Popular drink craze causing global shortage

Australians' matcha obsession has helped triple production since 2010, but Japanese tea farms now face breaking point trying to satisfy a global appetite.

While Australia has built a reputation for quality coffee, another drink has been quietly growing in popularity down under.

Matcha, a finely ground powder made from green tea leaves, has become a viral sensation, thanks to its taste, health benefits, and steadier caffeine boost.

However, this worldwide “matcha mania” has caused a global supply chain issue, with The Japan Times reporting that there may be a matcha shortage this year.

Matcha mania has caused a global supply chain issue. Picture: iStock

Matcha production nearly tripled from 2010 to 2023, Japan’s agricultural ministry reports.

It also says that green tea exports, including matcha, increased by 25 per cent last year.

Experts say that one of the main reasons for the potential shortage is that consumers are now seeking premium matcha.

This sort of matcha is traditionally reserved for tea ceremonies, rather than the more affordable, culinary-grade matcha, and people are now using it for ‘everyday’ use.

These higher-grade matchas requires extensive time and effort, which can lead to limited production.

Farmers hand pick the tea leaves, dry them, and grind them in specialised stone mills that process less than 60 grams of leaves per hour.

People use matcha in drinks, smoothies and even food. Picture: iStock

Behind the craze

Christelle Young, Managing Director of T2, told news.com.au that although the company has been selling matcha for over 20 years, recent years have seen a noticeable spike.

The growing popularity comes down to a few main reasons.

“Matcha fits perfectly with Australia’s increasing focus on health, wellness, and mindfulness,” Ms Young said. “It’s rich in antioxidants, L-theanine (which promotes calm and focus), and has less caffeine than coffee, making it an attractive alternative for health-conscious Aussies seeking a balanced energy boost”.

She also pointed out that the increased post-pandemic tourism to Japan plays a role, with nearly one million Aussies visiting the country last year.

“As more Australians immerse themselves in Japanese culture, interest in products like matcha continues to grow at home,” she said.

Many factors have contributed to the rise of matcha’s popularity, such as tourism and social media. Picture: iStock

Many Aussies are also trying to cut back on coffee, for health or lifestyle reasons.

“Matcha provides a gentle, sustained energy release without the jitters or crash that often comes with coffee,” Ms Young explained.

And of course, social media has also fuelled the craze, with thousands of videos showcasing the vibrant, green drink.

Influencers and wellness bloggers regularly feature matcha recipes, lattes, and even desserts, inspiring many to try a drink they might not have otherwise known about.

In response, T2 has launched trend-driven products like Strawberry Matcha and White Chocolate Matcha, while staying true to its ethos of selling ceremonial-grade, high-quality matcha and supporting growers.

“By working directly with these tea gardens, we’ve been able to prioritise allocation even in tight supply conditions,” Ms Young explained.

Stock levels are closely monitored, and a “tiered distribution system” ensures flagship stores and online outlets get priority on bestsellers.

“Where necessary, batch allocations help ensure every store can maintain core matcha products, even if some flavoured variants are temporarily out of stock,” she added.

Trends like strawberry flavoured matcha have taken off in recent years. Picture: iStock

The issue has been brewing

The first signs of demand stretching Japan’s matcha industry emerged late last year when some brands began to limit purchases, raise prices, and temporarily suspend sales.

In November, Sydney’s Simply Native announced customers could buy only “one item per brand per person”.

Ippodo Tea, which has sold matcha for 300 years, also halted sales of some items, citing the “recent surge in demand”.

Many matcha brands implemented limit purchases late last year to deal with supply chain issues. Picture: iStock

However, Anna Poain, director of the Global Japanese Tea Association, said this only caused “panic buying”.

She told The New York Times that demand has soared even higher since last year as buyers try to stockpile, making it increasingly difficult to source in Japan.

The industry is ill-prepared for this sudden surge, she claimed, with many Japanese tea farms being small, family-run operations.

The government has encouraged tea farmers to shift to growing matcha, but many are hesitant, unsure how long the craze will last.

“Many people say it’s here to stay, but who knows,” Ms Poain said. “Building factories, and other infrastructure, is risky. It’s not that easy to do”.

Originally published as Popular drink craze causing global shortage