From trend to ritual: Why India is falling hard for matcha

Until a couple of years ago, matcha was mostly a social media aesthetic. A vivid green swirl in lattes and smoothies, popular among wellness influencers and yoga devotees. But what started as a quiet, clean-energy substitute for coffee is now shaping up to be a category of its own in India. And it’s moving fast.

India’s matcha market, currently pegged at around $104 million (₹870 crore), is projected to grow to $167 million (₹1,400 crore) by 2030, clocking a CAGR of 8.6%, according to Deloitte India estimates. For a country deeply steeped in chai and increasingly becoming addicted to coffee, that’s no small shift.

So what’s fuelling this demand?

From niche to mainstream menus

“Matcha tea is gaining significant traction in India,” says Anand Ramanathan, partner & consumer industry leader at Deloitte India. “This growth is driven by a rising wave of health-conscious consumers in metropolitan and Tier 1 cities who are gravitating towards functional beverages with lower sugar and caffeine content.”

Brands are expanding offerings across ceremonial grades (for purists) and culinary ones (for everyday use in lattes and desserts). Matcha is now available through nearly every channel—quick commerce platforms like Blinkit, ecommerce giants like Amazon, hyperstores, and even specialty cafes.

At Third Wave Coffee, matcha has been part of the menu since 2019—well before the trend really took off. “We anticipated a shift in preferences, especially among younger consumers seeking globally inspired beverages,” says Anirudh Sharma, co-founder of the brand. “What started as a clean, minimalist choice has now gained a loyal following. Matcha isn’t just a trend anymore—it’s becoming part of people’s daily rituals, much like coffee.”

The demand for matcha offerings has grown steadily and meaningfully over the years for ThirdWave. Over the past few years, Matcha has grown particularly in metro cities like Bengaluru, Mumbai, and Delhi, and increasingly in Tier 2 and 3 towns, “driven by aspirations, digital influence, and global exposure”.

That mainstreaming is visible on café menus, with Starbucks, Blue Tokai, and GotTea offering their own matcha-based drinks. Third Wave, for instance, has rolled out options like Vanilla Matcha Bobble Tea and Strawberry Matcha alongside classic hot and iced versions.

From screen to shelf

Actor Sanya Malhotra’s entry into the category with her brand Matcha Bree has added a dose of celebrity-driven momentum to the market. “A couple of years back, I shifted from coffee to Matcha and I fell in love with it,” she says. “Then last year, I thought—why am I not getting my own Matcha brand in India?”

Matcha Bree, backed by co-founders Dr Kunal Shah and Siddharth Shah of Essenzaa Nutrition, positions itself as a clean, versatile, and “brewed energy” drink. “The matcha we source comes from Kagoshima, Japan, which is known for its ultra-fertile land,” says Dr Kunal. “It’s packed with antioxidants and an amino acid called L-Theanine that helps with mental clarity and calmness. So you get both josh and hosh.”

Malhotra herself swears by matcha not just in lattes, but in her oats and protein shakes. “There’s a lot you can do with it,” she adds.

The team has launched two grades of matcha: an “everyday” variant for recipes and a “ceremonial” one from the first harvest, meant for purists. They’ve also built kits for first-time users, complete with whiskers, bowls, and strainers, to make the drink easier to adopt.

Since launching just over a month ago, Matcha Bree claims to have sold out twice and served customers across 28 states through its own website. “We are currently present online on our website, Amazon, and Blinkit,” says Siddharth Shah. “We’ll expand on quick commerce platforms and soon in cafés and retail outlets. This is just the beginning.”

He expects the industry size to more than double in the next 4–5 years. “But I think it will grow much more,” he says. “Matcha is not just a fad, it’s a superfood.”

So far, the brand has been bootstrapped with promoter and friends-and-family capital. The founders expect a six-month runway and are considering raising a fresh round by the end of the year. “Sanya is the single largest shareholder,” Shah adds.

What this all signals

The current moment for matcha in India looks a lot like the early days of almond milk or kombucha—niche, aspirational, and fast becoming habitual. And unlike the brief bottled coconut water or charcoal lemonade moments, matcha is finding sustained support across formats, as a drink, an ingredient, and a lifestyle marker. 

As Sharma of Third Wave puts it, “The evolution of matcha from a niche wellness trend into a lifestyle essential reflects how deeply it’s resonating with the Indian consumer.” However, whether it will penetrate deeper into the Indian cities, it is yet to be seen.