has come with downsides. “I have seen a wave of influencer-led matcha products popping up overnight – often pink or pastel – that slap on a label with very little to no knowledge of the makers or tea industry,” Yasuda points out. In her role heading up Sayuri, she sees it as “almost a cultural responsibility to represent Japan authentically”.

Part of that means using ceremonial-grade matcha for its “pure drinking experiences”. Sayuri isn’t the only brand to extol the virtues of top-quality leaves: PerfectTed, Whittard of Chelsea, Blendsmiths and Bird & Blend are among the brands to use ceremonial-grade matcha.

The sticking point is supply. Japanese producers have struggled to keep up with the rapid rise in matcha’s popularity, and there are only so many of the best-quality leaves to go around.

“The popularity of matcha has surged since the final months of 2024, taking the entire Japanese tea industry by surprise,” says Anna Poian, co-founder of the Global Japanese Tea Association (GJTA).

That rising popularity has coincided with unfavourable weather conditions, meaning further shortages are likely on the cards. And ramping up production is no easy feat.

“First, constructing new production facilities is both time-consuming and quite expensive,” Poian says. “Second, access to key processing equipment – especially traditional stone mills – is limited, as only a few skilled craftsmen are capable of producing them.”

Shortages have become so significant that the GJTA has called for mindful consumption of the highest-grade leaves. While these leaves are designed to be consumed on their own, the lower-grade leaves from summer or autumn harvests are perfectly suitable for lattes and blends with other ingredients, it points out.

Those lower-grade leaves are, for now, in slightly more plentiful supply. Still, Moore of Blendsmiths forecasts a crunch time for matcha brands. “We’re going from a four-week lead time to having to wait for the next harvest, which is September. Then, there could be a 10 to 12-week lead time,” he reveals.

That’s the wait time for Blendsmiths, which has strong, long-standing relationships in place. Not everyone will be so lucky. “It is absolutely inevitable there will be brands that will go under, or drinks with matcha that will go out of stock,” warns Moore.

The shortages could allow alternative options to come to the fore. Both Blendsmiths and the GJTA hope the rise of matcha will fuel interest in other Japanese teas. Moore, for example, sees hojicha as one option that could gain ground. The green tea is known for its toasty, “almondy flavour profile” and, like matcha, it can be used on its own or in a latte.

Sayuri is also betting on hojicha, having launched its own line in May. “This evolution is about inviting people into the world of Japanese tea,” says Yasuda.

The next matcha innovations

That’s not to say interest in matcha will slip away. Supply permitting, Yasuda believes the tea will continue to evolve and capture interest. “I think we’ll see more creativity in how matcha is served – sparkling matcha, slow-dripped cold brews, and even culinary innovations in desserts and cocktails,” she says.

Whittard of Chelsea also envisions “more creative pairings with matcha” on the cards. “Tahini and matcha, for example, is becoming a growing trend across various product formats, whether in drinks or bakery items,” says senior buyer Heather Milburn.

Certainly, the rate of NPD shows no sign of slowing. There’s a reason why Bird & Blend describes the innovation opportunities as “unlimited”. Recent launches have spanned everything from matcha popcorn to a protein latte and matcha chocolate.

The activity has been picked up by Mintel. “The share of retail tea launches containing matcha in the product description has grown from just 2% in 2022 to 6% in 2023, and doubled to 12% in 2024,” points out Clifford.

Still, experts agree the real opportunity lies not in endless new formats, but in the growing consumption of matcha as a coffee alternative. “I absolutely believe it has the potential to become a daily staple,” says Yasuda. “The same way espresso integrated into global culture, matcha can as well.”

As PerfectTed sums up: “Matcha is not a trend. It’s a habit-forming ingredient, here for the long run.”