Matcha Crisis: The Global Boom Draining Japan's Tea Fields

1 The Story Begins at an LA Counter

A minimalist matcha bar in Highland Park, Los Angeles. Next to the lively "shaka-shaka" sound of a bamboo tea whisk, customers in their 20s hold up their smartphones to capture slow-motion videos of the vibrant green lattes. Priced at $12 (about 1,900 yen) per cup, the place still sees long lines on weekends. "It's Instagrammable and has less caffeine crash," says a customer.sg.news.yahoo.com

2 The "Instagrammable" Algorithm Driving Explosive Demand

Searching "matchalatte" on TikTok yields over 10 billion views. Videos featuring 3D latte art and collaborations with Japanese sweets go viral one after another, and related tags like "matchashortage" are also on the rise. One video, where someone cries out, "There's no matcha powder anywhere!" has garnered 2 million likes. Trend analyst @TeaSavvy notes, "The combination of color, health, and cultural story is a perfect match for social media algorithms."tiktok.com

3 Tripled Exports, Declining Domestic Consumption

According to statistics from the Ministry of Agriculture, Forestry and Fisheries, the export value of matcha (tencha) has increased about 3.1 times compared to 2015. Meanwhile, domestic consumption of Japanese tea leaves has decreased by 20% over the same period. The export price is 6 to 8 times higher than domestic wholesale, prompting farmers in Kyoto's Uji and Mie’s Ise to shift to tencha cultivation. Behind this is the expectation for "crops that can earn foreign currency" due to a weak yen and inflation.maff.go.jp

4 "Matcha Refugees" and Soaring Wholesale Prices

A long-established tea merchant in Kyoto laments, "The raw material that was 8,000 yen per kg last year is now 14,000 yen." The premium "first tencha" for thin tea is limited, and at auctions, Chinese and American buyers participate online, pushing prices to record highs. Tea ceremony instructors complain, "I can't secure enough for practice, so I can't increase the number of students."

5 Quality Risks and "Adulteration" Suspicions

Amid the matcha boom, accusations of "blending green tea powder from other regions and labeling it as Japanese" have been posted on Reddit's r/tea community, gathering over 4,000 comments. Volunteer tea merchants are considering a joint blockchain system to track origin and lot numbers.reddit.com

6 The Environmental Pitfall

Tea leaves for matcha are covered with nets for 20 to 30 days to avoid direct sunlight. Under the black shade cloth that increases shading rate, nitrogen fertilizer is heavily used to compensate for the lack of photosynthesis, and the mass disposal of shading materials is becoming an issue. Koichi Kawakami, a young farmer in Watarai, Mie Prefecture, says, "I doubled the shading area to meet export demand, but the operation of groundwater pumps in summer is driving up electricity costs."

7 Government's "Large-scale" Plan and Small Farmers' Resistance

The Ministry of Agriculture, Forestry and Fisheries plans to establish the "Tea Industry Smart Agri Support Project" in the 2024 fiscal supplementary budget, subsidizing drone spraying and automatic harvesting machine introduction for large areas. However, family-run farms under 1 hectare hesitate, saying, "Machine investment is a burden." The owner of a tea garden in Tsukigase, Nara, who maintains traditional hand-picking quality, says, "There is a path in the luxury market that values quality over quantity," and has launched a craft matcha brand through D2C.

8 The "Twist" Between the Tea Ceremony World and Café Culture

The "Rich Matcha Mont Blanc Latte" served at a café in Omotesando, Tokyo, contains over 30g of sugar. Meanwhile, a professor from the Urasenke tea ceremony school expresses concern, saying, "The original experience of 'making' is being overshadowed by just the taste." Yet café-goers laugh, "The rituals are difficult. The sweetness is casual and nice." The struggle between cultural preservation and popularization is evident.

9 The Wave of Overseas Sustainability Certification

The U.S. startup "MatchaMark" contracts directly with Japanese organic farmers through its unique sustainability certification. In their LA store, aerial shots of the production area and CO₂ reduction amounts are displayed in AR on the walls, and when customers point their smartphones, a video message from the farmers plays. "Transparency creates a price premium," says CEO Ella. The Japanese tea industry is being pushed to reform by "external pressure."vogue.com

10 Social Media Public Opinion—A Contrast of Joy and Outcry

On TikTok, "super-fast recipe" videos for matcha sweets are gaining popularity, while criticisms like "too expensive" and "it says it's from Kyoto, but the aroma is weak" are erupting. The hashtag めちゃ抹茶できない reached 110 million views in just two weeks. On Instagram, reels verifying "fake Uji" are spreading, with posters asserting, "A boom without transparency won't last."tiktok.cominstagram.com

11 The Pride of Traditional Production Areas—Uji and Yame

Tea masters in Uji say "aroma over color," while tea farmers in Yame pride themselves on "rich umami." However, many overseas users mistakenly believe that "vivid green color" indicates high quality. A survey by the Uji Tea Association found that 65% of overseas consumers prioritize "color over taste." Tea masters are concerned that "excessive color preference distorts quality standards."

12 Young Farmers Challenge the "Third Way"

The young farmer group "Green Frontier" in Chiran, Kagoshima, proposes "light matcha," which halves the shading period. By balancing astringency and umami, they attract coffee enthusiasts and raised 250% of their crowdfunding goal. The emergence of an ageless new market can be seen.

13 The Rise of Specialty Shops and the "Third Wave Matcha"

Following the third wave coffee culture in the U.S., "third wave matcha bars" are emerging in NY and SF. Instead of baristas, "charistas" offer experiential services like stone mill grinding, single-origin, and preparation method selection, boasting a 75% repeat rate even at $13 for the "experience value."vogue.com

14 The Potential of Tea Ceremonies × Metaverse

The VR tea room "MetaChashitsu" by a Japanese startup allows users to experience tea preparation in a virtual space when they purchase an NFT tea bowl, and 50g of real matcha powder is mailed to them. Overseas users make up 70% of the clientele. The Japan Tourism Agency supports it, saying, "The meta-experience stimulates the desire to travel to the real place."

15 Future Scenarios for Tea Farmers

As abandoned farmland increases due to population decline, is matcha a savior or a destroyer?

• Scenario A: Export-Dependent Monoculture—Advancement of large-scale operations and mechanization leads to price competition.

• Scenario B: Multi-Variety and Tourism-Integrated Model—High value-added through agritourism involving tea picking experiences and accommodations.

• Scenario C: Craft Matcha Ecosystem—Small-scale farmers unite regional brands, aiming for an EU-like PDO protection system.

16 What Consumers Can Do

1. Check the origin and processing location

2. Choose direct sales from farmers or traceability QR

3. Paying a fair price supports production areas

Food journalist Mayumi Ito says, "The desire for 'cheap and abundant' ultimately dries up tea fields. Now is the time for matcha to adopt the same perspective as fair trade."

17 Conclusion—Redefining the Act of "Making"

In the tea ceremony, the act of making a cup embodies the spirit of "once-in-a-lifetime encounter." In the age of social media, our single click can impact fields on the other side of the world. Imagining the tranquility brought by a cup of matcha while holding a smartphone—this might be the new "tea preparation."