Devotees of the highly coveted matcha green tea may need to dig a little deeper into their pockets as a result of unprecedented temperatures in Japan causing a considerable decrease in matcha production. This comes amid a worldwide surge in demand for the popular drink, resulting in significant supply strain and skyrocketing prices, according to farmers and industry insiders.
Impact of Climate on Matcha Production
The Kyoto region, a major contributor to Japan’s matcha production, experienced severe heatwaves last summer. The region accounted for roughly one-fourth of Japan’s total production of tencha – the tea leaves used in the production of matcha – which faced crippling damage due to the extreme heat. The poor yield from the recent April-May harvest is a direct result of Japan’s hottest year on record.
Masahiro Yoshida, who belongs to a family of farmers that has been in the tea business for six generations, reported a significant decrease in his yield. This year, he was only able to harvest 1.5 tons of tencha, a reduction of 25% compared to his usual harvest of two tons.
“The heatwave last year was so severe that it damaged the tea bushes, significantly reducing the number of tea leaves we could harvest,” Yoshida stated.
Global Demand for Matcha
Global interest in matcha has seen a sharp increase in recent years, fueled by health-conscious millennials and Gen Z consumers. Trendy cafes worldwide now offer matcha-infused products ranging from lattes and smoothies to desserts.
The finely ground tea is highly favored for its rich antioxidant content and higher caffeine levels compared to other green teas. Its popularity received a significant boost last fall due to increased social media attention, resulting in purchase limits being imposed by some wholesalers.
Tealife, a Singapore-based wholesaler, founder Yuki Ishii confirmed that matcha demand from his customers increased tenfold last year and continues to rise, despite dwindling supplies from Japan.
The Future of Matcha Production
Japan’s tencha production reached 5336 tons in 2024, reflecting an increase of almost 2.7 times over the previous decade as more farmers shifted their production towards this crop. However, the Japanese Tea Production Association anticipates a decrease in matcha output this year.
Marc Falzon, who sources tea from Uji farmers for his New Jersey-based milling company, expressed disappointment with the current situation. He noted that while many hoped for a more abundant harvest this year to alleviate some of the shortages, it doesn’t seem likely.
Despite a 25% increase in the export value of Japan’s green tea, including matcha, which amounted to 36.4 billion yen (US$252 million) in 2024, the shortfall continues. Tencha prices have escalated to record highs, with a May auction in Kyoto reaching 8235 yen per kilogram, a 170% increase from the previous year.
While Japanese producers are making efforts to increase matcha production, the newly planted fields will not be ready for harvest for another five years, according to Falzon. As such, he anticipates even more significant price increases in the near future.
Questions & Answers
Why has there been a decrease in matcha production?
Record temperatures and severe heatwaves in Japan, particularly in the Kyoto region, have significantly impacted matcha production, leading to weak yields.
What factors have contributed to the surge in global demand for matcha?
The global demand for matcha has increased due to health-conscious millennials and Gen Z buyers. Also, increased social media attention and the introduction of matcha-infused products in cafes worldwide have contributed to its popularity.
What are the implications of the current matcha shortage?
The shortage of matcha has led to record-high prices and imposed purchase limits by some wholesalers. Despite attempts to increase production, the issue is unlikely to be resolved in the near future, given that newly planted fields require five years to harvest.
