The global matcha market has reached $4billion+ and is growing at a projected 6%+ CAGR, driven by rising demand for functional beverages, social media influence, and health-conscious consumer behaviour. Matcha lattes are leading the charge, with launches from both niche players (Rheal, PerfectTed) and global giants (Nestlé, Starbucks, Twinings).But while demand surges, supply constraints are starting to show. Japan — the world’s top matcha producer — is experiencing seasonal production limitations, climate-related disruptions, and a mismatch between tencha production (the base for matcha) and global demand.📈 Zenith Strategic Insights for Brands, Retailers & Investors:✔️ Reassess sourcing security– Is your matcha supply chain diversified beyond Japan?– Can you partner upstream to lock in volume or support new tencha acreage?✔️ Start cost sensitivity modelling now– Rising COGS could pressure mid-tier offerings. Premium price anchoring and brand storytelling will become more important than ever.✔️ Use matcha as a functional ingredient anchor– Beyond beverages, matcha’s health halo can support NPD in snacks, supplements, and skin care. It’s a cross-category asset.✔️ Plan for trade regulation and origin protection– As demand rises, GI protections, carbon footprint scrutiny, and label standardisation (e.g. ceremonial vs. culinary) may become brand risk factors.✔️ Don’t bet on full coffee substitution– Matcha’s growth is real, but coffee remains 50x the market size. The real opportunity lies in complementing coffee, not replacing it.🌐 Follow the Zenith LinkedIn page: ⁠https://www.linkedin.com/company/zenith-global-commercial⁠🌐 Visit our website: ⁠⁠⁠⁠www.zenithglobalcommercial.com⁠⁠⁠⁠📊 Download our free European Water Dispense & Filtration demo database (€2bln industry): https://www.zenithglobalcommercial.com/demo📞 Book a free 1-on-1 consultation call:https://www.zenithglobalcommercial.com/book-an-appointmentLet’s explore how we can support you with:🧀 Market data (even for cheese!)💧 Water dispense insights (BWD / POU / ITS)🔍 Partner search & market entry📈 Branding & growth strategy💦 Water source valuation🔬 Custom market research

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