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Matcha Shortage: Global Demand Fuels Japanese Tea Supply Crisis

Here’s a rewritten article, preserving all verifiable facts and structured for a breaking-news lead followed by evergreen context:

Matcha Market Faces Potential Shortage as Climate Impacts 2025 Harvest

the global matcha market, projected to reach $5 billion by 2028 with an anticipated growth exceeding 10% as 2023, is grappling with potential supply challenges. Farmers in Japan’s crucial Kyoto region,a notable contributor to tencha (the raw material for matcha) production,reported a hot and dry harvest season this year. This weather pattern has led to what is being described as a “high-quality but lower-yielding harvest” for 2025, according to Zach Mangan, founder of Kettl Tea, a Brooklyn-based importer of Japanese teas.

This situation comes at a time when demand for matcha has surged substantially. The Japanese agriculture ministry has noted that the 2024 tencha output was more than 2.5 times higher than that of 2014, indicating a significant increase in production capacity over the past decade. However, the inherent vulnerability of the matcha crop to weather patterns, coupled with the efforts of small farmers to meet escalating demand, raises questions about the market’s ability to sustain this growth, especially as the spring harvest attempts to compensate for previous year’s shortages.

The impact of these factors is already being reflected in pricing. The Global japanese Tea Association reported that the average price for tencha in late April reached 8,235 yen per kilogram, a 1.7-fold increase compared to the previous year’s average. Producers anticipate this upward trend in prices to continue.

“Over the past year, demand for matcha has grown beyond all expectations,” Ippodo, a tea company, informed its customers on July 18. “Unfortunately, supply constraints are likely to continue.” This sentiment underscores the delicate balance between burgeoning consumer interest and the environmental and agricultural realities of matcha production.

Evergreen Context: The Dynamics of Matcha Production and Market Growth

Matcha, a finely ground powder of specially grown and processed green tea leaves, has seen a dramatic rise in popularity worldwide. Its vibrant color, distinct flavor, and perceived health benefits have driven significant market expansion. The cultivation of tencha, the shaded tea leaves that are steamed, dried, and then stone-ground into matcha, is a labor-intensive process that requires specific agricultural conditions.

Japan, notably regions like Uji in Kyoto, Shizuoka, and Nishio in Aichi, are the primary producers of high-quality tencha. The success of each harvest is heavily influenced by factors such as sunlight, rainfall, temperature, and the absence of pests and diseases. Climate change, with its propensity for extreme weather events like heatwaves and droughts, poses a direct threat to the consistency and volume of tencha production.

The growth of the matcha market is a testament to evolving consumer preferences, with matcha integrated into a wide array of products, from traditional tea ceremonies to lattes, smoothies, and baked goods.This increased demand places pressure on farmers to scale production. However, the nature of tea farming, often involving small, family-run operations, means that rapid expansion can be challenging. Furthermore, the quality of matcha is intrinsically linked to the meticulous cultivation and processing of the tencha leaves, a process that cannot be easily accelerated without compromising standards.

the current situation highlights a critical juncture for the matcha industry. While the long-term outlook for the market remains strong,the immediate challenges posed by climate variability and the complexities of agricultural supply chains underscore the need for resilience and adaptation within the sector. As the market continues to mature, understanding these underlying dynamics will be crucial for both producers and consumers.

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