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Climate change threatens matcha supplies as social media fuels matcha mania

Matcha’s popularity is rising across the globe, yet shrinking harvests caused by record-breaking heatwaves in Japan are dwindling global supplies.

Matcha’s vivid green colour is practically made for posting on social media – and its nutritional benefits are nothing to skim over either, packing in high levels of antioxidants, caffeine, L-theanine, and more. Yet, as Gen Z and Millennials flock to their favourite coffee shops for iced matcha lattes, record-breaking heatwaves in Japan have severely impacted matcha harvests, particularly in the Kyoto region, which is responsible for around 25% of tencha (the Japanese green tea leaf used for matcha) production.

As reported by Reuters in July 2025, farmers’ tencha harvests have dropped sharply, and prices for the crop surged, with a May auction in Kyoto hitting a record price of 8,235 yen per kg, 170% higher than in 2024.

In response, some retailers in Kyoto are setting limits on how much customers can buy. According to the BBC, the Kyoto-based Camellia Tea Ceremony has set a limit of one tin of matcha per customer.

The problem of over-consumption and geographically concentrated production

In the 2010s, quinoa’s popularity went mainstream after the crop was identified as a “superfood”. As a result, Peru and Bolivia, responsible for 80% of production, saw increased exports and a boosted economy, but consequently, increased prices meant that what was once a staple in the diets of Bolivian and Peruvian communities became unaffordable for many.

While Japan doesn’t rely on matcha as a dietary staple, the concentrated supply and global demand are echoed.

Ingredients Network spoke with Neeti Mahajan, economic, social, and governance (ESG) and climate risk consultant at EY and author of the sustainability newsletter The Break Down, about what risks trends such as this pose.

Mahajan explained that overconsumption is a key problem, compounded by the fact that production is concentrated in one part of the world. “From a climate risk and ESG perspective, this creates a possibility for water stress (because of excessive production), harm to other crops grown with matcha, and the crop facing adverse issues due to climate-related irregularities,” she said.

Mahajan also touched on the risk for human-rights-related issues: “As there is no regulation or even a global union/organisation for matcha, there is the possibility of farmer exploitation and labour rights issues to crop up in Japan and other parts of the world.”

Possible solutions, Mahajan explained, could be to establish “stringent governance through an organisation or global standard for matcha, or boosting local production through smart agricultural techniques”.

Another solution, according to Mahajan, is a call to consumers: Do not fall prey to Instagram reels and trends.

No slowdown in new product development is flooding the market

Harvests may be shrinking, yet the matcha trend shows no signs of slowing. As of August, many brands have launched novel matcha-based products in 2025.

According to Mintel’s Global New Product Database, brands are experimenting with frozen formats. The Nutter Company launched a matcha and pistachio ice cream in Hong Kong, and the brand SOTI Natural x Chill Berry launched frozen strawberries coated in matcha white chocolate in Poland.

Brands are also using matcha as an ingredient in spreads. In Indonesia the brand BeOrganik launched a matcha spread made from vegan butter and matcha powder, the Honey Project in the UK created its Mighty Matcha Honey, which is a blend of British honey and matcha, and in Germany, Zotter Crema launched a hemp bread spread made from hemp paste, seeds, and oil, cane sugar, cocoa butter, wheatgrass powder, and matcha powder, among others.

Confectionery and sweet applications include matcha marshmallows launched in the UK by Muji, and in Thailand, Happy Mate released a freeze-dried matcha brownie tempeh made from tempeh, matcha, coconut sugar, almond, cocoa butter, and Himalayan salt.

How can F&B companies sustainably source ingredients like matcha?

Matcha isn’t going anywhere anytime soon. So, the question and challenge for brands is how to keep up with demand while sourcing sustainably.

“The concept of farm-to-table really needs to extend to matcha,” Mahajan said, adding that companies selling matcha can also “turn their marketing more awareness-oriented for their consumers”.

If awareness-oriented marketing and educating consumers is one side of the coin, sourcing sustainably is the other side. This could include working with certified producers, diversifying supply chains, and avoiding relying solely on one region, like Kyoto.