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May 9, 2025 • 17 mins

Japan has a matcha shortage despite record levels of production. Shops are selling out of the green tea powder as soon as they hit the shelves.

On today's Big Take Asia Podcast, host K. Oanh Ha talks to Bloomberg's Mia Glass about the world’s obsession with matcha – and why producers can’t keep up with the rising demand.


Read more: The Global Matcha Boom Is Driving a Shortage in Japan

Further listening: Japan’s Small Businesses Have a Problem. They Don’t Know How to Raise Prices

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Episode Transcript

Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news. So I'm here to
order an iced shake and macha.

Speaker 2 (00:11):
I know you only serve ten of them, do you
have any laugh? We have one left, so you're very
lucky today. If you've been to an independent coffee shop
pretty much anywhere recently, there's a good chance you've heard
about the Macha shortagch. Macha tea powder has soared in
popularity in recent years. Its distinctive bright green hue has

(00:31):
started showing up in macho latees, macha pastries, even in
Macha soft serve. But now the supply of authentic, high
quality macha coming from Japanese farmers is struggling to meet
global demand.

Speaker 3 (00:46):
We have just one Macha product right now, the ice
shake and Macha, and we limit it to ten drinks
a day. It is just to stretch out that supply.

Speaker 2 (00:56):
Thomas chen is the tea director of two nine in Waher, Washington,
d C, a Japanese cafe and restaurant that opened a
few weeks ago. Our senior producer, Naomi Shaven visited last week. Okay, wow,
so you've almost completely sold out by two fifteen.

Speaker 3 (01:10):
That is wild.

Speaker 1 (01:11):
I would love to order it.

Speaker 2 (01:12):
It's the kind of place you might expect to offer
Macha everything.

Speaker 3 (01:16):
Macha was supposed to be kind of the centerpiece of
the Leka Japanese drinks program, and then we were going
to incorporate it into the pastry program as well, And
now it's become kind of a okay, like what we
need to scale this whole plan back. And it's not
just like the supplies, like even when they do have supply,

(01:37):
the prices have already gone up. Tariffs have definitely affected
that too.

Speaker 2 (01:43):
I'm Sarah Holder. Today on the show, my colleague Wanha,
who hosts Big Take Asia, traces the Macha supply chain
from cafe to wholesaler all the way back to the
farmers on the ground in Japan. What's behind the shortfall
and what would it take to meet the Macha demand.

Speaker 4 (02:03):
Jasmin Smith is a designer living in Japan. She and
her sister Freya make videos about their everyday life in
Tokyo in their spare time.

Speaker 1 (02:12):
Welcome back to dan life living in Tokyo.

Speaker 4 (02:15):
Today, and there's one thing they love about living in Japan.
Japanese green tea, also known.

Speaker 1 (02:21):
As Macha Mancha just tastes amazing. We both used to
be coffee drinkers actually, but at some point Mancha just
took over as our go to caffeine source and it's
been part of our morning routines ever since.

Speaker 4 (02:33):
They started posting videos on TikTok in twenty twenty two,
sharing their favorite Macha cafes, daily morning routines and telling
their thousands of TikTok followers where they can get the
best macha powder online and in Tokyo. But a couple
of months ago, they were surprised when they went to
get their usual Macha fix at this tiny store in
their neighborhood.

Speaker 1 (02:54):
It's just run by an elderly woman, and she told
me that, yeah, she has nothing to sell to me unfortunately,
and recently she told us that a lot of foreigners,
a lot of young people are visiting her shop, so
every time she restocks, she instantly sells out, which never
used to happen.

Speaker 4 (03:13):
Bloomberg reporter Mia Glass, who's based in Tokyo, also noticed
this happening at Macha stores around her.

Speaker 5 (03:20):
Mancha has just completely blown up overseas. People come to
Japan and they know about macha from social media. They've
studied it, and they really want that high quality type
of macha when they come here, so there's a huge
shortage of macha in Japan.

