Millennials are the key demographic driving the matcha trend as the most willing to change coffee shops to get their hands on the drink, according to RSM UK’s Consumer Outlook.

A survey of 2,000 consumers found over half (57%) of millennials now drink matcha, with 25% willing to switch coffee shops to get the drink, while 32% like matcha but would only buy it if it’s available in their usual coffee spot.

The drink is also popular among families, with 54% saying they like matcha, which is up from 34% across all age groups.

Saxon Moseley, Partner and Head of Leisure and Hospitality at RSM UK, said: “At a time when operators are struggling to get people through the door, there is real value in jumping on the latest trend. Millennials and Gen Z are the most financially comfortable and willing to spend, so innovating products to tap into the latest craze can boost sales and, in turn, improve a brand’s competitive edge.

“That said, as the appeal of matcha continues to gain momentum, there’s a risk the production of the product will struggle to keep pace. If the availability of matcha becomes stretched, prices will increase, but operators must tread carefully so cost-conscious consumers aren’t priced out from buying the drink. Quality and value for money remain key factors that impact buying decisions of cash-strapped consumers. As ceremonial grade matcha faces growing demand, operators must balance the need of securing enough supply with ensuring that quality remains sufficiently high to meet customer expectations.

“Questions remain over the long-term appeal of matcha, particularly with new drinks constantly coming onto the scene – the latest being ube and hojicha. Operators must remain agile and ready to adapt as consumers move from one trend to another, as it’s clear to see that brand loyalty doesn’t exist when it comes to trying the latest fad.”

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