Matcha boom fuels shortages, delays and higher costs

Demand for matcha is surging so quickly that suppliers and cafés are facing months-long delays and rising costs.

Reina Sakao imports Matcha, a green powdered tea, from Japan, but in recent years, she has noticed the industry is struggling to keep up.

“Because of this crazy matcha trend, it is so hard to supply the demand,” said Sakao of Sakao Japanese Tea.

She says demand is soaring while supply remains limited. Orders that once arrived in two to three weeks are now taking two to three months. She also says that rising production costs are adding to the pressure.

“So, the cost of the loose leaf to make matcha has increased about 30 per cent. So that’s a big jump, we had to increase the prices as well,” she said.

One Montreal business, which relies partly on Sakao’s imports, is feeling the pressure as well.

Hank Teav, who is the co-owner of Matcha Zanmai in downtown Montreal, says he had to raise prices.

“I would say next year, before spring, I will have to readjust my price again,” said Teav.

He adds that social media played a role in making the green drink popular, with many online buying into its health and wellness benefits.

Agri-Foods Analytics Lab Senior Director Sylvain Charlebois agrees the “trend” is creating strain throughout the supply chain.

“So, that’s putting a lot of pressure on matcha inventories,” said Charlebois.

He notes that matcha production is highly labour-intensive, making it difficult for producers to keep up with rising demand.

“My concern here is that when you have difficulties to produce a highly, sought after commodity, you end up seeing a lot of fraudulent cases out there,” said Charlebois