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Global matcha shortage raising prices in US

By Published On: March 28, 20257.5 min readViews: 130 Comments on Global matcha shortage raising prices in US

Although PARU has seen an increased interest and demand in matcha from customers, its suppliers have remained reliable.

SAN DIEGO — Some would think it came straight from a witch’s cauldron if one said a green-colored beverage can be decked out and infused with purees and syrups ranging from strawberries to Earl Grey.

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Social media is reinforcing this creative path with trending videos or posts featuring the latest matcha recipes or brands. Whether people consume this vibrant green drink as an alternative to coffee or for its potential health benefits, it is undoubtedly considered a highly aesthetic drink, served at cafes globally. 

Even throughout San Diego, cafes serving hot or iced matcha lattes are a common sight, but getting access to matcha powders to recreate these customer-favorite drinks at home has proven difficult due to a matcha shortage.

State of the matcha

According to a blog post by the Global Japanese Tea Association, a non-profit organization that aims to expand the world of Japanese tea through global collaboration, rumors of a matcha shortage began circulating worldwide by the autumn of 2024. The organization recognized its recent popularity and demand for matcha, saying that Japanese tea exports have grown rapidly from 1% of total production in the early 2000s to 10% by the end of 2023. It also reported that Japan saw an influx of tourists after the country opened up after COVID-19. 

“In many cases, tourists are even purchasing matcha in bulk, as the prices in Japan are often much lower than what they would find in their home countries,” the post said.

Due to the high demand, two notable Japanese-tea brands in Kyoto, Ippodo and Marukyu Koyamaen, had to stop or regulate sales when they started experiencing a serious matcha shortage. A banner on Marukyu Koyamaen’s international shop website read that the business is limiting availability for all matcha products regardless of product, size or packaging type due to the unexpectedly high volume of orders during the past few months. 

“Therefore, some Matcha products may be temporarily marked as sold out. We deeply understand the inconvenience this may cause, and will restock those sold out products as soon as possible,” the banner said.

Meanwhile, Ippodo’s website had a post that was last updated early March, addressing the state of their matcha. Similar to Marukyu Koyamaen, due to the high demand from customers, the shop is limiting sales for a variety of their matcha and selling out quickly after restocking.

“We wish we could produce enough matcha for everyone to enjoy freely, but increasing production isn’t as simple as it may seem,” Ippodo said.

According to the shop, the two key factors that are limiting them from restocking are the harvesting and production times. The shop said the teas used in their blends are picked in late spring, and farmers cannot harvest more on demand. It also said that traditional stone mills, which are limited in number, grind only 40 grams of matcha every hour, and increasing production speed would affect the quality of their matcha.

A look at how the shortage impacts a small business in San Diego

Nestled in the heart of La Jolla, PARU, a small business loose-leaf tea retail store, is also seeing an increase in customer demand for matcha.

Global matcha shortage raising prices in US

Amy Truong, the founder of PARU, said for nearly 10 years, the business has worked with their matcha partners in Kyōtanabe, which is located in the southern Kyoto within the Uji region and is renowned for producing some of Japan’s highest-quality matcha.  

“We’ve been working closely with small tea producers in the region who carefully grow, shade and stone-mill their tea leaves to create high-quality matcha,” Truong said.

Regarded as Japan’s largest tea-producing region, PARU also sources matcha from Shizuoka, although the region is known for sencha, a type of Japanese green tea, or “ryokucha.”


“By sourcing from both Kyōtanabe and Shizuoka, we’re able to provide a diverse selection of matcha at PARU, each with its own unique characteristics and flavor profiles,” Truong said.

Although PARU has seen an increased interest and demand in matcha from customers, its suppliers have been reliable and have been a steady part of the shop’s offerings. Truong said they are mindful of not putting too much pressure on their partners, valuing quality above all else. 

Rather than viewing the matcha shortage as a challenge, Truong told CBS 8 that it has deepened customer appreciation for quality matcha, with customers having a curiosity about where their matcha comes from and how to prepare it properly. Outside of customers, there has been a noticeable shift in the café and restaurant industry, where now many establishments are realizing the importance of sourcing high-quality tea.

“Just as they [establishments] carefully select specialty coffee or craft spirits, they’re beginning to approach tea with the same level of intention, which is an exciting shift for the industry as a whole,” Troung said. 

Popularity of matcha stems from social media, wellness, and increased tourism to Japan

Similar to the Global Japanese Tea Association’s blog post, Truong said the increase in tourism to Japan is one of the factors as to why matcha has grown in popularity over the years. They said more people are discovering matcha abroad and seeking it after returning home, leading to a higher demand. 

In addition to tourism, social media is a notable player in the growth of matcha’s popularity. Not only did social media spread awareness, but it also allowed people to share their matcha rituals and recipes online. According to Truong, there is also a growing interest in non-alcoholic and health-conscious beverages, choosing functional drinks that offer both flavor and health benefits. 

“Matcha fits into this lifestyle perfectly, it provides a calm, sustained energy boost without the jitters of coffee, and it’s packed with antioxidants, L-theanine, and other health benefits,” Truong said. “As more people look for mindful, wellness-driven options, matcha has become a go-to choice.”

Despite this heightened interest in matcha consumption, scaling up matcha production is easier said than done, as it goes through a slow and precise process using granite stone mills to create an ultra-fine powder. The stone mills rotate at a controlled speed without overheating the tea leaves. According to Truong, a single stone mill can only produce about 30-40 grams of matcha an hour. 


Alternatively, matcha produced with high-speed grinders yields lower-quality matcha due to heat exposure and the inconsistent size of the powder. 

“To truly increase production of high-quality matcha, more stone mills need to be installed, which requires time, investment, and skilled artisans to craft the mills and operate them properly,” Truong said.

What is matcha?

Matcha is a form of ground green tea from ‘tencha,’ the leaves used to create matcha. It can be used in various ways, from baking and cooking to creating fancy lattes. Alternatively, it can be consumed as is, after it is whisked in a ‘chawan,’ a bowl used for preparing and drinking tea, using hot water to create the vibrant green drink. 


There are also various grades of matcha, including ceremonial and culinary, a term that caught on when it was introduced overseas, according to Naoki, a business that curates and sells matcha from Japan’s top tea regions. Rather than solely relying on these labels, Naoki suggests consumers consider and evaluate where the matcha was produced, which tea plant cultivar the matcha was made from, the harvest date, how it was processed and stored, and the color and taste of the matcha. 

In the case of PARU, its partners in the Kyōtanabe region are known for their ideal tea-growing conditions, which include a mild climate, fertile soil and mist mornings, which helps maintain moisture levels for the tea leaves. Kyōtanabe is also the home to some of Japan’s most prestigious matcha cultivars, including Samidori, Asahi and Uji Hikari, producing matcha with a rich umami flavor with balanced sweetness and smooth texture, according to Truong.

“Through our involvement in being students of chanoyu (the Way of Tea), or as some refer to it as “Japanese Tea Ceremony,” we’ve come to understand that matcha is much more than just an ingredient, it’s a practice that embodies mindfulness, hospitality, and respect for nature and craftsmanship,” Truong said. “While not everyone practices chanoyu in a formal setting, we enjoy sharing its principles with our customers, whether through simple preparation tips or the idea of slowing down and being present while making tea.”



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