Matcha fever: "National" drink or short-term trend?

The food service industry in Vietnam is also competitive and changing rapidly, requiring brands to be agile and design business strategies. For example, in Vietnam, matcha - a beverage from Japan - is also creating a fever. According to data from Metric.vn, by June this year, sales of matcha products had reached nearly 230 billion VND in just over a year, a growth of more than 65%. Not only in Vietnam, matcha is creating a global fever, leading to a serious shortage of green tea powder in its homeland. Prices and supply fluctuate, domestic brands are having to find ways to adapt.

The tea shop opened amid the matcha boom last year. In a year, the shop’s customer base has doubled, but business remains challenging. Previously, the shop’s policy was to let customers choose the strength of their matcha, but now customers have to pay more for a stronger cup. The fluctuating supply of matcha powder has forced the shop to rethink.

Ms. Nguyen Ngoc Minh Thuy - Founder of Kocha Matcha Spot said: "Previously, we only imported 20-30 kg/time, now we have to import double to prepare for cases where the supply is cut off, find other partners to ensure the source of raw materials is genuine, high quality, and stable price".

Not only changing the way of serving, some stores also diversify their menu. Instead of 100% matcha drinks, now this number is only about 40%, the rest are tea and other drinks. The main reason is that matcha powder from Japan has increased in price 1.5-2 times. Many units are forced to adjust their selling prices and restructure their products.

Ms. Bui Nhu Quynh - Representative of Mot Bat Tra brand shared: "We have to adjust the menu, for example, add new dishes or adjust the price, because the supply of matcha is increasingly scarce and some quality types will also increase in price a little bit, affecting operations and other raw materials will also increase accordingly."

Faced with the risk of matcha scarcity, F&B brands are not only looking to solve the supply problem but are also proactively turning it into a strategic advantage, such as repositioning matcha from a common beverage ingredient to a premium product or a symbol of a healthy lifestyle.

Mr. James Duong Nguyen - General Director of Dcorp R-Keeper Vietnam commented: "When people look for green tea, in addition to the trend, they also expect it to solve health problems. It has entered the menu of most segments."

Matcha is no longer a short-term trend but has become a more sustainable business segment. However, whether the "fever" will cool down or not will depend on two factors. First, will the price of raw materials stabilize and second, will Vietnamese consumers maintain their spending on higher-end drinks?

Source: https://vtv.vn/con-sot-matcha-thuc-uong-quoc-dan-hay-trao-luu-ngan-han-10025092910512249.htm