Navigating the Global Matcha Boom: Understanding Market Challenges and Smart Sourcing Strategies

Matcha is experiencing an unprecedented global boom. However, behind this surge lies what industry insiders call the “matcha bubble”—a perfect storm of supply shortages, sourcing difficulties, and price volatility that makes market entry increasingly challenging year after year. This article cuts through superficial trends to provide comprehensive guidance on building a sustainable, profitable matcha business that can thrive long-term.

Key Takeaways

• Global matcha demand has reached record highs, with 2024 green tea exports hitting ¥36.4 billion (70% powdered tea)
• Market entry barriers include extreme quality variation, 10x price differences, unstable supply chains, and complex export regulations
• Successful buyers prioritize traceability, COA documentation, stable annual supply capacity, and grade-specific product recommendations
• Four common pitfalls: price-focused purchasing, shallow production knowledge, regulatory ignorance, and inadequate continuity planning
• Strategic sourcing requires multi-grade sampling, MRL compliance verification, and comprehensive OEM planning from the outset

＼For Companies Seeking Matcha Powder／

We source matcha from Japan’s premier production regions including Kyoto Uji, Kagoshima, Fukuoka, and Shizuoka, offering comprehensive grade ranges from organic JAS-certified ceremonial grade to processing-grade matcha.

Common Challenges:

• “We have projects but cannot secure stable matcha supply…”
• “We want to incorporate matcha into new café menu items!”

If you face these concerns, consult with Matcha Times. Feel free to contact us for initial inquiries.

Why the Matcha Business Is Called a “Bubble” Right Now

While matcha markets expand rapidly worldwide, entry barriers grow proportionally. Without proper understanding of underlying dynamics, newcomers face typical failures: unstable procurement, inconsistent quality, and razor-thin margins. First, let’s examine why matcha has reached “bubble” status and what structural factors drive this phenomenon.

Explosive Global Matcha Demand Growth

Recent matcha demand has reached unprecedented levels of continuous expansion.
According to Ministry of Agriculture, Forestry and Fisheries statistics, 2024 green tea exports achieved a record ¥36.4 billion, with approximately 70% attributed to powdered tea including matcha.

Global demand expansion stems from several key factors:

• Rising health consciousness (antioxidants, catechins, L-theanine)
• Japanese cuisine and culture boom
• Permanent matcha menu adoption by major international café chains

Particularly in America, Europe, and Asia, growing numbers recognize matcha as a “superfood,” driving demand not only from cafés but also confectionery and food manufacturers.

→ Demand vastly outpacing supply accelerates “bubble” conditions

Explosive Growth of Matcha Lattes in Café and E-Commerce Markets

The global establishment of “matcha latte culture” represents the primary driver of demand surge. Major chains worldwide—Starbucks, Blank Street Coffee, Blue Bottle—have made matcha menu items permanent fixtures, sparking recipe development competition.

Furthermore,

These phenomena collectively embody what’s known as the “matcha crisis,” symbolizing supply shortages.

→ Café demand remains elevated, creating chronic market scarcity

Social Media (TikTok/Instagram) Triggering the “Second Wave Matcha Boom”

Social media platforms play an indispensable role in the current matcha boom.

Particularly on TikTok:

• “How to make matcha lattes”
• “Daily matcha ritual”
• “Matcha skincare”

Such videos achieve viral status, creating a culture where overseas Gen Z incorporates matcha into daily life.

On Instagram,
matcha lattes’ vibrant green color makes them highly “photogenic drinks,” prompting cafés worldwide to compete in introducing matcha menus.

Social media’s “second wave boom” simultaneously triggers two phenomena:

However… New Entry into Matcha Business Is Far From Simple

The matcha market is often misunderstood as “growing = easy entry,” but reality proves entirely opposite. Particularly in 2024-2025, conditions have deteriorated to what’s called the “matcha crisis“—supply difficulties so severe that quality assessment, procurement, regulatory compliance, and long-term supply all reach maximum difficulty. Here we systematically organize why matcha business proves dangerous for beginners.

① Extreme Quality Variation Creates “Cheap = Failure” Dynamic

Matcha’s defining characteristic is exceptionally wide quality variation.

Matcha quality depends on these factors:

• Color (vibrancy, greenness)
• Aroma (covered fragrance, roasted notes)
• Umami (L-theanine content)
• Bitterness (catechin levels)
• Foaming ability (latte suitability)
• Solubility (grinding precision)

All these factors significantly vary based on origin, harvest season, tencha quality, milling technology, and storage methods.

