Oysters, truffles, caviar… matcha? This luminous Japanese tea could be the next luxury commodity.
Matcha seemed like an unlikely contender for a global takeover – a powdered tea with an unnaturally iridescent shade of green and a grassy taste. But here we are – global exports increased by 25 per cent in 2024, according to the Japanese Ministry of Agriculture, Forestry and Fisheries.
In the past few years, exports and domestic demand both climbed sharply. “There’s definitely been an increase in global demand in the past couple of years. We get customers coming in who’ve seen matcha all over TikTok or Instagram – everyone wants to try it, not just as a latte but also in smoothies, desserts, even skincare,” says Erin Lindwell of Australian-based supplier Matcha Yu Tea.
On TikTok and Instagram, matcha isn’t just a drink – it’s a lifestyle prop. The hashtag #matcha has over 10 billion views on TikTok alone. From matcha lattes sipped in cars on the way to work, matcha baked goods, to vivid green ceremonial matcha whisked in a chawan in perfect morning light.
Industry insiders, such as Tomo Kita, founder of importer OH!Matcha, point to the early 2000s as the turning point, when matcha shifted from an occasional ceremonial drink to a daily commodity.
“Before 2000, even in Japan we only drank matcha in a ceremonial way,” says Kita, “Since [brands like] Haagen-Dazs and Starbucks created matcha-flavoured ice cream and drinks, it became very popular.”
Travel has amplified the effect. Since Japan reopened post-pandemic, global visitors have surged, tasting high-quality matcha at the source and returning home with higher expectations. “Australians have had a taste of what real authentic matcha tastes like from the origin and now return home with high expectations,” says Nguyen.
Prices reflect the pressure. In May, tencha (the leaf used to make matcha) reached around ¥8,235/kg, a 170 per cent jump from the previous year. “For the first time since we began ordering matcha, one of our suppliers experienced a shortage that lasted several months,” says Group General Manager Thibaut Chuzeville of Yugen Tea Bar in Melbourne. “We’ve seen a fifteen to twenty per cent price increase across both ceremonial and culinary grades in the past six months.”
What’s behind matcha’s appeal?
Matcha tea – a finely ground powder made from shade-grown tea leaves – comes in two main grades: Ceremonial-grade matcha, which comes from the first harvest (ichibancha), is prized for its smooth texture, vivid colour and savoury-sweet umami. Culinary-grade, often from later harvests, is bolder and suited to lattes, baking and ice cream.
“Ceremonial grade matcha is the highest grade, but it’s designed to be enjoyed with water in the purest form,” says Monica Nguyen of Japanese-inspired cafe Miyama Melbourne.
Matcha’s wellness halo – in Japan, once sipped by samurai before battle, by monks to elevate meditation – isn’t without substance. Rich in antioxidants, it’s been linked to heart health, improved focus and reduced inflammation. Because the whole leaf is consumed via the groun-up powder form, matcha delivers more concentrated benefits than steeped green tea. The amino acid L-theanine tempers caffeine’s buzz, offering calm alertness prized by monks and office workers alike. As Elvan Fan Sydney cafe Moon and Back notes, “For many customers, it’s not just the taste – it’s how they feel after drinking it.”
A centuries-old tradition under pressure
The global boom is reshaping matcha culture on its home turf. As William Guo of 30–seat matcha speciality cafe Matcha Kobo in Melbourne explains, the boom is a double-edged sword, “There’s pride in the international demand, but also concern for the local cultural needs… Some tea ceremony teachers in Japan have found it harder to secure their preferred ceremonial-grade matcha… If current demand continues, the tight supply could last the next three to five years.”
Climate stress has compounded the squeeze. Intense heatwaves in Uji, Kyoto – the most renowned and sought-after matcha-production area – cut yields by up to 25 per cent in some orchards. And while farmers plant new fields, tea bushes take five years to mature. Traditional methods – hand-picking, shading and stone-grinding – mean production can’t be scaled quickly. Stone mill grinding alone produces only 30 g of matcha in one hour.
“The biggest challenge Japan faces isn’t just rising demand – it’s the lack of successors for tea farms and tea business owners,” says Taka Kaneko of matcha supplier EdoMatcha, “We need more young people, and even foreigners, to get involved in the tea industry in Japan.”
Australia feels the squeeze
In Australia too, matcha has grown from niche curiosity to café staple. “Over the past seven years or so of running the business, I have seen the level of matcha knowledge has lifted significantly,” says Lindwell of Matcha Yu Tea. “People are also now looking for higher quality matcha… Many have travelled to Japan since the pandemic… and desire high quality matcha.”
That quality increasingly comes at a cost. Matcha Yu Tea faced a two-month gap in supply this year when first-harvest stock ran out. “The new harvest pricing came in 60 per cent higher than last year, with no guarantee of availability,” Lindwell says.
For Japanese-inspired cafe and bar Kahii in Sydney, ceremonial and premium grades have become the hardest to source, “farms can’t easily increase production” and that finding reliable suppliers “has become increasingly difficult,” says Director Matt Wong.
How to get your matcha fix – from the experts
While there’s no one quick or easy solution to the global matcha shortage, there are some practical things consumers can do to still enjoy this prized flavour – while balancing it with a respect for traditional culture.
Derek Yang, co-founder of Melbourne-based matcha and Japanese homeware store, Hikari Life, says, “If you’re adding jams and fruit, please don’t waste your high-grade matcha… Save those for ceremonial moments and respect the culture behind it.”
Yugen Tea Bar’s Chuzeville agrees – “Culinary-grade matcha is better suited for mixing or baking, and using the right grade for the right purpose preserves tradition while supporting sustainability.”
Minimising ‘haul’ culture is also needed. Rather than stockpiling up on matcha powder – especially as the tea has a maximum 6-month shelf life, only buy what you can use within a few weeks.
“Buy only what you can use within a few weeks… Choose the right matcha for the right purpose… Be willing to pay a fair price – quality matcha is labour-intensive, and your support helps tea farms pass their craft to the next generation,” says Matcha Kobo’s Guo.
3 matcha alternatives to try
Above all, why not treat this as an opportunity to explore other Japanese brews, each with its own history, flavour, and loyal following?
Hikari Life has added hojicha, genmaicha and sencha alongside matcha, and says the response has been positive.
Nguyen admits she personally drinks hojicha more than matcha, “It’s smoky, earthy, naturally sweet and has less caffeine, making it perfect for the afternoon. I’d love to see hojicha and genmaicha become just as popular as matcha.”
For many customers, it’s not just the taste – it’s how they feel after drinking it.
Hojicha powder, a roasted green tea with a toasty, nutty profile and low caffeine, makes a comforting latte. Genmaicha blends green tea with roasted rice for a warm, popcorn-like aroma. And mugicha, or barley tea, is a summer staple in Japan – naturally caffeine-free, refreshing, and best enjoyed chilled. At Kahii, their Black Sesame Cloud Latte is a popular menu item.
Shortage or not, matcha is here to stay – but how we drink it will shape its future.
