'Matcha mania' causes global shortage amid supply chain issues
Soaring global demand and record-breaking heat have strained Japan’s matcha supply this year, sending prices surging.
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Farmers and industry experts are voicing concerns as they struggle to keep up with unprecedented demand for Japan’s vibrant green tea drink, which has reached peak popularity in 2025.
Matcha’s rise has been years in the making, with UK sales alone jumping 202 percent in 2023, according to Orion Market Research.
Fueled by social media trends and surge in post-pandemic tourism in Japan, the green drink has become a global favourite.
However, production has taken a hit. The Kyoto region, responsible for a quarter of Japan’s tencha output, was scorched by extreme heatwaves in 2024 during the country’s hottest year on record. As a result, the 2025 April-May harvest yielded poor results.
Lauren Purvis, a US based tea importer, told the BBC that what used to be a month’s supply for businesses is now running out in mere days.
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“Some cafes are even asking for a kilo a day. They’re desperate to keep up,” said the Mizuba Tea Co. owner.
Masahiro Yoshida, a sixth-generation farmer, saw his tencha harvest drop by 25 percent this year, producing only 1.5 tons, down from his usual two.
“Last year's summer was so hot that it damaged the bushes, so we couldn't pluck as many tea leaves,” he told Reuters.
Tealife founder Yuki Ishii told Reuters that it saw a ten-fold increase in demand for matcha from customers, despite the amount available from Japan declining.
"I'm basically always out of stock," he said.
In 2024, Japan produced 5,336 tons of tencha, nearly triple the volume from a decade ago, as more farmers shifted to cultivating the crop, according to the Japanese Tea Production Association.
Yet despite this growth, the association anticipates a decline in matcha output this year.
In addition to soaring demand and weaker harvests, US tariffs on Japanese goods have further driven up matcha prices.
On Tuesday, Washington and Tokyo announced a new trade deal that will impose a 15 percent import tax on Japanese products entering the United States.