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! BREAKING NEWS: Oct 08, 2024 Due to a severe shortage at the manufacturer, Sazen Tea is suspending sales of Marukyu Koyamaen and Horii Shichimeien Ceremonial Matcha starting today for an indefinite period. We are servicing existing orders, but we are no longer accepting new matcha orders for these makers. Ceremonial Matcha from other makers continue to be available. Learn more about the situation HERE
TOPICS:

Where Did All the Matcha Go?

Where Did All the Matcha Go?

Understanding the Matcha Boom: A Roundtable Discussion

1. The Beginning - Recent Changes in the Matcha Supply Chain

2. Matcha Rush: Why Supply Can't Keep Up?

3. Popularity of Matcha and Future Prospects - Horii Chōtarō, Horii Shichimeien’s Third Generation Owner’s Insights

4. Passing Trend or New Era?

5. Our Vision for the Future: Adapting to Growing Demand in the Matcha Industry

 

 

1. The Beginning - Recent Changes in the Matcha Supply Chain

 

In the past few months, there have been many changes in the matcha sales. It all began with increasingly longer wait times for matcha supplies from manufacturers. Customers were confused as delays continued, and we had little information to share. Some matcha shipments arrived slower than usual, while others stopped coming altogether. New policies limited order quantities, and some popular products never made it from the manufacturer. Producers did not provide straightforward explanations and customers’ confusion and dissatisfaction kept growing.

So what was happening and what is happening now?

 

2. Matcha Rush: Why Supply Can't Keep Up?

The sudden surge in matcha demand took everyone by surprise, and Uji manufacturers struggled to keep up for two main reasons:

  1. Many people picture large factories with lots of workers, but most tea manufacturers are small, family-run businesses. Their facilities are modest, and they rely on traditional processing methods, using only a few modern techniques. To maintain their high-quality matcha, they grind tea with granite stone mills, which have limited production capacities. Crafting new stone mills is challenging because only a few artisans can make them. While ball mills or airflow mills can speed up the grinding process, they don't produce powder of the same high quality. Granite mills are now automated, but manufacturers can only increase production by running them at night and on weekends, which wasn’t enough.
  2. And then, came the next challenge: the supply of tencha ran out. Matcha can only be made from specific shaded tea leaves, which are treated and processed differently than loose tea. Although tencha can be stored in freezers for years, the rising demand quickly depleted existing stocks.

The solution to these challenges seems simple: manufacturers need to process and store more tencha while expanding their facilities. However, implementing this requires time and significant investment.

 

3. Popularity of Matcha and Future Prospects - Horii Chōjirō’s Insights

 

Matcha’s popularity is clear. Uji experts are discussing the challenges they face and their visions for the future. Recently, Horii Chōtarō, Horii Shichimeien’s third generation owner shared his thoughts on the situation. Here is what he said:

 

“Following the conclusion of last year's COVID-19 State of Emergency, Japan has seen a significant influx of inbound visitors. The love for matcha, a key part of traditional Japanese culture, has really taken off over the years. It all started about two decades ago when cafes outside of Japan introduced matcha ice cream and Frappuccino. These treats helped make matcha popular with a wider audience. Thanks in part to the tea ceremony, there has been a big increase in the demand for high-quality matcha as well. People love its delicious flavor, its health benefits, and the fact that it’s non-addictive. This has made premium matcha appealing to many.

Most of the matcha comes from Kyoto Prefecture, where local tea farmers use traditional growing methods. Manufacturers then apply advanced processing techniques, all of which contribute to the esteemed reputation of Uji Matcha. The quality of matcha from this area is simply unmatched, which is why so many people seek out high-grade matcha specifically from Uji.

 

Introducing tea culture to the general public can be challenging. The strict rules and etiquette of tea ceremonies may make locals hesitant to participate, as they are concerned about doing it correctly. In contrast, foreigners do not necessarily see this as an issue. If they enjoy the taste, they are more likely to embrace it, contributing to the popularity of Kyoto's matcha for its simple and delicious flavor.

 

One key ingredient, hand-picked tencha, is in high demand. Its price at the Uji Tea Market has jumped from 13,000-14,000 yen per kilogram over the last four years to 20,000 yen this year. This surge is mainly because more people from abroad want high-quality matcha, and tea stocks were quickly used up before the new tea season. As a result, retailers rushed to buy the fresh supply as soon as it became available.

 

The demand for matcha is strong outside of Kyoto, especially in Tokyo and other popular touristic areas. Uji, near Kyoto and the Byodoin Temple, draws many visitors, making it hard for wholesalers to keep up with demand. One wholesaler mentioned getting orders for thousands of cans of hand-picked matcha at a time, with large requests coming from both traditional matcha sellers and leaf tea distributors.

 

Turning tencha into a fine powder requires a matcha grinder, which can limit production capacity and cause shortages. Unlike other methods, we are dedicated to traditional stone mill grinding as it is crucial for maintaining our quality.

We are taking steps to tackle these challenges by building a new factory and implementing other initiatives. We believe this situation reflects more than just a passing trend for matcha; it shows a lasting demand that we are prepared to fulfill.”

 

4. Passing Trend or New Era?

Matcha’s rise to international fame is a complex story. It all began in the early 2000s when nutrition experts labeled it a “superfood.” People quickly became captivated by its unique flavor and impressive health benefits. Cafés and restaurants started adding matcha drinks to their menus, making it a staple choice for many.

In the 2010s, we ran the Marumoto Japanese Tearoom in Budapest, featuring matcha from Marukyu Koyamaen, Horii Shichimeien, Hekisuien, and Hokoen, offering over 10 varieties at any given time and attracting around 10,000 customers each month. There, we noticed a clear demand for high-quality matcha. Our koicha grade teas became especially popular, as more people sought out traditional preparation methods beyond latte and trendy beverages.

However, the pandemic disrupted this growing interest, sending the matcha world on a roller coaster ride, with demand plummeting to its lowest point before soaring to new heights. In Japan, social distancing measures led to the suspension of tea ceremonies and the closure of cafés, resulting in a drop in demand that caused producers to scale back on matcha production. Once Japan reopened its borders, however, demand surged, again, unexpectedly. Influencers played a significant role in promoting matcha's benefits and deliciousness, solidifying its place in our daily lives. As interest skyrocketed, stockpiles vanished almost overnight. Is this just a passing trend, or is it the beginning of a new enduring chapter in the history of matcha? Very likely, the latter.

Matcha is now seen as a healthier alternative to coffee, transitioning from a fleeting trend to a permanent staple in the food industry. The matcha world is adapting to this exciting new reality, embracing its role as a lasting favorite.

 

5. Our Vision for a New Era: Adapting to Growing Demand in the Matcha Industry

Manufacturers are recognizing that they are entering a new era in the world of tea. They need to expand their businesses, increase production, and prepare to cater to a much larger market than ever before. This involves ramping up capacity and stockpiling more tencha.

At Sazen, we are also adapting to these new circumstances. To grow our portfolio, we are on the lookout for new matcha manufacturers whose products meet our quality standards. One thing is certain: while adjusting takes time, Sazen is committed to doing it as effectively and quickly as possible. We believe there is a way to meet the growing demand while maintaining our high-quality standards.

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