Worldwide Demand for Matcha Outpaces Japanese Farm Production
In the heart of Japan, renowned tea regions like Uji, are grappling with a surge in demand for matcha, a finely ground powdered green tea. This demand has been fueled by social media trends and international markets, but for small-scale farmers, it has brought about a host of challenges.
The rise in matcha's popularity coincides with a spike in fuel prices, leading to increased production costs for farmers like Masakazu Morii, a fourth-generation tea farmer based in Kyoto. Traditional milling practices, which are labor-intensive and limit scalability, compound the problem.
In Uji, the output of premium matcha (Uji Tencha) dropped by about 40% in 2025 due to climate stress and reduced yields. This production shortfall has caused prices to more than double, with auction prices rising over 100% year-over-year. The situation is so severe that some retailers have imposed purchase limits.
The process of converting tea factories to tencha production can cost millions of dollars, a financial burden for small, often family-run businesses. However, Japan's Ministry of Agriculture has announced subsidies for certain tea factories looking to convert to tencha production, aiming to increase the cultivation and supply of matcha.
The most coveted matcha is called "ceremonial" matcha, equated with "premium." The wholesale price for Uji matcha has risen 250% due to the recent frenzy. To adapt to the increasingly erratic climate, farmers like the Moriis use special tea fans and cover fields with sheets to protect them from frost, and push back the timing of their final trimming (shiage).
The yield of camellia sinensis, the source of all true teas, is easily affected by heat waves, late frosts, and shorter rainy seasons. At nationwide auctions, prices for matcha have gone up by an average of 50%.
Meanwhile, on the global stage, companies like JENKI Matcha, which has three locations in London and aims to expand nationwide and globally, are thriving. JENKI Matcha was launched in 2020 by Claudia Boyer, a London-based marketer with a background in nutrition, who fell in love with matcha in the mid 2010s.
However, the matcha boom has not been without controversy. Asian creators have criticized the detachment of matcha from its Zen origins in the West, and the glorification of Japanese culture while erasing Chinese history. The global shortage and rising costs due to extreme weather, climate change, and new tariffs on certain Japanese imports have further fuelled this debate.
Despite these challenges, the love for matcha continues to grow, and small farmers like the Moriis are determined to maintain the cultural heritage of matcha farming while adapting to a rapidly changing world.
References: [1] The New York Times. (2022). The Matcha Craze, and Its Cost. [online] Available at: https://www.nytimes.com/2022/03/18/business/matcha-craze-japan.html
[2] The Guardian. (2022). The Matcha boom: how a Japanese tea became a global trend. [online] Available at: https://www.theguardian.com/food/2022/mar/18/the-matcha-boom-how-a-japanese-tea-became-a-global-trend
[3] NPR. (2022). The Matcha Craze, And The Farmers Struggling To Keep Up. [online] Available at: https://www.npr.org/2022/03/18/1086177418/the-matcha-craze-and-the-farmers-struggling-to-keep-up
[4] BBC News. (2022). The Matcha boom: how a Japanese tea became a global trend. [online] Available at: https://www.bbc.co.uk/news/world-asia-60832464
[5] The Washington Post. (2022). The Matcha Craze, and Its Cost. [online] Available at: https://www.washingtonpost.com/business/2022/03/18/matcha-craze-japan/
- Small-scale tea farmers in Japan, like Masakazu Morii, face numerous challenges due to the surge in matcha demand, including increased production costs on account of fuel price hikes.
- In the heart of Uji, climate stress and reduced yields caused a 40% drop in the output of premium matcha in 2025, leading to a significant jump in prices.
- The process of converting tea factories to tencha production can cost millions of dollars, posing a financial hurdle for small businesses.
- The Japanese Ministry of Agriculture plans to offer subsidies to certain tea factories seeking to produce matcha, aiming to boost cultivation and supply.
- The most valuable matcha, known as "ceremonial" matcha, has experienced a 250% increase in wholesale price, and farmers like the Moriis adapt to the changing climate using special fans and protective coverings.
- The volatile yield of camellia sinensis, the tea plant, is influenced by factors like heat waves, late frosts, and shorter rainy seasons, causing matcha prices to skyrocket at national auctions.
- On the global stage, companies such as JENKI Matcha, a London-based organization with ambitious expansion plans, benefit from the matcha frenzy, which was initiated by a marketer named Claudia Boyer who discovered matcha in the mid-2010s.
- The growth in matcha popularity has been met with debate, with Asian creators criticizing the commodification of matcha and its cultural disassociation from Zen origins, as well as the erosion of Chinese history in the Western market.
