Matcha Takes Over the World

Once confined to traditional Japanese tea ceremonies and wagashi confectionery, matcha has become a ubiquitous presence in cafés and supermarkets worldwide. Matcha lattes, matcha ice cream, matcha chocolates, and even matcha-infused skincare products. The range of applications has expanded remarkably.

Demand has surged particularly in the United States, Europe, China, and Southeast Asia. According to Japan's Ministry of Agriculture, green tea export value hit a record roughly 36.4 billion yen in 2024, about five times the 2014 figure (and around 2.5 times by volume), with powdered green tea including matcha making up the bulk of it. The momentum carried into 2025, with July exports up around 90% year on year.

Why Has Matcha Become a Global Phenomenon?

The Health-Conscious Movement and Superfood Trend

Amid growing global health consciousness, matcha has gained attention as a "superfood." The health-promoting compounds in matcha (catechins, L-theanine, and antioxidants) have captured the hearts of health-conscious Western consumers. It's also embraced as a healthier alternative to coffee for caffeine intake.

Social Media and "Instagrammable" Culture

Matcha's vibrant green color photographs beautifully on Instagram and TikTok, driving explosive popularity among younger generations. Overseas influencers posting matcha drinks have dramatically boosted its global recognition.

Growing Interest in Japanese Culture

The worldwide fascination with Japanese culture through anime, manga, and Japanese cuisine has provided tailwinds for matcha's popularity. More consumers seeking "authentic Japanese matcha" has led to surging demand for Japan-grown tea.

Major Chain Adoption

Global café chains like Starbucks incorporating matcha into their permanent menus has made matcha accessible to mainstream consumers everywhere.

Serious Impacts on Japan's Domestic Market

Soaring Tea Leaf Prices

With demand outpacing supply, domestic tea prices have started to climb after years of stagnation. In 2025, average first-flush tea at the main producing region of Shizuoka reached about 2,173 yen per kilogram (as of July), up roughly 40% year on year. Tencha, the shade-grown leaf ground into matcha, trades at around 2.6 times the price of regular sencha, and producers across Japan are shifting toward tencha and ramping up output.

Japanese Consumers Feel the Pinch

The burden of rising prices falls on Japanese domestic consumers. For Japanese people who have enjoyed tea as part of their daily lives, price increases for familiar brands hit household budgets hard. Traditional sweet shops and cafés using matcha are also struggling with soaring ingredient costs, forcing many to raise their prices.

Tea Farmers' Dilemma

While increased exports present revenue opportunities for tea farmers, many are troubled by balancing export demand with domestic supply. Concentrating production on higher-priced export markets could reduce domestic supply and trigger further price increases.

Quality Concerns

There are concerns that rapid demand growth may lead to prioritizing production efficiency over quality. Additionally, products labeled as "matcha" overseas sometimes turn out to be different green tea powders entirely, raising concerns about protecting Japan's matcha brand reputation.

Future Outlook and Countermeasures

Government agencies and industry organizations are working toward increasing production while maintaining quality standards. Initiatives under consideration include developing new tea fields, improving production efficiency, and establishing quality standards to protect "authentic matcha."

Meanwhile, some argue this situation should be viewed as an opportunity to promote Japanese tea culture globally, advocating for strengthened exports of premium, high-value-added matcha. Balancing consideration for domestic consumers with export promotion will be a major challenge going forward.

What About Local Foods in Your Country?

Has your country experienced something similar, where a local specialty becomes internationally popular and drives up prices at home? What do you think about the Japanese matcha boom? We'd love to hear your thoughts in the comments!

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