Latest news with #Uji
The Independent
2 days ago
- Business
- The Independent
Matcha latte prices set to soar as global craze and record-breaking heatwave fuel supply chain crisis
Record temperatures and an increasing global demand has stretched Japan 's supply of matcha this year, leading prices to rocket. Farmers and industry officials have spoken out as they struggle to meet the ever-increasing demand for the bright green tea drink from Japan, which has peaked in popularity this year. Matcha's popularity has been growing over recent years, with sales soaring by 202 percent in the UK in 2023 alone according to Orion Market Research. The antioxidant rich beverage has reached its apex this year, driven by social media and Japan's post-pandemic tourism boom. The Kyoto region, which accounts for a quarter of Japan's production of tencha - the stemmed leaves dried and ground into matcha - was hit by severe heatwaves last summer during Japan's hottest year on record, which led to weak yields in the recent April-May harvest. US-based tea importer Lauren Purvis told the BBC her customers were seeing what was once a month's supply run out in days: "Some cafes are even asking for a kilo a day. They're desperate to keep up," the Mizuba Tea Co. owner said. Masahiro Yoshida, a sixth-generation farmer, was only able to harvest 1.5 tons of tencha this year, down a quarter from his typical harvest of two tons. 'Last year's summer was so hot that it damaged the bushes, so we couldn't pluck as many tea leaves,' he told Reuters from his storefront in Uji, south of Kyoto. Traditionally, the tencha leaves are kept under shade for weeks while growing in order to develop the tea's 'umami' taste. The leaves are then harvested, dried and ground into powder using stone mills. Tealife founder Yuki Ishii told Reuters that it saw a ten-fold increase in demand for matcha from customers, despite the amount available from Japan declining. 'I'm basically always out of stock," he said. Japan produced 5,336 tons of tencha in 2024, nearly three times more than a decade before as more farmer's switch to the crop, according the Japanese Tea production Association. Despite this, the association expects lower matcha output this year. As well as surging demand and lesser tea crops this year, US tariffs on Japan have pushed up matcha prices. On Tuesday, Washington and Tokyo announced a trade deal which means there will be a 15 per cent import tax on Japanese products going into the US. The move has led matcha distributors to brace for the impact, with Ms Purvis saying orders surged by more than 70 per cent in early July ahead of a deadline for the two countries to reach a trade agreement. 'As Japanese tea is not grown in the US, there is no American industry under threat that tariffs need to protect,' she told the BBC. 'We hope there will be a realisation that specialty tea should be exempt.'
The Independent
3 days ago
- Business
- The Independent
Matcha craze sparks global supply chain issues amid huge demand and record-breaking heatwave
Record temperatures and an increasing global demand has stretched Japan 's supply of matcha this year, leading prices to rocket. Farmers and industry officials have spoken out as they struggle to meet the ever-increasing demand for the bright green tea drink from Japan, which has peaked in popularity this year. Matcha's popularity has been growing over recent years, with sales soaring by 202 percent in the UK in 2023 alone according to Orion Market Research. The antioxidant rich beverage has reached its apex this year, driven by social media and Japan's post-pandemic tourism boom. The Kyoto region, which accounts for a quarter of Japan's production of tencha - the stemmed leaves dried and ground into matcha - was hit by severe heatwaves last summer during Japan's hottest year on record, which led to weak yields in the recent April-May harvest. US-based tea importer Lauren Purvis told the BBC her customers were seeing what was once a month's supply run out in days: "Some cafes are even asking for a kilo a day. They're desperate to keep up," the Mizuba Tea Co. owner said. Masahiro Yoshida, a sixth-generation farmer, was only able to harvest 1.5 tons of tencha this year, down a quarter from his typical harvest of two tons. 'Last year's summer was so hot that it damaged the bushes, so we couldn't pluck as many tea leaves,' he told Reuters from his storefront in Uji, south of Kyoto. Traditionally, the tencha leaves are kept under shade for weeks while growing in order to develop the tea's 'umami' taste. The leaves are then harvested, dried and ground into powder using stone mills. Tealife founder Yuki Ishii told Reuters that it saw a ten-fold increase in demand for matcha from customers, despite the amount available from Japan declining. 'I'm basically always out of stock," he said. Japan produced 5,336 tons of tencha in 2024, nearly three times more than a decade before as more farmer's switch to the crop, according the Japanese Tea production Association. Despite this, the association expects lower matcha output this year. As well as surging demand and lesser tea crops this year, US tariffs on Japan have pushed up matcha prices. On Tuesday, Washington and Tokyo announced a trade deal which means there will be a 15 per cent import tax on Japanese products going into the US. The move has led matcha distributors to brace for the impact, with Ms Purvis saying orders surged by more than 70 per cent in early July ahead of a deadline for the two countries to reach a trade agreement. 'As Japanese tea is not grown in the US, there is no American industry under threat that tariffs need to protect,' she told the BBC. 'We hope there will be a realisation that specialty tea should be exempt.'
