Home ／ Insights on entering the Indian market
2026.03.24
A full-fledged matcha boom is under way in India. The global matcha market is expected to grow from USD 3.67 billion in 2025 to USD 5.35 billion in 2031 (a CAGR of 6.47%), and India is drawing attention as an emerging Asian market driving that growth. Urban café culture has merged with the health-conscious trend, and matcha is rapidly taking hold as a "wellness drink." Domestic production efforts are also picking up, as seen in the Tea Research Association (TRA) of India's September 2025 launch of a decaffeinated green tea powder to rival Japanese matcha.
In India's major cities such as Delhi, Mumbai, Bengaluru, and Pune, cafés offering matcha lattes, matcha smoothies, and matcha bowls are rapidly increasing. Starbucks India has also been expanding its matcha menu, and matcha is taking hold as a "stylish, healthy choice," especially among urban young people. "#matcha" posts on Instagram number in the millions in India alone, with social media serving as the engine spreading the trend.
Matcha is known for its rich nutrients such as catechins, L-theanine, and vitamin C, and is drawing attention for effects such as antioxidant activity, boosting metabolism, and improving concentration. In India, rates of diabetes and hypertension are rising, and demand for healthy food as preventive care is growing. Matcha is a product that fits perfectly with this wellness trend.
High-quality Japanese matcha is expensive in India, at 2,000-5,000 rupees (about JPY 3,500-8,700) per 100g, creating a price barrier to penetrating the mass market. This is mainly due to import costs and tariffs, and if matcha production takes hold within India, both cost reduction and market expansion can be expected.
In September 2025, the Tea Research Association (TRA) of India launched a decaffeinated green tea powder to rival Japanese matcha. It uses Indian-grown tea leaves and removes caffeine to target health-conscious consumers. It is also priced at a fraction of Japanese matcha, aiming to spread through the mass market in India.
India is the world's second-largest producer of tea leaves, home to famous growing regions such as Darjeeling, Assam, and Nilgiri. Darjeeling's high-altitude climate in particular is suited to matcha production, and introducing Japanese cultivation techniques (shade-growing) could make it possible to produce high-quality domestic matcha.
Beverages such as matcha lattes, matcha frappes, and matcha soda are the largest market segment. Beyond café offerings, demand is growing for RTD (ready-to-drink) matcha beverages and tea-bag-style matcha products.
Use of matcha is spreading in the sweets category, including matcha ice cream, matcha chocolate, matcha cake, and matcha cookies. Fusing India's sweets culture (mithai) with matcha is creating opportunities for unique product development.
Face masks, skincare products, and supplements using matcha are also a category to watch. In India, with its Ayurvedic culture, interest in naturally derived beauty and health ingredients is especially high, and matcha's antioxidant properties fit this need well.
This approach uses "authentic Japanese matcha" as a weapon to firmly capture the premium segment. It is practical to leverage regional brands such as Uji matcha and Yame matcha, starting with B2B supply to café chains and luxury hotels.
It is also effective to partner with Indian tea makers and food companies, licensing Japanese matcha production technology to raise the quality of "India-grown matcha." This secures price competitiveness while building a brand story of "matcha made with Japanese technology."
Opening a Japanese-style matcha café in Delhi or Mumbai is also an option worth considering. Offering a "Japanese tea experience" that combines a matcha-centered menu with wagashi and Japanese-style sweets can achieve both brand awareness and direct sales.
India's matcha market is growing rapidly, driven by the development of café culture, the health-conscious trend, and the spreading effect of social media. As the global matcha market reaches USD 5.35 billion in 2031, India is an emerging market driving that growth. Domestic matcha production efforts have also begun, and the market's base is likely to expand further going forward. Japanese companies should make the most of their biggest differentiator — "authentic Japanese matcha" — by securing the premium market while simultaneously developing the mass market through collaboration with Indian companies.
Because the development of café culture in major cities has merged with the health-conscious trend, and matcha is being embraced as a wellness drink. The spread of social media is also driving demand, and it is taking hold as a stylish, healthy choice especially among urban young people. Rising awareness of lifestyle diseases is also supporting demand for preventive foods.
Yes, there is a move to develop green tea powder using Indian-grown tea leaves. India is one of the world's leading tea-producing countries, and the high-altitude climate of regions such as Darjeeling could be suited to matcha production. Introducing Japan's shade-growing techniques could help improve the quality of domestic matcha.
High-quality Japanese matcha becomes expensive locally due to import costs and tariffs, creating a price barrier to penetrating the mass market. On the other hand, it has strong appeal to the premium segment as authentic Japanese matcha. How companies design the balance between price and quality is key to market expansion.
The beverage category — matcha lattes and RTD drinks — is the largest segment. There is also room to expand into sweets combined with India's confectionery culture, and beauty and health products rooted in Ayurvedic culture. Narrowing down the use case can make the entry point clearer.
It is realistic to leverage regional brands such as Uji matcha and Yame matcha and start with B2B supply to café chains and luxury hotels. In parallel, licensing production technology to local tea and food companies to develop products for the mass market is also an effective strategy.
A two-pronged approach is effective: securing the premium market with authentic Japanese matcha while launching price-competitive products through collaboration with local companies. It's effective to first build a track record and brand awareness through B2B supply, then gradually broaden the target. Planning that takes into account regional differences in café culture and distribution channels is essential.
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