Global Matcha Demand Soars Amidst Supply Shortages

Matcha's booming global popularity has led to severe supply shortages, causing prices to rise while retailers implement purchasing limits. The tea's cultivation faces challenges from climate change and demographic shifts in Japan, further complicating the situation.

The matcha phenomenon has taken the world by storm. This vibrant green tea, originating from Japan, has infiltrated diverse products, from Starbucks lattes in the UK to Krispy Kreme doughnuts in Singapore. Social media has fueled this craze, with the hashtag #MatchaTok garnering millions of views as influencers share brewing techniques, recipes, and recommendations.

The heightened global demand corresponds with Japan's post-pandemic tourism resurgence, driven by a weak yen that has made the country an appealing destination, simultaneously boosting the appeal of Japanese products abroad. As a result, U.S.-based tea importer Lauren Purvis from Mizuba Tea Co. reports an alarming trend: monthly matcha supplies are vanishing in days, with some cafes urgently requesting up to a kilo daily just to keep pace with customer cravings.

However, this surging appetite for matcha flows alongside challenges stemming from extreme weather and U.S. tariffs on imports from Japan. Traditionally, matcha’s delicate flavor, caffeine, and health benefits result from a meticulous centuries-old process involving green tea leaves known as tencha, which are shaded during growth. Factors like record-breaking heatwaves have significantly affected recent crops, particularly in Kyoto—a region responsible for a substantial share of Japan's tencha production.

With fewer harvests and an aging farming population, matcha retailers across Japan have seen matcha shelves emptied within minutes of opening. In light of these shortages, retailers like Camellia Tea Ceremony have imposed purchasing limits, allowing each customer only one tin of matcha. Director Atsuko Mori notes that the number of visitors to matcha hotspots has doubled over the past year, exacerbating the shortage.

Tea master Rie Takeda from Chazen, a tea ceremony chain based in Tokyo, also highlights the delays in fulfilling matcha orders, with shipment times extending from days to over a week. Consequently, prices for matcha at Chazen outlets have surged by approximately 30% this year, prompting calls for mindful consumption to prevent hoarding and speculating on matcha prices.

The increasing desirability of matcha has led to heightened awareness about responsible consumption among drinkers, with advocates emphasizing the importance of accessing matcha in its purest form rather than as a component in various recipes. The Global Japanese Tea Association suggests that consumers consider using lower-grade matcha, which is more readily available and can be more suitable for culinary uses. This approach promotes an appreciation for the delicacy of high-grade matcha.

With impending tariffs set to rise due to a new trade agreement between the U.S. and Japan, matcha distributors are preparing for further price increases. Ms. Purvis anticipates that specialty tea should be exempt from any restrictive tariffs, given that no American industry is threatened by Japanese tea imports.

Despite the current high demand and decreasing supplies, some industry players, like Masahiro Nagata from Matcha Tokyo, believe that the intense market conditions could stabilize within the next two to three years, as pressures surrounding the high pricing of lower-quality matcha become unsustainable.

As consumers navigate the evolving matcha landscape, the essential character and traditions of Japanese tea culture must be preserved, ensuring that its exquisite qualities continue to be valued and celebrated.