Fri, 25 Jul 2025

Fri, 25 Jul 2025 World's thirst for matcha dries up global supplies

Surging demand, smaller tea crops due to heatwaves and US tariffs on Japan are pushing up matcha prices.
Matcha, a bright green Japanese tea, has become incredibly popular worldwide due to social media and Japan's post-pandemic tourism boom. The "Matcha Tok" hashtag on social media has gained tens of millions of views. Demand for matcha powder is soaring, with US-based tea importer Lauren Purvis reporting that her customers are seeing what was once a month's supply running out in days. However, the surging demand combined with smaller tea crops due to heatwaves and US tariffs on Japan is pushing up matcha prices. The traditional process of making high-quality matcha involves shading green tea leaves for weeks while they're still growing, which develops the tea's signature "umami" flavor. However, growers have struggled in recent months as record-breaking heatwaves hit crops. The Kyoto region, where a quarter of Japan's tencha comes from, has seen poor harvests despite high demand. The country also faces a shortage of farmers due to its aging population and lack of younger people entering the industry. Many retailers have set limits on how much matcha customers can buy, while tea ceremonies are struggling to keep up with orders. Shortages mean tea prices at some outlets have risen by around 30% this year. However, advocates are promoting more mindful consumption, urging people not to hoard matcha or use high-grade matcha for cooking. The Global Japanese Tea Association is encouraging people to use lower-grade matcha from later harvests, which is more abundant and better-suited for cooking. US tariffs on Japan are also expected to push up matcha prices further. Distributors like Lauren Purvis are bracing for the impact, while some companies believe prices could ease in the future as demand slows down.
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