Matcha, Japan’s iconic green tea powder, is experiencing a global surge in popularity. From social media trends to premium lattes, its electric green colour and health credentials have made it a staple in cafés, beauty products and kitchen shelves around the world. However, behind the social media frenzy lies a more sobering reality. Japan, the birthplace of matcha, is facing a significant shortage of the very product it helped make famous.

The issue is not simply one of popularity. According to Japan Times, matcha production is a highly specialised and seasonal process. It begins with shade-grown tencha leaves, which are harvested only once a year in spring. These leaves are then steamed, dried, destemmed and ground into powder using traditional stone mills. Each step is time consuming. It can take an hour to produce just 30 grams of powder.

With matcha now used widely in food, beverages and skincare, the demand for high-grade ceremonial matcha has outstripped supply. According to CBC, this type of matcha was traditionally reserved for tea ceremonies and is not intended for baking or mixing into sugary drinks. Yet consumers are increasingly buying it in bulk for exactly those purposes. Some Japanese tea ceremony schools have reportedly struggled to source enough matcha for their own use.

Quality confusion and strained production

A significant contributor to the current strain is a lack of understanding about matcha quality. Cheapo Japan notes that while matcha is often sold as either “ceremonial” or “culinary” grade, the reality is far more nuanced. Without clear grading standards, consumers frequently buy the most expensive matcha available, often unaware of how to use it correctly. As David Lavecchia of Tezumi Tea explains, matcha designed for traditional preparation does not always work well in a latte.

In Uji, Japan’s historic matcha capital, these problems are playing out in real time. BBC describes scenes of tourists flooding shops before opening hours, snatching tins from shelves within minutes. Some stores have implemented purchase limits to prevent hoarding or resale. Others, like Nakamura Tokichi Honten, have seen shelves emptied before 10:05 in the morning.

Internationally, the shortage is equally visible. Japan Today reports that at Kettl Tea in Los Angeles, most of the 25 matcha varieties on offer are now out of stock. Founder Zach Mangan described matcha as a new cultural touchpoint in the Western world and said their market has nearly doubled in the past year.

A shrinking workforce and geopolitical pressures

Compounding the problem is a steep decline in Japan’s tea-farming population. According to Japan Today, the number of tea farmers has dropped from over 54,000 in 2000 to just 20,000 this year. Many are ageing with no successors, and the transition to matcha-specific farming is both expensive and complex. Jason Eng of Kametani Tea explained to CBC that converting fields from sencha to tencha production requires major investment in shade structures and machinery.

Despite these challenges, some producers have benefited from the global boom. The Kokaen tea farm in Aichi Prefecture has seen increased export opportunities, reflecting a broader trend. In April 2025, Japanese tea exports were up more than 85% year-on-year. Yet this success comes with uncertainty. New trade tariffs proposed by United States President Donald Trump have sparked fears that higher prices could dampen demand and shrink the global market. According to Kyodo News, both tea farmers and industry experts are concerned about losing momentum just as international interest reaches its peak.

Can supply catch up?

To ease the strain, Japan’s Ministry of Agriculture, Forestry and Fisheries is revising its Basic Plan for Tea Production. The updated plan includes new subsidies to help farmers transition to tencha cultivation. These funds are intended to offset the high cost of shade covers and equipment upgrades, but progress will take time. Tea experts warn that high-quality matcha cannot be rushed. It relies on precise methods, trained labour and seasonal timing.

While the situation has created frustration for tourists and café owners alike, it has also highlighted the fragility of traditional production systems in the face of globalised demand. According to the Global Japanese Tea Association, matcha output remains limited by nature. Once the spring harvest ends, supply cannot be increased until the following year. Some tea shops now delay restocking by weeks. Others report price hikes that are already being passed on to consumers.

The current matcha shortage is a striking example of what happens when cultural tradition meets rapid global demand. A product once confined to quiet tea rooms has become a global phenomenon, creating both new opportunities and new pressures. As Japan navigates growing export demand, an ageing workforce and evolving consumer habits, the challenge will be finding ways to scale production while preserving the craftsmanship and care that define real matcha. The excitement around matcha is not slowing down, but its future depends on sustainable growth and informed consumption.