Japan's Matcha Crisis: Inside the Supply Shortage Shaking Global Matcha Wholesale Markets

Last October, something unprecedented happened in Kyoto's centuries-old tea districts. Ippodo Tea, a company that's been selling matcha since 1717, did something they'd never done before—they put purchase limits on their premium matcha powder. Within days, Marukyu Koyamaen followed suit.

For those of us in the matcha wholesale business, this was our canary in the coal mine moment. What started as whispered concerns among tea merchants has exploded into the most serious matcha shortage Japan has seen in decades.

The Perfect Storm Nobody Saw Coming

I've been working with Japanese tea producers for a few years now, and I've never witnessed anything quite like this. The numbers from Kyoto Prefecture tell a stark story—their 2025 harvest numbers are down significantly compared to previous years, and demand has gone absolutely bonkers.

Here's what's really happening on the ground. The Japanese agriculture ministry reports that tencha production (that's the leaf that becomes matcha) increased 2.5 times between 2014 and 2024. Sounds good, right? Wrong. Demand has outpaced even that massive increase.

You can blame TikTok partly—seriously. Those viral matcha latte videos and "matcha everything" trends have created a global obsession that's caught everyone off guard. But there's more to it than social media hype.

Why This Year Hit Different

Spring 2025 threw us a curveball. The cooler weather actually helped develop more complex flavors in the tea leaves—which sounds great until you realize it also meant smaller yields. It's one of those cruel ironies in agriculture where better quality often means less quantity.

But here's the kicker that many people don't understand about matcha production: you can't just scale it up like manufacturing widgets. Those tender first-flush leaves that make premium matcha? They're only available for a few days each spring. The farmers I work with describe it as a narrow window where everything has to be perfect—weather, timing, processing capacity.

And the processing itself is incredibly labor-intensive. It takes about an hour to properly dry and stone-grind the leaves into that fine powder we all know. There's no shortcut, no industrial hack that maintains quality. This creates natural bottlenecks that can't be easily expanded.

What's Actually Happening in Matcha Wholesale Markets

The reality for matcha wholesale buyers right now is pretty brutal. I'm seeing inventory constraints that weren't supposed to last until at least August, and many suppliers are pushing estimates to October or even November 2025.

The premium organic segment is getting hammered the hardest. Fewer suppliers can meet organic certification requirements, and those who can are dealing with their own supply limitations. If you're a wholesale buyer focused on organic matcha, you're probably already feeling the squeeze.

Lead times that used to be 2-3 weeks are now stretching to 2-3 months. I've had longtime wholesale clients tell me they're completely restructuring how they forecast and order because the old models just don't work anymore.

The Authentication Problem Nobody's Talking About

Here's something that's keeping me up at night—with legitimate Japanese matcha becoming scarce, we're seeing more questionable products entering the market. Some suppliers are pushing lower-grade matcha as premium, or worse, trying to pass off Chinese green tea powder as authentic Japanese matcha.

This puts wholesale buyers in a tough spot. Your customers expect authentic Japanese matcha, but verifying authenticity has become more critical and more difficult than ever. The pressure to fill orders is tempting some buyers to compromise on quality verification.

Regional Differences Matter More Now

While everyone fixates on Uji matcha from Kyoto (and for good reason—it's exceptional), other Japanese regions are stepping up. Shizuoka, Kagoshima, and Nishio have been quietly expanding their matcha production capabilities.

The quality might be slightly different from traditional Uji matcha, but it's still authentically Japanese and often excellent. Smart wholesale buyers are starting to diversify their sourcing beyond just Kyoto Prefecture.

Here's something the industry doesn't advertise: several producers have been quietly sourcing matcha from other regions and blending it with their local production, all while maintaining the prestigious 'Uji matcha' label. The economics are simple—Uji's reputation allows them to charge premium prices that other regions can't command.

Looking Ahead: When Will This End?

The honest answer? Nobody knows for certain. The producers I speak with regularly are cautiously optimistic about the 2026 harvest, assuming we get normal weather patterns and their expansion efforts bear fruit.

Some farms are investing in new cultivation areas and improved processing equipment, but tea cultivation isn't like switching on a factory line. It takes years to establish new tea gardens and train workers in traditional processing methods.

How We at Omakasejp Are Dealing With This Mess

Look, we saw the writing on the wall earlier than most. When our long-term producers started mentioning supply concerns in late 2023.

We've doubled down on our relationships with established producers and brought several smaller, high-quality farms into our network. This wasn't just about securing supply—it was about maintaining the quality standards our wholesale clients depend on.

Our approach has been pretty straightforward: treat our producers as partners, not just suppliers. That means paying fair prices, providing advance commitments, and working with them on long-term planning rather than just placing orders when we need inventory.

We've also ramped up our quality testing significantly. The storage side has been a major investment, too. Our producers have expanded to three climate-controlled facilities and increased our safety stock to about six months of typical demand. It's expensive, but it means we can fulfill orders consistently while everyone else is scrambling.

We're also being more transparent with our clients about market conditions. Nobody likes surprises, especially when you're planning product launches or seasonal campaigns. Regular market updates and early warnings about potential availability changes have helped our partners plan better.

Don't let the matcha shortage disrupt your business—reach out to info@omakasejp.com today with your contact details (name, company, email, phone, and country), and let's discuss how we can meet your needs during these challenging market conditions.

What This Means for the Industry

This shortage is reshaping how the matcha wholesale business operates, probably permanently. The days of calling up a supplier and expecting immediate delivery of large quantities are over, at least for the foreseeable future.

Relationships matter more than they ever have. Suppliers are prioritizing long-term partners over one-off buyers. If you're not already building strong relationships with Japanese producers or trusted intermediaries, you're going to struggle.

The market is also getting more sophisticated about quality differentiation. Customers are learning the difference between ceremonial grade and culinary grade, between authentic Japanese matcha and imitations. This education trend actually benefits wholesale buyers who focus on quality and authenticity.

The Bottom Line

The matcha shortage isn't just a temporary blip—it's a fundamental shift in how this industry works. Supply will eventually catch up with demand, but the market that emerges will look different from what we knew before.

For wholesale buyers, success now depends more on relationships, quality verification, and strategic planning than ever before. The companies that adapt to these new realities will emerge stronger, while those hoping to return to the old way of doing business might find themselves left behind.

The Japanese tea industry has survived wars, economic upheavals, and changing consumer preferences for over a thousand years. It'll survive this shortage too, but it's going to require patience, flexibility, and smart partnerships to navigate the transition.