How and why the world is running out of matcha

Have you noticed your favourite matcha latte is sometimes missing from the menu? Or the tin your café used to stock is now priced a bit higher?

I’ve been tracking the story behind that and it turns out the matcha shortage isn’t just about flavour or trend. It’s about supply, climate, culture and global demand all hitting together.

Demand has gone through the roof

There’s no question: matcha has gone mainstream. Japan’s matcha production nearly tripled between 2010 and 2023, yet farmers are strained under heatwaves and demand.  Reuters reports that Japan produced 5,336 tons of tencha (the leaf used to make matcha) in 2024, but this year output has dropped due to climate stress.  Around the world cafés are serving more lattes, smoothies and desserts with matcha, and social media has turned the green powder into a visual icon.

What it means to care about tea

Supply is struggling to keep up

It wouldn’t matter how many people want matcha unless farms could deliver. The issue is tencha is complex to grow: shaded for weeks, carefully harvested, then ground.

2024 to 2025 saw steep production drops in key regions like Kyoto. One region recorded a 40 % fall. Tencha trading prices in Kyoto jumped 265 % between 2024 and 2025.  When the raw leaf falls, every matcha cup downstream adjusts.

Regional breakdowns: a closer look

Japan – the historic centre

In Kyoto’s Uji region the 2025 harvest saw tencha volumes drop by as much as 40 % in some lots. Farms struggled with heat, dry spring conditions, and shrinking labour pools. Japan still leads in premium matcha supply and the pressure is acute.  

China – mass scale but different goal

China’s green-tea production has been rising and some powder-tea capacity exists. Yet many buyers believe it does not yet match the flavour or tradition of Japanese ceremonial matcha.  

Vietnam, India and other emerging regions

These countries are flagged as potential matcha suppliers, but they face gaps in processing, grading and brand heritage. At present they are more “potential” than “ready to fill the gap”.  

What the world gets wrong about matcha

What it means for you and your café

If you brew matcha at home or serve it in your café you are now part of the shift.

You might see fewer grades available. Premium tins could cost more. Some cafés may switch to lower grade powders for cost reasons. At home you might want to stock trusted brands early when you see them.

But there’s another angle: knowledge. Asking your supplier where the tencha came from, how the harvest was, and what grade you’re drinking. Because at base the shortage is less about scarcity and more about awareness of the leaf behind the cup.

Matcha supply chains are shifting

Farmers in Japan are planting new fields and converting existing ones to tencha, but those changes take years to yield results. As Reuters noted the new fields may not fully deliver until 2027 or later.  Some cafés and consumers will experiment with alternate origins or lower grade matcha. Others may pay more for authenticity. What’s clear: matcha supply chains are shifting and drinkers are waking up to that.

Bringing the story back to the cup

You love your matcha. I love mine. That’s why it’s worth paying attention. If you’re sipping from a clay bowl or a café latte you can still savour the moment. But now you’re also holding knowledge of what made that cup possible. Take a breath. Ask a question. Try a slightly different grade.

Because right now matcha is going through growing pains. And you are part of how the next cup will taste.

The best tea houses in Dubai

FAQ

Why is there a matcha shortage now?

Because demand exploded globally while production had to deal with climate, labour and processing constraints.

Can I still buy matcha easily?

Yes you can, but you might find fewer options at top grades and higher prices for premium pastes.

Will matcha prices drop soon?

Unlikely in the near term since supply fixes take years to materialise.

Is matcha quality at risk because of the shortage?

Yes quality may vary more as producers work to match rising demand. Knowing the origin and grade helps.

What can I do as a drinker to respond?

Choose trusted sources, explore different grades, ask about origin, and use your cup to reflect more than flavour.