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

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.

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.

Snigdha Manchanda, Founder & CEO of Tea Trunk, one of India's earliest brands to introduce ceremonial-grade matcha nearly a decade ago, explained Matcha's popularity.

"We have been offering matcha since 2015-2016, and over the last decade, I have seen several cycles where matcha trends, then fades away," Manchanda says, adding, "We know from Google Search data that interest peaked around June 2025 and has since declined. But this is just one of the many cycles of growth that we see, and it will continue to happen."

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

Building a Brand Beyond Trend

Ever since the matcha trend started, which was started by India's booming cafe culture, several D2C brands have expanded their offerings to align with Indian consumers' growing interest in the green beverage.

However, the biggest question that remains for entrepreneurs at this stage is if the trend is a passing one, or if it is here to stay.. "I do see it as a passing trend, but also a trend that will keep returning in the future. Every time interest spikes, new matcha brands emerge. However, a brand cannot survive by offering only matcha. Brands with a broader product range tend to perform better," she said.

"Less than 50 percent of our sales come from matcha. That is why the brand is not destabilized when the matcha trend passes. We must ensure that the business is sustainable in the long term," she added.

Industry data further reinforces this argument. Matcha may be expanding, but it remains part of India's USD 2+ billion overall tea market, which still leans heavily on black tea, green tea, and flavoured blends. Brands that offer wider assortments like tea blends, herbal infusions, and gifting collections report more stable month-on-month revenues.

Authenticity, Certificates, and Challenges

As matcha becomes mainstream, authenticity concerns have also grown. The high import price of ceremonial-grade Japanese matcha has triggered an influx of lower-cost substitutes, green tea powders from China, Vietnam, and Southeast Asia being marketed as matcha.

Manchanda says this is one of the most important challenges in the category. "Brands should voluntarily share the certificate of origin with customers. Flavor alone cannot be the deciding factor when sourcing a tea," Manchanda notes.

India's matcha market today looks much like the early days of specialty coffee: trend-driven, café-amplified, and quality-dependent. The cycles are real, but so is the long-term growth potential. With the market expected to cross USD 167 million by 2030, and consumer wellness spending rising year-on-year, matcha is now one of the most dynamic corners of India's premium beverage segment.