Matcha Shortage: 5 Reasons For this Global Food Crisis

There’s a global matcha shortage, and it’s going to start leading to major changes in how matcha is consumed around the world. 

With increased interest for this magical green drink growing every year, tea companies like Nio Teas are struggling to keep up with the demand. 

In this article, we will share the 5 main reasons for the matcha shortage and why it’s not likely to get better anytime soon.

 

Matcha Shortage 2025: The Hidden Story Behind Japan’s Matcha Crisis

 

Background of the Matcha Shortage

In 1996 Haagen Dazs shocked the entire country of Japan, by introducing matcha flavored ice cream to the world. 

The price of tencha, shaded tea leaves with removed stems used to make matcha, increased by 150%. The world was going crazy for matcha and farmers worried the spike in demand would crush the Japanese tea industry.

Imagine their surprise when in 2025, tencha prices increased by as much as 220%, marking the most significant increase in price in the history of matcha. But why is there a matcha shortage?

Problems with the matcha shortage

So what’s the big deal with the matcha shortage? Can’t farmers just grow more tea? Not tencha.

If you were to grind normal tea leaves into a powder, the flavor would be extremely bitter while premium matcha is milky and smooth. To create this effect, farmers cut the tea plants off from sunlight for 3 weeks or more, select the top sprouts of the tea plant, remove the stems and veins and carefully grind them into an ultrafine powder. 

This makes the supply chain extremely vulnerable in a few ways, and we’ll discuss how each factor has come together to create the matcha shortage. 

 

The reasons of the matcha shortage in Japan

#1 The Social Media Matcha Mania: when demand exceeds the supply

In 2010, the entire country of Japan was only producing 1,471 tons of matcha per year. By 2023, 4,176 tons were being produced and almost half of it was being sold abroad, compared to just a small percentage before. Despite almost producing 3 times as much matcha, the matcha shortage was getting worse each year.

It was reported that in 2023, the UK saw a 202% increase in matcha drink consumption, and interest for matcha continues to grow at around 10% every year. At first, news of this matcha shortage seemed wonderful, as people all over the world began to take an interest in traditional Japanese green tea. But now, we at Nio Teas are faced with a new reality, perhaps matcha is becoming too popular.

Tiktok & Instagram Viral Videos

It’s not just you, social media feeds everywhere are getting greener! What once was a niche tea ritual is now a global lifestyle symbol. TikTok “what I drink in a day” reels and Instagram wellness influencers have turned matcha into the new it-drink, fueling demand faster than Japan’s farms can keep up. Just like the sudden craze for Labubu toys or the Dubai chocolate frenzy in 2025, social media didn’t just popularize matcha, it created a tidal wave of demand overnight. The result? A supply crunch where centuries-old tea traditions are colliding with algorithm-driven hype.

 

#2 Farmers shortage due to demographic change

One of the factors leading to the matcha shortage is the farmers themselves. 

Between 2000 and 2020, Japan has lost 53,000 tea farmers to retirement. Traditionally, the younger generations would take over their parents profession, but it seems working as a tea farmer is not as desirable of a job in the digital age, leading to a farmer-led matcha shortage. 

Issues facing matcha farmers

In 2019, we travelled all across Japan meeting with tea farmers in search of the best tasting pesticide free teas for our website.

We not only asked questions about tea cultivation, we also asked them what obstacles they see the tea industry facing in the near future. They all told us the same thing. Younger people didn’t seem as interested in the traditional methods used to produce premium Japanese green teas. They were alarmed by the growth of bottled teas, instant teas and coffee, which provided a convenience and a price that their tea couldn’t compete with.

They have spent generations learning how to produce the best tasting matcha, a meticulous process that requires the utmost skill and precision. 

If the world no longer appreciated this skill, it would start to threaten their way of life. With the matcha shortage, it would appear they now have the leverage they need to continue their careers, but there are many more challenges.

 

#3 Matcha plants take up to 4-5 years to grow

The first issue with increasing the supply of matcha tea is the tea plants themselves. It’s not as simple as just growing more plants to end the matcha shortage. Visiting farmers in southern Japan, we learned that oftentimes they have a nursery area for their youngest tea plants. These tea plants take about 4-5 years before they reach maturity, and even then the yields are very low. 

