🌿 Global Matcha Strategy: Origin, Evolution and Current Landscape of Powdered Tea in Asia

The matcha market—and the powdered tea market in general—has become a relevant case study for understanding innovation, cultural adaptation, premium positioning, and international expansion . Its evolution, spanning over a thousand years, connects countries such as China, Japan, South Korea, Taiwan, Thailand, and Vietnam , all of which are now significant players in its production.

This article presents a structured and professional view of the development of matcha, its geographical diversification and the factors that explain its contemporary success in both beverages and gastronomy.

The origins of matcha lie in Tang Dynasty China , when the first techniques for steaming and grinding tea leaves were introduced. This process was an innovation that facilitated the standardization of the product and its preparation. During the Song Dynasty, the culture of whisked tea, which integrated ritual, aesthetics, and functionality, was consolidated, and it was precisely from China that Buddhist monks transmitted this knowledge to Japan, where the product would evolve remarkably.

Matcha wasn't invented in Japan , but it was perfected there. Techniques such as tea shading to increase chlorophyll and certain amino acids, stone grinding to obtain ultrafine particles, and grading by quality—ceremonial, premium, and culinary—were developed, along with the cultural institutionalization of tea through Chanoyu . This process made Japan the leading authority on high-end matcha and a model of quality control and standardization.

Over the past few decades, the global growth in powdered tea consumption has driven the geographic diversification of its production. South Korea, Taiwan, Thailand, and Vietnam have consolidated their own industries with distinct identities, reflecting their climate, terroir, agricultural techniques, and positioning strategies. South Korea produces powdered tea with more herbal and lightly roasted profiles, targeting the mid- to high-end segments. Taiwan, renowned for its oolongs, has developed floral and sweet matcha using shade-grown varieties. Thailand has positioned itself as one of the largest producers of culinary matcha for the beverage and dessert industry, standing out for its scalability. Vietnam, meanwhile, is rapidly advancing as an exporter for industrial applications thanks to its expanding agricultural infrastructure.

In the current landscape, China leads the production of powdered tea by volume , especially in culinary and functional grades; Japan remains the undisputed leader in premium and ceremonial matcha; while Thailand and Vietnam are growing as key suppliers for the food and beverage sector. Korea and Taiwan maintain strategic positions in mid-to-premium grades. This scenario demonstrates that matcha is now a diverse category , with multiple quality levels and production approaches.

5. Strategic factors that explain the global success of matcha

The international growth of matcha is based on a number of factors that have made it a high-value ingredient. Its nutritional profile—rich in antioxidants, L-theanine, and catechins—meets the global demand for healthy and functional products. Its versatility allows it to be integrated into diverse categories such as hot and cold beverages, cocktails, ice cream, pastries, and creative cuisine, expanding its market opportunities.

Its distinctive green color acts as a powerful visual differentiator in a context where consumers seek natural, clean-label ingredients. The strong branding potential associated with matcha—with concepts such as well-being, tradition, artisanal quality, and ritual—makes it a strategic asset for brands seeking to position themselves in premium segments. Finally, the availability of different quality levels facilitates tiered pricing strategies , allowing brands to cater to everything from industrial demand to gourmet consumption.

Matcha originated in China, reached its peak in Japan, and continues to evolve today through innovation and expertise from South Korea, Taiwan, Thailand, Vietnam, and other Southeast Asian countries. Each has contributed to expanding the category, offering new interpretations of the product, and meeting diverse needs in the global market. Celebrating this diversity means recognizing how a product with ancient origins can transform into an international phenomenon through a combination of tradition, innovation, and business strategy .