Retail News CRM

Tag: struggles

  • Beyond The Cup: Matcha’s Rising Popularity Influences Fashion, Beauty, And Wellness Trends

    Beyond The Cup: Matcha’s Rising Popularity Influences Fashion, Beauty, And Wellness Trends

    Matcha, previously a specialty tea in Japan, has gained considerable international popularity. This trend is especially noticeable among the younger demographic that values both taste and health benefits. The green tea powder has permeated various sectors beyond food and drinks, including the fashion and beauty industries, transforming it into a cultural and commercial sensation.

    Matcha in Food and Drinks

    In South Korea, convenience store chain CU has shared plans to enlarge its product range to include matcha-flavored cakes, and even a sparkling matcha variant of makgeolli, a traditional rice wine. This comes in light of a 130% year-on-year sales increase for their green-colored products. In addition, the Seven-Eleven convenience store chain has reported that their matcha dessert sales have nearly tripled within the last month. Another chain, GS25, has collaborated with renowned chef Edward Lee for a limited-edition matcha makgeolli. Even beauty company Amorepacific’s tea brand Osulloc has joined the trend, opening a “Matcha Noodle Bar” in Jeju, where they serve noodles made from tea leaves grown in their own estates.

    Matcha Influence on Fashion and Beauty

    The matcha trend is not limited to edibles. Retail company LF revealed there’s a rising trend in “matcha-core” looks, characterized by green, khaki, and mint hues. Searches for these colors have surged 2.5 times compared to the previous year. Sales of mint-colored sandals and accessories have also seen a steep climb. The beauty industry has followed suit, releasing matcha-inspired perfumes, candles, and skincare products, and the hashtag #matcha has accumulated over 9 million posts on Instagram.

    The Healthful Alternative

    Experts attribute the surge in matcha’s popularity to the shift towards wellness and health consciousness. The green tea powder, rich in antioxidants and amino acids, is often marketed as a healthier alternative to coffee. Grand View Research predicts that the global matcha market will rise from US$4.3 billion in 2023 to $7.4 billion in 2030, while DataM Intelligence anticipates more than a twofold increase by 2032.

    Supply Challenges

    The demand for matcha, however, is beginning to outstrip supply. The majority of matcha production is still centralized in Japan and China, where tea plants require at least five years to mature. In Kyoto, one of the premium matcha growing regions, rising temperatures combined with an aging farmer workforce have further reduced yields, causing the price of tea leaves to more than double within the past year. Anna Poin from the Global Japanese Tea Association cautions that shortages will likely continue to worsen until the end of the year.

    Despite these issues and the fact that matcha’s caffeine content is comparable to an espresso shot, industry experts believe that the matcha trend is here to stay. As one food executive from Seoul put it, “It’s more than a drink. It’s become a lifestyle.”

    Questions & Answers

    What is causing the increased popularity of matcha?
    The surge in matcha popularity is largely attributed to the shift toward wellness and health consciousness. Matcha, rich in antioxidants and amino acids, is marketed as a healthier alternative to coffee.

    Is matcha only used in food and beverage products?
    No, the influence of matcha extends beyond edibles. The green, khaki, and mint hues associated with matcha have become trendy in the fashion industry. The beauty industry has also released matcha-inspired perfumes, candles, and skincare products.

    What challenges is the matcha industry currently facing?
    The matcha industry is currently dealing with supply challenges. Tea plants require a minimum of five years to mature, and the majority of matcha production is concentrated in Japan and China. Rising temperatures and an aging farm workforce have further reduced yields, particularly in Kyoto, a premium matcha growing region.

  • Unprecedented Heatwave Hits Matcha Production: Global Demand Soars Amid Price Surge

    Unprecedented Heatwave Hits Matcha Production: Global Demand Soars Amid Price Surge

    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.

  • Echelon Thailand addresses the unique struggles of women in business

    Echelon Thailand addresses the unique struggles of women in business

    It may come as a surprise that Thailand not only boasts one of the world’s largest number of women entrepreneurs. It is also one of the few countries in the world where there are as many female business owners as there are male.

    At Echelon Thailand 2015, we are dedicating a panel solely to female entrepreneurs — their struggles, their drive, their rise in participation in business and why female entrepreneurs are here to stay. The discussion will include, but is not limited to, female entrepreneurship in different cultures around the world, existing policies and their issues and more.

    Araya Noo Hutasuwan is currently Vice President at Ardent Capital, an operator VC based in Bangkok with 15 companies in portfolio across Southeast Asia and Hong Kong. She is focussed on advising current portfolio companies on their business strategies, helping drive subsequent funding rounds and potential M&As, sourcing potential deals, due diligence and making investment recommendations.

    Prior to working at Ardent, Araya co-founded several fashion retail brands with a presence in the US and Thailand, spent time setting up a factory in Myanmar and spent four years in Investment Banking at Phatra Securities with a focus on M&A.

    EDIT_Panel4

    Shannon Kalyanmitr is superwoman: Entrepreneur, women’s advocate, World Connector, Thai-American and Mother of Siamese-Viking Twins. She is also the Founder and Group CMO of MOXY, the shopping destination in Southeast Asia focussed on women.

    Coming from a long line of business development roles from Investment Banking (Lehman Brothers and PwC) to Television and Media (Singha Beer & Building a Digital TV Station from Scratch) – to Social Development (Tsunami Humanitarian work) and now Tech, Shannon has been able to marry the best of all her global experiences into MOXY, along with carrying on her passion for women’s development and entrepreneurship.

    An international marketing and communications professional with over 20 years experience, Pacharee Pantoomano-Pfirsch delivers winning solutions for some of the world’s most influential brands. From brand management to direct marketing to internal communications and community relations, her proven expertise and solid grasp of market communications come together with stellar results for leading-edge marketing strategies for her clients around the globe.

    Today, in addition to serving her clients at Brandnow, she is also the Chairwoman for the Bangkok Now, an organisation she founded in 2003.

    Juliette Gimenez, is highly passionate, a serial entrepreneur and currently Co-founder of Goxip, the mobile-first app that allows users to search, discover and shop fashion by image recognition and celebrity stylefeed. Gimenez has extensive experience in starting up companies and driving multi-million dollars sales growth in e-commerce, particularly from an early stage level onwards in Southeast Asia and Hong Kong at companies such as Cdiscount Thailand and LivingSocial. Previously, she was a VP at ubuyibuy, which got acquired by Groupon.

    Linh Thai is Founder and CEO of Stitch Appeal, an online fashion brand that creates custom tailored women’s fashion.

    Prior to this, she was a Director at DFJ VinaCapital, a leading venture capital fund based in Ho Chi Minh City. Before that, she was an Investment Banking Associate at Bank of America Securities in New York City, where she worked on equity, debt and M&A deals. Her experiences also include roles in marketing and operations at Internet startups in the US.

    Lees ook:

    Lees ook: