Tea has been an important part of Eastern culture for thousands of years. That is why, it’s no wonder that the powdered leaves of green tea better known as matcha have their origins in the Far East. Lately, these green tea varieties have become popular in the West as well. In this blog article, we’ll elaborate more on the topics of how to start a matcha business and what matcha business ideas one can research. We’ll also go through the steps to becoming a business owner in the matcha market as well as ideas on how matcha can be used to improve customer experience.
What Is Matcha?
Matcha is powdered green tea made from tencha leaves - a type of shade-grown tea. After the leaves are gathered, they are processed and ground. The result is a fine powder that’s green in color. The origins of matcha go way back to the early history of Japan. As such, it’s been an important part of the well-known Japanese tea ceremonies due to the unique flavor and health benefits of matcha.
Matcha Characteristics
Matcha is rich in flavor. It has a slightly sweet and savory taste. Depending on the quality of the leaves, the taste can have hints of bitterness and grassiness. Matcha is also rich in caffeine and L-theanine - an amino acid that helps with mental clarity and relaxation. Additionally, it contains antioxidants that improve the metabolism and heart health. This is one of the reasons why many are choosing the benefits of matcha vs coffee.
Even though the caffeine in matcha is less than a standard coffee, its release is much slower. This means that drinks like matcha latte can keep you feeling alert longer. That is the reason why matcha is gaining popularity in the culinary world as well. With the help of its unique flavor and green color, experienced cooks can make interesting desserts and savory dishes. There are numerous recipes with matcha, and it’s a trend that is here to stay. Some of the most popular ones are matcha ice cream, matcha cake, and matcha cookies.
Growing Matcha
Matcha tea leaves require shaded conditions to grow. This way the flavor and chlorophyll content are increased. This also makes the color more vibrant green. The growing process takes a few weeks. After that, it’s time for harvesting.
Processing the leaves means steaming and drying them. After that, the dried leaves are ground into powder. The powder is then used for cooking. When mixed with hot milk or water, the end result is a tasteful and energizing drink.
Key takeaway: The matcha industry is growing and there are many business opportunities. If you are wondering how to start a matcha business, make sure to do thorough research first in order to explore potential business opportunities and ideas.
Matcha Business Ideas
If you’re wondering how to start a matcha business and want to benefit from the expected growth of this market, here are some ideas.
Open a Matcha Cafe
A dedicated matcha tea shop or cafe can attract customers who enjoy the powdered green tea. There are numerous matcha drinks and foods that can be offered at such venues. Furthermore, make sure to research online ordering solutions like Revolution Ordering.
Since the matcha market is growing, your establishment can even organize matcha masterclasses where enthusiasts learn how to make drinks and food with their favorite powdered green tea. Additionally, this type of business has the potential to grow and offer not only different types of matcha but also specialty coffee and tea varieties like matcha and yerba mate blends. You can even expand your physical location with an e-commerce store. Check out our tips on how to start a matcha business online below.
Matcha Retail or E-Commerce Store
With the rise of online shopping, starting a matcha online store can turn out to be very profitable. The Internet gives you unlimited marketing opportunities and such business can be easily scaled and grown by offering additional products like matcha accessories and merchandise. When creating a business plan for a matcha eCommerce website, search for reliable matcha suppliers. You might also consider the dropshipping model, at least at the beginning of your venture. Even though matcha is not among the best dropshipping niches, the competition is lower, and you can become a well-known brand in the niche.
As more people are striving to eat healthily, a matcha retail store also has its advantages. It can be opened in shopping centers to attract more customers.
Matcha Wholesale Business
As the demand grows, a lot of entrepreneurs might be researching how to start a matcha business. Importers of matcha will have lots of opportunities to increase their profits. That’s why you might consider starting a matcha wholesale business. The two main things you need to figure out are finding reliable producers of matcha and contacting a lot of customers. Examples of such clients are cafes, country clubs, restaurants, hotel franchises, and bakeries.
Matcha Beauty Products
The natural skincare industry is growing rapidly. And matcha has a lot of applications in beauty products. Face masks, body scrubs, and matcha-infused products are just some of the examples of beauty products that you can produce and sell.
Matcha Subscription Box
A lot of people enjoy making matcha drinks and food as much as consuming them. That’s why a matcha subscription box business has great potential for profits. You can create different types of boxes - for beginner enthusiasts, for a gift, a luxury box, and even a mystery box.
How to Start a Matcha Business in 5 Steps
Starting a new business requires a lot of research. Whether you’re planning to start a matcha eCommerce store or a matcha cafe, here are the main things you need to know:
- Create a business plan. It should contain components such as financial projections, marketing strategies, competition research, and SWOT analysis. Also, an important thing to include in your business plan is potential suppliers. Since most matcha is produced in Japan, you might need to contact importers or international producers.
- Do proper market research. Identify your competitors and compare your future business to theirs. What are your unique selling points? Why should people buy from you instead of your competitors? Answering these questions is the first step before you even consider how to start a matcha business.
- Check all legal requirements. If you’re opening a cafe, there might be more regulations than starting a dropshipping website with matcha products. Thus, you need to do thorough research on the needed licenses and permits required to operate the business.
- Plan marketing and sales. Nowadays, marketing is the cornerstone of every business. That’s why you must properly plan your marketing and sales channels. Social media, influencer collaborations, and partnerships with health-focused organizations like wellness centers and gyms are just a few of the channels you need to explore. If you’re planning to open a physical store, do thorough research to find the right location. Branding is also a big part of the overall marketing. Make sure to create a brand identity that will help customers remember your brand.
- Improve service and adapt. Every idea you have for the future of your business should be written down and researched in the future. There’s no point in spending time and thinking about how to improve the customer experience before your business has even started. However, you will need those ideas in the future.
Also, since the food and beverage industry is constantly changing, make sure to adapt to the market. Don’t be afraid to innovate and experiment with new products or drinks and make sure to collect customer feedback constantly.
Frequently Asked Questions on How to Start a Matcha Business
Hopefully, the rows above have answered the question of how to start a matcha business. Nevertheless, if you’re planning this endeavor, there are probably more things you need to figure out. Here are some additional questions and their answers.
Can Businesses Benefit from Matcha?
Businesses can profit greatly by offering matcha drinks and products with a higher profit margin than other teas or coffee. The numerous health benefits and the unique flavor of this ingredient make it a product that has many fans.
Is There Demand for Matcha?
Consumer data and global market research project an annual growth rate of about 10% per year for the next five years. This means the demand for matcha will be increasing and it’s no surprise many are wondering how to start a matcha business. Additionally, the worldwide supply of matcha comes from only a couple of regions in the Far East. Thus, green powdered tea is expected to become more expensive in the future.
How Long Can Matcha Last?
The shelf life of matcha is approximately one year. If stored under the right conditions, it can last much longer. It won’t spoil, but it will lose some of its flavors and properties.