The vibrant green tea, matcha, is facing a global shortage, driven by a perfect storm of skyrocketing demand, particularly fueled by social media trends, and the inherent challenges of traditional Japanese tea production. This scarcity is leading to significant price increases and concerns among consumers and businesses worldwide.

The Matcha Mania: A Global Phenomenon

Matcha's popularity has exploded in recent years, transforming from a traditional Japanese ceremonial tea into a global sensation. Its vibrant color, unique flavor, and perceived health benefits have made it a staple in lattes, smoothies, desserts, and even savory dishes. Social media platforms, especially TikTok, have played a significant role in amplifying this demand, with influencers showcasing matcha-infused creations and promoting its wellness aspects. This surge has led to the matcha market nearly doubling in a single year, with projections estimating a rise from $2.8 billion in 2023 to approximately $5 billion by 2028.

Strained Supply Chains and Production Challenges

Despite the booming demand, the supply of high-quality matcha is struggling to keep pace. Several factors contribute to this:

• Intensive Production Process: Producing matcha is a meticulous and time-consuming endeavor. Tea leaves, known as tencha, are shaded for weeks before harvest to enhance their flavor and nutrient content. They are then carefully deveined, dried, and finely ground using stone mills. This stone milling process is particularly slow, with machines producing only about 40 grams of matcha per hour.

• Limited Milling Capacity: The primary bottleneck in the current shortage is the limited number of traditional stone mills and the skilled labor required to operate them. As demand has surged, the existing infrastructure simply cannot process enough tea to meet global consumption.

• Aging Farming Population: Japan's tea farming industry faces a demographic challenge, with a declining number of young farmers entering the profession. Many plantations have seen their numbers dwindle to a quarter of what they were two decades ago, making it difficult to scale up production quickly.

• Climate Change Impacts: While not explicitly detailed as a primary cause of the current shortage, climate issues, such as heat stress, have been noted as a factor impacting Japanese tea output, further complicating efforts to increase supply.

Economic Repercussions and Consumer Impact

The global matcha shortage has had tangible effects on businesses and consumers alike:

• Soaring Prices: The cost of matcha has more than doubled in Japan, with these increases being passed on to consumers and businesses worldwide. Cafes and retailers are grappling with higher procurement costs, leading to increased prices for matcha-based products.

• Purchase Limits and Stockouts: Some prominent Japanese tea makers have been forced to limit sales of matcha, resulting in bare shelves in Japan and reduced supplies for international beverage makers. Businesses like Kettl Tea in Los Angeles have reported being out of stock for most of their matcha varieties.

• Quality Concerns: While the Japanese government is encouraging larger-scale farming to reduce costs, there are concerns that this could compromise the traditional quality of matcha. Maintaining the artisanal nature of matcha production is crucial for its distinct characteristics.

Key Takeaways

• Global demand for matcha has surged, largely driven by social media.

• The shortage is primarily due to the slow, traditional stone milling process and limited production capacity.

• Aging farming populations and potential climate impacts further strain supply.

• Prices have more than doubled, and businesses are implementing purchase limits.

• There are concerns about maintaining matcha quality amidst pressure to increase production.

As the world's appetite for matcha continues to grow, the industry faces the complex challenge of balancing increased production with the preservation of traditional methods and quality. The current shortage serves as a stark reminder of the delicate interplay between global demand, agricultural practices, and environmental factors.

Sources:

• Cost of matcha ‘has more than doubled’ amid worldwide shortages, The Irish Independent.

• ‘Skyrocketing’ demand for matcha raises fears of shortage in Japan | Tea, The Guardian.

• Watch The Global Matcha Boom Is Driving a Shortage in Japan, Bloomberg.com.

• No more matcha? Demand for powdered Japanese green tea leads to global shortages - Young Post, South China Morning Post.

• Global matcha ‘obsession’ drinks Japan tea farms dry | Agriculture News, Al Jazeera.