ITO EN: Flagbearer of Japanese Tea Culture

Japan’s leading supplier and purveyor of green tea and matcha has ambitious expansion plans in Europe and the UK as consumption of both products is growing there. As such, ITO EN opened an office in Germany in 2024. Below, Dominique Huret speaks with Akito Suzuki, CEO of ITO EN Europe, about the company’s plans and current trends.

T&CTJ: Why is ITO EN eyeing expansion in Europe?

AS: We are witnessing strong demand in the UK, Germany and France. We assume the café industry leads this soaring demand. Our long-term vision at ITO EN is to be a global tea company that delivers the value of tea – in everything from its traditions to cutting-edge technology – to customers around the world as part of a lifestyle proposal. So, on 1 March 2024 ITO EN Europe GmbH was registered to the district court of Düsseldorf and [we decided] to base our European HQ in Germany to reach the European market.

T&CTJ: Why is ITO EN interested in developing in Europe?

AS: Green tea and matcha are recognised as drinks that have many health benefits. With the growing healthy food market, we have received a lot of inquiries from Europe and found market opportunities. European consumers are highly conscious of health compared to other regions on the globe.

T&CTJ: Which of your tea ranges will you promote in Europe?

AS: For the European market, we are focusing on ready-to-drink (RTD) tea. Our company built its reputation by pioneering this market, and this category continues to be central to our business and brand history. Remember, ITO EN developed the world’s first canned tea in 1980. We have over 200 patents in RTD tea. Most of our efforts in R&D and quality control are dedicated to this category. In developing our products, three things are important: palatability, health and environment. We choose ingredients and technologies that provide not only good flavours but also flavours that can be maintained over long periods of time. The company also [conducts] research on the health-promoting qualities of components in tea. We want to stand by our reputation!

T&CTJ: What products is ITO EN manufacturing in its Düsseldorf facility?

AS: Our RTD teas are produced in Germany while teabags and matcha products are imported from Japan. For the products in Europe, ITO EN uses a fabrication-less manufacturing model. ITO EN oversees the initial processes of heating and blending of crude tea leaves, [but we] outsource the subsequent steps – tea brewing, extraction and bottling – to contracted beverage production companies. This strategy allows ITO EN to maintain flexibility in production volumes and ensures that all products meet stringent
quality management standards.

T&CTJ: What challenges does ITO EN face in expanding its business in the EU and UK markets?

AS: One of our challenges is unsweetened RTD tea. Our key product, Oi Ocha unsweetened green tea, is unique in the European market since all existing tea beverages are sweetened. This situation is challenging but also a big opportunity. ITO EN faced a similar case in the US and created the new market of unsweetened [RTD] tea. It might take a while to be a major beverage category, but I am sure the shift to unsweetened [RTD tea] is on the way. So, for Europe, we are offering RTD Oi Ocha green tea 330ml and RTD Oi Ocha matcha green tea 330ml. In teabags [the line will include] Oi Ocha green tea, Hoji and matcha Genmaicha. [We will also have an instant tea line that includes] Oi Ocha green tea with matcha and for matcha: Oi Ocha organic
matcha 100g, organic matcha stick 12P and sweet matcha stick 10P. For the moment, the instant teas are available only in Asian supermarkets or
restaurants.

T&CTJ: Is the use of green tea and matcha in cocktails, mocktails, desserts and food popular in Europe?

AS: Yes definitely. Matcha is used in many forms and food recipes. Mostly for drinks – just see the big success of matcha latte with fruit on Instagram. It is essential to introduce the younger generation to these premium products, fostering appreciation and awareness from an early age

T&CTJ: What are ITO EN’s development prospects globally?

AS: ITO EN owns companies overseas, primarily in North America and Asia. In the West, factors such as obesity have drawn attention to the health benefits of Japanese foods and green tea beverages. With green tea and matcha recognised as healthy [beverages], the unsweetened green tea Oi Ocha brand has steadily taken hold over the past few years around the world. In the long term, we want to increase the awareness of healthy lifestyles through tea, as well as take on challenges in areas where health issues accompanying economic growth are on the rise, leading to the development of a tea culture across the world and creating new markets for tea.

Green Tea and Matcha Markets

While matcha consumption declines in Japan, global interest is surging, with the market expected to grow from USD $2.8 billion [€2.4bn] in 2023 to $5 billion [€4.3bn] by 2028, according to the Mordor Intelligence’s report, Matcha Market Size, Research, Growth Analysis and Strategies to 2023. Europe is at the forefront of this expansion, driven by wellness trends, a vibrant café culture and a growing ready-to-drink (RTD) fan base. The European matcha market was valued at $513 million [€437m] in 2023 and is projected to nearly double to $954 million [€813m] by 2030, representing a 9.3 per cent CAGR, per Mordor’s report. The market research firm also revealed that in the broader ‘drinking matcha’ segment, the market reached $4.5 billion [€3.9bn] in 2024, with forecasts of $10.2 billion [€8.7bn] by 2033 (~9.9 per cent CAGR).

France currently leads Europe in matcha consumption with about 14 per cent of the regional market, driven by innovations such as organic-certified RTD products. Spain is the fastest-growing matcha market in Europe, with a projected seven per cent CAGR from 2024 to 2029, fuelled by rising interest in wellness and Japanese tea rituals. Germany is seeing strong urban café demand for premium, organic and functional matcha products, with growth rates estimated between 6–10 per cent CAGR. The UK is also experiencing a matcha boom, particularly in specialty coffee chains, with sales expected to rise from £45.5 million [$61.2m] in 2024 to £72 million [$97m] by 2030. Italy is developing a niche market by integrating matcha into artisanal desserts and cocktails, while Russia and Turkey are innovating with functional and fusion products. (All stats per Mordor’s aforementioned report.)

Consumer demand is closely tied to matcha’s health benefits, including antioxidants, energy-boosting properties and a natural, plant-based profile. This is reflected in the rise in organic, premium and RTD offerings. However, the surge in demand has created supply strains, with rising prices and potential shortages as Japan struggles to meet export needs, per Mordor. Overall, Europe is becoming one of the fastest-growing regions for matcha, combining cultural creativity with a strong focus on wellness and sustainability.

European green tea consumption is also on the rise. The EU is forecast to consume 108,000 tonnes in 2024, up 19 per cent year-on-year, per the USDA Analytics’ Green Tea Market Report (2024)/Index Box’s EU Tea Market Overview 2024. Germany, France, the UK and the Netherlands remain the largest markets, while Ireland, Poland and Belgium lead in per capita consumption. According to the report, younger demographics are expanding green tea’s role beyond traditional hot tea into functional beverages such as kombucha and energy drinks. Wellness continues to drive demand, with consumers favouring clean-label, organic and ethically sourced teas, including herbal blends like mint and hibiscus, per the USDA report. Green tea’s integration into functional and lifestyle beverages underscores its growing popularity across Europe.

“European consumers are embracing green tea and matcha like never before – from culinary creations to refreshing beverages. With proven health benefits and centuries of tradition, ITO EN is proud to bring its expertise and unmatched quality of Japanese teas to Europe. We are here to share the authentic taste of Japan, one cup at a time,” said Rona Tison, executive advisor & tea ambassador, ITO EN-North America.

Dominique Huret has been a journalist for the beverage & packaging sectors since 2005. She writes in French, English and Dutch for several press groups. She is the co-founder of Cape Decision consultancy based in Brussels, Belgium and may be reached at [email protected].