Matcha tea has surged in popularity as a morning caffeine fix, drawing many fans away from traditional espresso options. Influencers on social media have significantly contributed to this trend, leading to a skyrocketing demand that is now straining the supply chain, especially in Japan where matcha is sourced. As cafes like 10 Dean struggle to meet customer needs, some suppliers are restricting quantities. Experts warn that consumers may face noticeable price hikes in the coming months as a result of this frantic demand and limited supply.
"I worked on the bar a few weeks ago and I think past a certain point, you don't just skim milk, you don't pull shots. Everything you do is matcha," said Nadiia Semenichenko, regional manager at 10 Dean, a cafe and bar in Toronto.
"By the end of this year, we'll feel substantial price increases in matcha, for sure," she said, referring to the cafe's costs.
Exploding global demand for matcha-flavoured products has left Japanese suppliers struggling to keep up, driving up prices and leading to shortages of the finely ground green tea powder.
Matcha is made from ground tencha, a type of green tea leaf that is shade-grown giving it a more intense flavour and a deeper colour before being steamed, dried, destemmed and passed through a milling machine to produce a powder.
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