Combination of heatwaves and TikTok sends price of matcha soaring

Social media trend could cause years-long shortage

Life

Image: Jessica Ticozzelli via Pexels

Matcha, the vibrant green tea powder that has become wildly popular in lattes and desserts worldwide, is getting increasingly expensive. Extreme heat in Japan has caused a sharp drop in production, while demand continues to rise. The result: record prices and a severe shortage that experts say could last for years.

The Kyoto region, the heart of Japanese matcha production, was hit hard by heatwaves last year. Uji in particular, known as the birthplace of premium matcha, saw its harvest plummet. Farmers like Masahiro Yoshida, a sixth-generation tea grower, report a production drop of about 25% compared to normal years.

Kyoto produces about a quarter of all tencha – the leaves used to make matcha – making it a crucial link in the global supply chain. However, the recent harvest in April and May was disappointing, and the impact is immediately felt on the market.

At the same time, matcha is hotter than ever worldwide. Millennials and Gen Z are flocking to matcha as a ‘healthy’ alternative to coffee. Matcha lattes, smoothies, and desserts have become staples in trendy coffee bars.

This popularity is amplified by social media, where matcha continues to go viral. Think of TikTok videos featuring recipes and ‘aesthetic’ matcha drinks that rack up millions of views. Major distributors, such as Singapore’s Tealife, have even had to temporarily limit orders due to overwhelming demand.

The combination of lower harvests and rising global demand has sent matcha prices skyrocketing. At a Kyoto auction in May, a kilo of tencha sold for 8,235 yen – about €47 per kilo – a 170% increase compared to last year. This shattered the previous price record set in 2016.

Japanese green tea exports rose by 25% in value in 2024, reaching around 213 million euros. Export volumes also increased by 16%, confirming the ongoing international appetite for matcha.

Although Japanese farmers have planted many new tea fields in recent years to meet demand, these offer no short-term relief. New fields only yield harvestable leaves after five years.

Newsmonkey

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