Matcha’s vivid green color, health halo and ability to play well with myriad flavors has catapulted it near the top of the list for photogenic and functional beverages, but the drink’s traditional preparation is stymieing its move from niche to mainstream – and creating a booming market opportunity for problem-solving CPG players.
In recent years, matcha has emerged as a staple at cafés that position it as a premium alternative to coffee – helping the ingredient’s global market value reach an estimated $1.03 billion in 2026 with a compound annual growth rate of 7.7%, according to Grand View Research.
However, matcha’s high price point, often twice that of a specialty coffee, and inconsistent delivery at cafés has pushed budget-conscious fans to try making it a home – a process that requires a bowl, whisk and patience if made with traditional methods, which can be messy.
Now, a new generation of beverage brands are stripping away that friction and making matcha as grab-and-go as the coffee and energy drinks with which it competes. Ranges of ready-to-drink matcha lattes, sodas and shake-and-make powdered stick packs promise convenience, consistency and multi-sensory experience that consumers increasingly want – but is it enough to move the modern matcha mania into a durable CPG category?
Among the new entrants are Chuh Matcha, a canned-latte brand that is betting on flavor-forward varieties including spiced vanilla, blueberry, lavender and crème brûlée, and Shinzo, which sells single-serve flavored matcha packets alongside sparkling matcha sodas.
From ritual to routine
Made from shade-grown tea leaves and ground into a fine powder, matcha’s origins trace back thousands of years to the Tang Dynasty in China but it wasn’t properly introduced in the US until the late 19th century during the World’s Fairs, where it was met initially with skepticism by consumers who were turned off by its bitter profile and powder format.
But in the 1980s and early 1990s, specialty importers won over health-conscious consumers by promoting matcha’s high antioxidant count, L-theanine content and heritage. In 2006, Starbucks introduced matcha to its North American menu – launching it into the mainstream, where it continued to gather traction on social media thanks to its green hue.
“Since 2022 or 2023, matcha has been on an absolute hockey stick trajectory,” said Andrew Schundler, who launched Chuh’s canned matcha lattes a year ago to make the tea more convenient and expand its usage occasions and consumer base.
He explained that even though matcha has become a household term and is “hugely popular in America,” it is out of reach for many consumers who may not be able to regularly afford an $8 to $10 matcha latte at a café or not have time or the tools to make it at home with a whisk and bowl, which he acknowledged “is a whole process.”
Chuh’s canned matcha lattes solve both these challenges, while also creating new usage occasions and expanding the beverage’s appeal to more consumers, he said.
“If you are in a rush running out the door to work or you are headed to the beach or you want a midday pick-me-up at the office but don’t have time to go to the café or whisk matcha, that is where we come in,” he said.
He predicts that matcha is following the same trajectory as coffee and kombucha, both of which began in cafés or as a beverage carefully brewed at home in multi-serve batches but eventually moved to cans for increased convenience and reach. He also noted that the UK-based matcha company PerfectTed, which started in 2022, and quickly grew with £8.2 million in sales in 2024 and forecast sales of more than £30 million in 2025.
Reaching that level in the US will require significant distribution, but is possible, said Schundler.
“Based on our research with Spins and other data platforms on the coffee and RTD matcha space, velocities per SKU, per store are around about three to five cans a week,” which is small compared to soda, but with sufficient distribution canned matcha could close the gap, he said.
Chuh currently is in about 250 stories and sold about 30,000 cans in its first year, which includes sales primarily in winter in Maine with no tourists, Schundler said.
He adds that the company has some launches coming later this year, and argues more retailers should add canned matcha because consumers want functional and premium – both of which Chuh check.
“We’re a functional, premium beverage in a growing space. Matcha’s year-over-year growth was 12% last time I saw, which is a great category to be in. Matcha menu mentions are up 50% year-over-year – so matcha is booming. And there are not a lot of canned options in this space yet. So, our big pitch to retailers is that instead of having 12 facings of energy drinks and eight kombuchas, carve out two to four facings for matcha because it is going to bring in a younger consumer,” he said, noting the drink resonates well with 16- to 30-year-olds.
