Matcha seemed like an unlikely contender for a global takeover – a powdered tea with an unnaturally iridescent shade of green and a grassy taste. But here we are – global exports increased by 25 per cent in 2024, according to the Japanese Ministry of Agriculture, Forestry and Fisheries.
Credit: EdoMatcha
On TikTok and Instagram, matcha isn’t just a drink – it’s a lifestyle prop. The hashtag #matcha has over 10 billion views on TikTok alone. From matcha lattes sipped in cars on the way to work, matcha baked goods, to vivid green ceremonial matcha whisked in a chawan in perfect morning light.
Industry insiders, such as Tomo Kita, founder of importer OH!Matcha, point to the early 2000s as the turning point, when matcha shifted from an occasional ceremonial drink to a daily commodity.
“Before 2000, even in Japan we only drank matcha in a ceremonial way,” says Kita, “Since [brands like] Haagen-Dazs and Starbucks created matcha-flavoured ice cream and drinks, it became very popular.”
Travel has amplified the effect. Since Japan reopened post-pandemic, global visitors have surged, tasting high-quality matcha at the source and returning home with higher expectations. “Australians have had a taste of what real authentic matcha tastes like from the origin and now return home with high expectations,” says Monica Nguyen of Japanese-inspired cafe Miyama Melbourne.
Prices reflect the pressure. In May, tencha (the leaf used to make matcha) reached around ¥8,235/kg, a 170 per cent jump from the previous year. “For the first time since we began ordering matcha, one of our suppliers experienced a shortage that lasted several months,” says Group General Manager Thibaut Chuzeville of Yugen Tea Bar in Melbourne. “We’ve seen a fifteen to twenty per cent price increase across both ceremonial and culinary grades in the past six months.”
What's behind matcha's appeal?
Matcha tea – a finely ground powder made from shade-grown tea leaves – comes in two main grades: Ceremonial-grade matcha, which comes from the first harvest (ichibancha), is prized for its smooth texture, vivid colour and savoury-sweet umami. Culinary-grade, often from later harvests, is bolder and suited to lattes, baking and ice cream.
“Ceremonial grade is the highest grade of matcha... The preparation alone focuses on mindfulness and is prepared in a specific way – whisked with hot water only so that you can taste the matcha in the purest form without milk or sweeteners,” says Nguyen.
Credit: Miyama Cafe
A centuries-old tradition under pressure
The global boom is reshaping matcha culture on its home turf. As William Guo Matcha Kobo in Melbourne – which mills its own tencha leaves into matcha powder onsite – explains, the boom is a double-edged sword, “There’s pride in the international demand, but also concern for the local cultural needs… Some tea ceremony teachers in Japan have found it harder to secure their preferred ceremonial-grade matcha… If current demand continues, we could see tight supply for at least the next three to five years.”
Climate stress has compounded the squeeze. Intense heatwaves in Uji, Kyoto – the most renowned and sought-after matcha-production area – cut yields by up to 25 per cent in some orchards. And while farmers plant new fields, tea bushes take five years to mature. Traditional methods – hand-picking, shading and stone-grinding – mean production can’t be scaled quickly. Stone mill grinding alone produces only 30 g of matcha in one hour.
“The biggest challenge Japan faces isn’t just rising demand for matcha – it’s the lack of successors for tea farms and tea business owners,” says Taka Kaneko of matcha supplier EdoMatcha, “Aging and population decline are huge issues in Japan, and they affect every industry including tea. We need more young people, and even foreigners, to get involved in the tea industry in Japan.”
Australia feels the squeeze
In Australia too, matcha has grown from niche curiosity to café staple. “Over the past seven years or so of running the business, I have seen the level of matcha knowledge has lifted significantly,” says Lindwall. “A lot of people have travelled to Japan since the pandemic which has given them a chance to try matcha in traditional places such as Kyoto and Uji... and desire high quality Matcha."
That quality increasingly comes at a cost. Matcha Yu Tea faced a two-month gap in supply this year when first-harvest stock ran out. “The new 2025 tea pricing also came in at 60% more than what I had previously bought matcha for in 2024,” Lindwall says, with no guarantees of availability.
For Japanese-inspired cafe and bar Kahii in Sydney, ceremonial and premium grades have become the hardest to source, “farms can’t easily increase production” and that finding reliable suppliers who offer consistent quality at competitive prices “has become increasingly difficult,” says Director Matt Wong.
How to get your matcha fix – from the experts
While there’s no one quick or easy solution to the global matcha shortage, there are some practical things consumers can do to still enjoy this prized flavour – while balancing it with a respect for traditional culture.
Derek Yang, co-founder of Melbourne-based matcha and Japanese homeware store, Hikari Life, says, “If you’re adding jams and fruit, please don’t waste your high grade matcha as you will lose all the characters which farms have put effort into growing them. Save those for ceremonial moment and respect the culture behind it.”
Yugen Tea Bar’s Chuzeville agrees that culinary-grade matcha is better suited for mixing as well as baking and cooking, "Educating customers on using the right grade for the right purpose is essential – not just to preserve tradition, but to ensure a sustainable future for farmers and the matcha market as a whole.”
Minimising 'haul' culture is also needed – especially as the tea is best consumed within six months. "Matcha is at its best when fresh – large bulk purchases often lose quality before they are finished. Support producers who practise sustainable farming and fair labour... choose the right matcha for the right purpose... be willing to pay a fair price – quality matcha is labour-intensive, and your support helps tea farms pass their craft to the next generation," says Matcha Kobo's Guo.
“Buy only what you can use within a few weeks… Choose the right matcha for the right purpose… Be willing to pay a fair price – quality matcha is labour-intensive, and your support helps tea farms pass their craft to the next generation,” says Matcha Kobo's Guo.
3 matcha alternatives to try
Above all, why not treat this as an opportunity to explore other Japanese brews, each with its own history, flavour, and loyal following?
Hikari Life has added hojicha, genmaicha and sencha alongside matcha to their menu, and says the response has been positive.
Nguyen admits she personally drinks hojicha more than matcha, as it's “smoky, earthy and has a naturally sweet flavour... and less caffeine than matcha, making it perfect for the afternoon... I really hope to see hojicha and genmaicha (green tea with roasted brown rice) become just as popular as matcha.”
More and more people are switching from coffee because they like the smoother, longer-lasting caffeine kick from matcha.
Hojicha powder, a roasted green tea with a toasty, nutty profile and low caffeine, makes a comforting latte. Genmaicha blends green tea with roasted rice for a warm, popcorn-like aroma. And mugicha, or barley tea, is a summer staple in Japan – naturally caffeine-free, refreshing, and best enjoyed chilled. At Kahii, their Black Sesame Cloud Latte is a popular menu item.
Shortage or not, matcha is here to stay – but how we drink it will shape its future.
