Matcha has taken the world by storm, turning the vibrant green Japanese tea into a global obsession.From lattes at UK Starbucks outlets to doughnuts in Singapore’s Krispy Kreme stores, it’s become a staple far beyond traditional tea ceremonies.The trend is further fueled by social media trends. On platforms like TikTok, creators are busy pouring, whisking and reviewing, sending the hashtag “Matcha Tok” soaring into tens of millions of views. Japan’s tourism revival is adding more fuel to the trend. As the yen remains weak, travellers are flocking to the country, and leaving with a newfound love for matcha and a growing appetite for all things Japanese.As the interest for the green powder continues to grow, demand for matcha powder has also soared. US-based tea importer Lauren Purvis told the BBC that what was previously a month’s supply is now selling out in just a few days. “Some cafes are even asking for a kilo a day. They’re desperate to keep up,” said Ms Purvis, who runs Mizuba Tea Co.However, the sharp rise in demand is pushing prices higher, as tea harvests shrink under extreme heatwaves and new US tariffs hit Japanese exports.From Tokyo to TikTok: The green powder’s hype Matcha, hailed for its health benefits, caffeine content and flavour, is the result of a highly specialised, centuries-old process. It is made from tencha leaves, which are grown in shade for several weeks to develop the distinct “umami” flavour. Once harvested and dried, the leaves are stone-ground into powder, a process that produces just 40g of matcha per hour. However, growers have recently faced significant challenges. Record-breaking heatwaves have harmed crops, especially in Kyoto, a region that supplies around a quarter of Japan’s tencha. At the same time, Japan is struggling with a shortage of farmers, as fewer young people are entering the industry. Shops in Uji, a Kyoto city renowned for matcha, are often emptied by tourists as soon as they open. Many retailers have now imposed limits on purchases. Kyoto-based Camellia Tea Ceremony, for example, restricts customers to just one tin of matcha each, as visitor numbers have doubled in the past year, according to director Atsuko Mori. Tea master Rie Takeda, who works for Tokyo-based tea ceremony chain Chazen, also keeps a close watch on her matcha stock. Orders that used to arrive in days now take more than a week. Prices at Chazen have risen by around 30% this year. “[The demand] is good,” Takeda told BBC. “It’s a gateway for more people to know about Japanese culture.”Rising demand has pulled more growers into the industry, with matcha production nearly tripling between 2010 and 2023, according to Japan’s agricultural ministry. Exports of green tea, including matcha, also jumped 25% last year, reaching 36.4 billion yen (£180m; $250m). Still, the boom has sparked a conversation about mindful consumption. Some advocates criticise hoarding and profiteering, while others urge tea drinkers to use matcha sparingly and appreciate it in its pure form. Mori remarked that it was “a bit sad” to see high-grade matcha used in cooking or stockpiled for resale. “Matcha is the highest grade of tea and it’s so special to us. So there’s a bit of a contradiction when I hear stories about how it’s resold or used in food.”The Global Japanese Tea Association is encouraging consumers to use lower-grade matcha from later harvests when cooking, pointing out that premium matcha often loses its subtle flavour when blended into drinks like lattes. Will tariffs impact the taste?Tariffs are also expected to push prices higher. A new trade deal announced on Tuesday between Washington and Tokyo will see a 15% import tax on Japanese goods entering the US. Matcha distributors such as Purvis are preparing for the impact. Based in Oregon, she said orders surged by more than 70% in early July, just ahead of the agreement deadline. “As Japanese tea is not grown in the US, there is no American industry under threat that tariffs need to protect,” she said. “We hope there will be a realisation that specialty tea should be exempt.” Despite the current challenges, there may be relief ahead. Masahiro Nagata, co-founder of The Matcha Tokyo, believes prices will eventually stabilise. “Low quality matcha is selling for a high price, and we think that this will no longer be a viable business,” he told the BBC. “There is a boom at the moment and demand is growing rapidly, but we think that will calm down a bit in two to three years.”
