There's a matcha shortage in Japan: Where else can it grow?

Global demand for matcha has skyrocketed in recent years, driven by social media and Japan’s post-pandemic tourist boom.
Matcha production nearly tripled between 2010 and 2023 in Japan, which is widely believed to grow the world’s highest-quality green tea.
But after record-breaking heatwaves, Japanese producers have struggled to meet demand.
Other countries, such as China, Vietnam, and India, can also grow green tea, but questions about its quality persist.

Matcha is everywhere – from Starbucks menus to specialty coffee shop offerings.

Its vibrant green hue is a standout on social media platforms, bolstering its popularity. Further fuelled by record levels of tourism to Japan and the surge in health and wellness trends, matcha is in its golden age.

But the global boom is outpacing production, resulting in supply shortages in Japan – considered to grow the world’s best matcha. The country’s matcha production tripled between 2010 and 2023, however, record-breaking heatwaves mean farmers are struggling to meet soaring demand.

Countries such as China, Vietnam, and India can grow green tea, but do they have the capacity to produce as high-quality as Japan?

To learn more, I spoke to André Fasciola of Matcha.com and Jared Nyberg from JagaSilk.

Two pink matcha drinks in a coffee shop.

What’s driving the boom in matcha consumption?

It’s impossible to ignore matcha in 2025. Although the green tea powder has been on coffee shop menus for years, revived interest has spurred its popularity to new heights.

The global matcha market is experiencing rapid growth, projected to exceed US$7 billion by 2030 from US$4.3 billion in 2023.

Once relegated to straightforward hot and iced lattes, or simply added to hot water for tea purists, matcha is now the ideal canvas for beverage customisation. Its bright green colour contrasts nicely with a variety of milks, syrups, and flavourings – making it stand out on social media feeds.

Gen Z are driving the trend, opting for heavily customised drinks that reflect their personalities and lifestyles. Matcha’s clean-look packaging and ritualistic preparation also appeal to this demographic, as they increasingly align the products they buy with personal brand identities.

Health and wellness are also key to the boom in consumption. Matcha contains an abundance of antioxidants (including polyphenols like catechins) and phytochemicals (such as chlorophyll and quercetin), which purportedly offer a number of health benefits. These include anti-inflammatory effects, lower blood pressure and LDL (or “bad”) cholesterol levels, and improved concentration and alertness.

As younger consumers increasingly prioritise their health and well-being, matcha is also emerging as a viable alternative to coffee. Both contain caffeine, but matcha is less likely to cause a “crash” compared to coffee. This is because its L-theanine content helps release caffeine more slowly and steadily, providing sustained energy without the sudden spike and subsequent slump.

The post-pandemic tourism surge in Japan, the world’s most well-known producer of matcha, is also driving its popularity. Foreign visitors are increasingly drawn to the centuries-old ritual of matcha preparation, and want to replicate it themselves back home.

Jared and Miyuki Nyberg stand in a field of Beni Fuki, a tea cultivar used mostly for Japanese black tea., next to farmer next to Mr. Takaki from Fukuoka.

But skyrocketing demand is outpacing matcha supply

The surge in matcha consumption shows no signs of slowing down any time soon.

“Matcha is truly global now, not just limited to the West,” says André, the CEO and co-founder of Matcha.com, a US importer of Japanese matcha products and educational resource for matcha enthusiasts. “The matcha craze is in Africa, the Middle East, Singapore, and lots of other non-Western countries.”

More coffee shops, big and small, are tapping into the trend. Some, most notably Blank Street, are now building their brands around matcha, doubling down on customised, signature offerings that draw in new customers.

However, the global growing appetite for matcha is a double-edged sword. Japan, widely regarded as the world’s best producer of matcha, is experiencing persistent supply shortages.

Although the Japanese government has introduced subsidies for producers to switch from sencha (traditional green tea leaf) to tencha (green tea ground into powder) to help meet demand, supply chains continue to be strained.

“Traditionally grown matcha is a very labour-intensive process that requires skilled workers and specific growing conditions,” André says. “There’s also an ageing farmer population in Japan; the average age of a tea farmer is 65 years old.

