
Matcha craze sparks global supply chain issues amid huge demand and record-breaking heatwave
Farmers and industry officials have spoken out as they struggle to meet the ever-increasing demand for the bright green tea drink from Japan, which has peaked in popularity this year.
Matcha's popularity has been growing over recent years, with sales soaring by 202 percent in the UK in 2023 alone according to Orion Market Research. The antioxidant rich beverage has reached its apex this year, driven by social media and Japan's post-pandemic tourism boom.
The Kyoto region, which accounts for a quarter of Japan's production of tencha - the stemmed leaves dried and ground into matcha - was hit by severe heatwaves last summer during Japan's hottest year on record, which led to weak yields in the recent April-May harvest.
US-based tea importer Lauren Purvis told the BBC her customers were seeing what was once a month's supply run out in days: "Some cafes are even asking for a kilo a day. They're desperate to keep up," the Mizuba Tea Co. owner said.
Masahiro Yoshida, a sixth-generation farmer, was only able to harvest 1.5 tons of tencha this year, down a quarter from his typical harvest of two tons.
'Last year's summer was so hot that it damaged the bushes, so we couldn't pluck as many tea leaves,' he told Reuters from his storefront in Uji, south of Kyoto.
Traditionally, the tencha leaves are kept under shade for weeks while growing in order to develop the tea's 'umami' taste. The leaves are then harvested, dried and ground into powder using stone mills.
Tealife founder Yuki Ishii told Reuters that it saw a ten-fold increase in demand for matcha from customers, despite the amount available from Japan declining.
'I'm basically always out of stock," he said.
Japan produced 5,336 tons of tencha in 2024, nearly three times more than a decade before as more farmer's switch to the crop, according the Japanese Tea production Association. Despite this, the association expects lower matcha output this year.
As well as surging demand and lesser tea crops this year, US tariffs on Japan have pushed up matcha prices.
On Tuesday, Washington and Tokyo announced a trade deal which means there will be a 15 per cent import tax on Japanese products going into the US.
The move has led matcha distributors to brace for the impact, with Ms Purvis saying orders surged by more than 70 per cent in early July ahead of a deadline for the two countries to reach a trade agreement.
'As Japanese tea is not grown in the US, there is no American industry under threat that tariffs need to protect,' she told the BBC. 'We hope there will be a realisation that specialty tea should be exempt.'

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The Independent
3 hours ago
- The Independent
Why your matcha latte is about to get a lot more expensive
Matcha prices are soaring due to record temperatures in Japan and a significant increase in global demand. Japan's Kyoto region, a key producer of tencha (the base for matcha), experienced severe heatwaves last summer, resulting in weak yields during the recent April-May harvest. The popularity of matcha has surged, with sales in the UK rising by 202 per cent in 2023, driven by social media trends and Japan's post-pandemic tourism boom. Farmers are reporting reduced harvests, and importers are struggling to meet demand, with some cafes experiencing rapid stock depletion. New US tariffs of 15 per cent on Japanese imports are anticipated to further increase matcha prices, despite concerns from distributors who argue the product should be exempt.


The Independent
a day ago
- The Independent
Matcha craze sparks global supply chain issues amid huge demand and record-breaking heatwave
Record temperatures and an increasing global demand has stretched Japan 's supply of matcha this year, leading prices to rocket. Farmers and industry officials have spoken out as they struggle to meet the ever-increasing demand for the bright green tea drink from Japan, which has peaked in popularity this year. Matcha's popularity has been growing over recent years, with sales soaring by 202 percent in the UK in 2023 alone according to Orion Market Research. The antioxidant rich beverage has reached its apex this year, driven by social media and Japan's post-pandemic tourism boom. The Kyoto region, which accounts for a quarter of Japan's production of tencha - the stemmed leaves dried and ground into matcha - was hit by severe heatwaves last summer during Japan's hottest year on record, which led to weak yields in the recent April-May harvest. US-based tea importer Lauren Purvis told the BBC her customers were seeing what was once a month's supply run out in days: "Some cafes are even asking for a kilo a day. They're desperate to keep up," the Mizuba Tea Co. owner said. Masahiro Yoshida, a sixth-generation farmer, was only able to harvest 1.5 tons of tencha this year, down a quarter from his typical harvest of two tons. 'Last year's summer was so hot that it damaged the bushes, so we couldn't pluck as many tea leaves,' he told Reuters from his storefront in Uji, south of Kyoto. Traditionally, the tencha leaves are kept under shade for weeks while growing in order to develop the tea's 'umami' taste. The leaves are then harvested, dried and ground into powder using stone mills. Tealife founder Yuki Ishii told Reuters that it saw a ten-fold increase in demand for matcha from customers, despite the amount available from Japan declining. 'I'm basically always out of stock," he said. Japan produced 5,336 tons of tencha in 2024, nearly three times more than a decade before as more farmer's switch to the crop, according the Japanese Tea production Association. Despite this, the association expects lower matcha output this year. As well as surging demand and lesser tea crops this year, US tariffs on Japan have pushed up matcha prices. On Tuesday, Washington and Tokyo announced a trade deal which means there will be a 15 per cent import tax on Japanese products going into the US. The move has led matcha distributors to brace for the impact, with Ms Purvis saying orders surged by more than 70 per cent in early July ahead of a deadline for the two countries to reach a trade agreement. 'As Japanese tea is not grown in the US, there is no American industry under threat that tariffs need to protect,' she told the BBC. 'We hope there will be a realisation that specialty tea should be exempt.'


Reuters
a day ago
- Reuters
Japan says $550 billion package in trade deal could finance Taiwanese chipmaker in US
TOKYO, July 26 (Reuters) - Japan's $550 billion investment package agreed in this week's U.S. tariff deal could help finance a Taiwanese firm building semiconductor plants in the U.S., Japan's top trade negotiator Ryosei Akazawa said on Saturday. Japan agreed to the sweeping U.S.-bound investment initiative, which includes equity, loans and guarantees, in exchange for lower tariffs on its exports to the U.S. However, the structure of the scheme remains unclear. "Japan, the United States, and like-minded countries are working together to build supply chains in sectors critical to economic security," Akazawa told public broadcaster NHK. To that end, he said projects eligible for financing under the package are not limited to U.S. or Japanese firms. "For example, if a Taiwanese chipmaker builds a plant in the U.S. and uses Japanese components or tailors its products to meet Japanese needs, that's fine too," he said, without specifying companies. The U.S. is significantly reliant on Taiwan's TSMC ( opens new tab for advanced chip manufacturing, raising economic security concerns due to geographic proximity to China. TSMC announced plans for a $100 billion U.S. investment with U.S. President Donald Trump at the White House in March, on top of $65 billion pledged for three plants in the state of Arizona, one of which is up and running. Japan will use state-owned Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI) for the investments. A recent law revision has enabled JBIC to finance foreign companies deemed critical to Japan's supply chains. Akazawa told NHK that equity investment would account for just about 1-2% of the $550 billion, suggesting that the bulk will come in the form of loans and guarantees. When asked about the White House statement that the U.S. would retain 90% of the profits from the package, he clarified that the figure refers only to returns on equity investment, which would represent a small fraction of the total. While Japan initially hoped to secure half of the returns, a loss from the concession on the profit-sharing would be marginal compared to the roughly 10 trillion yen ($67.72 billion) in tariff costs that could be avoided under the deal, he said. He added that Japan aims to deploy the $550 billion investments during Trump's current term. ($1 = 147.6600 yen)