Global Matcha Shortage Hits as Demand Outpaces Supply
The rising global demand for matcha has proven too high for Japanese farmers.
With the product becoming an increasingly popular flavour for drinks and desserts, people around the world cannot get enough of it.
But this consumer spike, alongside high temperatures, fuels a global shortage for the first time ever.
High consumer demand
The surge in matcha’s popularity affects its availability and results in a steep price increase.
Tencha, which are the stemmed leaves dried and ground to produce matcha, have their prices soar by 170% year-on-year at a Kyoto auction.
In May, tencha sold for 8,235 yen per kg (US$55.45), marking a 170% rise from the previous year, surpassing the 2016 record of 4,862 yen (US$32.74) per kg.
The Japanese Tea Production Association reports Japan produced 5,336 tons of tencha in 2024, a notable rise compared to 10 years ago.
Data from the Ministry of Agriculture, Forestry and Fisheries shows a substantial increase in Japan’s overall green tea exports by volume and value in 2024 with a 16% increase in exports and a 25% value increase to 36.4 bn yen (US$252 m).
Matcha’s appeal lies in its caffeine content compared to other green teas and its antioxidant properties.
The international demand far exceeds Japan’s export target of 15,000 tons by 2030.
A spokesperson from the government of Kyoto Prefecture explains: "It is difficult to calculate specific figures [regarding shortfall] because we are turning down exceptionally large orders from countries with high demand for tea, such as the United States, Germany and Dubai."
A supply problem
The strong consumer demand is not the only issue; it is also accompanied by considerable production difficulties impacting matcha’s availability.
Record temperatures during the summer in Japan push production capabilities to their limits.
The Kyoto area, responsible for roughly 25% of Japan’s tencha production, experiences intense heatwaves, negatively affecting harvest yields.
Masahiro Yoshida, a sixth-generation farmer explains: "Last year's summer was so hot that it damaged the bushes, so we couldn't pluck as many tea leaves.”
Yoshida notes a typical harvest of 2 tonnes of tencha, but this year it dropped 25% to 1.5 tonnes.
To meet the rising demand, new fields are being planted.
However, it will take five years before they are ready for harvest, meaning no immediate increase in matcha production.
An unsustainable trend
The global shortage sparks discussion on platforms like TikTok, with matcha enthusiasts debating hoarding and wastage.
This shortage has led Japanese stores to impose limits on the quantity of matcha each customer can purchase.
Anna Poian, Co-founder of the Global Japanese Tea Association, comments: "For the first time in history, we are experiencing a matcha shortage, since autumn of last year.”
She continues to explain that the tourism industry has faced a significant boom post-Covid-19, exacerbating the shortage.
"Many foreigners would buy lots of matcha to bring back home as souvenirs, sometimes even in bulk or sometimes, we've heard, to resell."
Farmers are taking action to bolster production, but the overwhelming demand renders the situation untenable and they struggle to keep pace.
The excessive hoarding activity only worsens the issue while waiting for new fields to be ready for harvest.