Global Matcha Craze Strains Japan's Supply

Aug 03, 2025 | News On Japan

TOKYO - Matcha, once a traditional Japanese favorite, has now become a global sensation—but the surge in demand is causing a severe shortage. Leading tea company Ito En has announced that it will raise prices by up to twofold to cope with the growing supply-demand imbalance.

Tourists from the United States can be seen praising Japan’s matcha, with comments like "very good" and "we love matcha" heard frequently. The vibrant green tea has captured the hearts of international consumers.

A matcha café that opened last year in New York reports its most popular item is the matcha latte, alongside parfaits and other desserts. In South Korea, convenience stores are also lining their shelves with matcha products, highlighting the drink's global popularity.

Driven by this boom, exports of green tea—including matcha—have set new records for five consecutive years. More than 10% of Japan’s green tea production is now shipped overseas. As a result, domestic matcha supply has fallen into a serious shortage.

Ito En announced it would raise prices by up to 100%. Matcha used in traditional tea ceremonies will rise from 3,024 yen to 4,536 yen, while regular green tea will increase from 1,296 yen to 1,360 yen.

Tea producers are also being forced to adapt. At Yame Miryokuen Seicha in Fukuoka Prefecture, company head Kazunobu Ejima explained, "All of the tea fields here have been converted to tencha, the raw material for matcha."

Previously, tencha made up just 30% of production, but that figure has now risen to 70%. However, limited equipment capacity makes further expansion difficult.

Adding to the challenge is Japan’s aging farming population. Nationwide, cultivation areas have shrunk by around 20% over the past decade. Maintaining a stable supply-demand balance will be a key issue for the industry moving forward.

Source: TBS

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