Over the past several years, matcha has surged in popularity all across the globe, and it sounds like suppliers are having trouble meeting demand.
What was once a ceremonial tea consumed primarily in Japan has gone global in recent years due in large part to its health benefits. Now, the green tea beverage can be found in coffee shops across the world, including your local Starbucks and Dunkin’ Donuts.
It’s one of the hottest and trendiest beverages, replacing morning coffee for many individuals – myself included. But it sounds like it’s about to get a lot more expensive.
What is Matcha and What are the Health Benefits?
Matcha is a green tea-based beverage that has been consumed in Japan since the 12th century, mostly in highly ritualized tea ceremonies that require only a speck of powder.
Recently, however, it has become a popular beverage across the globe thanks to its health benefits and caffeine.
Matcha is a form of green tea that is grown in the shade. The leaves are then harvested, dried, and ground up into a very fine powder, which is then mixed with water to be consumed.
Unlike other forms of green tea, matcha is not steeped. Instead, the ground-up tea leaves are mixed into the water directly, boosting its health benefits.
Here are a few proven and potential health benefits of Matcha, based on various studies cited by Healthline:
- High in antioxidants
- May help protect the liver
- Boosts brain function
- May help prevent cancer
- May promote heart health
- May aid in weight loss
Additionally, an 8-oz serving of matcha contains between 30 and 100 milligrams of caffeine, providing a noticeable energy boost and making it a viable replacement for coffee for some drinkers.
The beverage is commonly found as a latte with milk – hot or iced – but it can also be consumed in beverages like lemonade, juices, or smoothies. It’s become so trendy in recent years that it can sometimes be found as a flavor of ice cream or as an ingredient in pastries.
Global Matcha Shortage
Demand for matcha has surged to unprecedented heights in recent months. Unfortunately, however, matcha is not exactly easy to mass-produce due to the growing and harvesting process.
“In an effort to address the strain on Japan’s aging farming communities, the Japanese government is considering subsidizing farmers to encourage them to dedicate more fields totencha, the type of tea used to make matcha,” Kaori Enjoji wrote for CNBC this week.
“Tencha yields are more lucrative but also more labor-intensive, as the buds need to be shielded from the sun to bring out their distinctive grassy flavor. There are not enough hands to harvest, steam, and dry the leaves before milling them into powder, producers say.”
As a result, it has been difficult for farmers to produce enough matcha to meet the unprecedented demand, leading to a global matcha shortage with demand outpacing supply.
Matcha Prices Skyrocket
Naturally, with demand surging and supply unable to meet that demand, the price for tencha is skyrocketing, leading to higher global matcha prices, too.
Tencha prices at the most recent spring auction in Kyoto jumped 170% from the year before, shattering a price record set back in 2016, Enjoji reports, citing information from the Global Japanese Tea Association.
Enjoji reports that many retailers have seen their matcha prices double in the last year, and that even a small tin of the powder has become increasingly difficult to find, even in Tokyo.
Needless to say, it sounds like the world is about to see matcha prices jump in the near future, especially as the beverage gets more and more popular across the globe.
