Core Insights - The demand for matcha products has surged significantly, driven by foreign tourists and a growing global interest in health-oriented foods [1][21][28] - Matcha has become a staple flavor in desserts and beverages, with a wide variety of new products being introduced annually in Japan [2][5][6] - The matcha market is expected to continue expanding, with projections indicating a compound annual growth rate of 9.4% from 2022 to 2027, reaching a market size of $5.5 billion by 2027 [40] Industry Trends - The popularity of matcha has been influenced by health trends, with consumers associating it with various health benefits, including weight loss and improved heart health [28][30] - Social media has played a crucial role in promoting matcha, with visually appealing matcha products gaining traction on platforms like Instagram and TikTok [33][34] - The collaboration between matcha and global coffee culture, particularly through major chains like Starbucks, has further solidified matcha's presence in the beverage market [36][37] Supply and Demand Dynamics - The supply of matcha has struggled to keep pace with the rising demand, leading to shortages and even purchase limits at some retailers [15][17][18] - The price of matcha has increased significantly, with raw matcha leaf prices rising by approximately 30% over the past five years [23] - The production of matcha faces challenges due to labor-intensive cultivation methods and an aging workforce in the tea industry [26] Consumer Behavior - There is a noticeable shift in foreign tourists' spending habits, moving from mere product purchases to immersive cultural experiences, such as tea ceremonies [38][39] - The trend of "superfoods" has positioned matcha as a desirable product among health-conscious consumers, despite its higher price point [30][28] - The emergence of creative matcha-infused products, such as matcha tofu snacks, reflects the evolving consumer preferences and market innovation [46]