Prized Matcha from Kyoto Struggles to Keep Up with Surging Demand

Uji matcha is a premium powdered green tea cultivated in Kyoto for nearly 800 years. While it has long been popular, it is now experiencing an unprecedented surge in demand.

Known for its delicate balance of sweetness and astringency, Uji matcha is believed to have originated during the Kamakura period (1185–1333).

Today, it is enjoyed both as a drink and as an ingredient in various sweets. The rise in demand is partly attributed to the significant increase in inbound tourism to Japan.

Since autumn 2024, supply shortages have become common, with some tourists reportedly bulk-buying matcha far beyond personal consumption.

In response, stores have suspended sales temporarily and set a limit on purchase amounts. Overseas demand has also spiked, with matcha being resold at steep markups.

The Japanese government now plans to increase matcha production, aiming to expand exports.

Concerns Over Quality

Hosoi Farm, a tea producer in Kyoto's Wazuka town, began receiving messages on social media about matcha sales for business around the autumn of 2024.

Prior to this, it was rare for tea farms to receive such inquiries, but now the farm is regularly inundated with requests for quantities ranging from tens to hundreds of kilograms of matcha.

"We initially directed these customers to other tea farmers, but the demand has outgrown what we can handle," a Hosoi Farm representative explained.

He also expressed concerns that this overwhelming interest might lead to low-quality products or counterfeit matcha entering the market, potentially damaging the reputation of the esteemed Uji matcha brand.

Interest in Japanese cuisine and health trends, particularly in countries like the United States, has fueled the demand for matcha-based products, such as lattes and sweets.

According to trade statistics from Japan's finance ministry, green tea exports reached a record high in 2023, totaling 7,579 tons with an export value of ¥29.2 billion JPY (about $186.6 million USD). Over the past decade, export volumes have increased by approximately 2.5 times, with powdered tea products like matcha accounting for over 70% of the total export value.

The Kyoto Tea Cooperative Association noted that a shortage of Uji matcha had become evident by late October 2024. Demand for high-quality, rare matcha is quickly exceeding supply.

*A matcha seminar hosted by the Kansai Bureau of Economy, Trade and Industry in February 2024, Wazuka Town, Kyoto Prefecture.*

Calls to Buy Smaller Quantities

Since autumn 2024, some retailers have suspended sales to ensure matcha is available for regular customers, such as those involved in traditional tea ceremonies. In Kyoto, some stores continue to limit purchase quantities.

At Tsuen Tea, a long-established Uji tea shop in Uji City, bulk purchases by inbound tourists have surged since November 2024. Some customers have bought up to 10 units of matcha, leading to shortages of certain rare items. Yusuke Tsuen, the company's president, believes the purchase limits at department stores may have contributed to this trend.

A representative from the Kyoto Tea Cooperative Association explained that high-grade matcha is inherently scarce and labor-intensive to produce. They also confirmed that purchase restrictions are necessary at the moment, advising consumers to buy only what they can consume, as "matcha loses its quality when stored for long periods."

High-Priced Resales Across Asia

Uji matcha has become a target for high-priced resales on shopping websites in Southeast Asia and other regions. In China, unauthorized trademark registrations for Uji tea have also emerged.

In late 2024, a Thai website listed a 40-gram matcha product, typically priced at ¥1,500 (about $10), for ¥4,400 — nearly three times its usual price. The product was originally sold by a long-established Uji tea shop, alongside other matcha items. Similar resales have been seen on websites in Vietnam and Singapore, where matcha is being sold for more than double its usual price.

While it remains unclear if these resales are directly linked to the surge in demand, some Japanese companies have started implementing countermeasures. These include discouraging purchases intended for resale and rejecting excessive orders or bulk shipments to the same address, which often signal resale activities.

Counterfeit and imitation Uji matcha products have also appeared on overseas shopping platforms. One such instance occurred when "Kyoto Uji" was registered as a trademark in China without authorization. The Kyoto Tea Cooperative Association filed a nullification request with Chinese authorities in November 2019, which was approved in January 2021.

The Prized Uji Tea

Uji tea is cultivated in and around Uji City in Kyoto Prefecture, where local tea producers carefully process it. Its origins trace back to the Kamakura period, when Zen monk Eisai brought tea seeds from China and planted them in Uji.

Originally, tea was consumed as matcha, the powdered form of green tea made by grinding dried leaves. During the Edo period, Uji developed a new method of steaming and heat-drying fresh tea leaves, which led to the creation of sencha, where tea is prepared by infusing the leaves in hot water.

(Read the article in Japanese.)

Author: Akari Horiguchi, The Sankei Shimbun