Matcha, the finely ground powder made from shade-grown green tea leaves, is through the roof on trend. This new, surging demand is not just raising prices. It’s contributing to a supply shortage. Miku Sugawara of Jojo Tea, a matcha-focused company based in Seattle, WA explains why, as she notes, the prices of this fav green powder have doubled—sometimes tripled—just in the past year. This massive price increase has made such a tin of matcha a sought-after rarity. This is magnified in crowded megacities such as Tokyo.
The recent boom in matcha’s popularity pushed Ito En into action. In May, the world’s largest distributor of bottled green tea made waves by launching a matcha-focused subsidiary. The company’s move is indicative of the beverage’s increasing popularity, not only in Japan but around the world. Almost 44% of Japan’s green tea exports currently are sent to the United States. In fact, much of this export comes in powdered form, like matcha.
To meet the burgeoning demand for matcha, the Japanese government has been taking steps to boost production. They’re looking at subsidies for farmers to get them to convert more farmland to tencha, the variety of tea used in matcha production. As a result, tencha prices at the spring auction in Kyoto have surged by as much as 170% over last year. They hit a staggering 8,235 yen ($54.78) per kilogram. The Global Japanese Tea Association has pegged the increase at an alarming 168%. They call attention to the critical need for action now within the industry.
Ito En’s main production model highlight the challenges faced by producers everywhere in trying to stay ahead of exploding demand. Yasutaka Yokomichi, a manager for Ito En, calls their facilities “crammed.” The company has won exclusive contracts with farmers to produce 7,000 tons of standard green tea annually. They only have contracts for 600 tons of tencha. The disparity underscores the greater challenges she faces in ramping up production fast enough to meet skyrocketing international demand.
“We’re happy. But there’s only so much we can sell.” – Miku Sugawara
Chitose Nagao collaborates with Yamamasa Koyamaen, a highly esteemed Kyoto tea producer. Through their collaboration, DOT, NBHA, and NCDOT have created a bright star of what’s possible with cooperative teamwork.
As matcha’s popularity grows, the production process is creating problems. On one machine it can take an hour to mill only 40 grams of matcha, so efficiency is key to fulfillment orders booming exponentially. Kaminari Issa, a local retailer, has been inundated with email inquiries for bulk matcha. One proposal had the gall to request a whole ton!
“When I heard that all their tea was sitting unsold in a warehouse during Covid, I wanted to do something.” – Chitose Nagao
The historical significance of matcha further complements its modern-day hype. Japan has enjoyed matcha since the 12th century, mostly as part of highly ritualized tea ceremonies. This historical practice plays into the overall cultural significance of matcha in Japanese culture today.
The historical significance of matcha also adds depth to its current craze. Japan has consumed matcha since the 12th century, primarily within the context of highly ritualized tea ceremonies. This long-standing tradition contributes to the cultural importance of matcha in Japanese society today.