Why US demand for Japanese matcha is straining the $3.5 billion industry

Matcha has become one of the most sought-after teas in the world, with the US now importing over 2,000 tons from Japan a year.

As more Western consumers demand ceremonial-grade matcha — the highest-quality and most expensive kind — Japanese farmers are struggling to keep up. Extreme weather, aging tea farmers, and labor-intensive production methods have all contributed to global shortages and record-high prices.

Meanwhile, the rise of cafes like Aoko Matcha in New York City and social media trends like #matchatok have fueled even more demand.