Global demand for matcha green tea has surged, driven by its rising popularity in trendy cafes worldwide. Japanese producers are struggling to meet this increased demand amid challenges posed by heat stress on tea plantations and a declining number of tea farms. The situation is exacerbated by the imposition of tariffs from the United States, which have contributed to rising prices and supply shortages. These supply constraints have led to matcha shortages in various international markets, including Seattle and Los Angeles, with prices reportedly tripling in some areas. The shortage has caused disruptions for retailers and consumers, with some coffee shops reducing inventory or running out of matcha entirely. Meanwhile, the broader tea and coffee markets face additional pressures from tariffs and regulatory changes, influencing retail prices globally.
Matcha tea lovers are turning on each other after growing demand for the Japanese beverage has resulted in global shortages, skyrocketing prices. https://t.co/bnWKDG1Ggl
Coffee Rally Has Peaked But Tariffs Can Pose Risks, Lavazza Says https://t.co/G336Scj2ki
Coffee retail prices have peaked for now but remain vulnerable to tariff risks and regulatory changes, according to Italian roaster Lavazza https://t.co/0KhYmlTtaV