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Canada Matcha Tea Market

ID: MRFR/FnB/44762-HCR
128 Pages
Garvit Vyas
February 2026

Canada Matcha Tea Market Size, Share, Industry Trend & Analysis Research Report: By Application (Regular Tea, Food, Cosmetics, Matcha Beverages, Personal Market), By Form (Ready-To-Drink, Instant Premixes, Powder Form), By Type (Traditional, Sweetened, Unsweetened), By Formulation (Plain, Flavored) andBy Distribution Channel (Store-Based Distribution Channels, Non-Store-Based Distribution Channels)- Forecast to 2035

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Canada Matcha Tea Market Summary

As per Market Research Future analysis, the Canada Matcha Tea Market size was estimated at 274.5 USD Million in 2024. The Matcha Tea market is projected to grow from 298.49 USD Million in 2025 to 690.0 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 8.7% during the forecast period 2025 - 2035

Key Market Trends & Highlights

The Canada matcha tea market is experiencing robust growth driven by health trends and sustainability.

  • The health and wellness focus continues to drive demand for matcha tea, appealing to health-conscious consumers.
  • Sustainability and ethical sourcing practices are becoming increasingly important to consumers in the matcha tea market.
  • Diverse product offerings, including ready-to-drink matcha and culinary applications, are expanding market reach.
  • Rising health consciousness and culinary innovation are key drivers propelling the growth of the matcha tea market.

Market Size & Forecast

2024 Market Size 274.5 (USD Million)
2035 Market Size 690.0 (USD Million)
CAGR (2025 - 2035) 8.74%

Major Players

Ippodo Tea Co (JP), Matcha Konomi (JP), Encha (US), Aiya (JP), Jade Leaf Matcha (US), Kiss Me Organics (US), Matcha Maiden (US), The Matcha Reserve (US)

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Canada Matcha Tea Market Trends

The Canada Matcha Tea Market is experiencing notable growth, driven by increasing consumer awareness of health benefits associated with matcha. This finely ground green tea powder is recognized for its high antioxidant content and potential to enhance metabolism. As consumers in Canada become more health-conscious, the demand for matcha tea products is likely to rise. Retailers are responding by expanding their offerings, including ready-to-drink matcha beverages and matcha-infused snacks, which cater to a diverse range of preferences. Furthermore, the rise of specialty cafes and tea shops has contributed to the popularity of matcha, providing consumers with unique experiences and high-quality products. In addition to health trends, the matcha tea market is also influenced by the growing interest in sustainable and ethically sourced products. Many consumers are seeking transparency in sourcing and production methods, which has led to an increase in demand for organic matcha. This trend aligns with broader consumer preferences for environmentally friendly products. As a result, brands that emphasize sustainability and ethical practices are likely to gain a competitive edge. Overall, the matcha tea market appears poised for continued expansion as it adapts to evolving consumer preferences and market dynamics.

Health and Wellness Focus

The matcha tea market is increasingly aligned with the health and wellness movement. Consumers are drawn to matcha for its perceived health benefits, including antioxidant properties and potential weight management support. This trend is evident in the rising popularity of matcha-based products, such as smoothies and energy bars, which cater to health-conscious individuals.

Sustainability and Ethical Sourcing

There is a growing emphasis on sustainability within the matcha tea market. Consumers are becoming more aware of the environmental impact of their purchases, leading to increased demand for organic and ethically sourced matcha. Brands that prioritize sustainable practices are likely to resonate with this conscientious consumer base.

Diverse Product Offerings

The matcha tea market is witnessing a diversification of product offerings. Retailers are introducing a variety of matcha-infused items, including baked goods, snacks, and beverages. This trend reflects the desire for innovative and convenient ways to incorporate matcha into daily diets, appealing to a broader audience.

Canada Matcha Tea Market Drivers

Rising Health Consciousness

The matcha tea market in Canada is experiencing a notable surge due to the increasing health consciousness among consumers. As individuals become more aware of the benefits associated with matcha, such as its high antioxidant content and potential metabolism-boosting properties, demand is likely to rise. Recent surveys indicate that approximately 60% of Canadians prioritize health and wellness in their dietary choices, which directly influences their beverage preferences. This trend suggests that the matcha tea market could see a compound annual growth rate (CAGR) of around 8% over the next five years, as more consumers opt for healthier alternatives to traditional caffeinated beverages. The matcha tea market is thus positioned to capitalize on this growing segment of health-focused consumers, potentially leading to increased product innovation and marketing strategies aimed at highlighting the health benefits of matcha.

