From luxury cafes in New York to skincare shelves in Seoul and Japan, Japan’s iconic green tea — matcha — has gone from ceremonial to sensational. But while global demand is soaring, Japan is facing an unexpected shortage of its prized “green gold”.

According to the Japanese Tea Central Public Interest Incorporated Association, matcha production has nearly tripled over the past decade. And yet, it’s not enough. Supply can’t keep up — and prices are climbing.

A record-breaking heatwave in 2023, the hottest Japan has ever seen, scorched tea bushes across the Kyoto region, the epicenter of high-grade matcha. The result? Lower yields, higher prices, and a strain on already fragile supply chains. And climate isn’t the only factor.

It’s green, it’s healthy & it’s everywhere but Japan’s matcha is in trouble

Lattes, croissants, face masks… the world’s gone matcha mad. But global FOMO, climate chaos & aging farmers are pushing Japan’s prized tea to the edge. From Kyoto to your cup, @Zenia171996 brings you the… pic.twitter.com/qA2OFDbY45

— CNBC-TV18 (@CNBCTV18News) July 30, 2025

Japan’s aging agricultural workforce is thinning, with fewer young people stepping into tea farming. Add to that rising U.S. tariffs, post-pandemic tourism, and the global explosion of matcha in food, beauty, and wellness — and you’ve got a perfect storm in a teacup.

Also read | It’s International Beer Day and these are the brands that are making a buzz in India

Shops in Uji, Japan, are rationing sales. In Uji, considered the birthplace of matcha, local shops are now limiting how much customers can buy. “We sell out within hours,” one shopkeeper told local media. “Tourists are buying in bulk. We’ve had to introduce a one-can-per-person rule.”

Not just a trend — a cultural crisis?

Experts warn that matcha’s global popularity risks diluting its cultural value. Culinary-grade matcha is increasingly used in sweetened beverages, while ceremonial-grade matcha — intended for traditional tea preparation — is being overused and misrepresented.

In response, tea producers and cultural advocates are urging consumers to be more discerning: “Use lower-grade matcha for baking and beverages,” one Kyoto grower said. “Save the premium stuff for tea where its flavour truly shines.”

Matcha’s billion-dollar moment

Globally, the matcha market is estimated to hit $5.5 billion by 2030, according to industry analysts. That’s big business — but for Japan’s traditional growers, it’s also a balancing act between heritage and hype.

As the world sips away, Japan must figure out how to protect the roots of its green legacy without being swept up by the trend.

Is matcha just having a moment — or is it here to stay?

One thing’s clear: the tea’s getting hotter, and the stakes are getting higher.