Matcha has evolved from a niche health drink to a must-have, largely driven by Gen Z and millennials, who discovered it on TikTok.
Rather than serving traditional Japanese-style matcha, New Zealand brands have localised it, with iced varieties more popular here as the coolness takes the edge off the grassy bitterness.
Elizabeth-Marie Nes, President of the Japan Society of Hawke's Bay, said the shift has been quite striking. Traditional Japanese hot beverages, particularly matcha, have evolved from niche and speciality audiences into genuinely mainstream global demand, especially among consumers seeking wellness-focused, visually appealing drinks.
Japanese matcha is over 1000 years old, and was introduced to the country by the monk Eisai around 1191, where it continued to develop even as such practices declined in China.
The stone-ground tea, which became a foundational meditative ritual and popular drink in Japanese culture, involves shading the tea plants for three to four weeks before harvest, which boosts chlorophyll and amino acids (especially L-theanine) and gives the tea its vivid green colour. The leaves are stone-ground after careful processing.
As consumers become more interested in the ritual and experience of tea, rather than just convenience, the shift is real and accelerating, particularly among younger consumers who are drawn to tea as a form of self-expression, wellness and cultural connection rather than just a quick caffeine fix.
“With the rise of the experience-driven economy, consumers increasingly seek experiences rather than just products, and tea is evolving to fit more moments and lifestyles throughout the day,” said Nes.
“This isn't just feel-good marketing; tea's naturally functional compounds, from polyphenols and catechins to amino acids like theanine, are being applied with greater intent to support specific health functions, transforming tea from a traditional refreshment into a scientifically backed, multifunctional ingredient platform.”
Additionally, consumers have gravitated towards products that offer perceived health benefits, such as antioxidants and stress relief, which matcha is believed to provide, and the role of social media and influencer marketing has been significant.
For retailers, there are better ways to represent Japanese tea within the hot beverages category. Supermarkets typically stock matcha and sencha, but Japanese tea is far more diverse than most shelves suggest.
Varieties like hojicha (a roasted green tea with lower caffeine, well-suited to evening occasions), genmaicha (green tea with roasted rice; nutty and approachable), gyokuro (premium shade-grown, a natural trade-up option), kukicha (twig tea with low caffeine and health-conscious appeal) and mugicha (roasted barley, naturally caffeine-free and family-friendly) all represent untapped ranging opportunities.
Matcha, too, is underleveraged; most supermarkets stock a single mid-range option without distinguishing between ceremonial and culinary grades, leaving both the premium end and the cooking occasion largely unserved.
Format is another gap. Most supermarket Japanese teas are available only in standard teabags. Loose leaf would serve more engaged tea drinkers; clearly differentiated ceremonial versus culinary grade matcha would reduce purchase anxiety; cold-brew formats reflect how Japanese tea is widely consumed in Japan; and premium single-serve sachets could unlock a gifting occasion.
Japanese tea currently suffers from low consumer understanding relative to, say, herbal teas, which benefit from well-established wellness narratives. Shelf talkers or QR codes linking to brew guides would help, as would leading with flavour descriptors, "smooth," "toasty," "umami-rich," "grassy", rather than defaulting to origin as the primary signpost.
Caffeine tiering is increasingly how shoppers navigate the tea aisle, and positioning hojicha and mugicha explicitly as evening or relaxation teas would carve out clear, appropriate drinking times and reduce decision fatigue.
Terroir is another underleveraged story. Uji, Shizuoka, and Kagoshima each have genuinely distinct characteristics, and leaning into the region of origin, as wine does, could both differentiate products and justify premium pricing.
“Shoppers largely don't know where to start with matcha, green tea or sencha tea. A supermarket that makes the category approachable and well-signposted has a real opportunity to own that space, before a specialist retailer does it first.”
She added that consumer data pointed to strong demand for pre-blended matcha latte mixes to address both convenience and price sensitivity, driven by younger demographics discovering matcha through cafés and ready-to-mix beverages.
Several health brands have launched barista-ready matcha blends, as well as ready-to-drink bottled iced teas, matcha protein shakes, smoothie mixes, and greens powders. Retailers like Whole Foods carry a wide range of matcha RTD products, from protein-enhanced lattes to sparkling teas.
Brands are developing hybrid superfood blends that combine matcha with spirulina, chlorella, or collagen to attract health-conscious consumers and add functional value beyond the base product.
Demand for adaptogenic matcha blends is forecast to rise further into 2026.
Fruit-blended matcha has been appearing more in New Zealand, with strawberry, yuzu, banana, white chocolate, vanilla, mango, and passionfruit combinations gaining popularity, particularly cold foams over iced matcha, which are performing strongly on TikTok. Floral notes like lavender, rose, and jasmine have also become more common.
Queries for "ready to mix matcha latte" are surging in automatic and self-serve formats, with vending-compatible matcha powders now being used in office coffee systems, fast-food chains, and gas-station chains.
"Matcha frappuccino" saw significant search growth through 2025, indicating a seasonal shift toward iced and blended formats in warmer months, a pattern brands are capitalising on with limited-edition versions.
More from the beverage aisle here
