logo
Global matcha craze sparks shortages

Global matcha craze sparks shortages

Express Tribune6 hours ago

At a minimalist Los Angeles matcha bar, powdered Japanese tea is prepared with precision, despite a global shortage driven by the bright green drink's social media stardom, reports AFP.
Of the 25 types of matcha on the menu at Kettl Tea, which opened on Hollywood Boulevard this year, all but four were out of stock, the shop's founder Zach Mangan told AFP.
"One of the things we struggle with is telling customers that, unfortunately, we don't have" what they want, he said.
With its deep grassy aroma, intense colour and pick-me-up effects, the popularity of matcha "has grown just exponentially over the last decade, but much more so in the last two to three years," the 40-year-old explained.
It is now "a cultural touchpoint in the Western world" – found everywhere from ice-cream flavour boards to Starbucks.
This has caused matcha's market to nearly double over a year, Mangan said.
"No matter what we try, there's just not more to buy."
Thousands of miles (kilometres) away in Sayama, northwest of Tokyo, Masahiro Okutomi – the 15th generation to run his family's tea business – is overwhelmed by demand.
"I had to put on our website that we are not accepting any more matcha orders," he said.
Producing the powder is an intensive process: the leaves, called "tencha," are shaded for several weeks before harvest, to concentrate the taste and nutrients.
They are then carefully deveined by hand, dried and finely ground in a machine.
'Long-term endeavour'
"It takes years of training" to make matcha properly, Okutomi said. "It's a long-term endeavor requiring equipment, labour and investment."
"I'm glad the world is taking an interest in our matcha... but in the short term, it's almost a threat – we just can't keep up," he said.
The matcha boom has been fuelled by online influencers like Andie Ella, who has more than 600,000 subscribers on YouTube and started her own brand of matcha products.
At the pastel-pink pop-up shop she opened in Tokyo's hip Harajuku district, dozens of fans were excitedly waiting to take a photo with the 23-year-old Frenchwoman or buy her cans of strawberry or white chocolate flavoured matcha.
"Matcha is visually very appealing," Ella told AFP.
To date, her matcha brand, produced in Japan's rural Mie region, has sold 133,000 cans. Launched in November 2023, it now has eight employees.
"Demand has not stopped growing," she said.
In 2024, matcha accounted for over half of the 8,798 tonnes of green tea exported from Japan, according to agriculture ministry data – twice as much as a decade ago.
Tokyo tea shop Jugetsudo, in the touristy former fish market area of Tsukiji, is trying to control its stock levels given the escalating demand.
"We don't strictly impose purchase limits, but we sometimes refuse to sell large quantities to customers suspected of reselling," said store manager Shigehito Nishikida.
"In the past two or three years, the craze has intensified: customers now want to make matcha themselves, like they see on social media," he added.
Tariff threat
Anita Jordan, a 49-year-old Australian tourist in Japan, said her "kids are obsessed with matcha."
"They sent me on a mission to find the best one," she laughed.
The global matcha market is estimated to be worth billions of dollars, but it could be hit by US President Donald Trump's tariffs on Japanese products - currently 10 per cent, with a hike to 24 per cent in the cards.
Shortages and tariffs mean "we do have to raise prices. We don't take it lightly," said Mangan at Kettl Tea, though it hasn't dampened demand so far.
"Customers are saying: 'I want matcha before it runs out'."
At Kettl Tea, matcha can be mixed with milk in a latte or enjoyed straight, hand-whisked with hot water in a ceramic bowl to better appreciate its subtle taste.
It's not a cheap treat: the latter option costs at least $10 per glass, while 20 grams (0.7 ounces) of powder to make the drink at home is priced between $25 and $150.
Japan's government is encouraging tea producers to farm on a larger scale to reduce costs.
But that risks sacrificing quality, and "in small rural areas, it's almost impossible," grower Okutomi said.
The number of tea plantations in Japan has fallen to a quarter of what it was 20 years ago, as farmers age and find it difficult to secure successors, he added.
"Training a new generation takes time... It can't be improvised," Okutomi said.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Global matcha craze sparks shortages
Global matcha craze sparks shortages

