Matcha shortage in Japan

The current matcha shortage is the result of a long-term cultural shift: a drive for a healthier lifestyle, a growing interest in Japanese ingredients, and that eye-catching bright green hue that lends itself perfectly to social media. Add in the resurgence of travel (yes, that dreaded “o” word— overtourism ) and TikTok’s ability to commodify rituals (#MatchaTok), and it’s no wonder we’re seeing an unprecedented surge in demand for matcha .

But there’s a less obvious factor contributing to this tension: confusion about what matcha actually is and how its quality is measured. Because it’s popping up everywhere from lattes to face serums, blanket terms like “ceremonial” or “culinary” obscure what is actually a much richer spectrum.

WHAT IS MATCHA?

The word “matcha” comes from two Japanese characters: 抹 (matsu) means “to rub” or “to grind” and 茶 (cha) means “tea.” Together, they mean “ground tea.”

But don’t confuse it with ordinary tea bags ground with an electric blender. Matcha is made from shade-grown tea leaves called tencha, which are steamed, dried, and finally ground in stone mills into a silky powder. Blended with hot water, matcha is known for its intensity and earthy umami flavor.

WHAT IS THE DIFFERENCE BETWEEN MATCHA AND SENCHA?

Matcha is a shade-grown green tea powder ground with granite mills. Not every tea plantation grows tencha, the raw material for making matcha . Sencha, on the other hand, is grown in the sun and is widely available.

HOW TO UNDERSTAND THE QUALITY OF MATCHA?

One possible reason for the current matcha shortage? A growing misunderstanding of what constitutes "good matcha ."

David Lavecchia, founder of Tezumi Tea, who works directly with small Japanese producers, explains: “There’s been a huge shift towards much higher quality matcha , which was originally intended for a whole different segment of the tea market.” Could this be contributing to the shortage? “In short, yes,” he says.

That segment is the traditional tea ceremony culture, where matcha is whisked with water to form a soft foam – as usucha (lighter, more liquid) or koicha (thick, intense) – and drunk without milk or sugar.

“ Matcha for usucha or koicha won’t necessarily work in a latte ,” says Lavecchia. “Its subtleties only come out when drunk neat, without any additives.”

That's not to say there's anything wrong with matcha lattes . But the recent surge in demand for premium matcha across all industries has really stretched the supply chain to its limits. And that's certainly a major factor in the matcha shortage that's occurred.

WHAT DETERMINES THE PRODUCTION "BOTTLE NECK"?

Matcha production is slow and seasonal. The tea leaves must be grown in the shade for several weeks before harvest to develop their characteristic sweetness. They are then steamed, dried, and ground into a fragrant, fine powder.

The traditional grinding process alone can take an hour to produce just 30 grams of tea.

“The uniqueness and seasonality of matcha production means that its supply is naturally limited,” notes the Global Japanese Tea Association (GJTA) on its blog.

Association President S. Suzuki explains: “Tea leaves for ceremonial matcha are harvested only once a year – in the spring. Once processed, the dried leaves can be ground all year round. However, production must be carefully planned in advance, as it is no longer possible to increase the raw material supply once the harvest season is over. Therefore, the period when matcha supply is lowest is usually before the start of the new harvest.”

At the same time, the number of Japanese tea farmers is rapidly declining. In 2000, there were more than 54,000, and now there are only about 20,000. Although matcha consumption in Japan is falling, its popularity abroad is not decreasing - in 2023, green tea exports from Japan exceeded 29 billion yen.

MATCHA SHORTAGE: WHAT'S GOING ON?

Matcha Passport founder Kantaro Fumoto says his cafe in Shimokitazawa hasn't experienced any major supply disruptions yet, but he knows that could change. "Matcha production is limited," he notes. "And the growing popularity means that shortages are a reality we have to adapt to."

Meanwhile, small specialty shops are already experiencing delays. Ryoichi Ono, owner of Chasen, a tea shop in western Tokyo, says orders are taking longer than before. “Previously, deliveries would arrive immediately, now it’s a week or more,” he says. “And prices have gone up. It’s harder for regular customers to afford them.”

There isn't much data on matcha resale or its profitability. But it's clear that tea shops are feeling the pressure, and trying to buy in bulk often causes resentment among tea lovers who have spent years building relationships with growers and manufacturers.

 

HOW TO OVERCOME SHORTAGE?

To help alleviate the situation, Japan's Ministry of Agriculture, Forestry and Fisheries (MAFF) is encouraging farmers to grow more tencha , the base leaves used to make matcha . But change will take time.

The ministry plans to provide new subsidies to farmers to help cover the costs of adapting tencha fields, such as installing shade covers and adjusting cultivation methods. The initiative will be included in MAFF’s updated tea production strategic plan, which is being reviewed for the first time in five years and will emphasize the importance of “high value-added” teas such as matcha .

CHOOSE YOUR MATCHA

If you are in Japan or plan to be and want to purchase "green gold", there are a few things you should know.

First, think about how you’ll use your matcha . If you’re planning to use it in a latte or baked goods, you don’t need to buy the most expensive kind. Don’t forget about pre-made latte mixes, which are designed for everyday use and can be of high quality. Look for descriptions like “mild” or “subtle.”

“They’re milder than cheaper teas, but they still have the right flavor with milk,” says Lavecchia. “High-end teas often don’t do that.”

A higher culinary grade or a lower grade of “ceremonial” ( usucha ) or learning ( keiko ) matcha may be an ideal choice. While areas such as Uji (Kyoto) or Yame (Fukuoka) are renowned as the regions for the highest quality matcha, many other areas also produce excellent, distinctively flavored matcha , from Saitama (Sayama) to southern Kagoshima.

“We often hear that ceremonial matcha is used in lattes or smoothies because it is perceived as healthier, which reduces its availability for those who want to enjoy it the traditional way,” says Suzuki. “Matcha production has expanded beyond the well-known regions. We hope that consumers will support growers in lesser-known areas, rather than just the biggest names or teahouses.”

If you plan to prepare matcha the traditional way – by whisking with hot water – choose classic names like Ungetsu-no-Shiro or Seika-no-Mukashi. Be careful with imported terms like “ceremonial” or “culinary” – they are not commonly used in Japan and do not have a unified standard.

“‘Ceremonial grade’ is a meaningless term,” says Lavecchia. “The oversimplification of matcha quality has led to the false belief that the higher the quality, the better, regardless of the intended use.”

Source: GJTA and Tokyocheapo.com