Understanding the Matcha Boom of 2024 and Finding the Answer to
Why All Marukyu Koyamaen and Horii Shichimeien Ceremonial Grade Matcha Sold Out for the First Time in History
A round table discussion:
Kyoto, SEP 26, 2024
Horii Shichimeien President and Representative Director: Horii Chōtarō
Sazen Tea President and Representative Director: Jotatsu Motonari
Sazen Tea Managing Director: Agnes Balogh
Reading time: 15 min.
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’s Insights
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 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 Can't Supply Keep Up?
The sudden surge in matcha demand took everyone by surprise, and Uji manufacturers struggled to keep up for two main reasons:
- 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, and manufacturers have extended their operating hours, running not only during regular hours but also at night, on weekends, and during holidays. However, even these provisions were not sufficient.
- 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
Matcha’s popularity is clear. Uji experts are discussing the challenges they face and their visions for the future.
Horii Chōtarō, Horii Shichimeien’s third-generation owner shared his thoughts on the situation:
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. In the Uji tea market, its price has almost doubled over the past four years. 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 tourist 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, manufacturers are dedicated to traditional stone mill grinding as it is crucial for maintaining the quality of Uji Matcha.
There is a mutual agreement that this situation reflects more than just a passing trend for matcha; it shows a lasting demand that tea manufacturers are willing to fulfill by building new facilities and implementing other initiatives.
According to our opinion - Agnes and Motonari -, 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.
Marukyu Koyamaen, the most famous manufacturer of Uji Matcha, announced like a bolt from the blue that he was unable to cope with the accumulated volume of orders and limited the supply to a minimum and then almost froze it. An unprecedented situation arose that they could no longer manage. We, as reseller partners, tried to adapt and find a solution for our customers following Marukyu's instructions for a few months, but the situation only got worse and our customers' dissatisfaction only grew. After all this, we decided to suspend Marukyu matcha sales. We're focusing on the other great Uji Matcha producers who still have volume. Regardless, we trust that for the next Shincha Season, Marukyu Koyamaen will be able to overcome the problem and produce enough stock that Sazen Tea can once again delegate worldwide.
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. Sazen Tea's 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 production is able to meet our criteria. 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.
Find your favorite matcha among the Uji Matcha Manufacturers:
- Hekisuien
- Hokoen
- Kanbayashi Shunsho
- Yamamasa Koyamaen
- Horii Shichimeien - OUT OF STOCK
- Marukyu Koyamaen - OUT OF STOCK