Farmers cannot grow more 5 year old tea plants, they can only grow new seedlings so even if they start planting now, it will take a few years for the supply to catch up. So if a farmer wants to produce more matcha, they need to first secure the land and then once they plant in, they still need to wait 4-5 years until they can start producing more matcha. So when will matcha shortage end? It will likely take a few years.

 

#4 Machinery Scarcity: the Stone Mill shortage

There is one final component to the matcha shortage. Farmers and tea plants are not enough to produce matcha, you also need specialized machinery. When we met with Mr. Sakamoto in Shibushi, he let us tour his matcha mill. He recently invested in 3 granite mills, which can cost up to $5,000 each. This is a huge capital expense for a tea farmer, and as we mentioned before it takes an hour just to produce 50 grams of matcha. That’s only 12 matcha lattes per hour! There’s an estimated 7,500 mills in Japan, which is only enough to produce 1 matcha latte for every American.

To produce premium matcha, these mills are absolutely necessary. The large network of grooves can grind the tea leaves into a finer and finer powder, so the finished matcha is between 5-10 microns in diameter, leading to an ultra fine consistency. Just for reference, some matcha particles are even smaller than a red blood cell and would be invisible to the naked eye, that’s how fine they are. If they are larger, you can start to feel a grainy texture when you drink the tea. 

Why won’t metal mills work?

The stone mill also keeps the temperature low. A metal machine for example would reach too high of a temperature and “roast” the matcha as its being ground, affecting the flavor and nutrients. There are other machines as well that are specialized for producing matcha like the stem separators, which you better believe are in short supply right now. Even matcha packaging is in short supply.

 

#5 Stockpiling Matcha

Because matcha is ground into such a fine powder, it is extremely sensitive to light, heat and humidity so it has a short shelf life. This means that farmers can’t stockpile matcha, they can only stockpile the tencha leaves. Normally, the new supply comes online in August, a few months after the spring.

In every month between August 2025 and August 2026, the matcha shortage will become worse. The supply of matcha will only go down as people begin drinking the fixed supply of matcha which is only harvested in the spring of each year.

 

How Climate affects the global Matcha Shortage

Even the seasons themselves are becoming more unpredictable.

With rapid changes in weather and climate, it is harder than ever for farmers to time their harvest. Japan’s largest tea growing region, Shizuoka, is a bit too far North for tea to grow naturally.

It needs constant attention in order for the leaves to be kept safe from frost. Farmers use fans to circulate warm air onto the plants, and water pumps to keep the temperatures above freezing.

With spring coming so early, the chances of frost hurting the tea plants are increased, and the yields are suffering.

The chances of storms and typhoons are also increased, which presents additional challenges and risks for the farmers. More and more things need to go right in order to have a successful tea harvest in the spring. 

 

So why is there a matcha shortage? The matcha mania explained.

But why is there a matcha shortage and why is it so popular? Matcha has a lot of things going for it. It’s origins trace back to the Tang Dynasty in China, but it really first became popular due to its use in the Japanese tea ceremony, so its very name conjures up images of refinement and elegance.

The tea comes in a powdered form which means it can be mixed into just about anything, cakes, cookies, ice cream and lattes are some popular options. High quality matcha has a super green color to it, so it is visually striking and it has some impressive health benefits as well.

Matcha’s superpower

Unlike other teas, when you drink matcha you are consuming the entire leaf along with all of its nutrients. This means that you are getting more antioxidants, polyphenols, vitamins and chlorophyll per sip of this tea than with any other. It’s no wonder there is a matcha tea shortage with all of these benefits.

But lots of superfoods have antioxidants, but what makes matcha unique is that you feel the impact right away. Matcha drinkers report having a longer lasting, calm alert sensation throughout the day, without the crash or jitters normally associated with coffee. This is likely due to the combination of caffeine and l-theanine, which is thought to slow the absorption of caffeine and reduce some of its negative side effects. 

L-theanine could also help stimulate alpha brainwave activity, the same brainwaves stimulated during long periods of meditation. There is a reason why the Japanese monks were some of the first to drink matcha tea, they found it helped keep them focused during meditation.

