Matcha Madness: Global Demand Sparks Supply Crisis

As matcha's global craze expands, the demand for this Japanese green tea has skyrocketed, causing shortages and price increases due to climate challenges and tariffs. Advocates are promoting mindful consumption to preserve the tea's integrity as its limited supplies struggle to meet growing consumer desires.

Matcha mania is taking the world by storm. This vibrant green tea from Japan has become a ubiquitous staple, appearing in everything from lattes at Starbucks in the UK to doughnuts at Krispy Kreme in Singapore. The surge in matcha's popularity can largely be attributed to the influence of social media, with millions of views under the hashtag "Matcha Tok" showcasing brewing tips, reviews, and creative recipes.

Additionally, Japan's post-pandemic tourism rebound, bolstered by a weaker yen, is fueling interest in Japanese goods, including premium matcha products. However, this soaring demand is creating challenges; Lauren Purvis, a US tea importer, reported that her clients are depleting what used to be a month’s supply of matcha within days, with some cafes requesting up to a kilogram daily just to stay afloat.

The traditional production of matcha, which is prized for its unique flavor, health benefits, and caffeine content, relies on a meticulous process involving shading, harvesting, drying, and grinding the tea leaves known as tencha. Unfortunately, recent extreme heatwaves have plagued growers, particularly in Kyoto, which supplies a significant portion of Japan's matcha. With farmer shortages driven by the aging population and a lack of young entrants into the industry, shops in Uji, a matcha-centered city, are often sold out as soon as they open, prompting many retailers to impose purchase limits.

At Kyoto's Camellia Tea Ceremony, the only one tin of matcha per customer policy reflects the increasing challenges. Higher tourist numbers have doubled demand, while Tokyo's Chazen tea ceremony chain is experiencing delays in stock replenishments, with prices rising by 30% in 2023.

While high demand typically heralds good news for the industry, it has also ushered in concerns over hoarding and profiteering. Advocates are calling for more responsible consumption, urging consumers to appreciate matcha in its pure form rather than stockpiling or incorporating it into overcooked recipes, which can obscure its delicate flavors. The Global Japanese Tea Association is promoting the use of lower-grade matcha, which is more plentiful and appropriate for culinary use.

Compounding issues include the recent US tariffs on Japanese goods, with a 15% tax implemented under a new trade deal, which will likely push prices even higher. Ms. Purvis anticipates difficulties ahead as many are already confronted with order surges, and matcha prices continue to climb.

Despite the turmoil, some matcha café owners believe the current frenzied demand will eventually stabilize as the allure of high-grade matcha begins to wane. As trends shift within the tea market, Masahiro Nagata of Matcha Tokyo suggests that the current boom may cool in the coming years, offering a glimmer of hope for consumers and producers alike in an era of extreme demand and limited supply.