OMG Secures 350,000kg Japanese Matcha Supply, Launches Two New Brands

Strategic Entry into a High-Growth Market

OMG Group Limited (ASX:OMG) has announced a significant expansion into the rapidly growing global matcha category with the launch of two distinct brands: Ōmura Matcha and Matcha Mode. This dual-brand approach allows OMG to address both premium and mass-market segments, reflecting a nuanced understanding of consumer preferences and market dynamics.

The global matcha market, valued at US$4.2 billion in 2024 and projected to exceed US$7 billion by the early 2030s, is driven by increasing consumer demand for natural, clean-label products and heightened health and wellness awareness. OMG’s entry is timely, leveraging these trends with a vertically integrated platform that spans ingredient supply, consumer brands, food service distribution, and product innovation.

Exclusive Supply Agreement Secures Premium Raw Material

Central to OMG’s strategy is a five-year exclusive supply agreement with SANDAI Group, a premium manufacturer of ceremonial-grade Japanese matcha based in Nagasaki. This contract guarantees OMG access to 350,000 kilograms of high-quality ceremonial-grade matcha, a scarce and sought-after ingredient that underpins the authenticity and quality of its premium brand, Ōmura Matcha.

By securing this supply, OMG mitigates a common bottleneck in the matcha market, limited availability of premium Japanese product, positioning itself as a reliable player in both consumer and ingredient supply channels.

Dual Brands Target Diverse Consumer Segments

Ōmura Matcha is designed for discerning consumers seeking premium, authentic ceremonial-grade matcha, with a focus on provenance and speciality retail and hospitality channels. In contrast, Matcha Mode offers accessible, blended matcha products aimed at mass-market consumers, incorporating natural flavours to appeal to everyday users and enabling broader retail distribution.

This tiered approach allows OMG to maximise market penetration and revenue potential by catering to different price points and consumer needs, while also supplying raw matcha powder to food and beverage manufacturers.

Leveraging Existing Channels and Innovation Pipeline

OMG plans to distribute its matcha products through multiple channels, including food service operators, grocery and specialty retail, direct-to-consumer ecommerce, and ingredient supply. The company has already begun marketing efforts to secure distribution partnerships and ingredient customers, signalling an aggressive push to scale the brands quickly.

Moreover, matcha will be integrated into OMG’s existing product portfolio, including Blue Dinosaur functional snacks and Oat Milk Goodness beverages, enhancing product innovation and cross-brand synergies.

Outlook and Strategic Implications

CEO Alex Aleksic emphasised that the matcha launch represents a third scalable brand platform for OMG, reinforcing the company’s commitment to expanding its health and wellness footprint. The vertically integrated model not only diversifies revenue streams but also leverages OMG’s established distribution and innovation capabilities to efficiently scale new categories.

As the global matcha market continues its robust growth trajectory, OMG’s dual-brand strategy and exclusive supply agreement position it well to capture significant value across consumer and ingredient segments.