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'I feel bad for our customers who have to pay higher prices': Japan's matcha shortage hits Singapore businesses

'I feel bad for our customers who have to pay higher prices': Japan's matcha shortage hits Singapore businesses
A global surge in demand for matcha over the past year could spell trouble for enthusiasts like Jillyn Lee
PHOTO: Jillyn Lee via The Straits Times, TikTok/Matchamantou

SINGAPORE — When Jillyn Lee, 19, first tried a matcha drink in 2022, she was captivated by its rich and creamy taste.

The Singapore Polytechnic student has since made drinking matcha — powdered green tea — a daily ritual, enjoying it at least twice a day.

Her obsession with the superfood even led her to Japan in October 2023, when she visited tea shops and returned with 30 tins of matcha worth $900.

However, the global surge in popularity for the green powder, packed with nutrients and antioxidants, over the past year could spell trouble for enthusiasts like her.

Brewing trouble

Photos circulating on social media show snaking queues and signs outside tea shops in Tokyo advising customers about out-of-stock products or purchase limits.

A Tokyo shop that has placed signs informing customers of limits on purchases.  PHOTO: Lemon8/Sceynthiear

In the past month, leading Japanese matcha producers such as Marukyu Koyamaen, Ippodo Tea and Ocha no Kanbayashi began imposing restrictions on the number of products customers could buy. These limits are expected to last until early 2025.

"Due to a sharp and continued increase in demand on matcha products in the past months, the current demand has already exceeded our production capacity. This results in an extremely low stock of all matcha products at this moment," Marukyu Koyamaen said on its website on Oct 25.

Its president Motoya Koyama told The Kyoto Shimbun that the unprecedented overseas demand for matcha, fuelled by social media trends, forced the company to impose strict restrictions.

Since tea leaves can be harvested only once a year, the company predicts that its stock may run out before the next tea harvest, which is typically scheduled for May or June 2025.

Jillyn Lee bought 30 tins of matcha powder worth $900 in Japan in 2023. PHOTO: Jillyn Lee via The Straits Times

In Australia, where the matcha craze has caught on, the shortage has affected shops and cafes like New South Wales tea shop Simply Native, which recently announced limits on online purchasing.

Matcha, which originated in China in the 12th century, was introduced to Japan, where it became central to the traditional tea ceremony.

By the 21st century, it had gained worldwide popularity for its health benefits, including boosting metabolism and mental clarity.

Matcha drinks have become a cafe staple across the United States, Asia and Europe, with celebrity fans like actress Gwyneth Paltrow, tennis star Serena Williams and model Bella Hadid.

Difficulties 'going green'

Tea shops, cafes and supermarkets in Singapore told The Straits Times they have felt the impact of the shortage, with some raising prices on products by 10 to 15 per cent since mid-October.

Japanese supermarket Iroha Mart increased the price on its premium matcha powder by 10 per cent as it had experienced a shortage from June to October. A 30g can of Rikyuen matcha powder, which once cost $36, is now about $40.

Some TikTok users document their experience queueing to snag a can and celebrating if they are successful. PHOTOS: TikTok/withkx, TikTok/catiemichi

Hayato Yaegashi, director of Iroha International, told ST: "On the one hand, I feel bad for our customers who have to wait and pay higher prices for matcha. On the other hand, I feel good seeing Japanese food spread around the world."

Online tea store Tealife Singapore reported an increase in demand for matcha, with sales in 2024 more than double that of 2023. The store is considering imposing sales restrictions, as the amount of matcha it received in November from suppliers was only 40 per cent of the usual amount.

Cafes and tea rooms like Matchaya and Nana's Green Tea have also experienced delays in shipment ranging from two weeks to months.

A spokesperson for Matchaya, which has four outlets here, said: "The shortage has impacted us by occasionally leading to certain products being temporarily out of stock. To manage this, we've had to order in smaller, more frequent batches, which result in higher shipping costs."

The tea room added that it has not yet made decisions about price adjustments or purchase limits.

Tea room Matchaya added that it is evaluating its options in the light of the current supply challenges. PHOTO: Facebook/Matchaya

However, major supermarkets like FairPrice and Meidi-Ya, and department store operator Isetan Singapore assured customers they have ample matcha stock and will not raise prices or impose sales restrictions.

The Kyoto Prefecture Tea Cooperative, a group of tea distributors in Kyoto, has told local media that even if more tea fields are established, it will take three to five years for new tea leaves to be harvested. 

The group also advised against hoarding matcha, as it has a short shelf life.

Meanwhile, some matcha enthusiasts in Singapore are turning to online marketplaces where resellers charge up to three times the regular price. 

Marketing manager Ang Wei Man, who has a TikTok account that reviews matcha drinks, paid about $40 for a 40g can of Marukyu Koyamaen Isuzu matcha powder on Shopee. The same product is sold out on the official website, where it is priced around 1,250 yen (S$11).

The 33-year-old said: "I'm not pleased with the shortage... I used to get an iced matcha latte for under $10, but now most of them easily exceed $10."

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This article was first published in The Straits Times. Permission required for reproduction.

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