Culinary Innovation and Trends

The matcha tea market in Canada is benefiting from culinary innovation, as chefs and food enthusiasts increasingly incorporate matcha into various recipes. This trend is not limited to beverages; matcha is being used in desserts, smoothies, and even savory dishes, appealing to a broader audience. The versatility of matcha allows it to be marketed as an ingredient that enhances both flavor and nutritional value. According to industry reports, the food and beverage sector is projected to grow by 5% annually, with matcha-infused products gaining traction. This culinary trend indicates that the matcha tea market may experience a diversification of product offerings, catering to consumers seeking unique and healthful culinary experiences. As restaurants and cafes continue to innovate with matcha, the market is likely to expand, attracting new customers and fostering brand loyalty.

Cultural Influence and Popularity

The matcha tea market in Canada is significantly influenced by cultural trends, particularly the growing popularity of Japanese culture and cuisine. As more Canadians become exposed to traditional Japanese tea ceremonies and culinary practices, the appreciation for matcha is likely to increase. This cultural influence is reflected in the rising number of specialty tea shops and cafes that offer matcha-based beverages and products. Market analysis indicates that the demand for matcha has grown by approximately 25% in urban areas, where cultural diversity is more pronounced. The matcha tea market stands to benefit from this cultural shift, as it aligns with consumers' desires for authentic and experiential dining options. This trend may lead to further exploration of matcha's culinary applications, enhancing its appeal across different demographics.

E-commerce Growth and Accessibility

The matcha tea market in Canada is witnessing a significant shift towards e-commerce, driven by changing consumer shopping habits. With the rise of online shopping platforms, consumers now have easier access to a variety of matcha products, from traditional powders to ready-to-drink options. Recent data suggests that online sales in the beverage sector have increased by 30% over the past year, indicating a strong preference for convenience among consumers. This trend is particularly relevant for the matcha tea market, as it allows brands to reach a wider audience without the limitations of physical retail spaces. The growth of e-commerce not only enhances accessibility but also encourages brands to invest in digital marketing strategies, potentially leading to increased sales and brand visibility in a competitive market.

Sustainability and Ethical Consumerism

The matcha tea market in Canada is increasingly shaped by consumer preferences for sustainability and ethical sourcing. As awareness of environmental issues grows, consumers are more inclined to support brands that prioritize sustainable practices. This trend is particularly relevant for the matcha tea market, as many consumers seek products that are not only healthy but also environmentally friendly. Reports indicate that approximately 70% of Canadian consumers are willing to pay a premium for sustainably sourced products. This shift towards ethical consumerism may encourage matcha producers to adopt more transparent sourcing practices and invest in sustainable farming methods. Consequently, the matcha tea market could see a rise in demand for organic and ethically sourced matcha, appealing to environmentally conscious consumers and enhancing brand loyalty.

Market Segment Insights

By Application: Matcha Beverages (Largest) vs. Cosmetics (Fastest-Growing)

The application segment of the Canada matcha tea market showcases a diverse distribution of market share, with Matcha Beverages leading as the most significant segment. This category has captured considerable attention among consumers, driven by the rising trend of health-conscious drinking options. Meanwhile, Regular Tea and Food segments also hold notable shares, yet they are overshadowed by the impressive growth of the Matcha Beverages segment. In addition to Matcha Beverages leading the charge, the Cosmetics segment has emerged as the fastest-growing category. An increasing number of beauty brands are recognizing the antioxidant-rich properties of matcha, integrating it into products for its benefits. This trend is fueled by rising consumer awareness regarding clean beauty and natural ingredients, which is anticipated to further enhance the growth trajectory of this segment in the upcoming years.

Matcha Beverages: Dominant vs. Cosmetics: Emerging

Matcha Beverages stand out as the dominant application within the Canada matcha tea market, appealing to a wide audience eager for innovative and health-focused beverage alternatives. This segment benefits from the growing popularity of matcha lattes, smoothies, and tea infusions, offering a unique blend of flavor and health benefits. In contrast, the Cosmetics segment is labeled as emerging, reflecting its rapid ascension within the market. Skincare and beauty products infused with matcha are gaining traction, particularly among younger consumers who prefer natural ingredients. They appreciate the skincare benefits of matcha, such as its ability to soothe inflammation and enhance complexion, which positions the Cosmetics segment as a key player in the future growth of the Canada's matcha tea market.

