Kiwi chains join matcha trend, could worsen shortages in Japan

Matcha drinks have spiked in popularity locally, with Kiwi chains joining the trend and possibly worsening current shortages in Japan.

The green tea powder has skyrocketed in popularity internationally as an antioxidant-rich coffee alternative.

Alongside health benefits, its aesthetically pleasing look has granted matcha significant social media virality.

Data from point of service (POS) business Bustle reveals the drink’s popularity, with matcha orders increasing by 84 per cent between 2021 and 2024.

This boost in popularity means Kiwis are becoming more well-informed on matcha, which was previously less known in Western countries.

In a 2022 interview, Emma Ye, co-founder of matcha business Thea detailed how their research conducted a decade ago highlighted an education gap: “It was mainly low grade [matcha] passing around the market with a high price because of low education.”

However, lower grade matcha may continue circulating as suppliers grapple with worsening shortages in Japan, the world’s largest matcha producer.

According to the Ministry of Agriculture, Forestry and Fisheries, more than half of Japan’s matcha is exported, with production almost tripling since 2010 to 4,176 tons in 2023.

Japanese producers are struggling to keep up with global demand due to a delicate supply chain, a slow growing process and a declining number of matcha growers.

Strains on the industry caused popular tea companies Ippodo and Marukyu to limit matcha purchases in September – November 2024, an industry first.

Low supply has led to lower-quality matcha, often mixed with lower-quality tea leaves, sugar, or dairy products, being pushed to meet extreme demand.

According to Harvard Health, traditional matcha is made exclusively of ground tea leaves, also known as tencha, from the plant scientifically known as Camellia sinensis.

Matcha is commonly found at cafés, but chains are taking note of the trend, with juice chain TANK and petrol station Z introducing matcha to their in-store menu.

Z Spokesperson Sophie Andrews explains why Z began selling matcha drinks:

“In June 2024, we introduced [matcha drinks] in response to growing demand and trends in both local and overseas markets.

“Since then, matcha sales have grown rapidly, and we have extended our range to include hot, iced, frappé and most recently, strawberry matcha.”

Andrews could not confirm the origin of the matcha powder Z uses, nor the security of its supply chain.

Furthermore, she noted that their supplier’s product is “a sweeter and creamier blend of matcha which contains dairy”.

As matcha’s popularity continues to rise while supply dwindles, consumers looking for high-quality matcha may have to search harder.