Archive · 2 Jul 2025
Matcha Craze: Global Demand Strains Japanese Tea Supply
Matcha, a popular green tea powder from Japan, is in high demand worldwide, causing a shortage.
Shops in places like Los Angeles and Japan are running out of matcha.
The demand is so high that Japanese tea farmers are struggling to keep up.
Influencers and social media are making matcha even more popular.
The US might raise tariffs on Japanese matcha which could make the drink more expensive.
Fewer people are farming tea in Japan, making it even harder to get matcha.
Matcha's popularity has surged, creating global demand and supply issues.
Japanese tea farms, like Masahiro Okutomi's, struggle to meet the increased global orders.
The matcha market has nearly doubled, fueled by social media and influencers.
US tariffs on Japanese products pose a potential threat to the market.
The number of tea plantations in Japan has decreased due to challenges in farming.
- Who
- Matcha consumers, Japanese tea farmers, retailers, and influencers like Andie Ella are all involved.
- What
- A global surge in matcha demand is causing shortages and impacting the Japanese tea industry.
- When
- Over the last decade, and more intensely in the last two to three years, matcha's popularity has risen.
- Where
- The issue impacts matcha suppliers in Japan and consumers globally, including in the US and Japan.
- Why
- Increased demand, driven by social media and broader cultural acceptance, has outpaced supply.
Limited Supply
Increasing Demand
Demand vs Supply
Limited Supply
Japanese tea farmers are struggling to keep up with international demand.
Increasing Demand
The increasing market value is not offset by the ability to increase the product supply.
Market Pressures
Limited Supply
High demand makes it challenging for businesses to meet customer needs, particularly affecting smaller businesses.
Increasing Demand
The growing demand is met with the potential for higher prices due to tariffs and a limited supply.
- Export Data
- Matcha accounted for over half of the 8,798 tons of green tea exported from Japan in 2024.
- Matcha Brand Sold
- Andie Ella's brand sold 133,000 cans as of the article's publication.
- Price
- A matcha latte costs at least $10, and 20 grams of powder can cost between $25 and $150.
- Tariff Threat
- US tariffs on Japanese products could increase from 10% to 24%.