The global love affair with matcha is driving up demand and prices as Japan struggles to produce enough of the green tea powder.
Everyone, it seems, is after a cup of matcha.
According to Forbes, the matcha market is expected to hit about $5 billion by 2028, equating to a 10.39% compound annual growth rate from 2023 to 2028. There’s just one problem: There may not be enough of it to go around.
In 2024, major tea manufacturers in Japan announced purchasing limits on finely ground tea powder, The Japan Times reported, adding that cafe customers also found “sold out” signs across major cities in the nation.
Those limits made it even harder for shops in Japan and around the world to procure the powder used for matcha teas, which are harvested just once a year to begin with. According to The Japan Times, that’s coupled with the fact that while consumption of matcha and green tea has declined in Japan, it has dramatically increased in the rest of the world. The report referenced data from the Ministry of Agriculture, Forestry and Fisheries (MAFF), which indicated that Japan saw an almost three-fold increase in tea production between 2010 and 2023 to meet the demand. Now, more than half of the country’s tea is exported rather than consumed domestically…