Shinzo balances tradition and convenience
Another newcomer helping to push matcha mainstream is Shinzo Matcha, which launched last September with powdered matcha latte stick packs that are more convenient than whisking ceremonial grade matcha at home and less expensive than matcha lattes at a café.
“While a lot of people like the ceremonial-based practice of making matcha with the whisk and bowl, others think it takes a lot of time,” said Sloane Graham, a marketer with Shinzo Matcha.
She explained for those who want a matcha latte with less fuss “we made stick packs that are super easy to use. You don’t have to measure the matcha. They are already naturally flavored. So, you just pour one stick into a cup of your milk of choice and froth it for about 30 seconds and it is ready to go.”
The stick packs also help preserve the matcha’s flavor and potency, she added.
“We decided to do stick packs because what people don’t know is that a lot of times when you buy matcha in a tin, every time you open the tin the matcha oxidizes. So, it slowly loses quality over time. That is why when you first buy the tin and make matchas they are great, but overtime the taste is more dull,” she explained.
Beyond lattes
The startup also offers a sparkling matcha in cans as a better-for-you alternative to energy drinks, said Graham.
The 8.4 ounce cans blend ceremonial-grade Japanese matcha with water, organic cane sugar and depending on the variety either coconut water and natural mango flavor or yuzu juice and natural mint flavor along with acacia fiber and citric acid.
“The sodas actually came from our co-founder who used to drink energy drinks a lot in grad school and college and got sick of them. They were hurting his system, so he decided to create an alternative for coffee that was not just another coffee drink,” Graham said.
Matcha’s health halo helps drive trial
As in the case of Shinzo’s co-founder, demand for energy is a big driver of for matcha, which is perceived as a healthier source.
According to Innova Market Research, 26% of consumers in the US and Canada report that energy and stamina is their primary concern related to physical health.
“Caffeine is probably the No. 1 thing that consumers are asking for. But there are so many variations out there,” said Graham.
She argued consumers want energy, but they don’t want to be overwhelmed and feel anxious because of it.
Schundler agreed, noting, “A lot of people are waking up to the effects of high caffeine, and I think we will see a transition away from high energy drinks with 200 to 300 milligrams of caffeine.”
He added: “Our cans are about half as much caffeine as a cup of coffee, and thanks to the compound L-theanine, it releases slowly into your bloodstream. So, you are going to get that slow lift without the crash or jitters.”
Shinzo’s sodas have 75 milligrams of caffeine, which is slightly less than a standard cup of coffee.
The lower levels of caffeine also create new drinking occasions that cannot easily be filled by coffee or energy drinks.
“We are going to have people who are really excited about a lower caffeine option where they don’t want coffee anymore because it is past 1 pm but they just need a little pick-me-up,” Schundler said.
Flavor forward
Both startups also are leveraging different flavor pairings to expand the appeal or palatability of matcha for consumers who might be turned off by the ingredient’s profile by itself.
“Traditional matcha has a very umami flavor. Some people say it tastes grassy, which is why our flavoring makes it more neutral,” said Graham. “The mocha is sweetened with cacao from Sierra Leone. The vanilla is sweetened with Madagascar vanilla bean. And the honey is from clover honey. So, all natural ingredients, nothing artificial.”
Chuh opted for “fun latte-like flavors” that complement the earthy notes of matcha and which are familiar to consumers from cafés, said Schundler. For example, the company’s lavender matcha latte is riding the popularity of the flavor combo promoted by Starbucks, while the spiced vanilla has a “chai vibe,” he said.
Can matcha become a standalone category?
Between the diverse flavors and formats brought by Chuh, Shinzo and other players, the next question is whether matcha can be established as a category separate from energy drinks, coffee and other teas.
Schundler said the answer is yes, arguing that matcha has reached the point where consumers know what it is and are eager for different formats that they can enjoy under a range of circumstances. This opens the door for matcha as a platform that can solve a range of needs, including as a portable breakfast, afternoon pick-me-up, energy drink alternative or simply something flavorful and fun. The trick is making all of these uses easy so as to establish routine and drive steady velocity.
Graham agreed noting that Shinzo is making the category less strict and ceremonial and more convenient and fun, but without abandoning respect for the tradition.
She added this balance is what brings incremental, steady growth to the category without alienating early adopters who have established purchasing patterns and can act as ambassadors.