Express Tribune

time6 hours ago

  • Express Tribune

Global matcha craze sparks shortages

At a minimalist Los Angeles matcha bar, powdered Japanese tea is prepared with precision, despite a global shortage driven by the bright green drink's social media stardom, reports AFP. Of the 25 types of matcha on the menu at Kettl Tea, which opened on Hollywood Boulevard this year, all but four were out of stock, the shop's founder Zach Mangan told AFP. "One of the things we struggle with is telling customers that, unfortunately, we don't have" what they want, he said. With its deep grassy aroma, intense colour and pick-me-up effects, the popularity of matcha "has grown just exponentially over the last decade, but much more so in the last two to three years," the 40-year-old explained. It is now "a cultural touchpoint in the Western world" – found everywhere from ice-cream flavour boards to Starbucks. This has caused matcha's market to nearly double over a year, Mangan said. "No matter what we try, there's just not more to buy." Thousands of miles (kilometres) away in Sayama, northwest of Tokyo, Masahiro Okutomi – the 15th generation to run his family's tea business – is overwhelmed by demand. "I had to put on our website that we are not accepting any more matcha orders," he said. Producing the powder is an intensive process: the leaves, called "tencha," are shaded for several weeks before harvest, to concentrate the taste and nutrients. They are then carefully deveined by hand, dried and finely ground in a machine. 'Long-term endeavour' "It takes years of training" to make matcha properly, Okutomi said. "It's a long-term endeavor requiring equipment, labour and investment." "I'm glad the world is taking an interest in our matcha... but in the short term, it's almost a threat – we just can't keep up," he said. The matcha boom has been fuelled by online influencers like Andie Ella, who has more than 600,000 subscribers on YouTube and started her own brand of matcha products. At the pastel-pink pop-up shop she opened in Tokyo's hip Harajuku district, dozens of fans were excitedly waiting to take a photo with the 23-year-old Frenchwoman or buy her cans of strawberry or white chocolate flavoured matcha. "Matcha is visually very appealing," Ella told AFP. To date, her matcha brand, produced in Japan's rural Mie region, has sold 133,000 cans. Launched in November 2023, it now has eight employees. "Demand has not stopped growing," she said. In 2024, matcha accounted for over half of the 8,798 tonnes of green tea exported from Japan, according to agriculture ministry data – twice as much as a decade ago. Tokyo tea shop Jugetsudo, in the touristy former fish market area of Tsukiji, is trying to control its stock levels given the escalating demand. "We don't strictly impose purchase limits, but we sometimes refuse to sell large quantities to customers suspected of reselling," said store manager Shigehito Nishikida. "In the past two or three years, the craze has intensified: customers now want to make matcha themselves, like they see on social media," he added. Tariff threat Anita Jordan, a 49-year-old Australian tourist in Japan, said her "kids are obsessed with matcha." "They sent me on a mission to find the best one," she laughed. The global matcha market is estimated to be worth billions of dollars, but it could be hit by US President Donald Trump's tariffs on Japanese products - currently 10 per cent, with a hike to 24 per cent in the cards. Shortages and tariffs mean "we do have to raise prices. We don't take it lightly," said Mangan at Kettl Tea, though it hasn't dampened demand so far. "Customers are saying: 'I want matcha before it runs out'." At Kettl Tea, matcha can be mixed with milk in a latte or enjoyed straight, hand-whisked with hot water in a ceramic bowl to better appreciate its subtle taste. It's not a cheap treat: the latter option costs at least $10 per glass, while 20 grams (0.7 ounces) of powder to make the drink at home is priced between $25 and $150. Japan's government is encouraging tea producers to farm on a larger scale to reduce costs. But that risks sacrificing quality, and "in small rural areas, it's almost impossible," grower Okutomi said. The number of tea plantations in Japan has fallen to a quarter of what it was 20 years ago, as farmers age and find it difficult to secure successors, he added. "Training a new generation takes time... It can't be improvised," Okutomi said.

