Matcha, a popular Japanese tea, is being consumed globally, with its popularity being driven by social media and Japan’s post-pandemic tourism boom. The “Matcha Tok” hashtag has garnered millions of views, and the demand for matcha powder is soaring. However, the surge in demand, combined with smaller tea crops due to heatwaves and US tariffs on Japan, is also pushing up matcha prices.
Matcha is made from green tea leaves called tencha, which are kept under shade for weeks while they are still growing. This step is crucial for developing the tea’s signature “umami” flavor, a savoury taste that complements its natural sweetness. The leaves are harvested, dried, and ground into powder using stone mills, which can produce just 40g (1.4oz) of matcha an hour.
In recent months, growers have struggled due to record-breaking heatwaves, particularly in the Kyoto region, where about a quarter of Japan’s tencha comes from. The country also faces a shortage of farmers as its population ages and not enough younger people enter the industry. As a result, many retailers have set limits on how much customers can buy, leading to tea prices at Chazen’s outlets rising by around 30% this year.
The matcha craze has sparked a movement to promote more mindful consumption, with advocates calling out people they see as hoarding matcha or profiteering from its popularity. The Global Japanese Tea Association is encouraging people to use lower-grade matcha from later harvests, which is more abundant and better-suited for cooking.
Tariffs imposed by the US on Japan, such as a 15% import tax on Japanese products going into the US, are likely to further increase matcha prices. At least one matcha cafe chain believes that prices could ease in the future, but not for a while.
