Saturday

07-26-2025 Vol 2033

Atlanta’s Matcha Craze Hits a Supply Wall

On a scorching weekend morning in Atlanta, the demand for Shogun’s matcha has reached new heights, with customers lining up around the pop-up stand.

Owner Danny Tirmizi finds himself selling out of matcha, cups, and even ice in just hours.

Despite the bustling scene, Tirmizi warns that this success is overshadowed by a significant challenge: a global matcha shortage.

Causes of the crisis include booming demand, limited supply, and a traditional farming system that struggles to adapt.

Growing global demand for matcha is evident; Japan produced 4,176 tons in 2023—almost three times the amount produced in 2010.

Brandi Shelton, owner of Just Add Honey Tea Company, notes that matcha has become one of her top-selling items, with a consistent rise in sales over the past several months.

Tirmizi, who sources directly from a Japanese farm, describes the current situation as tragic.

The first harvest of the year has proved especially challenging, with anticipated deliveries delayed from three weeks to two months.

To manage demand, Tirmizi has had to limit customers to two tins each, a decision born from observing panic buying trends.

According to economist Tom Smith from Emory University’s Goizueta Business School, these shortages align with broader patterns in supply and demand.

Western markets are increasingly eager for Japanese products, with Georgia welcoming its first Daiso store, a popular Japanese retail chain.

Smith points out that the ongoing matcha shortages can be likened to the pandemic-related scarcity of tapioca during the boba tea craze.

The introduction of a 25% tariff on some Japanese imports may exacerbate matters.

As matcha has no domestically produced equivalent in the U.S., these tariffs could significantly raise prices for consumers.

Unlike typical commodities like steel, which have local sources, matcha’s unique characteristics may lead to even higher costs.

Matcha is not merely a trendy beverage; it is steeped in centuries of tradition and craftsmanship.

While it shares its origins with green tea, true matcha is shade-grown, hand-picked, and ground into a fine powder.

Unlike steeped varieties, matcha requires consumption of the whole leaf, setting it apart in the tea world.

Unfortunately, the market’s sudden growth has left traditional matcha producers struggling to keep pace.

The average age of tea farmers in Japan is around 60, reflecting an industry in decline for decades.

Anna Poian, co-founder of the Global Japanese Tea Association, emphasizes the dual-edged nature of rising global interest in Japanese tea.

While producers are pleased by the surge in popularity, they are also overwhelmed by its speed and scale.

With many younger individuals viewing tea farming as unprofitable, the number of new farmers is dwindling.

Despite these issues, there’s a glimmer of hope that increased demand might inspire younger generations to consider tea production as a viable career path.

However, scaling matcha production poses a significant challenge.

Simply planting more tea bushes is not an option, as many Japanese tea farms operate as small family businesses.

Transitioning to matcha requires substantial investment and time, as tea bushes take five years to mature.

Producers worry about the risk of investing in matcha farming if the boom eventually subsides.

Weather challenges further complicate the situation, as Japan has faced record high temperatures for two consecutive years.

The Kyoto region, which produces a significant portion of Japan’s matcha, suffered from heatwaves, affecting yield quality during the April-May harvest.

Increasing production is not straightforward, as farmers face geographical limitations and relentless work demands.

These farmers often operate from dawn until dusk, with little time to rest.

The future of matcha remains uncertain as economic pressures and traditional farming challenges collide in Atlanta and beyond.

image source from:11alive

Abigail Harper