Japan is struggling to supply the global matcha boom

Matcha is proving she really is that girl. The green tea drink – made of finely ground powder long-revered in Japan for its health benefits and energy-boosting properties – has become so popular globally that its fragile supply chain can’t keep up.

• Japan, producer of a majority of the world’s matcha, has seen production nearly triple from 2010–2023, according to data from the country’s Ministry of Agriculture, Forestry and Fisheries.
• And within the last five years, it’s reached a tipping point: More than half of Japan’s matcha is now exported.

The world wants its green powder fix

International sales of matcha have been growing. In the US specifically, matcha sales have reached $10+ billion over the past 25 years.

Behind the craze: As with many things these days, much of the demand can be attributed to social media. 1.7+ million posts dedicated to the tea and its various preparation methods can be found on TikTok alone.

Producers are struggling to keep up. Matcha is difficult to produce in bulk, due to the tea leaves' small harvesting window and delicate preparation. Slow production rates plus a shortage of tea farmers have led companies to impose purchase limits and price hikes on matcha goods – leaving shelves and cafes low on stock around the world.

👀 Looking ahead…The disconnect between supply and demand is only expected to get worse. Kametani, a Japanese tea supplier, anticipates a 20-30% increase in matcha orders this year compared to last year.