World’s thirst for matcha dries up global supplies

The global appetite for matcha, the finely ground green tea powder, has reached unprecedented levels, driven by its purported health benefits and versatility in various culinary applications. This surge in consumer demand, however, is now confronting a shrinking supply, leading to significant price increases worldwide. Key tea-producing regions, particularly in Japan, have recently endured severe heatwaves and adverse weather conditions, which have demonstrably reduced tea crop yields. These diminished harvests mean less raw material is available for matcha production. Compounding these agricultural challenges are external economic factors, specifically the implementation of US tariffs on imports from Japan. These additional duties effectively increase the cost of importing matcha into a major market, contributing to the overall rise in wholesale and retail prices. Consequently, the combination of escalating global demand, climate-impacted crop sizes, and trade tariffs is creating a supply crunch, making the popular green tea powder more expensive for consumers around the globe.