Speaker 4 (03:36):
Welcome to the Big Take Asia from Bloomberg News. I'm Wanha.
Every week we take you inside some of the world's
biggest and most powerful economies and the markets, tycoons and
businesses that drive this ever shifting region. Today on the
show the Macha Mania, what's driving this macha boom and
why can't macha makers in Japan keep up? Mia, It's

(04:04):
great to have you, thanks for joining us.

Speaker 5 (04:06):
Thank you so much for having me so.

Speaker 4 (04:09):
Because today's episode is all about macha. I've got a
cup of cold macha with almond milk here with me
in the studio in Hong Kong, Mia, What are you drinking?

Speaker 5 (04:17):
So? I got an iced macha latte, which is my
go to order, and I got it from this macha
cafe that's actually near our office building. It's by this
amazing family run Japanese tea company that's been around for
like three hundred years.

Speaker 4 (04:30):
Oh that's amazing. Now, shall we give these macha drinks
a taste?

Speaker 2 (04:34):
Yes?

Speaker 5 (04:35):
Cheers.

Speaker 4 (04:38):
Hmm, this one is not quite bitter enough for me.
I think it's been it has too much almond milk unfortunately,
but I can still get the flavor of the macha,
you know.

Speaker 5 (04:47):
I just love how unique The taste is kind of
like this mix of umami but also bitter, sometimes a
little sweet. So it's just a flavor you can't really
get from anything else.

Speaker 4 (04:58):
Mia. Tell us exactly what is macha?

Speaker 5 (05:01):
Yeah, so, macha is a Japanese word. It means powdered
tea and Japanese so it's a type of green tea
where the entire leaf is grounded into this powder.

Speaker 4 (05:12):
This way of making green tea originated from China in
the twelfth century. A Japanese monk who was traveling there
was so impressed with the energy boost the drink gave
him that he brought it back with him to Japan.
It's said that Japanese monks used to drink macha to
stay awake during long meditation sessions, and today macha is
at the center of Japanese tea ceremonies that are performed

(05:35):
for cultural and religious purposes.

Speaker 5 (05:38):
Depending on the tea ceremony, there will be different types
of macha, like a thinner macha or a thicker one.
There's specific steps that they have to go through. It's
carefully whisked into this frothy drink that you drink at
the end. And it's a practice that emphasizes a lot
of Japanese values like mindfulness, harmony, tranquility, respect, those kinds

(05:58):
of things.

Speaker 4 (05:59):
And macha is this just for traditional ceremonies. You'll find
it everywhere you go in Japan.

Speaker 5 (06:05):
In Tokyo, there's a macha cafe on like every block here.
Everything is macha now, bubble tea, cakes, cookies, even in
coffee shops here they usually have macha now, so you
can pick between the two.

Speaker 4 (06:18):
Japan is one of the world's largest producers of macha.
The country made about four thousand tons of the powdered
tea in twenty twenty three. That's almost a threefold increase
from two thousand and eight and an all time high,
and in recent years it's becoming more popular overseas. Last year,
Japan's export of green tea, which includes macha, reached a

(06:40):
record high of about two hundred and forty five million
US dollars. That's a roughly quarter increase from the previous year.
But despite the record level of production, Japan has a
macha shortage. Shops sell out of macha as soon as
they hit the shelves, forcing people to go out of
their way to find the tea powder, and some of

(07:00):
the most prominent macha producers have also stopped selling certain
products and limits the number of cans of macha customers
can buy at a time. Mia says there's one clear
driver for the increasing demand.

Speaker 5 (07:14):
People on TikTok and Instagram and other social media platforms
have really made an esthetic out of macha. It has
this bright green color that is really attractive for social media,
and so people will show off that bright green macho
lte or desserts, and people even have Macha stations complete
with traditional mugs and whisks and strainers and things like that,

(07:35):
and they will decorate it. So it's really this aesthetic
that people have jumped on. And then of course there's
a nutritional aspect as well.

