Matcha, the vibrant green powdered tea, has captivated the world with its earthy flavor, stunning color, and numerous health benefits. Yet, behind the global fascination lies an escalating shortage that has left many wondering: is there truly not enough matcha to meet demand? To understand the reality, we must delve into the complexities of Japan’s tea industry, the nature of matcha production, and the growing appetite for this prized beverage.
The Complex Challenges of Japan’s Tea Industry
The matcha we’re talking about—the highest quality, often referred to as "ceremonial grade"—is not your average green tea. It’s a labor-intensive product made from the youngest, tender leaves of the tea plant, harvested just once a year during the spring. The production process is meticulous and time-consuming, requiring expertise passed down through generations of tea farmers.Unfortunately, the supply of this top-tier matcha is constrained by structural issues within Japan’s tea industry.
One of the most pressing challenges is the aging population of tea farmers. In towns like Wazuka, the historic heartland of Uji matcha with over 800 years of tea cultivation heritage, the average age of farmers is 65. These farmers possess deep knowledge of traditional tea-growing methods, but younger generations are not stepping in to continue their legacy. Coupled with shrinking domestic demand for tea in Japan, this has led to decades of depressed tea prices, making it difficult for small farmers to sustain their operations.
The result? A gradual decline in tea plantation areas and production levels. In 2023, Japan produced 4,176 tons of Tencha—the raw material for matcha—but only a fraction of this is used for ceremonial-grade matcha. Despite its global reputation, Tencha remains a niche product, requiring meticulous shading, handpicking, and processing. This delicate, time-intensive process makes the supply of ceremonial-grade matcha inherently limited.
Why Is Supply Limited?
Ceremonial-grade matcha is made exclusively from the youngest, tenderest leaves picked during the first harvest of the year. These leaves are carefully shaded for several weeks before being harvested in spring. This shading technique enhances the leaves’ chlorophyll content, giving matcha its vibrant green color and distinctive umami flavor.
After harvesting, the leaves are steamed, dried, and deveined to create Tencha. Only then are they stone-ground into the fine powder we know as matcha. This entire process, combined with the once-a-year harvest cycle, inherently limits the availability of ceremonial-grade matcha. The second and third harvests of the year yield leaves better suited for culinary-grade matcha, which is commonly used in confections and flavored beverages.
Adding to the scarcity, ceremonial-grade matcha must meet exacting standards that cannot be rushed or compromised. The blending, tasting, and certification processes are overseen by experienced tea masters, ensuring the final product maintains the highest quality.
Global Demand: The Catalyst for Shortages
While the supply of ceremonial-grade matcha has remained relatively steady, global demand has surged in recent years. Countries like the United States, where nearly half of Japan’s matcha exports are destined, are leading the charge. Unlike other teas that are steeped and discarded, matcha is consumed in its entirety, offering unmatched nutritional value. Health-conscious consumers in North America, Europe, and beyond have embraced matcha for its antioxidants, natural energy boost, and versatility in beverages and desserts.
Social media has also played a role in popularizing matcha, with large brands enjoying better recognition and often selling out of their limited stocks more quickly. This heightened demand is not limited to individual consumers—food and beverage businesses worldwide are incorporating matcha into their menus, from lattes and smoothies to baked goods.
The Strain on Producers and Suppliers
The rising demand has placed immense pressure on matcha producers and suppliers. Many small-scale farmers who specialize in high-quality matcha are now running out of stock. Wholesale customers, including international F&B chains, are ordering matcha by the ton, leading some producers to halt new customer acquisitions altogether.
To manage their supplies, some brands have begun rationing their matcha, releasing limited stocks at specific times to stretch availability throughout the year. Others have prioritized long-term relationships with existing clients, ensuring steady supply but limiting access for new buyers.
Compounding the issue, production costs have risen significantly, with matcha prices increasing by as much as 30% in recent years. While the weak yen has softened the impact for international buyers, these higher costs are reflective of the growing scarcity and challenges faced by farmers.
Can Japan Meet the Rising Demand?
There are signs of hope within the industry. As matcha becomes more profitable, some farmers are reinvesting in their operations, adopting modern machinery and techniques to improve efficiency. Regions like Kagoshima, known for its innovative approach to tea farming, are emerging as major production hubs. Farmers in Kagoshima have embraced international demand, producing organic matcha and unique cultivars tailored to global tastes.
However, expanding production takes time. Tea plants require several years to mature, and increasing cultivation areas involves significant upfront investment. Meanwhile, younger generations must be encouraged to enter the industry to ensure its long-term sustainability.
What About Matcha From Outside Japan?
While matcha can technically be produced anywhere that grows green tea, authentic Japanese matcha remains the gold standard. Countries like China, South Korea, and Taiwan have started producing matcha, but discerning consumers value the historical and cultural significance of Japanese matcha. Its superior flavor profile, developed through centuries of expertise, cannot easily be replicated.
For customers seeking high-quality matcha, origin and authenticity are key. Look for brands that provide details about the matcha’s source, harvest season, and cultivar.
What Should Consumers Be Aware Of?
Not all matcha is created equal. Unlike wine or coffee, matcha grading is not standardized in Japan, and terms like "ceremonial grade" are often used as marketing tools. To ensure you’re getting high-quality matcha, consider the following:
- Origin: Matcha from Japan, particularly Uji, is highly regarded.
- Harvest Season: First-harvest leaves are the tender and flavorful.
- Cultivars: Cultivars tastes vastly different from one another. Unique, high quality cultivars are harvested only in small production. (Less than 1% of overall production.)
Conclusion
The matcha shortage is not just about supply and demand—it reflects the deeper challenges within Japan’s tea industry and the labor-intensive process required to produce this extraordinary tea. As global demand continues to grow, it’s up to both producers and consumers to support sustainable practices that preserve the tradition and craftsmanship behind Japanese matcha. By understanding the journey from farm to cup, we can ensure this cherished tea remains a part of our world for generations to come.