"Matcha Has Run Out": Why Japan Can't Celebrate Its Global Popularity

Green Tea Exports Top 600 Billion Won
Social Media and Health Trends Fuel Popularity Among Millennials and Gen Z
Heat Sends Ingredient Prices Soaring 170%
Aging Farmers and Shrinking Tea Fields Compound the Problem

As matcha fever spreads around the world, Japan, its place of origin, is facing an unexpected crisis. Matcha drinks and desserts have become popular, particularly among younger generations, and exports have hit a record high. But production is failing to keep pace with demand, sending raw ingredient prices soaring and forcing some popular products out of production. The supply crunch in Japan’s tea industry is becoming more structural, as an aging farming population and shrinking tea fields combine with extreme weather.

Growing interest in health and a new consumer culture spreading primarily through social media have fueled matcha's global popularity. Getty Images

According to Japanese media outlets, including Sankei Shimbun and Nikkei, Japan’s green tea exports, including matcha, reached 72.1 billion yen (about 605.1 billion won) last year, nearly double the previous year and the highest figure on record. Exports continued to grow this year, reaching 40.2 billion yen from January through May. Uji, in Kyoto Prefecture, one of Japan’s leading tea-producing regions, is drawing foreign tourists and overseas buyers looking to purchase matcha. Wakai, a premium matcha product made by Kyoei Seicha, a tea manufacturer with a 190-year history, sells for 100 to 120 yen per gram, and some customers are buying dozens of 30-gram packages at a time. The company’s matcha sales have grown three- to fourfold compared with 10 years ago, setting a new record.

Matcha Instead of Coffee? Millennials & Gen Z Around the World Are Hooked on Social Media and Health Trends

Matcha’s global popularity has been fueled by growing interest in health and a new consumer culture spreading through social media. In July last year, the BBC examined the global matcha craze and reported that social media platforms such as TikTok and Instagram had played a key role in boosting its popularity. Matcha’s distinctive bright green color stands out in photos and videos, while influencers have attracted younger consumers by sharing recipes for matcha lattes and desserts.

Matcha has moved beyond its image as a drink enjoyed in traditional Japanese tea ceremonies and is expanding into cafe and dessert markets around the world. Its uses have also diversified, from matcha lattes and smoothies to ice cream, chocolate, donuts and cakes. Getty Images

Matcha is shedding its image as a drink enjoyed during traditional Japanese tea ceremonies and expanding into cafes and dessert markets around the world. Its uses have also diversified, with matcha now featured in lattes and smoothies as well as ice cream, chocolate, doughnuts and cakes. New matcha products are appearing in rapid succession in the United States, Europe and Southeast Asia. The BBC cited Starbucks’ matcha latte in the United Kingdom and Krispy Kreme’s matcha doughnuts in Singapore as notable examples.

Consumer trends that prioritize health are also driving the matcha boom. Matcha contains catechins, known for their antioxidant properties, as well as vitamin E. Consumers are also drawn to the fact that, unlike coffee, matcha contains both caffeine and the amino acid theanine. However, matcha also contains caffeine, so it cannot be assumed to be unconditionally healthier than coffee. The boom in tourism to Japan has also contributed to its growing popularity. One analysis suggests that overseas consumption has increased as tourists who try matcha in Japan amid the weak yen and rising demand for travel there continue to seek out matcha products after returning home.

Heat Cuts Production and Sends Ingredient Prices Soaring... Even a Popular Ice Cream Is Discontinued

But while demand has exploded, supply shortages at matcha production sites are becoming increasingly severe. According to Reuters, record-breaking heat damaged tea plants in Kyoto, Japan, reducing the harvest of tencha, the raw ingredient for matcha. Kyoto is a major production area, accounting for about a quarter of Japan’s tencha output. Masahiro Yoshida, a sixth-generation tea farmer in the region, told Reuters that the heatwave last summer reduced his 2025 harvest by about 25%, from the usual 2 tons to 1.5 tons.

According to Reuters, harvests of tencha, the raw material for matcha, have declined in Japan's Kyoto region as tea plants were damaged by record-breaking heat. Kyoto is a major production area, accounting for about a quarter of Japan's tencha output. Getty Images

Raw ingredient prices have also soared. At a tencha auction held in Kyoto in May last year, the average transaction price reached 8,235 yen per kilogram. That was 170% higher than the previous year and well above the previous record of 4,862 yen set in 2016. Overseas distributors have been repeatedly running out of stock. Yuki Ishii, founder of Singaporean tea distributor Tea Life, told Reuters that customer demand for matcha had increased tenfold from the previous year, but that supplies available from Japan had dwindled, leaving the company effectively out of stock almost all the time.

The shortage of raw ingredients is also spreading to Japan’s food industry. In February this year, major Japanese food company Meiji ended production of its popular ice cream, Meiji Essel Super Cup Matcha. The long-selling product had been on the market for 24 years since its launch in 2002, but the company decided to stop production as the prospect of securing a stable supply of matcha ingredients became increasingly uncertain. Meiji told Japanese media this month that concerns about supply shortages stemming from rising global demand for matcha were behind the decision to end production.

Tea Plants and Farmers Are Aging... Tea Fields Forecast to Shrink by 80% by 2050

A bigger concern is that the matcha supply crunch may not be temporary. According to Nikkei, the area covered by Japan’s major tea fields fell from 41,500 hectares in 2020 to 25,400 hectares last year, a decline of about 39% in five years. Some forecasts suggest that if the decline continues at its current pace, the area of tea fields could shrink to around 5,000 hectares by 2050, a reduction of more than 80% from current levels.

Matcha is made by finely grinding tencha, tea leaves processed after being grown under shade. Its cultivation and processing are more complex than those of regular green tea, sencha, and it takes several years to establish a new tea field and secure a stable harvest. Getty Images

The main causes are the aging farming population and a shortage of successors. Japanese tea leaf prices have remained low for years, and declining profitability has led to fewer young people taking over family businesses. More farmers are giving up farming or leaving their fields unattended. The aging of tea plants themselves is another problem. Tea plants are believed to produce high-quality leaves reliably for about 35 years, but around 40% of Japan’s tea fields are reportedly cultivated with plants that are more than 30 years old. The Japanese government and industry are working to increase production, but boosting supply in the short term will not be easy.

Matcha is produced by finely grinding tencha, made by processing tea leaves grown under shade to block sunlight. Its cultivation and processing are more demanding than those of sencha, a regular green tea, and it takes several years to establish a new tea field and secure a stable harvest. The Japanese government is supporting sencha farmers who switch to producing ingredients for matcha, but farmers remain cautious about investing because it is uncertain whether matcha’s popularity will last.

As the global matcha boom continues, competition is also heating up over leadership in Japan’s traditional matcha market. The Associated Press reported that China and some Southeast Asian countries are also beginning to produce matcha, and that Japan is focusing on leveraging its brand strength as a traditional matcha-producing country. Overseas demand is rising rapidly not only for premium powdered tea used in tea ceremonies, but also for processed matcha used in lattes and desserts.

As a result, while people around the world are seeking out Japanese matcha, Japan itself is facing the paradoxical situation of having to discontinue even popular products because of a shortage of raw ingredients. How quickly the country can build up its production capacity to meet surging demand is emerging as a key factor that will determine who leads the global matcha market in the years ahead.

This content was produced with the assistance of AI translation services.