Speaker 4 (07:43):
The craze for macha comes at a time when there's
been a growing interest in health and wellness products. You'll
hear social media influencers talk about the health benefits macha offers.
It's rich in antioxidants and caffeine, which some studies suggest
can help boost energy and lower risk of disease yes,
and on top of these viral social media videos contributing

(08:04):
to the shortage, Mia says there's just a lot of
people traveling to Japan and buying macha in person.

Speaker 5 (08:11):
There are so many tourists in Japan right now, mainly
thanks to the weekend, so basically everything is on sale
once you get to Japan, and there's also just generally
more interest in Japan. Last year, thirty seven million people
visit the country, which is a record, and it's up
forty seven percent from twenty twenty three. A lot of
videos on TikTok and Instagram show a lot of people

(08:32):
recording macha. I saw a few videos of people literally
having a suitcase full of macha, you know, from different
stores to try the different flavors and stuff like that.
Because they're only in Japan for you know, a week
or two. They're like, oh my god, I have to
buy up all this macha while I'm here. So people
definitely are buying a lot of macha, and that's definitely

(08:53):
contributing to the shortage.

Speaker 4 (08:55):
While Japanese have been drinking less green tea over the years,
out side of Japan, the appetite from macha is expanding.
Cafes and tea stores as far as Sydney and Australia
have seen sales skyrocket, forcing owners to limit customer purchases
because they're unable to source more of the tea powder
from Japan after the break, Why can't Japanese tea producers

(09:21):
just make more macha? Growing fine quality macha has a
lot to do with the land and the climate. The
plant needs to be shaded, the soil needs to drain

(09:42):
well but also retain a decent amount of water. And
while macha is produced in a variety of regions in Japan,
there's one particular place renowned for this highly prized tea.

Speaker 5 (09:54):
So the most famous region is Uji, which is on
the southeast border of Kyoto, and that's where macha farmers
have master techniques of growing and harvesting the best macha
and they've been doing this for centuries.

Speaker 4 (10:06):
Mia. Can you walk us through the life cycle of macha?
How is macha made?

Speaker 5 (10:12):
So it's a very long process. So basically in a farm,
you have just rows and rows of tea plants. In April,
the first shoots of the season are going to appear,
and then the tea plants are gradually shaded over time,
so that blocks the direct sunlight for the plants. That
gives it that chlorophyll, that bright green color, and it

(10:33):
also enhances the taste and also gives it antioxidants, which
gives you that nutritional component.

Speaker 4 (10:40):
The highest grades of macha are usually grown in almost
darkness before they're harvested around late April or May. The
green tea leaves are handpicked and hours after they're harvested,
they have to be steamed for less than a minute.
That stops the oxidation process and keeps the leaves green.
Then the leaves are left to dry, they're decedemped and debate.

Speaker 5 (11:01):
At this point they are called tensa. So this tensha
will be blended together basically to make different flavor profiles.
So that's also a part of the farmer's experience and knowledge.
They know how to blend the macha to make certain flavors,
and then after it's been stored in a refrigerator, it's
going to get grinded to turn into the maucha powder
that we know in stores.

Speaker 4 (11:22):
So that does sound like a long and arduous process,
but certainly not impossible, right, Why can't supply just keep
up with the demand.

Speaker 5 (11:30):
Yeah, so the whole process that I just described, it
only happens once a year for the most premium types
of macha, so farmers can't harvest more on demand. The
annual supply is usually determined well in advance, and it's
obviously a really slow precise process as well. So the
traditional stone mills only grind about forty grams of macha

(11:52):
per hour, and specialized macha processing machines are super limited
in number, so increasing production speed would definitely come reminds
the quality of the macha. And also a lot of
these types of produce are pretty much made by family
run businesses in Japan, and obviously Japan has a declining population.

(12:12):
It's ajang and there's not enough people to take over
those farms in the future, so there's really just a
decline and supply for that reason as well.

Speaker 4 (12:22):
Another reason for the macha crunch is that Japanese tea
producers tend to prioritize long standing customers. Marukio Koyaman, one
of the leading brands of macha and Japan, says it
needs to be strict sales to make sure there's enough
supply for customers at temples, shrines, and other venues that
use macha for religious or ceremonial purposes. Mia, is there

(12:45):
any protective policy in place here? Why can't Japan just import,
for example, fresh tea from overseas and process it at home.

