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Matcha has moved from niche tradition to global phenomenon in recent times, fuelled by wellness trends, social media and rising demand for premium, functional beverages. Once largely associated with Japanese tea culture, the bright green cup can now be found everywhere from supermarket shelves to cafes to the runway. Fresh, fruity twists like Blank Street’s blueberry matcha shared the spotlight with high-fashion pop-ups such as Loewe x Tease Matcha, while recent launches, like own-brand matcha sachets, show how the category is moving into consumers’ homes. Frances Musgrave, tea sourcing manager at Finlay Beverages, explores what this drastic rise in popularity means for global tea supply chains.

Projected to grow from $234.97 million in 2025 to $462.32 million by 2035, the UK matcha tea market has been driven by rising health consciousness and the popularity of online trends, such as 'Matcha Tok.' It’s a clear example of how social media can expand access to diverse cultural influences, turning once regional specialities into global favourites.

However, behind the instagrammable green cup lies a more complex supply chain. As demand increases, growers, processors and manufacturers face mounting pressure to scale production while maintaining quality standards, improving traceability and meeting higher expectations around sustainability.

How matcha's growth is reshaping sourcing strategies and quality standards

Producing authentic, high-grade matcha is labour-intensive and highly specialised, involving specialist cultivation and processing. Roughly six weeks before harvest, farmers gradually decrease the amount of sunlight allowed to shine on the plants; this encourages the leaves to develop the vibrant colour, umami flavour and nutritional profile associated with high-quality matcha. The highest grade matcha is grown in near darkness by the time harvest rolls around.

After harvesting, the leaves are then picked, steamed, dried, destemmed and slowly ground on granite mills into fine powder. Each stage has an impact on the final product. Even the smallest of changes to variables like sunlight exposure, leaf selection and milling speed can impact the colour, flavour, texture and nutritional profile. This precision is part of matcha’s appeal, but it also makes the product difficult to scale. Unlike some beverage ingredients, matcha simply cannot be produced faster or in greater volumes without careful consideration of quality.

However, as demand grows, lower-quality powders have been entering the market. Production pressures combined with climate-related shortages in Japan have pushed brands and cafes to increasingly rely on lower-grade powders to meet consumer appetite and maintain profit margins. Important quality indicators can include colour vibrancy, flavour balance, bitterness, texture, freshness, solubility and consistency.

At the same time, matcha cultivation requires careful environmental management. From shading techniques to soil health, production depends on conditions that need to be protected for the long-term. Like many agricultural supply chains, tea production is greatly exposed to climate change, labour challenges and pressure on natural resources. If the market only focuses on short-term availability, there is a risk that growers and processors are pushed to increase output without enough support for sustainable practices. That’s why businesses need to consider how their sourcing strategies can support long-term land stewardship, farmer livelihoods and environmental protection.

Customer desire to know where exactly matcha comes from, and the importance of long-term partnerships

The rise of matcha also reflects a broader shift in consumer expectations. People increasingly want to understand where their food comes from, how ingredients are produced and whether sourcing practices are responsible. This, alongside increased demand, is pressurising growers and suppliers to improve traceability. Manufacturers will need confidence in where their matcha comes from, how it has been processed and whether it meets the required quality and safety standards. This may also push growers, processors and suppliers to strengthen documentation, testing and chain-of-custody systems.

The surge in demand is also strengthening the need for long-term relationships between growers, processors and manufacturers. Partnerships enable a more stable supply and stronger forecasting. They also give producers greater confidence to invest in capacity, training, processing capability and sustainable farming practices. The strongest supply chains will be those built on collaboration, rather than short-term purchasing decisions. And so, the ability to work closely with trusted partners will become a competitive advantage.

What the wider beverage sector can learn from matcha's rapid rise

Matcha’s rise shows how quickly a culturally rooted ingredient can become a global innovation platform. When a trend gathers momentum, supply-chain considerations need to be built into product development from the beginning. That means understanding availability, quality, processing requirements, traceability and sustainability before launching at scale.

For beverage brands, tapping into the momentum around matcha is a clear opportunity. However, doing so responsibly requires more than a new flavour variant or an eye-catching product format. It requires a sourcing strategy that protects quality, supports producers and builds resilience for the long term.