Is Matcha a D2C Opportunity or Another Passing Trend?

Despite short-term dips, matcha's long-term upward curve is supported by three strong demand drivers: health consciousness, wellness positioning, and premiumization

- BY SHRABONA GHOSH

India’s fascination with matcha is entering another defining moment. What once seemed like a niche wellness trend has grown into a substantial consumer category, especially across D2C brands. Market research reflects this too: India’s matcha tea market is valued at approximately USD 104 million in 2024, and is projected to grow to USD 167.8 million by 2030, at a CAGR of around 8.6 per cent.

In addition to this steady rise, analysts note that India’s broader functional beverage category, including kombucha, kefir, plant-based lattes and herbal elixirs. has grown at double-digit rates over the past five years. Matcha has benefited directly from this, often showing sharper spikes in urban metros such as Bengaluru, Mumbai, Delhi-NCR and Hyderabad. Online marketplaces also show a clear pattern: searches for ceremonial-grade matcha doubled between 2021 and 2024, driven by younger consumers seeking café-style experiences at home.

But while Matcha’s popularity seems stable within India’s broader functional beverage boom, driven by health-focused consumers, cafe-led discovery, and premium product experimentation, industry players believe that this trend is not linear, and certainly not stable.