Matcha Mania: Green tea powder is being hailed as the new coffee

Matcha – a green tea powder – is surging in popularity, with the global market projected to reach more than $7 billion by 2030. 

Analysts say the drink's bright green aesthetic is perfect for social media posts, while the gentler energy boost it gives compared with coffee is hitting the right notes with health-conscious consumers. 

In the UK alone, the market is projected to grow to $100 million in the next few years. 

Rashique Siddique opened his How Matcha! café in London's Notting Hill in 2021. He wanted to build a local community of matcha lovers, and is now opening a second – far bigger – store.

"The idea of matcha being so healthy, the global shift towards a mindful, healthy consumption of just drinks that are not just energy-focused, it was one of the main drivers," he says. 

Matcha has been nicknamed 'Gen-Z's favorite drink.' Experts say it's an affordable luxury that also represents self-care.

"We noticed that Gen-Z, for instance, are no longer drinking alcohol as much," says Siddique. "So even in the evenings, we see them spend time here, just sipping on matcha."

Japanese tea specialist Hiromi Matsunobu owns three matcha cafes across London and is planning to open more. Her brand Matchado serves tea and matcha-infused bakery treats and she says that matcha is helping connect cultures. 

"We have a lot of younger generation people that wanted to try matcha and they don't really know about Japan that much, but once they like the matcha and feel like Japan is really interesting," she says. 

Popularity causes pressure

The increased thirst for matcha, combined with a poor harvest this year, is putting pressure on tea farmers – and causing global supply shortages. Some importers of high-grade matcha say they are seeing prices jump by as much as 75 percent. 

And that's impacting businesses. Some are trying to absorb the costs, while Matchado is looking at ways to be more resourceful with supplies,

"There's twigs and some leftovers from the tea leaf, so they become the roasted green tea – it's called Hojicha," says Matsunobu. "So we started introducing Hojicha lattes as an alternative." 

Matcha is considered a Japanese product but it actually originated in China. Its roots can be traced back to the Tang dynasty when tea leaves were steamed and formed into bricks, making them easier to transport for trade – and then ground into powder. 

In the Song Dynasty whisking powdered tea with hot water became popular, and in the 12th century a monk brought green tea seeds from China back to Japan.  

China is stepping up production to help with booming demand. Guizhou is the third largest exporter of matcha in the world and has a super-factory. 

"Although our production capacity has been growing quickly, it's still hard to keep pace with the faster raising demand," says Rango Li from the Foreign Trade department at Gui Tea, China's largest matcha producer.

"At the same time, this challenge has also brought us opportunities to secure a stable supply. Customers are discovering our creative nature, recognizing its quality and choosing long-term cooperation." 

An ancient tea becoming a modern obsession, matcha's moment doesn't look to be ending any time soon.