By Form: Powder Form (Largest) vs. Ready-To-Drink (Fastest-Growing)

In the Canada matcha tea market, the market share distribution among segment values reveals that powder form holds a significant portion of the market, primarily due to its versatility and appeal to health-conscious consumers. Ready-to-drink variants are also gaining traction as convenience becomes a priority for many consumers, although they comprise a smaller share compared to powder forms. Instant premixes, while established, have not achieved the same level of penetration as the other two segments. The growth trends in the market indicate a strong shift towards ready-to-drink matcha offerings due to changing consumer lifestyles that favor on-the-go options. Health benefits associated with matcha, coupled with innovative marketing strategies, have driven demand in the ready-to-drink segment. Meanwhile, the powder form remains a staple among traditional consumers and culinary enthusiasts, ensuring its continued dominance.

Powder Form: Dominant vs. Ready-To-Drink: Emerging

Powder form is characterized by its high adaptability for various uses, including cooking and baking, making it a dominant choice in the Canada matcha tea market. Its rich flavor and health benefits appeal to a diverse demographic, especially those who prefer a traditional tea experience. On the other hand, ready-to-drink options are emerging rapidly, designed for convenience and immediate consumption. These products are increasingly available in cafes and retail settings, appealing to younger consumers who prioritize quick and accessible health options. As both segments evolve, the competition will likely intensify, with innovation being key to capturing growing consumers.

By Type: Traditional (Largest) vs. Unsweetened (Fastest-Growing)

In the Canada matcha tea market, the segment values of Traditional, Sweetened, and Unsweetened vary significantly, with Traditional holding the largest market share. This segment benefits from a strong consumer base that values authentic matcha experiences. Sweetened varieties attract a niche audience looking for enhanced flavors, while Unsweetened is rapidly growing as health-conscious consumers seek natural and organic options. The increasing preference for Unsweetened matcha illustrates a shift towards more health-oriented choices among consumers. The growth trends for this segment signal a dynamic shift in consumer preferences, particularly towards Unsweetened matcha. The drivers for this change include rising health awareness and the clean-eating trend, where consumers prefer products free from added sugars. Traditional matcha continues to dominate, especially among purists and those seeking authentic tastes. Meanwhile, Sweetened matcha serves as a bridge for new consumers entering the market, contributing to overall segment diversification.

Traditional: Dominant vs. Unsweetened: Emerging

The Traditional segment in the Canada matcha tea market is characterized by its deep-rooted cultural significance and a loyal consumer base that values authenticity. It is viewed as the benchmark for quality matcha, often preferred by seasoned tea drinkers. In contrast, the Unsweetened segment represents an emerging trend, appealing to health-conscious consumers who prioritize natural products without additives. This segment is gaining traction due to growing awareness of health benefits associated with green tea and matcha. Unsweetened matcha also allows for versatility in culinary applications, making it appealing to both consumers and chefs looking for premium ingredients. Together, these segments illustrate a vibrant market dynamic, catering to diverse preferences.

By Formulation: Plain (Largest) vs. Flavored (Fastest-Growing)

In the Canada matcha tea market, the formulation segment is characterized by a clear distinction between plain and flavored varieties. Plain matcha holds a significant market share, appealing to traditional tea enthusiasts who value the authentic taste and health benefits. Meanwhile, flavored matcha has found its niche among younger consumers and those looking for novel taste experiences. This growing interest in flavored options is boosting the overall market's dynamism. Growth trends in this segment reveal a surge in demand for flavored matcha, driven by innovations in flavoring techniques and the rising popularity of matcha-based beverages. Consumers are increasingly seeking diverse experiences, which encourages brands to explore premium flavor profiles. As health-conscious lifestyles continue to elevate the status of matcha, the flavored segment is expected to flourish, capturing an ever-increasing share of the market.

Formulation: Plain (Dominant) vs. Flavored (Emerging)

Plain matcha is recognized as the dominant segment, often preferred for its rich flavor and traditional preparation methods. This formulation highlights the authentic characteristics of matcha, making it a staple for purists and health enthusiasts. On the other hand, flavored matcha is emerging rapidly, appealing particularly to younger demographics and those new to matcha. The infusion of various flavors caters to consumers seeking unique beverages, thus broadening the target market. While plain matcha retains loyalty due to its established benefits, flavored options are rapidly capturing consumer interest through innovative marketing strategies and product diversification, establishing a competitive landscape in the formulation segment.

