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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
South China Morning Post
02-07-2025
- Business
- South China Morning Post
No more matcha? Demand for powdered Japanese green tea leads to global shortages
At Kettl Tea, a minimalist matcha bar in Los Angeles, only four types of the Japanese green tea are in stock. The menu usually boasts 25 kinds, but social media stardom has led to a global shortage of powdered matcha. 'One of the things we struggle with is telling customers that, unfortunately, we don't have what they want,' said Zach Mangan, the shop's founder. With matcha's deep grassy aroma, intense colour and pick-me-up effects, its popularity 'has grown just exponentially over the last decade, but much more so in the last two to three years', the 40-year-old explained. It is now 'a cultural touchpoint in the Western world', found everywhere, from ice-cream flavour boards to Starbucks. This has caused the market for matcha to nearly double over a year, Mangan said. 'No matter what we try, there's just not more to buy.' Hongkongers unaware of microplastics in tea and coffee – sip at your own risk Thousands of miles away in Sayama, a city about 40km (25 miles) northwest of the Japanese capital, Tokyo, Masahiro Okutomi – the 15th generation to run his family's tea business – is overwhelmed by demand. 'I had to put on our website that we are not accepting any more matcha orders,' he said. Producing the powder is an intensive process: the leaves, called tencha, are shaded for several weeks before harvest to concentrate the taste and nutrients. They are then carefully deveined by hand, dried and finely ground in a machine. It takes years of training to make matcha properly, Okutomi said. Masahiro Okutomi at his farm in Sayama, Japan. Photo: AFP 'It's a long-term endeavour requiring equipment, labour and investment … I'm glad the world is taking an interest in our matcha … but in the short term, it's almost a threat – we just can't keep up.' The matcha boom has been fuelled by online influencers like Andie Ella, who has more than 600,000 subscribers on YouTube and has started her own brand of matcha products. At the pastel-pink pop-up shop she opened in Tokyo's hip Harajuku district, dozens of fans excitedly waited to take a photo with the 23-year-old Frenchwoman or buy cans of strawberry or white chocolate flavoured matcha. 'Matcha is visually very appealing,' Ella said. To date, her matcha brand, produced in Japan's rural Mie region, has sold 133,000 cans. Launched in November 2023, it now has eight employees. 'Demand has not stopped growing,' she said. This year's spring tea harvest in east China has a special helper – AI robots In 2024, matcha accounted for over half of the 8,798 tonnes of green tea exported from Japan, according to data from the agriculture ministry. That is twice as much as a decade ago. Tokyo tea shop Jugetsudo, located in the touristy former fish market area of Tsukiji, is attempting to manage its stock levels amid escalating demand. 'We don't strictly impose purchase limits, but we sometimes refuse to sell large quantities to customers suspected of reselling,' said store manager Shigehito Nishikida. 'In the past two or three years, the craze has intensified: customers now want to make matcha themselves, like they see on social media,' he added. Matcha is added to drinks at Kettl Tea in Los Angeles, California. Photo: AFP Anita Jordan, a 49-year-old Australian tourist in Japan, said her 'kids are obsessed with matcha'. 'They sent me on a mission to find the best one,' she said with a laugh. The global matcha market might falter if United States President Donald Trump's tariffs on Japanese products – currently 10 per cent – rise to a threatened 24 per cent. Shortages and tariffs mean 'we do have to raise prices. We don't take it lightly,' said Mangan at Kettl Tea, though it has not dampened demand so far. 'Customers are saying: 'I want matcha before it runs out.'' Japan's government is encouraging tea producers to scale up their farming operations to reduce costs. But that risks sacrificing quality, and 'in small rural areas, it's almost impossible', grower Okutomi said. The number of tea plantations in Japan has fallen to a quarter of what it was 20 years ago as farmers age and struggle to secure successors, he added. 'Training a new generation takes time … it can't be improvised.'
NHK
02-07-2025
- Business
- NHK
Global thirst for matcha strains Japan's green tea industry
Matcha can do it all: Fixture of the Japanese tea ceremony, beverage of choice for social media's hip young things, and a mainstay in cafes the world over. But the boom is not without its challenges. Japan's farmers are struggling to meet demand while maintaining the standards and traditions that give the green powder it's unquestionable allure. Tokyo's annual Matcha Green Tea Marche has something for everyone: traditional whisked tea, ice cream and confectionery, plus some unusual offerings such as beer and curry. Matcha beer, left, and Matcha mont blanc chestnut ice cream The many foreign visitors at the event in March reflect matcha's rising popularity. One family visiting from the United States came straight from the airport. A family from the United States enjoy the offerings at the Matcha Green Tea Marche in Tokyo. Influencers California-based Eric Gower, who imports and trades matcha, attributes the boom to influencers on social media. Breakaway Matcha founder Eric Gower He says the posts make the product irresistible, along the lines of: "It's going to make you calm and serene…have this perfect body, and you look cool while you drink it. It's beautiful and it's a fairly compelling story." Colorful matcha drinks on Instagram Producers grapple with soaring demand Last year, Japan exported over 250 million dollars in green tea, more than double the figure a decade ago. Globally, the matcha market is now worth an estimated 4.2 billion dollars. Mt. Fuji and green tea fields in Shizuoka Prefecture Suppliers in Japan are scrambling to keep up. They include CHATO in Shizuoka Prefecture, which had to build another factory to handle new orders. The firm's main export markets are the United States and Germany, but chairperson Kato Shigeki says enquiries are now flooding in from other countries. Often, he has no choice but to turn them away. CHATO Chairperson Kato Shigeki Making tea is labor intensive, and some Japanese producers are starting to rely more on automation in light of the nation's chronic shortage of workers. Gower says he was warned at the start of the year that he might not be able to meet orders: "You've got these people with credit cards out wanting to buy really nice matcha, and you can't fulfill it." Japan's matcha industry faces a labor shortage, and many farmers are advancing in age. New competition could lower prices Supply crunches and a lack of workers aren't the only challenges for Japan. Countries such as China, South Korea and Vietnam are also producing matcha, and that makes the industry increasingly competitive. Matcha leaves being ground into powder University of Shizuoka Professor Nakamura Yoriyuki, an agricultural science expert who has been monitoring the matcha market for decades, says Japan's domestic producers need to tread carefully. With so many new market players, prices could drop sharply. Japan's tea ceremony a big draw Still, Japan's domestic industry has several ace cards, including authenticity and quality. What's more, the traditional tea ceremony, called sado, is a popular activity for tourists. One tea master in Tokyo, Takeda Rie, says participation in her ceremonies is up fourfold compared with last year. The hour-long session caters to refined tastes, and participants are offered much more than a drink. Chazen founder Takeda Rie "The bitterness of this matcha enhances the floral and fruity flavors of the tea instead of overpowering or hiding them," says one American participant. "The matcha we use is aged for six months, placed in a jar, and further matured," says Takeda. "It brings out the true depth. We offer this experience so people can taste that difference." Participants enjoy matcha. Takeda's ceremonies take place in a traditional tatami-mat tearoom, offering a tranquil escape from the bustling city. The entrance is so low that guests have to crouch down to get inside ― a feature designed to foster humility and respect. NHK World's John LaDue, right, takes part in one of Takeda Rie's tea ceremonies. Japan's government providing support The heightened global demand for matcha has put Japan's producers at a crossroads. But help is at hand from the central government. The agriculture ministry is providing subsidies to farmers who expand their green tea orchards or start growing matcha-quality leaves. Success will likely hinge on boosting exports, without compromising on the quality that makes Japan's matcha oh-so moreish.
