The world’s growing obsession with matcha is putting a strain on global supplies, driving prices higher and pressuring Japan’s traditional tea producers to keep up with soaring demand.
Matcha, the vibrant green tea powder from Japan, has become a global sensation, showing up in everything from Starbucks lattes in the UK to Krispy Kreme doughnuts in Singapore. Social media platforms, particularly TikTok, have fueled the craze, with hashtags like “#MatchaTok” racking up tens of millions of views featuring tutorials, reviews, and recipes.
The trend has been further accelerated by Japan’s post-pandemic tourism surge and a weakened yen, which has made the country and its exports more attractive. But behind the boom, supply chains are straining. Lauren Purvis, a U.S.-based tea importer and founder of Mizuba Tea Co., said what used to be a month’s worth of stock now sells out in days, with some cafés requesting up to a kilo of matcha daily.
Matcha is made from tencha leaves, grown under shade to develop the tea’s signature umami flavor, then ground into powder using slow, traditional stone mills. However, record-breaking heatwaves in Japan have damaged harvests, especially in the Kyoto region, which produces about 25% of the country’s tencha. An aging farming population has also contributed to supply constraints.
In Uji, Kyoto’s famed matcha-producing city, shelves are emptied by tourists shortly after opening. Retailers like Camellia Tea Ceremony now limit purchases to one tin per customer. Rie Takeda, tea master at Tokyo-based Chazen, said matcha orders that used to arrive in days now take over a week, prompting a 30% price increase at their outlets this year.
Despite the pressure, the matcha boom has attracted more growers. Japan’s agricultural ministry reported that matcha production nearly tripled between 2010 and 2023, with green tea exports rising 25% last year to ¥36.4 billion (approximately $250 million).
Yet the demand surge has sparked concern among traditionalists. Advocates are encouraging more mindful consumption, urging tea drinkers not to hoard or waste high-grade matcha in food or sugary drinks, where its subtle flavors are often lost. The Global Japanese Tea Association recommends using lower-grade matcha for cooking and reserving premium varieties for ceremonial or pure preparations.
Adding to the challenges, the U.S. recently imposed a 15% import tariff on Japanese goods, including tea, under a new trade deal with Tokyo. Purvis warned that since Japanese tea isn’t grown in the U.S., these tariffs unfairly burden a niche industry. Her company saw a 70% spike in orders ahead of the agreement’s deadline.
Still, some in the industry believe the frenzy will eventually settle. “There is a boom at the moment and demand is growing rapidly,” said Masahiro Nagata, co-founder of Matcha Tokyo. “But we think that will calm down a bit in two to three years.”
For now, Japan’s iconic green powder remains a global favorite, though increasingly scarce and costly.
