How to Start a Matcha Business in Dubai

Wondering how to start a matcha business? First of all, who would have ever thought a tea would make it so big! In a world obsessed with health, fitness, and lifestyle, no one expected a humble tea to become a global trend. But here it is: matcha, the green gold. Not just a drink in the hands of influencers, but one of the most profitable business ideas!

In the matcha business, you can start your own matcha café, launch a retail or e-commerce store, become a wholesaler, create beauty products, or even build a career as a matcha content creator.

This guide has been created to bring the buzzing matcha business into the spotlight. Whether you are a matcha fanatic or someone looking to start a business, you are in the right place. You will get all the essential information on how to open a matcha business and the procedure to be followed in the trend-driven city like Dubai.

What is matcha?

Matcha is a special type of green tea, finely powdered and light green in colour. The tea is known to have a strong umami flavour and is often consumed whisked in hot water. Today, it is being used not just for lattes and smoothies but also in skincare and desserts. The tea is also said to be rich in antioxidants and famous for its health benefits.

It is safe to say that this iconic powdered green tea has become a booming global business today.

The matcha industry – global insights

Before diving into the matcha business, let us take a look at the industry itself. The matcha industry is experiencing significant growth and transformation. The demand is especially rising as consumers increasingly prefer it for its health benefits and cultural appeal.

Factors like growing health consciousness, the rise of e-commerce, and the influence of social media, where more and more influencers showcase matcha in their content, are fuelling this trend. Originally from China, matcha has gone global. Its popularity has reached every corner of the world, from the United States and South Korea to, yes, even Dubai!

If you are wondering whether there is market for matcha then you must know that by 2025, the market size for matcha business is estimated to reach USD 2.46 billion! The industry is growing at a high pace and offers opportunities for businesses and innovative product offerings.

Matcha business ideas

Whether you want to start a matcha business in Dubai or elsewhere in the world, there are many business ideas you can go for. Here are some examples:

1. Matcha café:

You can open a dedicated matcha café or shop where customers can enjoy a variety matcha drinks and delicious desserts. You can start small with a cart or food truck, which gives you the benefit of mobility. Or, if you have a bigger budget, you can open a full-fledged café, a nice place where people would love to spend time.

All you need to do is set the right vibe, market your place well, and attract customers. With time, you can expand by establishing more branches.

2. Retail/e-commerce store:

Online consumption is increasing day by day, and the same is true for ordering food and products online. You can start an online store where you sell matcha-based products. It can be anything, matcha beauty products, food and drinks, or even powdered matcha for home use.

Selling online in city like Dubai can be very beneficial. Internet penetration and mobile usage are high here, which means more opportunities to serve customers. Alternatively, you can open a physical retail store in shopping areas or other high-traffic locations.

3. Matcha wholesale:

As the trend to start a matcha business increases, entrepreneurs will be looking for reliable suppliers who can provide high-quality matcha raw materials at the best price. Therefore, you can consider starting a matcha wholesaler business.

As a wholesaler, you will need to have a solid network, which includes both suppliers and the retailers to whom you will sell. You can target restaurants, cafés, clubs, bakeries, and more as your customers.

4. Beauty and cosmetic products:

Interested in the beauty sector? You can combine the craze for beauty products with the growing trend of matcha. Matcha can be used in a variety of skincare and beauty items such as face masks, body scrubs, soaps, facial cleansers, creams, serums, and even lip balms.

You can either start manufacturing if you have the right setup, or you can retail these products by sourcing them from suppliers. In a world where natural beauty products are in high demand, matcha’s antioxidant-rich properties make it a highly attractive ingredient for skincare lovers.

How to start a matcha business in UAE

Here are the simple steps to start a matcha business in Dubai:

Step 1 – Market research

Before launching any kind of business, solid market research is essential. It not only helps you understand the demand for matcha products but also allows you to identify existing competitors, their customer base, pricing models, and marketing strategies.

Step 2 – Decide your business focus

As previously discussed, there are many business ideas you can pursue in the matcha space. You must decide which operation you want to carry out. Are you going to open a matcha café, launch an e-commerce store, sell beauty products, or become a wholesaler?

Step 3 – Create a business plan

Once you have done your market research, next comes the planning part. For example, if you choose to open a café, you will need to determine your unique selling points. Based on your research, create a detailed business plan that includes your:

• Business goals
• Financial projections
• Target market
• Marketing strategy
• Estimated startup costs
• SWOT analysis (Strengths, Weaknesses, Opportunities, Threats)

Step 4 – Check legal requirements

Understanding legal and regulatory requirements to start a matcha business is crucial. For example, in the UAE, you must know what type of business license is needed for a matcha business, as well as permissions related to food safety, health standards, and local jurisdiction regulations.

Step 5 – Source of matcha

The success of your matcha business heavily depends on the quality of the products you offer. The taste, aroma, and overall customer experience rely on the authenticity and grade (premium, culinary or ceremonial) of the matcha you use. Therefore, finding a right matcha supplier is crucial.

Tips for choosing the right supplier:

• Check the supplier’s credibility and reputation
• Compare price points of different suppliers
• Ensure quality assurance practices are in place
• Request samples to test before making a bulk purchase

If you are choosing international supplier, then you must comply with UAE’s import regulations.

Step 6 – Choose a business structure

You must decide on the legal structure for your matcha business. It can be a Limited Liability Company (LLC), a sole proprietorship, a partnership, or a joint venture. Each structure has its own advantages and restrictions.

It is important to consider factors like taxation, liability, ownership, profit-sharing, and the level of control you want before making the right choice.

