Japan reportedly facing matcha shortage due to high global demand

Japan is reportedly experiencing a matcha shortage as global demand for finely ground green tea powder surges. As reported by Food and Wine, matcha's popularity skyrocketed during the pandemic as people discovered its health benefits, even as it had been growing in popularity for its taste

According to The Japan Times' report on February 23, 2025, The Ministry of Agriculture, Forestry and Fisheries of Japan stated that matcha production increased threefold between 2010 and 2023. It reached a tipping point over the last five years, with more than half of the matcha being exported.

Moreover, its shortage and the overwhelming demand became apparent when major tea manufacturers such as Kyoto-based Ippodo and Marukyu announced purchasing limits on matcha in 2024. Per the same publication, some temporary relief can be expected after the 2025 tea harvest, slated to start around April.

However, it will not be a long-term solution as the global demand for powdered green tea seemingly continues to peak—the matcha market is expected to hit $5 billion by 2028, according to Forbes.

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More about the matcha shortage in Japan

Matcha in a raku bowl. (Image via Getty)

While global demand is increasing, there are several factors which is making it difficult for tea producers to keep up, including production challenges and an aging workforce.

The Japan Times reported that matcha production has two key stages: growing the 'tencha' leaves and grinding them into a powder. It is not easy to scale up either part of production. While there is no shortage of space to grow the tea, the shrubs take five years to mature. Simply growing more matcha will not supposedly help alleviate the global shortage yet.

Tencha leaves are grinded as needed, instead of taking the whole harvest at once. However, the machines are slow, and new stone mills themselves need atleast a month to be made. Simoa Suzuki, co-founder of Global Japanese Tea Association, spoke to The Japan Times about the mill challenges.

“You need a lot of stone mills to make a large quantity of ceremonial matcha. And if demand suddenly increases a lot, production can be strained, which limits how much matcha can be made at once,” Simoa Suzuki said.

The data shared by the Ministry of Agriculture, Forestry and Fisheries, stated that the number of tea farmers is decreasing. Many of the farmers are growing old and the younger generation seemingly has a lesser interest in agriculture, leading to some of the farms seeing no cultivation.

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Why matcha is so popular?

Matcha's popularity can be attributed to its health benefits and versatility as an ingredient along with the social media buzz around it. The powdered green tea is said to be packed with antioxidants, amino acids, and natural caffeine, making it a popular alternative to coffee.

Matcha has appeared on the menus of several cafes and food chains as special edition and seasonal menus. Recently, Starbucks announced Lavender Matcha Malt as part of the Starbucks Reserve exclusive spring menu and brought back its Lavender Cream Oatmilk Matcha as part of the 2025 Spring Menu.

The green drink is also a social media favorite with users often posting their green creations—everything from traditional tea to lattes, smoothies and desserts- driving up interest in matcha. There has also been a rise in matcha-based skincare products.

The finely ground green tea powder has moved from being a niche health food to a mainstream staple globally—even if demand has dipped a bit back home. Fumi Ueki, chief of the Leaf Brand Group, commented on the rising popularity:

"We conducted a survey of foreign visitors to Japan at our department stores and found that they are interested in the health benefits of matcha. It seems that people drink matcha not only because it tastes good but also because they expect it to be healthy. We believe that if we can widely promote the health benefits of matcha to the rest of the world, we can expect to see even greater global demand for matcha.”

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Despite the current challenges, matcha's popularity continues to soar. The Japanese tea industry is reportedly working towards expanding production with new technologies and attracting a larger workforce in an effort to meet global demands. However, it might be some time before the supply stabilizes, so consumers can expect occasional shortages and price fluctuations.