An expensive fancy green drink

Part of matcha’s appeal is visual. It’s bright, neon green color instantly pops on Instagram feeds and makes lattes look more like luxury than just a drink. Add to that the rising prices, some ceremonial matchas costing more than champagne by the gram and suddenly matcha isn’t just a wellness drink, it’s a status symbol. The “fancy green drink” narrative only feeds the craze, making matcha both aspirational and unattainable at the same time.

Appropriation of the Japanese culture 

But behind the frothy lattes and glossy reels lies a centuries-old tradition. Matcha was never meant to be a simple trend, it was at the heart of the Japanese tea ceremony, a practice rooted in respect, mindfulness, and connection. As the West rushes to consume matcha as the next wellness craze, there’s a risk of flattening its cultural significance into nothing more than a hashtag. The matcha shortage isn’t just about supply and demand, it’s also a reflection of how quickly social media can transform a sacred ritual into a commodity.

 

What about the matcha shortage in japan?

In addition to a global matcha shortage, there is also a been a matcha shortage in Japan. Historically, the main clients for matcha in Japan have been tea ceremony practitioners, but it has gone completely mainstream because of tourism.

A record high influx of 37 million tourists in 2024 has fueled a Matcha shortage in Japan. While a vast majority of all tea produced in Japan stays in Japan, matcha has always been a more international product. Only about half of the matcha produced in Japan, and the tourists are appearing to make a dent in that supply, with strict purchase limits being placed on tea shops in Japan.

So is there a matcha shortage in japan? It would appear so.

 

Matcha shortage 2025 vs 2024

The news of a matcha shortage started spreading in 2024, but the matcha shortage 2025 will be far worse for a number of different reasons. 

First, the yield in 2025 is lower than in 2024. As we mentioned before, weather has a big influence on the matcha shortage and Japan had a cold spring, which decimated a lot of the tea crops.

Second, the producers have exhausted their reserves of tencha. While matcha can’t be aged, tencha can be cold stored for many months to be ground fresh later. During the matcha shortage of 2024, many farmers depleted their reserves of tencha leaves to keep up with demand.

So we have a lower yield, lower levels of tencha reserves and a fast growing demand for matcha. All of these ingredients will make the matcha shortage 2025 worse than the matcha shortage of last year. 

 

Insights from Japanese Farmers

As a tea company, we get to talk with all the participants of the matcha shortage. Consumers who are blissfully unaware, and drinking matcha at normal volumes. Cafes certain their supply chain will hold up and farmers, who say this is the craziest time in their 50 year career.

Some farmers have raised prices by close to 100%, others have reported order requests increasing by 800% and some are even being approached by the Japanese Ministry of Agriculture Forestry and Fisheries to produce more matcha and less leaf tea. 

Due to the matcha shortage, the Japanese government is offering subsidies to leaf tea farmers so they can grow more matcha and avoid the matcha shortage

When will matcha shortage end?

So when will matcha shortage end? It’s likely that it won’t get better anytime soon. All of the measures being taken to increase supply will take years to come to fruition. We already know the matcha shortage will get worse every month until August 2026, and after that the new harvest is likely not going to keep up with demand.

 

How the threat of a matcha shortage concerns us businesses?

So is there a reason why the matcha shortage concerns us businesses more than others? Over 54% of the matcha that leaves Japan is bound for the United States, making it by far the largest international market.

CBS released an article about why the matcha shortage concerns us businesses particularly because in addition to increased prices, American businesses have to contend with tariffs. At the time of writing, the tariff rate for Japan is 15% which is more than most businesses can absorb. Prices will need to rise on matcha in the US.

 

Final Thoughts on the Matcha Shortage

So as you can see, Japan has a shortage of tea plants, tea farmers and tea machinery, and the global thirst for matcha is growing every year, so it’s only natural there is a shortage. 

We have been working with our farmers over the last few months to make sure we can continue supplying all of our customers with their favorite matchas. Because we have long standing relationships with these farmers going back a full decade, we will be able to keep up with the growing demand of best selling matchas like the Masuda Kyoto matcha, Makinohara, Sakamoto matcha and Chiran premium. Just don’t be too surprised if you see a few matchas out of stock on our website, the supply will be a bit unpredictable for awhile. 

 

How to Survive the Matcha Shortage

If you see your favorite one available on the website, be sure to stock up on it so you can make sure you have a constant supply through the matcha tea shortage. There’s only a few farmers left that can produce these high quality matchas and once they’re gone on our website, they may be gone for good.