Reuters
04-07-2025
- Business
- Reuters
Japan's heat-stressed matcha tea output struggles to meet soaring global demand
UJI, Japan, July 4 (Reuters) - Matcha lovers, brace your wallets! Record temperatures in Japan have curbed matcha green tea production this year, straining supplies and driving prices to all-time highs amid booming global demand for the trendy beverage, farmers and industry officials said. The Kyoto region, which accounts for about a quarter of Japan's production of tencha - the stemmed leaves dried and ground into matcha - was hit by severe heatwaves last summer during Japan's hottest year on record, which led to weak yields in the recent April-May harvest. Masahiro Yoshida, a sixth-generation farmer, was only able to harvest 1.5 tons of tencha this year, down a quarter from his typical harvest of two tons. "Last year's summer was so hot that it damaged the bushes, so we couldn't pluck as many tea leaves," he told Reuters from his storefront in Uji, south of Kyoto. Global demand for matcha has surged in recent years, driven by millennials and Gen Z buyers seeking healthier choices, with hip cafes globally offering matcha lattes, smoothies, and desserts. The finely ground tea is prized as an antioxidant and for higher caffeine content than other green teas. Viral social media traction last autumn turbocharged demand, prompting some wholesalers such as Singapore-based Tealife to occasionally impose purchase limits. Yuki Ishii, Tealife's founder, said matcha demand from its customers grew ten-fold last year and is still rising, even as the amount available from Japan is declining. "I'm basically always out of stock," he said. Japan produced 5,336 tons of tencha in 2024, according to the Japanese Tea Production Association, a nearly 2.7-fold increase from ten years earlier, as more farmers switched to the crop. However, the association said it expects lower matcha output this year. "I think many were hoping for a higher yield harvest this year to reduce some of the shortages ... but it doesn't seem like this is going to be the case," said Marc Falzon, who buys tea from Uji farmers for his New Jersey-based milling firm, Ooika Co. Japan's green tea exports, including matcha, rose 25% by value to 36.4 billion yen ($252 million) in 2024, driven largely by growing demand for powdered teas such as matcha, according to data from the Ministry of Agriculture, Forestry and Fisheries. By volume, Japan's green tea exports rose 16%. Tencha prices have climbed to record highs, with a May auction in Kyoto fetching 8,235 yen per kg, a 170% increase from a year earlier and well above the previous record of 4,862 yen set in 2016, according to the Global Japanese Tea Association. Japanese producers are trying to increase matcha output, but that won't solve the current shortage as the new fields they are planting need five years before they can be harvested, said Falzon. "I suspect we'll see even more dramatic price increases." ($1 = 144.2000 yen)
Malay Mail
04-07-2025
- Business
- Malay Mail
Japan's heat-stressed matcha tea output struggles to meet soaring global demand
UJI, July 4 — Matcha lovers, brace your wallets! Record temperatures in Japan have curbed matcha green tea production this year, straining supplies and driving prices to all-time highs amid booming global demand for the trendy beverage, farmers and industry officials said. The Kyoto region, which accounts for about a quarter of Japan's production of tencha — the stemmed leaves dried and ground into matcha — was hit by severe heatwaves last summer during Japan's hottest year on record, which led to weak yields in the recent April-May harvest. Masahiro Yoshida, a sixth-generation farmer, was only able to harvest 1.5 tons of tencha this year, down a quarter from his typical harvest of two tons. 'Last year's summer was so hot that it damaged the bushes, so we couldn't pluck as many tea leaves,' he told Reuters from his storefront in Uji, south of Kyoto. Global demand for matcha has surged in recent years, driven by millennials and Gen Z buyers seeking healthier choices, with hip cafes globally offering matcha lattes, smoothies, and desserts. The finely ground tea is prized as an antioxidant and for higher caffeine content than other green teas. Viral social media traction last autumn turbocharged demand, prompting some wholesalers such as Singapore-based Tealife to occasionally impose purchase limits. Yuki Ishii, Tealife's founder, said matcha demand from its customers grew ten-fold last year and is still rising, even as the amount available from Japan is declining. 