Matcha mania: can Japan's tea industry keep up with soaring global demand?

Let's talk about the matcha popularity surge! Can Japan keep up with global demand?

In recent years, matcha, Japan's iconic powdered green tea has become a global sensation. Once reserved for traditional tea ceremonies, it has now made its way into lattes, desserts, skincare products, and even cocktail menus worldwide. 

But behind the frothy green drinks and Instagram-worthy desserts lies a growing concern: Japan’s matcha industry is struggling to keep up with surging international demand. 

The global matcha obsession can largely be attributed to the power of social media and the post-pandemic travel boom.  

Platforms like TikTok have exploded with content showcasing matcha recipes, Japanese culture, and scenic tea fields, sparking a worldwide fascination with the vibrant green powder.

Coupled with a weak yen and relaxed travel restrictions, Japan saw a record-breaking 37 million visitors in 2024, a 47% increase from the previous year, according to "BNN Bloomberg".

Many tourists returned home with a newfound appreciation for matcha, further fueling demand. 

According to Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF), the export value of green tea including matcha reached ¥36.4 billion (approximately R4.44 billion) in 2024, a 25% increase from 2023. 

However, this boom has exposed the limitations of Japan’s traditional tea production methods, which are struggling to scale up to meet the global craze.

Why can't Japan simply produce more matcha?

Matcha production is a time-intensive and labourious process. High-quality matcha comes from tencha leaves, which are shaded for weeks before harvest to enhance their flavour and nutrient content. 

The first flush matcha, prized for its superior quality, is harvested only once a year in April and May. This limited harvest window, combined with the meticulous care required, makes it nearly impossible to increase production overnight dramatically. 

“There’s not necessarily a shortage of land to grow more tea,” states Simona Suzuki, co-founder of the Global Japanese Tea Association, in an interview with "The Japanese Times". “

But tea shrubs take up to five years to mature, so even if farmers plant more fields now, it wouldn’t immediately solve the shortage.” 

Another significant hurdle stems from the grinding process. Traditionally, matcha is meticulously ground using slow stone mills, each capable of producing only 40 grams per hour - enough for a mere 10 to 12 matcha lattes. Scaling up production demands substantial investment in equipment and infrastructure.

Additionally, climate change presents a daunting challenge, with premium tea-growing regions like Uji and Shizuoka facing erratic weather patterns that can disrupt yields.

Compounding these difficulties, Japan's ageing farming demographic raises concerns; many tea farmers are nearing retirement without adequate successors to continue the tradition. 

The strain on the matcha industry became glaringly evident in 2024, as high-quality first-flush matcha, once exclusively for ceremonies, morphed into a coveted luxury for everyday indulgence among global consumers.

Specialty tea shops in Kyoto and Tokyo reported overwhelming demand, often selling out of stock and imposing purchase limits to manage supply.

Renowned producers such as Ippodo Tea and Marukyu Koyamaen temporarily suspended sales of select matcha products, extending the wait until late 2025 for eager consumers. 

“Matcha consumption reached a record high in 2024,” comments Fumi Ueki, from Ito En, Japan’s largest tea company. “We expect this trend to continue, especially as more people around the world discover the health benefits of matcha.”

Why is matcha so popular? 

Matcha isn’t just trendy; it’s also seen as a superfood.

Rich in antioxidants, particularly catechins, matcha is praised for its potential health benefits, including improved focus, enhanced metabolism, and a calming effect.

It may have a mild benefit in weight loss and management.

Studies suggest that matcha may have liver-protective effects and could help reduce liver damage caused by toxins.

Matcha's antioxidant properties can help protect the skin from damage caused by free radicals, UV radiation, and pollution.

Unlike coffee, matcha provides a sustained energy boost without the jitters, making it a favourite among health-conscious consumers.

According to Ueki, the pandemic played a key role in shifting global attitudes toward health and wellness. “People drink matcha not only because it tastes good but also because they believe it’s healthy,” he says. “If we can continue to promote its health benefits, we anticipate even greater demand.”

Can Japan adapt?

While the 2025 harvest, set to begin in April, will replenish matcha supplies temporarily, experts agree that long-term solutions are needed to sustain the industry.

Some tea producers are exploring ways to modernise production, such as automating parts of the process or increasing the number of stone mills. 

Others are focusing on educating younger generations to ensure the tradition of matcha farming continues. International collaborations may also play a role.

Some Japanese companies have partnered with overseas producers to grow tencha leaves outside Japan, though this raises questions about authenticity and quality. 

Purists argue that true matcha must come from Japan, where the terroir and centuries-old techniques create a product that cannot be replicated elsewhere.

What’s next for matcha lovers?

For now, matcha enthusiasts may need to exercise patience and perhaps savour each cup a little more mindfully. As the world’s appetite for matcha continues to grow, so too does the pressure on Japan’s tea industry to innovate while preserving its heritage.