“In many ways, the Japanese tea industry hasn’t modernised. They are still growing, picking, and processing matcha in old-style ways,” he adds. “Most high-quality matcha is picked by hand.”

However, as with specialty coffee, these diligent harvesting and processing techniques are what maintain matcha’s high quality and depth of flavour.

Japanese producers use a combination of shade-growing techniques to slow down the maturation of the tea plants. After careful and selective handpicking, the leaves are steamed to prevent oxidation, preserving their vibrant colour and delicate flavours. Farmers then dry and sort the leaves for quality, and destem and devein them.

Finally, the dried leaves are slowly stone-ground into an ultra-fine powder using either machine mills or traditional granite stone mills. The slow and specific milling process preserves matcha’s natural sweetness and nutritional potency.

Mr. Fujioka from Kyoto, standing in a field of the Okumidori tea cultivar under shade in preparation for the tencha harvest.

Can other countries grow matcha?

As Japan struggles to meet the growing global demand for matcha, buyers may look elsewhere for more stable supplies.

China is currently the world’s biggest producer of matcha. Tongren City, located in southwest Guizhou Province, is home to the world’s largest single-site matcha factory, which even exports large volumes to Japan.

However, producers in China often lack the expertise and infrastructure to match the quality of matcha grown and processed in Japan.

“Matcha originated in China, but the Japanese perfected it,” says Jared, the co-owner of JagaSilk, a Canadian “maccha” miller and wholesaler. “I’ve never had good-quality matcha outside of Japan; it’s always lacking in umami.”

In Japan, matcha predominantly grows in the regions of Uji, Yame, and Nishio. The climate and terroir, including the amount of sun, shade, rainfall, groundwater, and soil quality, all impact matcha’s flavour and quality.

Although the terms “ceremonial-grade” and “culinary-grade” have become synonymous with matcha brands proliferating in Western countries, Japan doesn’t recognise these quality standards.

“These are Western marketing terms. In Japan, matcha is graded by the time of year it’s harvested, the colour, the smell, the cultivar/blend, and most importantly, the flavour,” André explains. “Great matcha is bright green, tastes naturally sweet, and is full of umami.

“The first harvest produces the best quality tea leaves; the plants have sat dormant all winter. These matchas are typically drunk straight, like great matcha should be,” he adds. “There are second and third harvests throughout the year, which are typically in summer and fall. The leaves are a bit lower on the tea plant and tend to be more astringent in flavour and less green in colour.”

Vietnam, South Korea, and Myanmar are other leading growers of matcha. Sri Lanka, India, and Kenya also produce green tea, but don’t have the necessary infrastructure and knowledge to produce commercially viable, high-quality volumes.

“What makes Japanese matcha great is 800 years of expertise, the ideal geological environmental growing conditions, and perfection of the equipment and process,” André says. “There are regions of China that are attempting to produce matcha. However, they lack the expertise, equipment, soil conditions, and the right tea plant cultivars necessary to produce great quality matcha.”

A question of quality

While Japan grapples with sustained matcha supply shortages, countries such as China are poised to expand their production capacity. However, this will likely result in a wider division of quality on the international market.

“It’s easier to produce lower-quality matcha, even domestically,” says Jared. “So in Japan, you could produce it, and potentially meet quite a lot of demand, as long as more producers switch over from growing other types of tea.”

But for specialty coffee shops aiming to expand their focus on coffee quality to include matcha, sourcing the highest-quality products is crucial. There are several determining factors that café operators can look for, including:

Colour: A bright, vibrant green colour, which results from an effective shading process, indicates superior quality.
Texture: Finely ground matcha should feel silky and smooth.
Aroma: High-quality matcha has a sweet fragrance with a fresh, grassy scent.
Taste: High-quality matcha has a well-balanced umami flavour. Creamy and vegetal, with minimal bitterness, sweetness, and slight astringency.
Packaging: Quality matcha is typically stored in airtight containers or packaging in relatively small quantities to maintain freshness and protect it from light and air exposure, ensuring optimal flavour and nutritional benefits.

“Make your tea programme really simple, but make it really high quality,” Jared advises. “You should invest in a little bit of training and serve it properly, showing the tea its proper respect.”