Why Jeju-grown matcha and hojicha are gaining global attention as premium tea rivals to Japan

Clean Jeju Green Tea Agricultural Cooperative ‘Sumang’ is stepping into a new phase of international growth with the launch of Hojicha, a roasted green tea known for its nutty aroma and naturally lower caffeine content, alongside its established portfolio of premium matcha. This expansion reflects not only a product diversification strategy but also a shift toward broader global market penetration, where wellness-driven consumers are increasingly demanding natural, sustainable, and functional beverage options. Founded in 2007, the cooperative grows tea on Jeju Island’s mineral-rich volcanic soil and now aims to accelerate both export distribution and direct-to-consumer e-commerce sales.

Why is Sumang targeting global matcha and hojicha markets at a time of rising wellness-driven consumer demand?

Global demand for matcha and related premium teas has grown rapidly as consumers worldwide move away from sugar-heavy sodas and embrace antioxidant-rich, plant-based alternatives. Industry estimates value the matcha market at more than USD 3.3 billion in 2024, with annual growth expected to remain in the high single to double digits through the end of the decade. Analysts note that this surge is being fueled by consumer awareness of matcha’s health benefits, including high antioxidant levels, calming properties linked to L-theanine, and its suitability as both a beverage and an ingredient in baking and wellness supplements.

Hojicha, though historically less known outside Japan, is emerging as an appealing complement to matcha. The roasted profile delivers smoother, caramelized flavors with significantly less caffeine, making it ideal for evening consumption or for consumers sensitive to stimulants. Western markets, particularly in the United States and Europe, are beginning to embrace Hojicha through cafés, boutique tea brands, and online retailers. While the category remains relatively small today, market watchers project that Hojicha consumption could grow at an annualized rate exceeding 12 percent through 2030, outpacing the broader green tea market. This positions Sumang to capture demand early in an underdeveloped yet rapidly scaling category.

How does Jeju Island’s unique environment contribute to the premium positioning of Sumang’s green tea and matcha?

The cooperative’s identity is firmly rooted in Jeju’s terroir. Jeju Island, formed by volcanic activity, offers soil enriched with maekbanseok minerals that impart distinctive taste and nutritional qualities to the crops. Frequent fog and maritime winds ensure natural irrigation, while mild year-round temperatures reduce pest pressure and minimize the need for chemical inputs. These natural factors allow producers such as Sumang to emphasize purity, sustainability, and traceability—qualities that resonate strongly with modern global buyers.

Observers often compare Jeju-grown tea to Japan’s celebrated Uji region, noting similarities in mineral balance and climate. The parallel is significant because Uji remains a benchmark for ceremonial-grade matcha, and aligning Jeju’s production with those standards creates a perception of comparable quality. By marrying these natural advantages with modern tencha-line processing equipment, Sumang ensures consistency of flavor and aroma that can compete with more established Japanese suppliers.

What role does product diversification into hojicha play in strengthening Sumang’s global strategy?

Sumang’s decision to launch Hojicha in August 2025 reflects a recognition that premium tea markets are not one-dimensional. While matcha remains its flagship export, the cooperative is strategically widening its portfolio to capture new demographics. Hojicha’s lower caffeine profile appeals to older consumers, health-conscious professionals, and young students who want flavor and wellness without overstimulation. By offering this roasted tea alongside three distinct matcha grades—Ceremonial, Premium, and Superior—Sumang provides a comprehensive product ladder that appeals to both connoisseurs and mainstream drinkers.

This tiered approach mirrors strategies employed by Japanese giants such as Ito En and boutique producers like Marukyu-Koyamaen, which segment their matcha offerings for different price points and occasions. At the same time, the expansion into Hojicha echoes trends seen in North American and European cafés, where specialty roasted teas are gaining popularity as “discovery beverages.” Analysts view this diversification as a way for Sumang to future-proof its portfolio and compete more effectively in international markets.

How are global distribution channels and e-commerce shaping the future of Sumang’s expansion plans?

Historically, Sumang’s exports relied on B2B channels, distributing through wholesalers and specialty retailers in overseas markets. While this approach delivered steady volumes, it limited the cooperative’s ability to build direct brand recognition with end consumers. In response, Sumang has signaled that its next phase of growth will focus on expanding direct-to-consumer channels via its own online store and international e-commerce platforms.

This pivot reflects wider industry shifts. Direct-to-consumer sales in specialty foods and beverages surged in the post-pandemic period as consumers sought authenticity, traceability, and convenience. For teas such as matcha and Hojicha, e-commerce enables storytelling around origin, cultivation, and preparation rituals, all of which are central to the product’s appeal. Institutional sentiment indicates that by moving into digital-first channels, Sumang not only stands to capture higher margins but also to create repeat-purchase loyalty that wholesalers alone cannot deliver.

What does institutional sentiment reveal about the premium tea market and Sumang’s positioning within it?

Analysts covering the wellness beverage segment have consistently expressed optimism about the trajectory of premium teas. Matcha has already entered mainstream café culture in cities from New York to Berlin, while Hojicha is emerging as a specialty option for consumers seeking new flavors. Investors point to three structural forces underpinning Sumang’s strategy. The first is café adoption, where matcha and Hojicha lattes are increasingly common. The second is the extension of matcha beyond beverages into pastries, ice creams, and supplements, which diversifies demand channels. The third is the rising reputation of Korean agricultural exports globally, aided by the popularity of K-beauty and Korean wellness culture.

Japanese producers still dominate in ceremonial branding, but Korean cooperatives are gaining attention for offering competitive quality at accessible price points. Market observers argue that Sumang’s emphasis on ESG compliance, sustainable cultivation, and cooperative governance aligns with institutional priorities in responsible sourcing. This could help the cooperative build credibility with global buyers, particularly in markets where ESG standards are becoming central to procurement.

How does Sumang compare to international competitors in the specialty tea segment?

In comparing Sumang with global peers, it becomes clear that the cooperative occupies a hybrid position. Japanese majors such as Ito En enjoy scale, heritage branding, and deep-rooted cultural capital, while Western startups have succeeded in capturing younger audiences through branding and digital-first campaigns rather than agricultural depth. Sumang, by contrast, blends authentic cultivation with cooperative-scale processing, while also pursuing digital marketing and e-commerce strategies.

This dual positioning may help it stand out. Younger consumers often seek authenticity but balk at paying the highest premiums for Japanese ceremonial matcha. Sumang’s Jeju-grown teas, produced under sustainable cooperative standards, offer a credible alternative at more approachable price points. As analysts note, this balance could make Sumang an attractive option in markets like the U.S. and Europe, where café menus and online shopping habits are shaping consumption patterns as much as heritage branding.

What cultural and consumer factors are driving demand for matcha and hojicha worldwide?

Beyond health benefits, matcha has become a lifestyle symbol. Its vibrant green color and ceremonial preparation process resonate with consumers who view it as both a functional beverage and a cultural experience. Social media has amplified its visual appeal, turning matcha lattes into a staple of wellness branding. Hojicha, though less visually striking, tells a different cultural story centered on comfort, relaxation, and flavor complexity. Its roasted aroma makes it versatile in both sweet and savory pairings, broadening its appeal beyond traditional tea drinkers.

Market research suggests that Hojicha could become the next “discovery tea” for consumers who already embraced matcha but are looking for novelty. Analysts project that while matcha will remain the dominant category, Hojicha could grow from a niche into a globally recognized specialty by the end of the decade, with the United States accounting for much of that growth. Sumang’s decision to launch Hojicha now allows it to secure a first-mover advantage in markets where Japanese suppliers have yet to establish dominance.

What does the future hold for Sumang’s international growth and Jeju’s tea export economy?

Looking forward, Sumang’s growth prospects appear closely tied to its success in balancing wholesale stability with consumer-facing branding. By establishing its own e-commerce platforms and expanding distribution partnerships, the cooperative can build brand recognition abroad while maintaining steady export volumes. Industry sentiment suggests that Jeju Island as a whole may benefit, with tea emerging as one of its most visible agricultural exports alongside citrus.

In five years, analysts expect Jeju-grown teas to be recognized globally as a distinct premium category. If Sumang succeeds in leveraging ESG credentials, digital sales, and diversified product offerings, it could anchor that shift, positioning Jeju as a challenger region to Uji in global premium tea narratives. The cooperative’s ability to expand while maintaining sustainability standards will be critical to ensuring that growth is both profitable and resilient.