Global demand for matcha creates supply issues, impacting local markets and prices.
The global surge in demand for matcha, particularly over the past year, has caused significant shortages in Japan, which are now being felt in Singapore and other markets worldwide. Enthusiasts like Jillyn Lee, a 19-year-old Singapore Polytechnic student, have seen their favorite green tea powder become increasingly difficult to find. Lee, who has been consuming matcha daily since 2022, even traveled to Japan in 2023 to stock up, purchasing 30 tins of matcha worth $900.
However, the global demand for matcha, fueled by social media trends and a growing interest in its health benefits, has outpaced production. Leading Japanese matcha producers like Marukyu Koyamaen and Ippodo Tea have been forced to impose purchase limits, which are expected to last until early 2025. As tea leaves can only be harvested once a year, producers fear that stocks will run out before the next harvest in May or June 2025.
In Australia, cafes like Simply Native have also been impacted, imposing purchase limits due to the shortage. Singapore is not immune to this shortage, as local tea shops, cafes, and supermarkets report increased prices of 10-15% for matcha products since mid-October. For instance, Iroha Mart, a Japanese supermarket, raised the price of its premium matcha powder by 10%, with a 30g can now costing around $40, up from $36.
The shortage has also led to longer shipping delays for popular local cafes like Matchaya and Nana’s Green Tea, which have struggled with supply issues. Matchaya has resorted to ordering smaller, more frequent batches, which has led to increased shipping costs. Despite these challenges, major supermarkets like FairPrice and Meidi-Ya in Singapore have assured customers that they have sufficient stock and will not raise prices or impose sales restrictions.
Some matcha enthusiasts are turning to online marketplaces, where resellers are charging up to three times the usual price for scarce products. As the shortage continues, experts suggest that it may take three to five years for new tea fields to be established and for production to stabilize. In the meantime, matcha fans are urged not to hoard the product, as it has a short shelf life.
