Matcha mania turns the green powder into gold

Core Insights - The surge in matcha's popularity has resulted in a global shortage, primarily due to high demand and limited production in Japan [1][4] - Matcha's reputation as a superfood has significantly increased its consumption, especially among overseas customers [2][4] Industry Overview - Japan has a long history of matcha consumption, dating back to the 12th century, primarily in tea ceremonies [4] - The recent trend has led to a fourfold increase in green tea exports from Japan over the past decade, with exports reaching 36.4 billion yen ($247 million) last year [5] Company Insights - Atelier Matcha, a matcha cafe founded by Chitose Nagao, has successfully navigated the supply shortage by partnering with Marukyu Koyamaen, a historic tea producer [3] - The cafe has expanded to two locations in Japan and additional outlets in Vietnam and the Philippines, indicating strong international demand [3] Production Challenges - The production of tencha, the tea used for matcha, is labor-intensive and requires more hands for harvesting and processing, contributing to the supply constraints [6] - The Japanese government is considering subsidies to encourage farmers to allocate more land for tencha cultivation to alleviate the strain on aging farming communities [5]