As the popularity of matcha continues to rise worldwide, Japan’s supply of this cherished green tea faces significant challenges. With global demand surging, matcha trends have shifted dramatically. Consumers, especially in younger demographics like Gen Z, have adopted matcha as a trendy alternative to coffee.
This growing interest has driven up exports of Japanese matcha, which increased by 18.7% in tonnage in 2024. As a result, Japan exported around 5,092 tons of matcha, benefiting from approximately $185 million in sales.
Yet, the picture isn’t all rosy. The supply of matcha is increasingly strained. In Kyoto, where about 25% of Japan’s matcha is produced, tencha harvests have sharply declined. Hand-picked Uji tencha dropped by 40% in 2025 compared to the previous year.
The situation is compounded by climate challenges. Record-breaking temperatures and heatwaves have stressed crops and reduced yields, with farmers reporting declines of up to 25%. These environmental factors have created significant hurdles that affect total production.
As consumer behavior leans heavily towards matcha products, those rising trends make it harder for Japan to meet the demand while battling production constraints. Not only are prices climbing, but the quality is also at risk. Some producers are diluting their matcha with fillers to keep up with overwhelming demand, potentially compromising the product’s integrity.
Observers note that high prices have become the new normal due to limited availability and shipment delays.