Speaker 5 (12:54):
There's definitely some national or cultural pride ut play here.
It's not like Japan has any rule about importing from
other countries or regulations, but it's really more just about
what people want. I think a lot of people in
Japan really just love Japanese macha and they really trust
the quality that these Japanese farmers bring because they've just

(13:16):
been doing it for centuries. So I think a lot
of Japanese people, although they'd be fine with drinking macha
that's imported from other countries, they probably want to have
that Japanese macha.

Speaker 4 (13:28):
Mia says. Farmers in other countries like the US, South Korea,
and China are trying to make more of their own macha,
but it's hard to replicate the kind of macha you
get in Japan, and that's because of a combination of
climate and soil so specific to the country, not to
mention the centuries Japan is spent on perfecting the growing
and processing techniques. Mia, is there anything that the Japanese

(13:51):
government can do to help the macha supply catch up.

Speaker 5 (13:55):
The government is basically promoting more farmers to make tensha
rather than other types of teas right now, because that
can be turned into macha, and they're also supporting the
tea industry as a whole through various subsidies and programs
to encourage tea growing and also just promoting research in general.
Because the problems like the asing population and also climate

(14:17):
change heavily affects the production of macha. They're really trying
to research what's the best method to continue to make
more macha.

Speaker 4 (14:24):
Those government measures will take some time to bear fruit,
if they ever do. Meanwhile, Mia says, for macha lovers
living in Japan now, the difficulty in getting this unique
green tea powder is just another inconvenient side effect of
Japan's tourism boom.

Speaker 5 (14:42):
Yeah, it's definitely one of the ways that the tourism
issue is manifesting in Japan. I know there are a
lot of locals who are really angry that there are
so many tourists in the streets and in shops. I
also hear complaints about people don't want Airbnbs in their
neighborhood because of the garbage and the noise and things
like that. And then I know in Kyoto, for example,

(15:03):
the buses have been so crowded that a lot of
the locals who are going to work have to wait
for like three buses to pass because there are so
many tourists, especially with like suitcases. So I think there
are a lot of locals who are a bit upset
about the over tourism right now.

Speaker 4 (15:21):
Despite some of these public complaints, the Japanese government says
it wants to attract more tourists. Its goal is to
welcome sixty million foreign visitors a year by twenty thirty.
That's a jump of more than sixty percent from last
year's record, and that Mia says might add more pressure
on macha's supply.

Speaker 5 (15:40):
Your macha lattes will probably become more expensive if the
shortage continues. And I know a lot of new macha
businesses and cafes, not just in Japan but all over
the world are having a really hard time finding tea
producers with enough to sell. So I've heard that wholesalers
in Japan just have to turn down new clients because
a lot of macha for the next harvest is already reserved,

(16:03):
So that's going to cafes and Japan that are trying
to start out, and cafes abroad. I know a lot
of cafes and foreign countries are starting to jump on
this matcha tron, but it's almost too late because there's
just no supply.

Speaker 4 (16:16):
Miah, I think we should drink our drinks, our macha
drinks while we can still afford them. Of course, enjoy, cheers, cheers.
This is the Big Take Asia from Bloomberg News. I'm
wan Ha. This episode was produced by Naomi mum Young
Young and Jessica Beck. It was edited by Grace Jennings

(16:37):
ed Quist, Patty Hirsch, and Isabella Stegger. It was fact
checked by Adrianna Tapia and mix and sound design by
Taka Yasuzawa and Alex Uguira. Our senior producer is Naomi Shaven.
Our senior editor is Elizabeth Ponso. Our executive producer is
Nicole Beemster Bower. Sage Bauman is Bloomberg's head of Podcasts.
If you like this episode, make sure to subscribe and review.

(16:59):
They take Asia wherever you listen to podcasts. It really
helps people find the show. Thanks for listening, See you
next time.
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