Introduction to Matcha Shortage
Your midday matcha latte is getting more expensive and harder to come by as supply shortages and skyrocketing demand squeeze cafés. Matcha, the bright green powder swirled into drinks, ice cream, and pastries, has soared in popularity over the last few years, fueled by social media and a post-pandemic tourism boom in Japan.
The Rise of Matcha Popularity
Matcha has become a global sensation, with customers waiting in long lines at cafés to get their hands on a cup. Tea experts say social media helped fuel the matcha craze, with people posting their colorful creations. The bright green color of matcha is very visually appealing, and there’s also the cool Japan factor, the sort of aesthetics of trendy minimalism. It’s all being packaged around matcha.
Supply Shortages and Tariffs
But Japan’s supply is drying up with record heat and a shortage of tea farmers, spiking prices that could rise even more with new 15% tariffs on Japanese imports into the United States. Tea experts say true matcha is only grown and produced in Japan. The shortage has made it harder for cafés to get matcha. Normally, when cafés order their powder, it should take about one month to two months, but right now, it takes over six months to get to them.
The Impact of Heat and Labor Shortage
Record heat also hurt this spring’s harvest in Japan, with some farmers reporting their harvest was down 20% to 30% from last year due to heat. There’s not a lot of people to care for the fields, and as the farmers get older, there’d be tea fields being abandoned. The number of tea farmers has dropped dramatically over the past couple of decades: between 2000 and 2020, 4 out of every 5 tea producers or farmers stopped making tea, according to the Global Japanese Tea Association.
Effects on Businesses and Consumers
It’s not easy to scale up production: only a tiny fraction of Japan’s land can be farmed, and experts say making matcha is time-consuming. Some farmers are working to convert their fields to make more tencha, the leaves used to make matcha, but that takes time. Right now, the supply of matcha is not enough to quench global thirst as matcha companies say they’re running out. U.S. consumers are already shelling out more for their matcha lattes, with the lattes averaging $6.15 a cup, according to payment processing company Square, up from $5.84 last year.
Economic Factors and Consumer Behavior
Tariffs or customs duties are a tax on products purchased from abroad, and they are used by practically all countries. The new 15% tariffs on Japanese goods are expected to increase the prices of matcha even more. While U.S. consumers are pulling back on spending at major food chains like McDonald’s, Chipotle, and Wendy’s, they are pouring more money into beverages. Sales at U.S. beverage chains are forecast to grow by 4.5% this year, according to food research company Technomic.
Conclusion
In conclusion, the matcha shortage is a complex issue caused by a combination of factors, including supply shortages, tariffs, and changing consumer behavior. As the demand for matcha continues to rise, it’s likely that prices will increase, and consumers will have to pay more for their favorite matcha drinks. However, despite the rising prices, matcha is expected to remain a popular beverage, thanks to its unique flavor, health benefits, and visually appealing color.
FAQs
Q: What is causing the matcha shortage?
A: The matcha shortage is caused by a combination of factors, including supply shortages, tariffs, and changing consumer behavior.
Q: Why is matcha so expensive?
A: Matcha is expensive because of the high demand and limited supply, as well as the new 15% tariffs on Japanese imports.
Q: Will the price of matcha continue to rise?
A: Yes, it’s likely that the price of matcha will continue to rise due to the ongoing supply shortages and tariffs.
Q: Is matcha worth the high price?
A: For many consumers, yes, matcha is worth the high price due to its unique flavor, health benefits, and visually appealing color.
Q: Can I grow my own matcha?
A: No, true matcha is only grown and produced in Japan, and it’s not possible to grow it elsewhere.
The demand for matcha has gotten so high that some Japanese companies have begun to limit the amount of matcha people can buy. Matcha comes from the tea plant, Camellia sinensis, and matcha making is a specialized art: a traditional cup involves grinding shade-grown tea leaves into a fine powder, then mixing that powder into hot water with a bamboo whisk. The drink is used in Japanese tea ceremonies and appreciated for its apparent health benefits, with some evidence that matcha could help lower blood pressure, reduce inflammation, and improve concentration.
