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Matcha Market Growth Sparks Supply Concerns Amidst Rising Global Demand
The matcha market is experiencing rapid expansion, with global forecasts projecting it to reach $5 billion by 2028, according to reports. However, this surge in popularity presents a considerable challenge: ensuring the supply of this sought-after green tea can adequately meet the escalating demand.
Matcha Shortages Emerge in Japan
Reports from sources indicate that Japanese tea producers have implemented purchase limitations on matcha powder, leading to supply disruptions in cafes across major urban centers. This situation is compounded by the fact that matcha leaves are harvested only once annually. While domestic consumption of matcha and green tea in Japan has decreased, international demand has significantly increased, contributing to the prevailing supply crunch.
Limited Harvest and Production
The approaching 2025 harvest offers a glimmer of hope for increased supply. However, industry experts at the Global Japanese Tea Association caution that meeting global demand will necessitate intensive efforts throughout the matcha production chain.
Seasonal Nature of Matcha
The Association emphasized on its website the inherently limited nature of matcha production, stemming from its unique and seasonal characteristics. They stated that only spring tea leaves are suitable for producing high-quality matcha.
Export Surge Impacts Domestic Availability
Data from the Ministry of Agriculture, Forestry and Fisheries (MAFF) reveals a near tripling of Japan’s tea production between 2010 and 2023, undertaken to satisfy the burgeoning global appetite. Despite these production increases, over half of the nation’s tea output is now exported. This export-oriented shift has reduced availability within Japan, making it more challenging for domestic cafes and international businesses to procure sufficient matcha powder for their product offerings.
Future Supply Outlook
As global interest in matcha continues its upward trajectory, its availability may become increasingly constrained. This potential scarcity poses ongoing obstacles for both matcha producers striving to meet demand and consumers eager to enjoy this popular beverage.