Core Insights - Guizhou Tongren is recognized as the "Matcha Capital of China," with significant production capabilities and quality standards that exceed international norms [1][5][7]. Production and Market Performance - In 2024, the matcha production reached 1,200 tons, generating a revenue of 302 million yuan, with a projected production of over 820 tons by mid-2025 [3][5]. - The region has the capacity to produce up to 4,000 tons annually, with the largest single matcha refining workshop globally located in Tongren [5][7]. - Tongren ranks first in China for matcha production and sales, and second globally [7]. Agricultural Practices - Guizhou has over 7 million acres of tea plantations, benefiting from high altitude, low latitude, and a cloudy climate ideal for tea growth [8]. - The matcha production process involves strict standards from cultivation to processing, including the use of shading nets to enhance the quality of tea leaves [14][18]. - The province has implemented rigorous pesticide bans and established a green pest control system to ensure food safety in matcha production [19][21]. Technological Advancements - A new production line in a local factory has increased processing capacity from 200 kg to 800 kg per hour while reducing energy consumption and labor costs [26][30]. - The factory produces over 10 tons of refined matcha daily, distributing to more than 50 countries and regions worldwide [30]. Cultural Significance and Innovation - Matcha has historical roots in China, dating back to the Wei and Jin dynasties, and has evolved into a modern cultural phenomenon, especially among younger consumers [31][40]. - The integration of matcha into various food products, such as desserts and local specialties, reflects a trend of culinary innovation and market expansion [41][46]. - In 2024, approximately one in every seven cups of matcha consumed globally originated from Guizhou Tongren [50]. International Expansion - Tongren matcha enterprises have established sales offices in four overseas countries to enhance their international market presence [52].

Core Viewpoint - The article highlights the paradox of China's position as the world's largest producer of matcha, while consumers are willing to pay exorbitant prices for imported Japanese matcha, reflecting a significant disparity in market perception and pricing [2][9][12]. Group 1: Market Dynamics - In 2022, the average export price of Japanese tea reached $27.3 per kilogram, approximately 200 RMB, which is four times higher than that of Chinese tea exports [6]. - Domestic consumers often pay high prices for Japanese matcha, with 50 grams of Uji matcha priced at 368 RMB in premium supermarkets, while local tea farmers sell raw tea leaves for only 20 RMB per kilogram [5][7]. - The demand for matcha in China has been increasing, with the market showing a growth rate of over 10% annually [22]. Group 2: Historical Context - Matcha originated in China during the Tang Dynasty, known as "mocha," and gained popularity in the Song Dynasty before being introduced to Japan [10][11]. - The production techniques for matcha were brought back to Japan by a monk during the Southern Song Dynasty, leading to its widespread popularity in Japan, while it faded in China until recent years [12]. Group 3: Production Landscape - China has seen significant advancements in matcha production over the past decade, with Zhejiang province becoming the largest producer, accounting for a substantial portion of national output [15]. - In 2023, Zhejiang's matcha production exceeded 4,200 tons, generating over 600 million RMB in value, while Guizhou produced 1,200 tons with a value exceeding 350 million RMB [15][16]. - Japan's matcha production has been declining due to an aging workforce, with the number of tea farmers dropping from 53,000 in 2000 to 12,000 in 2020, leading to a significant reduction in production capacity [18][19]. Group 4: Competitive Landscape - Despite Japan holding a 70% share of the high-end matcha market, its supply capabilities are struggling to meet the increasing demand, leading to a reliance on Chinese imports for lower-end products [17][20]. - Chinese matcha has begun to fill the gap in the market, with Guizhou's matcha being exported to Japan, accounting for 70% of Japan's imports in the first half of the year [20][21].

Core Viewpoint - The article discusses the global attention on the shortage of Japanese matcha and highlights the rise of Guizhou, China, as a potential new center for matcha production and consumption, driven by increasing demand and supply constraints in Japan [4][8][10]. Group 1: Japanese Matcha Shortage - In June, a BBC author witnessed matcha powder selling out within five minutes at a famous shop in Uji, Japan, indicating a surge in demand [5]. - The demand for matcha is significantly increasing due to a tourism boom, with a projected 36.87 million visitors to Japan in 2024, a 47% increase year-on-year [7]. - The mismatch between supply and demand has led to a shortage of Japanese matcha, prompting some brands to limit purchases [8]. Group 2: Rise of Guizhou as a Matcha Producer - Guizhou has become the largest matcha producer and consumer in the world, with Tongren City contributing to 25% of China's matcha production [9]. - Guizhou's matcha production has rapidly scaled in the past decade, with Guizhou's Guicha Group producing over 1,000 tons of matcha in 2023, equivalent to 25% of Japan's total matcha production [15]. - In 2025, Guizhou exported 4 tons of matcha to Japan, with expectations for further exports, establishing itself as a supplier for major brands like Starbucks and Haidilao [16]. Group 3: Cultural and Market Development - Guizhou's matcha industry is still in its early stages of brand building and cultural integration, needing to develop a cohesive aesthetic experience similar to Uji's [49][50]. - The local government is promoting the integration of matcha culture with tourism, aiming to create a comprehensive experience for visitors [50]. - The collaboration with new retail enterprises like Hema is helping Guizhou matcha reach a broader audience, enhancing its visibility and market presence [31][32].

Core Insights - The article highlights a global shortage of Japanese matcha, driven by increased demand from tourism and social media, while supply cannot keep pace due to the nature of matcha cultivation and processing [1][3][4]. Supply and Demand Dynamics - The demand for matcha has surged, with Japan expecting 36.87 million tourists in 2024, a 47% increase year-on-year, and a 33.3% rise in matcha search interest on Google Trends from 2019 to 2025 [3][4]. - The mismatch between supply and demand has led to a shortage of Japanese matcha, prompting some brands to limit purchases to ensure supply to important sites [1][4]. China's Emerging Role - China is becoming the largest producer and consumer of matcha, with Guizhou Province's Tongren City contributing 25% of the country's matcha production [4][5]. - Guizhou's matcha production has rapidly increased, with over 1,000 tons produced in 2023, equating to 25% of Japan's total matcha output [5][7]. Export Trends - Guizhou's matcha has begun to be exported to Japan, with 4 tons shipped in the first half of 2025 and an additional 6 tons expected [5][7]. - The export value of powdered tea, primarily matcha, increased by 68% year-on-year in the first five months of 2025, indicating strong demand despite supply constraints [7]. Cultural and Market Development - Guizhou's matcha industry is still in its early stages of brand development and cultural integration, lacking the established aesthetic and experiential elements that characterize Japan's Uji region [14][24]. - Efforts are underway to enhance the cultural experience around matcha in Guizhou, including the establishment of tea culture experience centers and collaborations with retail enterprises [12][24]. Competitive Landscape - Uji, Japan, has developed a comprehensive tea culture and tourism strategy over the past 20 years, which has significantly enhanced its global reputation as a matcha hub [14][24]. - The article suggests that Guizhou has the potential to become a significant player in the global matcha market, but it requires further development in branding and cultural experiences [24].