Step 7 – Register a trade name

Choose a name for your matcha business and get it registered with the appropriate authority. In Dubai, there are specific naming conventions that must be followed. Failure to meet these requirements may result in your application being rejected.

Step 8 – Get the approvals

When starting any business, government approvals are a must. In Dubai, you will need to get initial approval from the Department of Economic Development (DED) if you are setting up on the mainland, or from the respective free zone authority. You may also need additional permits such as:

• Food and health safety permits
• Food handling certifications
• Local municipality approvals

Step 9 – Set up a physical location

If you have decided to open a matcha café or have a physical presence, you will need to find a suitable space. You can lease or buy an office or retail space. While choosing the location, consider factors like visibility, customer accessibility, foot traffic, and rental cost.

• Space that reflects your brand
• Welcoming place where people enjoy spending time
• Comfortable seating and a cozy atmosphere

Alternatively, if you are starting an e-commerce business, your physical presence may be limited to a small office or warehouse for inventory and operations.

Step 10 – Apply for the business license

It is very important to get the right license to start a matcha business. This could be an e-commerce license, a cafeteria license, beauty product license or another type, depending on your specific business model.

In Dubai, you will need to apply for the matcha business license through:

• Department of Economic Development (DED) for a mainland setup.
• The respective free zone authority if you are setting up in a free zone.

You will be required to fill out an application form and submit it along with the necessary documents and fees. Once the application is approved by the relevant authority, your business license will be successfully issued.

Need help with business licensing? Dubiz Business Setup can help!

Marketing your matcha business

Once you start a matcha business, you next focus should be on marketing. The most important thing that can help you beat the competition is how you create your brand’s presence and image. Here are some ways you can stand out in the matcha business:

• Packaging: Make it visually appealing, use consistent brand colors, and keep it eco-friendly.
• Promote quality products: Your customers can taste and fell the difference so invest in quality matcha.
• Social media: Use platforms like Instagram, TikTok, and others. Promote your brand, run ads, and collaborate with influencers.
• Content marketing: Use SEO and content strategies to make your business more visible on search engines.
• Website development: Create a professional website especially if you run an e-commerce business. It should be user-friendly and showcase your products well.
• Collaborate: Partner with yoga studios, gyms, fitness centers, and cafés to promote your products and grow your brand visibility.

Why UAE for matcha business?

Undoubtedly, matcha business is witnessing growth in every part of the globe. However, something about UAE makes it even more special. UAE, which is one of the best places to start a business, is where a matcha business can truly thrive and be very profitable.

Here are the advantages of starting a matcha business in Dubai, UAE:

• Ease of doing business: With very few administrative hurdles and easy business registration, starting a matcha business in Dubai needs less time and effort.
• Tax benefits: Known to be a tax haven, businesses in Dubai enjoy high savings on taxes with no personal income tax and low corporate tax, that too only for qualifying businesses.
• Affluent market: The affluent and spend-thrift population of Dubai does not hold back on any trend including indulging in matcha products.
• Rising demand: The growing health consciousness makes matcha attractive for people in the UAE. Gen Z, upper-middle-class locals, and health-conscious expats are going to love matcha.
• Low competition: As the matcha business is still new, you can be an early player in Dubai and take the first-mover advantage.
• Leisure culture: People like to go out and spend time in cafés with family and friends. An aesthetic café is on the to-do list of almost everyone here.

Matcha business at a glance

Starting a matcha business can be a great choice for entrepreneurs, especially in an advanced city like Dubai. To get started, you need to follow proper planning and research, choose the right supplier, decide on the business structure and name, and obtain the necessary permits and licenses for legal operations.

Matcha is becoming the new drink of choice for health and lifestyle lovers. People want it in a variety of forms whether as café lattes, smoothies, beauty products, or food items. If you are thinking of joining this wave with your own matcha business, this could be a golden opportunity.

With the right vision, careful steps, and proper guidance, you can truly succeed in this sector.

How Dubiz can help in setting up matcha business in Dubai

For those looking to start a matcha business in Dubai, Dubiz Business Setup can be a true guide. With over 8 years of industry experience, a strong team of business setup experts, and a focus on clients’ needs, we have been helping entrepreneurs with company formation across the UAE.

Whether it is a restaurant, food truck, café, or a matcha business, we can help you start the business you desire.

• Trade license
• Business registration in UAE
• Bank account setup 
• Visa and immigration
• Tax and accounting
• Business centers

Get in touch with us

📞 Call: +971 56 369 5485

💬 WhatsApp: +971563695485

📧 Email: info@dubiz.co

Frequently Asked Questions (FAQs)

1. What documents are needed to start matcha business in Dubai?

For starting matcha business in Dubai, you will need the following documents:

• Copy of passport
• Copy of UAE visa and Emirates ID
• Trade name registration certificate
• Initial and additional approval certificates
• Memorandum of Association (MoA)
• Tenancy contract
• Business plan
• Additional documents as asked

2. How much does a matcha business license cost in Dubai?

The cost of matcha business license in Dubai depends on type of businesses you are starting:

• E-commerce license: From AED 5750*
• Matcha cafeteria: From AED 24,000*
• LLC license: AED 13,000 (no visa, space is mandatory)

For more cost details, please contact us at Dubiz Business Setup

3. Where can I start a matcha business in UAE?

In UAE, you can start matcha business on mainland or freezone. These are the economic jurisdictions and each of them has its own regulating authority and legal framework.

4. Is matcha high in demand?

Yes, matcha is experiencing a surge in demand globally due to its health benefits as well as popularity on social media.

5. Is matcha a profitable business?

Businesses can make huge profits by offering matcha products. Matcha tea, for example, has high profit margin than any other form of coffee and tea.