STiR coffee and tea magazine

12 STiR coffee and tea | 2025 Quarter 4 Winter (Dec/Jan/Feb) Vietnam Produces Matcha The matcha mania currently sweeping the world has taken root in Vietnam as a younger generation of Vietnamese seek out matcha-based beverages, spurring local tea manufacturers to leap at the opportunity brought by the spike in matcha demand. Matcha-based beverages fit naturally into the menus of thousands of cafés and bubble tea shops that are already well-established in Vietnam – and these shops are quickly getting on board. In 2024, 29.6% of food and beverage companies in Vietnam included matcha in their product lineup, according to restaurant manage- ment solutions provider iPOS. Some dedicated matcha beverage chains have also started popping up in major cities across the country. One example is Dao Matcha, which has opened dozens of locations since launching this year. Matcha-curious customers at home have gone a step further, taking to online shopping to satisfy their cravings. According to a report by Vietnamese e-commerce analyst Metric, sales of matcha products on e-commerce platforms in Vietnam gener- ated VND226.4 billion ($8.6 million) in 18 months from January 2024 to June 2025. "When the initial craze started, people were trying every matcha product they could find," says Thuan Do, owner of Dotea Company, which has offered matcha in its online tea shop for around five years. "Now, customers are savvier and have developed preferences for certain products. Matcha sells out as soon as it's available. And people want the ceremonial grade." Vietnam's tea producers are eagerly stepping up to meet the boom in domestic and international demand. The first company to produce matcha in Vietnam was Japanese tea manufacturer Satoen. Years before the global matcha wave hit, Satoen imported a production line from Japan and introduced the popular Japanese tea cultivar Yabukita to create teas with flavor profiles similar to those in Japan. Under today's more urgent market circumstances, Vietnamese tea produc- ers are investigating existing tea resources that could possibly be diverted to matcha production. Many are opting to make use of Vietnam's vast plantations of Taiwanese oolong cultivars like Jin Xuan for their "sweet- ness and pleasant aroma," as Lam Dong-based oolong producer Tran Anh Thu describes. "But matcha is quite different from oolong production. You have to shade the tea plants for 15-21 days and keep them in excellent health to create a proper matcha taste. The color is also important." Some tea companies like Kim Dien, which currently produces 24 tons of matcha annually, have even invested in entirely new production equipment. Founder and CEO Lai Thi Quynh Dao comments, "We use stone mills import- ed from Japan to ensure the fineness and quality of our matcha powder." Lai is confident that bold moves like these are worthwhile. "Japan's supply can no longer meet the rising demand — which presents a great opportunity for Vietnam," he remarks, also noting that Vietnamese matcha could occupy a market niche through its combination of Japanese technology and oolong cultivars, "creating a unique flavor that is gentle, pure, yet deep. I believe Vietnam- ese oolong matcha will make a strong mark on the global matcha map." In regard to whether matcha beverages are a passing fad or a long-term trend, industry insiders seem optimistic that the bright green powder is here to stay. "Matcha will be a lasting market shift," says Thu. "It can be used with a wide variety of products, such as beverages, cakes, lattes, and noodles, or it can be consumed in the traditional way." Thuat agrees. "Matcha is now an established menu item in bubble tea shops and cafés," he says. "So this is not just a short-term shift. Customers will keep requesting these products." By Seth Griffin Vietnamese tea growers anticipated the matcha boom and are ready to compete for a place in the matcha market. Photo credit: Kim Điền Tea Company Tea Report

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