India’s new tea crush comes with a $96m potential
India's burgeoning tea market is witnessing a matcha revolution, with the country's matcha tea market projected to reach $96.4 million by 2033, according to a report by Grand View Research. The CAGR between 2026 and 2033 is expected to be 9.8%. Matcha, traditionally part of Japanese tea ceremonies, is increasingly popular in Indian cafes, fruit-flavored lattes, and online recipes.
The Indian market generated $45.7 million in revenue in 2025, accounting for 4.7% of the global matcha tea market. Google India's search data reveals a 1,300% increase in searches for "how to make matcha" in the past year, while "matcha protein" searches jumped 2,500% and "matcha health" increased by 1,000%.
Tata Starbucks, a major player in the Indian market, reports a nearly doubling of sales from its matcha portfolio over the past decade. Matcha contributes to about 24% of beverage sales at Subko's cafes in Mumbai, Bengaluru, and Delhi. The company has introduced various iced and cold formats of matcha, as well as food products like Mango Matcha Pastry.
Subko's matcha sales, while plateauing after initial growth, show potential for expansion, with consumers willing to pay a premium and purchase products at par with coffee prices.
The market's growth depends on more than just consumer interest, as matcha production involves shaded tea leaves, steaming, drying, and grinding into a fine powder. Securing consistent supply and cost-effectiveness will be crucial for maintaining the trend's momentum.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
