Matcha was featured in drinks served at Kettl Tea in Los Feliz, Los Angeles, on May 20, 2025. Getty Images
Matcha tea is now one of the most wanted drinks in the world. This green powdered tea, long a part of Japanese culture, is now a massive trend in the West. Its rise is mostly thanks to social media, especially TikTok, where people are showing off its health benefits and bright green color.
In recent years, many people switched to matcha for a healthier lifestyle. But the demand has now grown too fast for the supply to keep up.
Tourists Add to the Problem
In 2024, Japan saw a huge number of tourists. Over 36.9 million people visited the country—breaking the old record from 2019. Many of them tried local matcha, adding pressure on tea vendors. Local shops and big tea companies alike started seeing their stock run out fast.
Two major matcha producers even had to pause or limit certain matcha sales. One company told customers, “We have been receiving an unexpected high volume of orders...availability will be limited from now on.”
Why Matcha Supply Is Struggling
Matcha is not just any green tea. It comes from a shaded leaf called tencha, which is carefully grown and processed. Only around 6% of Japanese tea production is actually matcha. That makes it rare compared to other types of tea.
To make matcha, farmers grow tea under shade for weeks. Then they pick the leaves and grind them into powder. It takes time, skill, and perfect weather. If something goes wrong—like it did this year—it affects the whole supply.
Bad Weather Hurts This Year’s Harvest
The Kyoto region, known for growing top-quality matcha, faced a very hot and dry season in 2025. Farmers say the result was high quality leaves, but not enough of them. So now, even less matcha is available for a growing global market.
One tea importer wrote in May, “It was a high-quality but lower-yielding harvest.” That means prices are likely to rise even more.
Prices Rise as Demand Surges
Right now, matcha prices are going up fast. The price of tencha reached over 8,200 yen per kilogram in April. That’s nearly double what it was last year. Farmers and sellers say the price hike will continue if supply stays this tight.
The matcha market is expected to reach $5 billion by 2028. That’s a big jump from 2023. But experts warn that small tea farmers and changing weather might not be able to meet this fast-growing demand.
One top matcha seller said this month, “Demand has grown beyond all expectations...supply constraints are likely to continue.”