By Distribution Channel: Store-Based (Largest) vs. Non-Store-Based (Fastest-Growing)

The Canada matcha tea market exhibits a notable distribution of sales between store-based and non-store-based channels. Store-based distribution channels, encompassing grocery stores, specialty shops, and cafes, hold a significant market share. These channels benefit from their established presence and physical accessibility, attracting consumers who prefer in-person shopping experiences. In contrast, non-store-based channels, primarily comprising e-commerce platforms and online retailers, have been gaining traction due to the rise in digital shopping, particularly among younger demographics. The growth trends in the distribution channels reflect changing consumer behaviors and preferences. Non-store-based distribution is currently the fastest-growing segment, fueled by increasing online shopping convenience and a preference for direct-to-consumer purchasing. The shift towards e-commerce is driven by factors such as improved logistics, enhanced user experiences, and greater availability of matcha tea products online, allowing consumers to conveniently explore various options and brands from their homes.

Store-Based (Dominant) vs. Non-Store-Based (Emerging)

Store-based distribution channels are a dominant force in the Canada matcha tea market, characterized by their extensive reach and consumer familiarity. They provide a tangible shopping experience, which many consumers value, allowing them to engage with products directly before purchase. This segment includes supermarkets, health food stores, and cafes that offer matcha tea in various forms, capturing a loyal customer base. On the other hand, non-store-based distribution channels are emerging rapidly, appealing primarily to tech-savvy consumers who prioritize convenience. These channels offer a broad selection of matcha tea products and brands, often accompanied by competitive pricing. With the ongoing digital transformation and rising online sales, non-store-based channels are expected to capture an increasing share of the market.

Get more detailed insights about Canada Matcha Tea Market

Key Players and Competitive Insights

The matcha tea market in Canada exhibits a dynamic competitive landscape characterized by a blend of traditional and innovative approaches among key players. The market is primarily driven by increasing consumer awareness of health benefits associated with matcha, alongside a growing trend towards premiumization in beverage choices. Companies such as Ippodo Tea Co (Japan), Encha (US), and Jade Leaf Matcha (US) are strategically positioned to leverage these trends. Ippodo Tea Co (Japan) focuses on maintaining high-quality sourcing and traditional production methods, which appeals to discerning consumers. In contrast, Encha (US) emphasizes organic certification and sustainability, while Jade Leaf Matcha (US) adopts a digital-first approach, enhancing its online presence to capture a broader audience. Collectively, these strategies contribute to a competitive environment that prioritizes quality, sustainability, and consumer engagement.Key business tactics within the market include localizing manufacturing and optimizing supply chains to enhance efficiency and responsiveness to consumer demands. The competitive structure appears moderately fragmented, with several players vying for market share. However, the influence of major companies is palpable, as they set benchmarks for quality and innovation that smaller brands often strive to meet. This competitive interplay fosters an environment where differentiation is crucial, compelling companies to innovate continuously.

In October Ippodo Tea Co (Japan) announced a partnership with a Canadian wellness brand to co-develop a line of matcha-infused health products. This strategic move not only broadens Ippodo's product offerings but also aligns with the growing consumer interest in health and wellness, potentially enhancing brand visibility in the Canadian market. Such collaborations may serve to strengthen Ippodo's market position by tapping into new consumer segments.

In September Encha (US) launched a new line of matcha products specifically targeting the Canadian market, featuring unique flavor profiles and packaging designed for local preferences. This initiative reflects Encha's commitment to localization and consumer-centric product development, which could significantly enhance its competitive edge in a market that values tailored offerings. By addressing local tastes, Encha may foster stronger brand loyalty and increase market penetration.

In August Jade Leaf Matcha (US) unveiled a digital marketing campaign aimed at educating consumers about the health benefits of matcha, utilizing social media platforms and influencer partnerships. This campaign underscores the importance of digital engagement in contemporary marketing strategies, particularly in a market where younger consumers are increasingly influential. By leveraging digital channels, Jade Leaf Matcha may effectively enhance brand awareness and drive sales growth.

As of November current competitive trends in the matcha tea market are increasingly defined by digitalization, sustainability, and the integration of technology into product offerings. Strategic alliances are becoming more prevalent, as companies recognize the value of collaboration in enhancing their market presence. Looking ahead, competitive differentiation is likely to evolve, shifting from price-based competition to a focus on innovation, technology, and supply chain reliability. This transition suggests that companies that prioritize quality and sustainability will be better positioned to thrive in an increasingly discerning market.

Key Companies in the Canada Matcha Tea Market include

Industry Developments

The Canada Matcha Tea Market has seen notable developments recently, with companies such as Matcha Maiden, The Matcha Reserve, Encha, and Jade Leaf Matcha gaining traction due to an increasing consumer demand for health-oriented products. Noteworthy is the growth in market valuation, driven by rising interest in green tea's health benefits, impacting market strategies and product launches. In October 2022, Aiya America expanded its distribution network across Canada, allowing for greater accessibility to premium matcha products.

