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
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. Matcha comes from the tea plant, Camellia sinensis. The plant was brought from China to Japan around 750 CE, according to Rebecca Corbett, a professor of Japanese studies at the University of Southern California. But, she said, matcha itself wasn’t made in Japan until around 1250 CE and eventually came to only be produced there.
Matcha Production and Health Benefits
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. “People do like the health benefits of matcha, and that’s not new,” Corbett said. “In the 1200, 1300s, people in Japan were talking about that and promoting drinking matcha as a cure for hangovers, for example.”
Impact of Social Media and Tourism on Matcha Demand
Now, matcha’s a global sensation, with customers waiting in long lines at cafés to get their hands on a cup. “I get matcha all the time,” said Emma Willingham, a customer at Matcha Cafe Maiko in New York City. “Every time someone else is getting coffee, I’m like, ‘OK, give me the matcha.’” Tea experts say social media helped fuel the matcha craze, with people posting their colorful creations. “If you look on Instagram and TikTok, the bright green color of matcha, it’s very visually appealing,” Corbett said. “And there’s also the cool Japan factor, the sort of aesthetics of trendy minimalism. It’s all being packaged around matcha.” Tourism in Japan has climbed over the last few years, with a record-breaking 36.9 million people visiting in 2024, according to the Japan National Tourism Organization and the Japan Tourism Agency. Some of those travelers have returned home with bags full of matcha.
Supply Chain Issues and Tariffs
The demand has gotten so high that some Japanese companies have begun to limit the amount of matcha people can buy. It’s not just high demand parching the industry — it’s also limited supply. The number of tea farmers has dropped dramatically over the past couple decades: Between 2000 and 2020, 4 out of every 5 tea producers or farmers stopped making tea, according to the Global Japanese Tea Association. “There’s not a lot of people to care for the fields,” said Lauren Purvis, president and CEO of Mizuba Tea Co., which works with Japanese producers to sell matcha and other teas online and to coffee shops. “As the farmers get older, there’d be tea fields being abandoned.” Record heat also hurt this spring’s harvest in Japan. Purvis said some farmers are reporting their harvest was down 20% to 30% from last year due to heat. The new 15% tariffs on Japanese imports into the United States are also expected to increase prices.
Effects on Consumers and Businesses
U.S. consumers are already shelling out more for their matcha lattes. The lattes are averaging $6.15 a cup, according to payment processing company Square, up from $5.84 last year. 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. “You have this sort of little bit of barbell effect of super cheap, no bells and whistles, and then go all-out on that one-time experience instead of maybe a continuous type of spend,” said Ming-Tai Huh, head of food and beverage at Square. Even as matcha prices rise, he expects consumers will keep buying it. “It’s a flavor that’s both attractive in color, in flavor, in health,” Huh said, “and those are just good recipes for a long-standing success.”
Conclusion
The matcha shortage is a result of a combination of factors, including high demand, limited supply, and tariffs. As the demand for matcha continues to grow, it is likely that prices will continue to rise. However, despite the increasing prices, consumers are expected to continue buying matcha due to its unique flavor and health benefits.
FAQs
Q: What is matcha and where is it produced?
A: Matcha is a type of green tea powder that is produced in Japan. It is made from the leaves of the Camellia sinensis plant, which is shade-grown and then ground into a fine powder.
Q: Why is there a shortage of matcha?
A: The shortage of matcha is due to a combination of factors, including high demand, limited supply, and tariffs. The number of tea farmers in Japan has decreased significantly over the past few decades, and the remaining farmers are struggling to meet the increasing demand.
Q: How will the tariffs on Japanese imports affect the price of matcha?
A: The new 15% tariffs on Japanese imports into the United States are expected to increase the price of matcha. This is because the tariffs will add to the cost of importing matcha from Japan, which will then be passed on to consumers.
Q: Will the price of matcha continue to rise?
A: Yes, it is likely that the price of matcha will continue to rise due to the increasing demand and limited supply. Additionally, the tariffs on Japanese imports will also contribute to the rising prices.
Q: Why do consumers continue to buy matcha despite the increasing prices?
A: Consumers continue to buy matcha due to its unique flavor and health benefits. Matcha is a popular ingredient in beverages and desserts, and its bright green color and potential health benefits make it a desirable product for many consumers.