'I'm basically always out of stock,' he said. Japan produced 5,336 tons of tencha in 2024, according to the Japanese Tea Production Association, a nearly 2.7-fold increase from 10 years earlier, as more farmers switched to the crop. However, the association said it expects lower matcha output this year. 'I think many were hoping for a higher yield harvest this year to reduce some of the shortages ... but it doesn't seem like this is going to be the case,' said Marc Falzon, who buys tea from Uji farmers for his New Jersey-based milling firm, Ooika Co. Japan's green tea exports, including matcha, rose 25 per cent by value to ¥36.4 billion (RM1 billion) in 2024, driven largely by growing demand for powdered teas such as matcha, according to data from the Ministry of Agriculture, Forestry and Fisheries. By volume, Japan's green tea exports rose 16 per cent. Tencha prices have climbed to record highs, with a May auction in Kyoto fetching ¥8,235 per kg, a 170 per cent increase from a year earlier and well above the previous record of ¥4,862 set in 2016, according to the Global Japanese Tea Association. Japanese producers are trying to increase matcha output, but that won't solve the current shortage as the new fields they are planting need five years before they can be harvested, said Falzon. 'I suspect we'll see even more dramatic price increases.' — Reuters
Yahoo
04-07-2025
- Business
- Yahoo
Japan's heat-stressed matcha tea output struggles to meet soaring global demand
By Michele Pek UJI, Japan (Reuters) -Matcha lovers, brace your wallets! Record temperatures in Japan have curbed matcha green tea production this year, straining supplies and driving prices to all-time highs amid booming global demand for the trendy beverage, farmers and industry officials said. The Kyoto region, which accounts for about a quarter of Japan's production of tencha - the stemmed leaves dried and ground into matcha - was hit by severe heatwaves last summer during Japan's hottest year on record, which led to weak yields in the recent April-May harvest. Masahiro Yoshida, a sixth-generation farmer, was only able to harvest 1.5 tons of tencha this year, down a quarter from his typical harvest of two tons. "Last year's summer was so hot that it damaged the bushes, so we couldn't pluck as many tea leaves," he told Reuters from his storefront in Uji, south of Kyoto. Global demand for matcha has surged in recent years, driven by millennials and Gen Z buyers seeking healthier choices, with hip cafes globally offering matcha lattes, smoothies, and desserts. The finely ground tea is prized as an antioxidant and for higher caffeine content than other green teas. Viral social media traction last autumn turbocharged demand, prompting some wholesalers such as Singapore-based Tealife to occasionally impose purchase limits. Yuki Ishii, Tealife's founder, said matcha demand from its customers grew ten-fold last year and is still rising, even as the amount available from Japan is declining. "I'm basically always out of stock," he said. Japan produced 5,336 tons of tencha in 2024, according to the Japanese Tea Production Association, a nearly 2.7-fold increase from ten years earlier, as more farmers switched to the crop. However, the association said it expects lower matcha output this year. "I think many were hoping for a higher yield harvest this year to reduce some of the shortages ... but it doesn't seem like this is going to be the case," said Marc Falzon, who buys tea from Uji farmers for his New Jersey-based milling firm, Ooika Co. Japan's green tea exports, including matcha, rose 25% by value to 36.4 billion yen ($252 million) in 2024, driven largely by growing demand for powdered teas such as matcha, according to data from the Ministry of Agriculture, Forestry and Fisheries. By volume, Japan's green tea exports rose 16%. Tencha prices have climbed to record highs, with a May auction in Kyoto fetching 8,235 yen per kg, a 170% increase from a year earlier and well above the previous record of 4,862 yen set in 2016, according to the Global Japanese Tea Association. Japanese producers are trying to increase matcha output, but that won't solve the current shortage as the new fields they are planting need five years before they can be harvested, said Falzon. "I suspect we'll see even more dramatic price increases." ($1 = 144.2000 yen) Sign in to access your portfolio
