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Reading: Matcha mania turns the inexperienced powder into gold
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StockWaves > Global Markets > Matcha mania turns the inexperienced powder into gold
Global Markets

Matcha mania turns the inexperienced powder into gold

StockWaves By StockWaves Last updated: August 31, 2025 7 Min Read
Matcha mania turns the inexperienced powder into gold
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Contents
Outlets ration provideMatcha increase meets bottleneck

A latest surge in matcha’s recognition has led to a world matcha scarcity, pushed by hovering demand and restricted manufacturing in Japan, the place high-quality matcha is grown.

Justin Sullivan | Getty Photos Information | Getty Photos

TOKYO — When Chitose Nagao retired after practically three a long time in promoting to start out a matcha cafe, she by no means imagined traces could be snaking round her store earlier than it opened. By midafternoon, the tins of matcha powder on her cabinets are offered out, whereas a gradual stream of principally abroad prospects is ready to attempt her newest inexperienced concoctions.

Her retailer, Atelier Matcha, is among the fortunate ones. Though matcha provides are operating low even in Japan as a consequence of a world craze, a partnership Nagao cultivated with Marukyu Koyamaen, a 300-year-old tea producer in Kyoto, is paying off.

“After I heard that each one their tea was sitting unsold in a warehouse throughout Covid, I needed to do one thing,” Nagao mentioned. 4 years later, she has two shops in Japan, one in Vietnam’s Ho Chi Minh Metropolis, and a brand new outlet that may quickly open in Cebu Metropolis, Philippines.

Japan has been consuming matcha because the twelfth century, principally in extremely ritualized tea ceremonies that require solely a speck of powder. Demand skyrocketed lately as matcha’s repute as an antioxidant-packed superfood unfold over TikTok. A post-pandemic tourism increase has additionally pushed costs larger.

In response to Japan’s Ministry of Finance, Japan exported 36.4 billion yen ($247 million) of inexperienced tea final 12 months, 4 instances greater than a decade in the past. Some 44% was certain for the U.S., principally in powdered type, like matcha.

In an effort to deal with the pressure on Japan’s growing old farming communities, the Japanese authorities is contemplating subsidizing farmers to encourage them to dedicate extra fields to tencha, the kind of tea used to make matcha.

Tencha yields are extra profitable but in addition extra labor-intensive, because the buds must be shielded from the solar to carry out their distinctive grassy taste. There aren’t sufficient fingers to reap, steam and dry the leaves earlier than milling them into powder, producers say.

Outlets ration provide

Tencha costs at this spring public sale in Kyoto jumped 170% from the 12 months earlier than to eight,235 yen per kilogram, the International Japanese Tea Affiliation mentioned. That shattered the earlier report of 4,862 yen per kilogram, set in 2016.

Many retailers have additionally reported that matcha costs have doubled within the final 12 months, and discovering a small tin of the powder has turn into more and more tough, even in Tokyo.

Outlets are putting buy limits to make their inventory last more, discourage hoarding and fend off unauthorized resellers. Nevertheless, matcha stays a well-liked memento for the report variety of vacationers visiting Japan.

Many retailers have reported that matcha costs have doubled within the final 12 months, and discovering a small tin of the powder has turn into more and more tough, even in Tokyo.

Many on-line shops offered out months in the past as U.S. patrons rushed to top off forward of anticipated tariffs.

Kaminari Issa, which sells the whole lot from matcha beer to matcha cream puffs at its 4 shops in Tokyo’s Asakusa district, mentioned receiving an e mail request for a ton of matcha just isn’t uncommon.

“We’re pleased,” mentioned Miku Sugawara, who manages one of many shops. “However there’s solely a lot we are able to promote.”

Her store sells matcha milled from the very first harvest of the season, when the tea leaves are tender, which is taken into account the best high quality.

Like many others within the commerce, Sugawara worries that this summer time’s report heatwave might decrease subsequent 12 months’s tea harvest and push costs even larger.

Matcha increase meets bottleneck

Competitors to supply and produce sufficient matcha is so intense that it compelled Ito En, the world’s largest vendor of bottled inexperienced tea, to create a devoted division in Could.

The corporate forecasts group abroad gross sales to rise 11% this 12 months and is elevating costs by 50% to 100% on a number of merchandise from September within the face of upper uncooked materials and labor prices.

Ito En has devoted contracts with farmers that provide it with 7,000 tons of normal inexperienced tea annually, however solely about 600 tons of tencha.

Convincing farmers to develop extra tencha has been a problem as a result of many fear the present increase might wane, Ito En mentioned.

“Matcha’s recognition has been unimaginable. Our personal factories and all our contractors are jam–packed,” mentioned Yasutaka Yokomichi, the supervisor of Ito En’s new matcha division.

The Japanese authorities is contemplating subsidizing farmers to encourage them to dedicate extra fields to tencha, the kind of tea used to make matcha.

He mentioned one among his priorities is to safe sufficient mills to grind the tencha leaves into powder and package deal it, which can embody recent investments to develop Ito En’s personal amenities. It will possibly take one hour to mill simply 40 grams of matcha, as the warmth ensuing from a sooner course of might degrade its high quality.

Atelier Matcha’s Nagao mentioned that educating customers concerning the totally different grades of matcha could be the solely viable choice.

As a devotee of sado, or “the best way of tea,” premium-grade powder is not essential to make matcha açai bowl, she mentioned. As an entrepreneur, she additionally has her sights set on the subsequent huge factor.

“Hojicha,” Nagao says, referring to a different sort of tea with a nuttier profile and fewer caffeine. “Look, I solely have one left right this moment.”

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