Published by ChinaMNC · Shengzhou
Zhejiang Accelerates High-Quality Matcha Industry Development: Key Takeaways for Foreign Founders
Zhejiang province has introduced new policies and standards to boost its matcha industry, aiming to become a global high-end matcha hub. Foreign founders in the food and beverage sector should note the opportunities and regulatory updates.
Zhejiang Accelerates High-Quality Matcha Industry Development
On the 26th, a provincial on-site meeting on high-quality tea industry development was held in Yuhang, Hangzhou. At the meeting, the Ten Opinions on Supporting High-Quality Development of the Matcha Industry was released, jointly issued by the Zhejiang Provincial Department of Agriculture and Rural Affairs and the Zhejiang Provincial Department of Economy and Information Technology. Additionally, the Zhejiang Tea Society published the Zhejiang Matcha group standard, establishing a clear quality ladder: “Premium, Special Grade, First Grade, Second Grade.” Zhejiang’s matcha industry has entered a fast track of high-quality development.
The Opinions set the high-quality development goal of building Zhejiang matcha into a “global high-end matcha center,” focusing on key links across the entire matcha industry chain and implementing comprehensive measures from production, processing, market, and integration perspectives. The group standard sets a clear quality benchmark for Zhejiang matcha, further serving the development goals of “high-end and branding” for Zhejiang matcha.
According to the meeting, in 2025, Zhejiang’s matcha processing output reached 8,851 tons, an increase of 50.3% year-on-year, generating an annual output value of 1.1 billion yuan. It also successfully promoted the establishment of a dedicated 13-digit HS customs commodity code for Chinese matcha products, demonstrating sustained industry vitality. A responsible person from the Provincial Department of Agriculture and Rural Affairs stated that in recent years, provinces such as Guizhou, Hubei, and Sichuan have continuously increased their layout of deep-processing capacity for matcha and other products, forming scale and cost advantages, which is further forcing Zhejiang to seek change through innovation and expand new growth space for the matcha industry. This is also the practical background for Zhejiang’s introduction of specific opinions and standards for the matcha industry at this time.
In Yuhang, Hangzhou, which bears the label “Source of World Matcha,” various matcha-themed tea spaces are emerging, and leading domestic and emerging matcha brands are gradually gathering. Local matcha enterprises have innovatively developed the “Jingshan Intelligent Matcha Machine,” which uses AI algorithms to precisely replicate the Song Dynasty’s “Seven Whippings Tea Method,” shortening the tea whisking time from 8 minutes to 2 minutes. It has already received global intention orders for 3,000 units.
It is learned that next, Zhejiang will concentrate policies and resources to develop high-end matcha and organic matcha, strengthen technological and process innovation, and accelerate the building of a regional public brand for Zhejiang matcha. By 2030, Zhejiang’s matcha garden area is to reach 300,000 mu, with more than 300 production lines, and the comprehensive output value of the entire industry chain is to exceed 10 billion yuan.
What This Means for Foreign Founders
For foreign founders looking to enter China’s food and beverage market, Zhejiang’s push for high-quality matcha development presents several opportunities and considerations:
1. Policy Support and Market Growth
The Ten Opinions and the group standard signal strong government support for the matcha industry. The goal to become a “global high-end matcha center” indicates a focus on quality and branding, which may create a favorable environment for foreign companies specializing in premium matcha products or related technologies. The rapid growth in production and output value (50.3% increase in 2025) shows a dynamic market.
2. Standardization and Quality Benchmarks
The Zhejiang Matcha group standard establishes clear quality grades (Premium, Special Grade, First Grade, Second Grade). Foreign founders should be aware of these standards when sourcing matcha or developing products for the Chinese market, as they may influence consumer expectations and regulatory requirements.
3. Innovation and Technology
The development of the “Jingshan Intelligent Matcha Machine” with AI algorithms demonstrates local innovation in production processes. Foreign companies with advanced food processing technologies or automation solutions may find partnership or investment opportunities.
4. Regional Branding
Zhejiang plans to build a regional public brand for matcha. This could benefit foreign brands that collaborate with local producers or establish a presence in Zhejiang, leveraging the region’s reputation for high-quality matcha.
5. Competition from Other Provinces
The source notes that provinces like Guizhou, Hubei, and Sichuan are expanding matcha production capacity, creating scale and cost advantages. Foreign founders should consider the competitive landscape and focus on differentiation, such as high-end or organic products, where Zhejiang aims to lead.
6. Long-Term Targets
By 2030, Zhejiang targets 300,000 mu of matcha gardens, over 300 production lines, and a comprehensive output value exceeding 10 billion yuan. These ambitious goals suggest sustained government attention and potential incentives for businesses in the sector.
Practical Steps for Foreign Founders
If you are considering setting up a company in China to tap into the matcha industry or related food sectors, here are some practical steps:
- Research Local Regulations: Understand the Ten Opinions and the Zhejiang Matcha group standard to ensure your products or services align with quality requirements.
- Choose the Right Location: Zhejiang, particularly Yuhang, is positioning itself as a matcha hub. Establishing a presence there could provide access to suppliers, talent, and government support.
- Engage with Industry Associations: The Zhejiang Tea Society and local agriculture departments can be valuable resources for networking and understanding industry trends.
- Consider Partnerships: Collaborating with local matcha producers or technology providers (like those developing intelligent matcha machines) can help navigate the market and leverage local expertise.
- Monitor HS Codes: The establishment of a dedicated HS code for matcha products simplifies customs classification for exports and imports, which can streamline trade processes.
Foreign founders should also be mindful of the competitive pressure from other provinces and focus on innovation and quality to stand out in the high-end segment that Zhejiang is targeting.
This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.
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