Dollar down against euro, sterling
Dollar down against euro, sterling

Business Recorder

time8 hours ago

  • Business Recorder

Dollar down against euro, sterling

NEW YORK: The dollar hit a three-and-a-half-year low against the euro and sterling on Thursday in a broad selloff as traders priced in the likelihood that the Federal Reserve will cut rates more than previously expected. 'This week it's definitely been about the Fed, the prospect of easing sooner and potentially more rate cuts,' said Eric Theoret, FX strategist at Scotiabank in Toronto. Fed Chair Jerome Powell was interpreted as being more dovish this week in testimony to US Congress, saying that, if it were not for expectations for higher inflation as a result of the Trump administration's tariffs, the US central bank would have likely continued to cut interest rates. He nonetheless maintained that the Fed should stand pat as it anticipates an increase in price pressures this summer. US President Donald Trump will nominate a new Fed Chair next year who is expected to be more dovish than Powell, whose term will end in May. Trump on Wednesday called Powell 'terrible' and said he has three or four people in mind as contenders for the top Fed job. The Wall Street Journal reported on Wednesday that Trump has toyed with the idea of selecting and announcing Powell's replacement by September or October. Analysts say that person could operate as a shadow Fed chair, undermining Powell's influence. Fed policymakers Christopher Waller and Michelle Bowman have also both said in the past week that the Fed should cut rates soon, as inflation continues to ease and due to rising concerns about a weakening labor market. Data on Thursday showed that the number of Americans filing new applications for jobless benefits fell last week, though continuing claims rose to the highest level since November 2021. Fed funds futures traders are pricing in 65 basis points of cuts by year-end, up from 46 basis points on Friday, with the first cut expected in September. The euro was last up 0.39% at $1.1705 and reached $1.1744, the highest since September 2021. Sterling rose 0.45% at $1.3728 and got as high as $1.3764, its highest since October 2021. The Swiss franc hit a 10-1/2-year high at 0.80 per dollar. The dollar fell 0.61% to 144.38 Japanese yen. Falling interest rates would reduce the interest rate advantage of the dollar versus peers. It also comes as investors worry that tariffs will slow US growth. The Trump administration has set a July 9 deadline to negotiate deals that avoid reciprocal tariffs with trading partners. The dollar is also under pressure as international investors reallocate away from US assets on concerns about the outlook for the economy and the US currency. In cryptocurrencies, bitcoin fell 0.65% to $107,144.

G20 president warns global turmoil hurts poorer nations
G20 president warns global turmoil hurts poorer nations

Business Recorder

time8 hours ago

  • Business Recorder

G20 president warns global turmoil hurts poorer nations

SUN CITY (South Africa): South Africa's Foreign Minister Ronald Lamola warned Thursday that growing global fragmentation was fuelling unprecedented turmoil and disproportionately harming poorer nations, urging a united G20 response. The remarks come as international cooperation is under increasing strain, with multiple devastating conflicts and humanitarian crises. 'State rivalries are fuelling fragmentation, with economic decoupling, and proxy conflicts undermining global stability,' Lamola said during a meeting of G20 diplomats. The so-called sherpas gathered at a resort around 185 kilometres (115 miles) northwest of Johannesburg in preparation for the summit of the world's major economies under South Africa's presidency in November. Speaking to AFP, Lamola said he was 'hopeful that the declaration will persuade and help to encourage the message of peace, good friendly neighbours and the language of de-escalation.' The three days-long talks are expected to set the tone of the summit in November. Resolutions taken by the bloc are non-binding in nature and have often failed to reach a consensus on a range of issues including its core finance remit. The bloc's richest member — the United States — which is due to take over the presidency did not send a representative to the talks. In February, Washington also skipped a meeting of foreign ministers in South Africa, suggesting relations between the two countries remain fraught. South Africa, the first African nation to hold the rotating year-long G20 presidency, aims to champion Global South priorities, including boosting climate resilience and tackling poor countries' debt. Russia's invasion of Ukraine dominated discussions at the last G20 summit in Brazil as well as calls for ceasefires in both Gaza and Lebanon. The G20 includes G7 nations, the European Union and African Union as well as Russia, China, Brazil, Australia and Saudi Arabia, among other countries. The bloc account for more than 80 percent of the world's gross domestic product.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store