Matcha was once unknown outside Japan, where the powdered green tea was traditionally prepared by whisking it with hot water, as part of meticulously done tea ceremonies.However, over the last few years, and especially in recent months on social media, it has snowballed into a full-blown lifestyle trend at a global scale. As matcha makes its way into cafes and restaurants, brewed into lattes and baked into cakes and cookies, the demand for the core ingredient has surged.What has driven the hype to the point that the Japanese tea industry and farmers are now struggling to keep up? And why can’t more matcha be produced quickly? We explain.What’s behind the matcha craze?Matcha’s popularity has been driven by multiple phenomena, including wellness influencers who swear by its health benefits, and the rising interest in Japanese culture thanks to anime shows and manga comics. It’s also been compared to other recent trendy items, such as Labubu dolls and Dubai chocolate, which suddenly blew up for no particular reason, involved somewhat costly products, and are seen as part of a social media-driven wave.However, matcha also has detractors who are put off by its earthy taste, often criticised as “grassy”. Still, data from Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF) shows that exports of Japanese green tea (including matcha) grew by 40 per cent in terms of quantity between 2020 and 2024. It also led to a 55 per cent rise in value, from 16.2 billion yen ($109 million) in 2020 to 36.4 billion yen ($245 million) in 2024.Also Read | Matcha may not be everyone’s cup of tea, but it’s brewing up a cultural obsessionSpecifically, matcha production also grew threefold between 2010 and 2023 amid increasing demand. Around half of the matcha produced in Japan is exported, according to The Japan Times.How is matcha produced?Matcha is derived from Camellia Sinensis, a plant native to East Asia, Southeast Asia and parts of the Indian subcontinent, used to produce a variety of caffeine teas. However, matcha is distinct in how it is cultivated, harvested and processed.Story continues below this adThe tea leaves are grown partly in shade, resulting in increased production of chlorophyll. It lends a green pigment to leaves and is the reason why matcha has a brighter, greener appearance. The leaves are then plucked, steamed and dried, called tencha at this stage. When tencha is ground into powder, it becomes matcha. The grinding process was earlier done by hand at home, but now involves specialised mills. Matcha, the brightly colored powdered green tea has become popular among health-conscious consumers. (Eric Helgas/The New York Times)What explains the shortage?Japan has been unable to keep up with the demands of the global matcha market, expected to grow to about $5 billion by 2028. The industry has reported delays in meeting orders, leaving warehouses and vendors with empty shelves.Explained | Origins of the viral Dubai chocolate, now helping drive up pistachio pricesLeading matcha sellers like Ippodo and Marukyu Koyamaen have also flagged shortages. In July, Ippodo stated, “To get our matchas to as many customers as possible, we’ve temporarily limited both the varieties and quantities available.” Similarly, Marukyu Koyamaen’s website states that due to the “unexpected high volume of orders”, matcha products will be available in limited quantities.Story continues below this adEssentially, matcha was never meant for mass production. It is the result of a seasonal, slow-moving and labour-intensive process that cannot keep up with the speed of global consumption.A part of the current crisis is due to the decline in farming households in Japan. A recent MAFF report flagged the decline in cultivation area. Between 2008 and 2023, the cultivation area reduced from 48,000 hectares to 36,000, and the number of farming households decreased from 46,000 to just 20,000.The report attributes this decline to the “lack of successors to producers”, which can be linked to Japan’s declining fertility rates in recent decades, and also notes “labour shortage” during peak seasons. Low domestic demand for green tea has also resulted in farmers diversifying their crops in the past.Add to this the sweltering summers that Japan has been experiencing for the past two years, with last year marking the hottest summer on record. The heat destroyed crops, resulting in lower tencha yields this April-May harvest season.Story continues below this adHowever, an increase in production would not solve the crisis immediately. Ippodo, which has been in the green tea business since 1717, explained that tea plants take over five years to mature before they can be harvested.Moreover, tencha leaves are also hand-picked, after which they require a resting period for quality preservation — a process that’s both time-consuming and labour-intensive. Even the grinding of tencha into matcha is a gradual process. According to The Japan Times, a machine can only grind about 40 grams of matcha per hour.What happens now?The Japanese government has stepped in to help its local tea growers meet the demand and encouraged other farmers to switch over to tea production. The government also intends to lease agricultural machinery to save labour and reduce costs, as per the MAFF report.Suppliers, meanwhile, are looking to procure matcha from other countries like China and South Korea, which also grow the plant, but do not meet Japan’s quality standards.