News Summary
A worldwide matcha shortage is anticipated to peak by 2025, fueled by a surge in demand driven by social media trends and health awareness. The market, projected to reach $6.5 billion by 2030, faces supply challenges due to labor shortages, extreme weather, and rising prices. Local businesses like Kettl in Los Angeles have gained popularity amid the shortage, yet customers are experiencing delays in orders. As matcha’s aesthetic and health appeal grows, stakeholders must navigate rising costs and supply issues in the evolving market landscape.
Los Angeles – A worldwide matcha shortage is expected to reach its peak by 2025, driven by a dramatic rise in global demand. This surge in popularity is largely fueled by viral social media posts showcasing visually appealing matcha drinks, particularly on platforms like TikTok. The COVID-19 pandemic has further amplified interest in matcha, as consumers seek out its rich array of antioxidant health benefits, which are believed to prevent cancer, enhance memory, and alleviate anxiety.
According to industry analysts, the market for matcha is projected to nearly double, with revenues expected to rise to $6.5 billion by 2030. However, supplies have struggled to keep pace due to a series of compounding factors, including decreasing yields from tea farms and diminishing inventories from distributors. Recent severe heatwaves in Japan have particularly impacted the yields of tencha, the traditional shade-grown tea used to produce matcha, exacerbating the supply crisis.
Labor shortages within the tea farming sector have further complicated the situation, leading to wholesale prices for matcha soaring by a staggering 265% this year, as reported by the International Tea Co. In light of this, various companies are responding by stockpiling matcha reserves to secure their inventory.
Impact on Local Businesses
In Los Angeles, businesses such as Kettl, a Japanese tea café, have increasingly become popular spots for matcha enthusiasts amidst the ongoing shortage. Founded by Zach and Minami Mangan, Kettl offers a diverse range of matcha options, with prices starting at $15 for bowls and more elaborate tea omakase experiences priced at $70 per person. The café recently opened its Los Angeles location following its successful launch in Brooklyn in 2021.
Kettl has distinguished itself by providing customers with weekly shipments from Japan that allow for an evolving menu of tea offerings. Customers can participate in classes and guided tastings, driving steady foot traffic and growing interest in Japanese tea culture beyond just matcha. However, patrons have reported longer wait times for matcha orders, with some establishments facing delays of up to six months.
Broader Trends and Concerns
The overall decline in the number of tea farmers in Japan is alarming; around 80% of tea producers have ceased operations over the last two decades. This trend, combined with newly introduced tariffs of 15% on Japanese imports, could lead to even higher matcha prices in the U.S. The average cost for a matcha latte has risen to $6.15, reflecting a willingness among consumers to invest in premium beverages, even as spending tends to slow down in other food categories.
Matcha’s multifaceted appeal is attributed not only to its health benefits but also to its aesthetic value and cultural significance, making it a preferred choice among consumers seeking both wellness and indulgence. In response to the growing demand, several Japanese companies have started to impose purchasing limits on matcha to help regulate supply effectively.
As the global demand for matcha continues to escalate, stakeholders across the food and beverage industry are left grappling with supply issues, rising costs, and a shifting market landscape. The future of matcha availability hinges on the industry’s ability to innovate and adapt amid these challenges.
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HERE Resources
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Additional Resources
- Secret Los Angeles: Matcha Shortage Blamed on Social Media
- Wikipedia: Matcha
- NBC News: Matcha Shortage and Higher Prices
- Google Search: Matcha
- KCRW: Matcha Boom and Its Downsides
- Encyclopedia Britannica: Matcha
- Time Out Los Angeles: Best Matcha Drinks
- Google Scholar: Matcha Shortage
Author: STAFF HERE HOLLYWOOD
The Hollywood Staff Writer represents the experienced team at HEREHollywood.com, your go-to source for actionable local news and information in Hollywood, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Hollywood Bowl summer concerts, the Hollywood Christmas Parade, film premieres at TCL Chinese Theatre, and festivals at the Magic Castle. Our coverage extends to key organizations like the Hollywood Chamber of Commerce and Visit Hollywood, plus leading businesses in entertainment, dining, and tourism that define the local economy. As part of the broader HERE network, including HERELosAngeles.com, HEREBeverlyHills.com, HEREAnaheim.com, and HEREHuntingtonBeach.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