Additionally, in July 2023, Ritual Green announced a collaboration with Grateful Harvest to enhance their organic matcha offerings, highlighting a trend towards partnerships in the market. There have been no significant mergers or acquisitions involving these primary companies in recent months. Nonetheless, the matcha segment continues to thrive, with emerging brands like Kiss Me Organics and Matchaful contributing to growth and diversity in product ranges within Canada.

Major events over the past two years include the shift towards e-commerce for tea purchases during the pandemic, which reshaped consumer buying habits and increased online sales for brands like Pure Matcha and Culinary Teas, further solidifying market dynamics in Canada's growing matcha sector.

Future Outlook

Canada Matcha Tea Market Future Outlook

The Matcha Tea Market is projected to grow at an 8.74% CAGR from 2025 to 2035, driven by increasing health awareness and demand for premium beverages.

New opportunities lie in:

  • Expansion of e-commerce platforms for direct-to-consumer sales.
  • Development of matcha-infused health supplements targeting fitness enthusiasts.
  • Partnerships with cafes for exclusive matcha beverage offerings.

By 2035, the matcha tea market is expected to achieve substantial growth and diversification.

Market Segmentation

Canada Matcha Tea Market Form Outlook

  • Ready-To-Drink
  • Instant Premixes
  • Powder Form

Canada Matcha Tea Market Type Outlook

  • Traditional
  • Sweetened
  • Unsweetened

Canada Matcha Tea Market Application Outlook

  • Regular Tea
  • Food
  • Cosmetics
  • Matcha Beverages
  • Personal Market

Canada Matcha Tea Market Formulation Outlook

  • Plain
  • Flavored

Canada Matcha Tea Market Distribution Channel Outlook

  • Store-Based Distribution Channels
  • Non-Store-Based Distribution Channels

Report Scope

MARKET SIZE 2024 274.5(USD Million)
MARKET SIZE 2025 298.49(USD Million)
MARKET SIZE 2035 690.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 8.74% (2025 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Million
Key Companies Profiled Ippodo Tea Co (JP), Matcha Konomi (JP), Encha (US), Aiya (JP), Jade Leaf Matcha (US), Kiss Me Organics (US), Matcha Maiden (US), The Matcha Reserve (US)
Segments Covered Application, Form, Type, Formulation, Distribution Channel
Key Market Opportunities Growing consumer interest in health benefits and sustainable sourcing creates opportunities in the matcha tea market.
Key Market Dynamics Rising consumer interest in health benefits drives demand for premium matcha tea products in Canada.
Countries Covered Canada
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FAQs

What is the expected market size of the Canada Matcha Tea Market in 2024?

The Canada Matcha Tea Market is expected to be valued at 274.5 million USD in 2024.

What will be the market valuation of the Canada Matcha Tea Market by 2035?

By 2035, the Canada Matcha Tea Market is anticipated to reach a valuation of 578.83 million USD.

What is the expected compound annual growth rate (CAGR) for the Canada Matcha Tea Market between 2025 and 2035?

The Canada Matcha Tea Market is projected to have a CAGR of 7.018% from 2025 to 2035.

Which application segment is forecasted to grow the most in the Canada Matcha Tea Market by 2035?

The Matcha Beverages segment is expected to grow significantly, reaching 160 million USD by 2035.

How is the Canada Matcha Tea Market segmented by application in 2024?

In 2024, the market is segmented into Regular Tea valued at 50 million USD, Food at 70 million USD, Cosmetics at 40 million USD, Matcha Beverages at 70 million USD, and Personal Market at 44.5 million USD.

Who are the major players in the Canada Matcha Tea Market?

Key players include Matcha Maiden, The Matcha Reserve, Encha, Culinary Teas, and Jade Leaf Matcha.

What market challenges could impact the growth of the Canada Matcha Tea Market?

Challenges may include competitive pricing and the need for consumer education about matcha products.

What opportunities exist for growth within the Canada Matcha Tea Market by 2035?

There are opportunities in expanding the use of matcha in food and beverage applications as well as cosmetics.

What is the expected market value for the Food application segment in the Canada Matcha Tea Market by 2035?

The Food application segment is projected to reach 135 million USD by 2035.

What is the estimated market size for the Cosmetics segment of the Canada Matcha Tea Market in 2024?

The Cosmetics segment is estimated to be valued at 40 million USD in 2024.

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