Matcha — a finely ground green tea powder made from tea leaves — has become the darling of Instagram feeds and health-conscious influencers.
From lattes and cakes to vibrant, green-dipped croissants, it has become a must-have ingredient — but supply can’t seem to keep up.
Its popularity has led to an unexpected problem: a shortage of the trendy tea, according to some cafe owners and suppliers.
Influencer Tara Zaw has started a community around matcha, posting daily pictures of new cafe matcha creations. (ABC News: Libby Hogan)
A boom in demand
So, what’s behind this scarcity? A poor harvest? Pests ravaging tea plants? Nope.
The culprit is an unprecedented surge in demand.
“There is only limited production, and we did not expect demand to grow this much,” said Yugo Enomoto of Osada Tea, a matcha supplier from Shizuoka prefecture south of Tokyo.
Matcha’s bright Kermit-green hue, smooth texture and rarity have propelled it to superfood stardom.
However, its scarcity is due to the painstaking process of cultivation.
Matcha buyers have faced longer wait times and shortages in recent months. (AFP: Sina Schuldt)
The roots of matcha
The origins of matcha in Japan trace back to Buddhist monks who introduced it from China.
By the 12th century, Japanese monks had popularised whisking powdered tea into hot water — a practice tied to Zen meditation.
Matcha is made from the same plant as most tea, Camellia sinensis.
But the leaves undergo a unique process before harvest.
A key reason for matcha’s high price point is its delicate growing process. (AFP: Charly Triballeau)
To produce tencha — the raw leaves that are ground to make matcha — tea bushes are shaded for about 20 days before harvest, increasing chlorophyll levels and enhancing the vibrant green colour while reducing bitterness.
For the highest-quality matcha, only the top three buds of the plant are hand-plucked in spring, steamed immediately to halt oxidation, and ground slowly using stone mills.
This labour-intensive process is why matcha is among the world’s most expensive teas.
Mr Hattori, a fourth-generation tea merchant, has embarked on a production increase to meet the growing demand for matcha. (Supplied: Hattori Farm)
“To preserve the rich aroma, it must be ground in a machine slowly to avoid warming,” said fourth-generation Shizuoka prefecture tea farmer Yoshiaki Hattori.
“Rushing it isn’t an option.”
Mr Hattori told the ABC they could not keep up with the demand for matcha this year and hoped to convert more production facilities producing sencha (green tea leaves) to tencha for matcha.
Matcha’s rise to fame
Matcha’s vivid colour and health benefits have made it a hit on social media.
High in antioxidants, matcha is marketed as a “superfood”, fuelling its appeal among health-conscious consumers.
Matcha influencer Tara Zaw, who goes by Melb Matcha Girlies, posts daily on Instagram about where to find matcha drinks across Melbourne.
“I think it’s become so popular because with milk it’s smooth and umami tasting,” she said.
Ako Miura says matcha sales have overtaken coffee purchases at her cafe. (ABC News: Libby Hogan)
“There has been some matcha shortages in cafes, but those are from mass suppliers.”
Matcha now accounts for 80 per cent of sales at Melbourne cafe Ima Pantry, according to owner Ako Miuro.
“I hope people also appreciate matcha’s cultural origins,” Ms Miura told the ABC, explaining that a few years ago matcha accounted for less than half of her sales.
“Mixing it, rotating the bowl — it’s like meditation.”
David Lyons, from the Australian Tea Cultural Society, said the popularity of matcha in Australia had surged, evolving from a niche product to a mainstream staple, largely driven by “what’s in fashion” in cafe culture.
He noted that much of the current demand stemmed from trends amplified during COVID-19 and innovations such as iced matcha lattes, which made the beverage more accessible to younger people.
Despite reports of shortages, he emphasised “there’s more matcha today in the world than there ever has been” attributing perceived scarcity to logistical challenges and marketing strategies rather than actual supply issues.
A supply chain under strain
The matcha shortage has been felt across Australia’s cafe scene.
Lily Nguyen of Melbourne’s Naau Cafe said they have had to increase their weekly order of 1.5 kilograms of matcha from suppliers to about 6-7kg in recent months to meet demand.
Matcha and hojicha cream puffs made by executive pastry chef Masaki Takahashi at Restaurant Yuu. (AP via Restaurant Yuu)
Even then, they still sometimes run out.
“We had some days where we couldn’t get any more matcha at all,” Naau barista Tina Ly said.
Other cafes report delays in supply.
Mark Free, owner of Everyday Coffee in the Melbourne suburb of Collingwood, told the ABC he was waiting for a matcha order he made weeks ago.
“It went on back order and the ETA keeps getting pushed back,” he said.
Matcha drinks and sweets have become a staple on social media. (ABC News: Libby Hogan)
One challenge is that the highest-grade matcha is harvested only once a year in spring, meaning production cannot simply be scaled up.
Middle-grade “latte matcha” — the most popular variety — has faced the most significant shortages as cafes and consumers use it for everything from lattes to baked goods.
Arthur Tong, from tea wholesaler Tea Craft, said that middle-grade matcha was driving the shortage.
“This latte grade is the driver of the shortage as those are the grades that have been popularised in social media to be had with milk or milk alternatives,” he said.
Some cafes in Sydney and Melbourne have reported shortages of matcha or being unable to order from their suppliers. (ABC News: Libby Hogan)
Another supplier, Erin Lindwall from Matcha Yu Tea, agrees.
“We’ve experienced around a 300 per cent increase in demand for matcha this year and a rise in demand for organic matcha,” she told the ABC.
To meet demand, some suppliers had blended ceremonial-grade matcha into latte blends without compromising quality, he added.
Big matcha tea companies such as Marukyu Koyamaen and Ippodo Tea have started limiting customers to one item per customer on their website.
“Production has been unable to keep pace with the recent surge in demand for matcha, leading to a shortage of supply,” Ippodo Tea says in a notice on its website.
“As a result, we regret to inform you that we will temporarily suspend the sales of certain products until the beginning of 2025.”
Planning for the future
In response to matcha’s rising popularity, production in Japan is expanding.
According to Japan’s Ministry of Agriculture, Forestry and Fisheries, tencha production rose from 1,430 tonnes in 2012 to 4,176 tonnes in 2023.
The highest grade of matcha is only harvested once a year in spring. (AFP: Charly Triballeau)
Global Japanese Tea Association president Simona Suzuki acknowledges the strain on traditional regions such as Kyoto and Aichi.
Non-traditional regions such as Kagoshima, Shizuoka, and Fukuoka are now stepping in to bolster supply.
Ms Suzuki attributes part of the matcha shortage to a rise in tourism in Japan, with visitors buying matcha directly from farms as gifts.
Japan’s tourism sector is booming, with authorities reporting a record 3.3 million international arrivals during October 2024.
“Matcha has been growing in popularity for some time and production has steadily increased each year,” she said.
“But this year, a combination of factors — post-COVID global demand and increased tourism — created a sudden surge that overwhelmed the supply chain.”
Matcha has many purported health benefits but growing it is labour intensive. (AFP: Charly Triballeau)
Some cafe owners such as Ms Miura worry about the long-term implications of the matcha boom.
“There’s limited land in Japan, so I’m concerned that quality might drop if farmers are overwhelmed,” she said.
For now, the matcha craze shows no signs of slowing down, leaving suppliers and farmers racing to meet the world’s appetite for this green gold.