Beginners tend to judge by appearance,
but “bright green = high quality” is incorrect.

Moreover, inexpensive matcha frequently exhibits:

• Strong bitterness
• Grayish, cloudy appearance in lattes
• Rapid sedimentation
• Weak aroma

Purchasing based solely on price results in high failure probability.

② Market Complexity with “10x+ Price Differences” (€20-200/kg)

Matcha represents one of the rare ingredients globally where per-kilogram price differences exceed 10x. Even under the same “MATCHA” label, prices vary dramatically by application, harvest season, origin, and quality.

Typical international market pricing:

• 20-35 USD/kg: Culinary grade
  → Strong bitterness, darker color. Unsuitable for lattes.
• 40-70 USD/kg: General café latte grade
  → Highest demand segment for matcha latte bases.
• 80-120 USD/kg: Premium latte/confectionery grade
  → Bright color development, excellent umami-aroma balance.
• 150-200 USD/kg: Upper-tier ceremonial grade
  → For tea ceremony, gifts, luxury establishments. Not originally for lattes but used overseas.

Thus, under the “matcha” umbrella 20 USD and 200 USD products coexist, and novice buyers very frequently either pay premium for overpriced products or fail with excessively cheap inferior goods.

→ Purchasing without understanding price backgrounds proves extremely dangerous.
→ Without comprehending quality structure, even appropriate pricing judgment becomes impossible.

③ Supply Instability: Farmer Decline & First Harvest Shortage Intensify Competition

The 2024-2025 matcha crisis stems not only from demand but from structural supply-side problems:

• Average tea farmer age: 69 years
• Sencha-to-tencha conversion cannot proceed immediately
• Tencha manufacturing machinery shortage (orders full two years ahead)
• First harvest vulnerable to weather fluctuations
• Export increases create domestic shortages

Particularly in North American and European markets experiencing explosive latte demand, “inventory disappearing within one day” and “midnight scrambles“ have become routine, making stable supply the paramount concern for entering companies.

④ Export Standards (MRL, FDA) Vary Drastically by Country

Matcha exports face the most challenging food export category due to differing Maximum Residue Limit (MRL) standards across nations.

Representative examples:

• EU: Numerous ND (not detected) requirements (≤0.01ppm)
• USA: EPA/FDA food additive specifications
• Taiwan: TFDA’s strict standards
• Singapore: SFA’s Ninth Schedule
• UK: Post-Brexit independent MRL

Exporting non-MRL-compliant matcha results in:

→ Customs rejection
→ Disposal
→ Returns
→ Credibility destruction

Among other immediate failures.

⑤ OEM/Procurement Fraud and Quality Misrepresentation Risks

The globally “hot” matcha market has spawned rapid proliferation of unscrupulous OEM operators and intermediaries.

Common troubles:

Novice buyers become prime targets, and “cheap, fast, easy” often signals maximum danger.

Four Common Pitfalls Causing Company Entry Failures

Matcha business appears accessible but failing companies share clear common patterns. Particularly during the 2024-2025 “matcha bubble period,” companies falling into these four traps and subsequently withdrawing have increased sharply. This chapter systematically organizes failure points beginners commonly make, clarifying readers’ awareness of critical issues.

① Purchasing Based Solely on Price

The most frequent failure: judging “cheap = good value.”
However, matcha is a product where color, aroma, umami, foaming ability, and latte suitability directly correlate with price.

Excessively cheap matcha frequently causes these problems:

• Lattes turn “gray”
• Strong bitterness creates harshness when combined with milk
• Weak/grassy aroma
• Excessive residue and sedimentation
• Poor social media aesthetics reduce customer satisfaction

Particularly for café applications, one cup’s appearance and taste directly impact sales, so cheap matcha carries “definite brand value degradation” risk.

② Shallow Understanding of Origin and Manufacturing Processes

Matcha is often assumed “Kyoto = best” or “Uji = correct,” but optimal origins actually differ by application.

Furthermore, beginners often lack understanding of:

• First harvest/second harvest differences (vastly different umami and color)
• Stone-ground vs. machine-milled differences
• Kabusecha/tencha distinctions
• Tea leaf roasting presence/absence

Shallow understanding leads to the fatal mistake of “purchasing matcha unsuitable for intended use.”

③ Lacking MRL and Export Regulation Knowledge

The most dangerous aspect of export business: purchasing without understanding MRL (Maximum Residue Limits), FDA/EPA, and national food regulations.

National regulations differ completely:

• EU: Many ND requirements, must be below 0.01ppm
• USA: EPA/FDA tolerance regulations
• Taiwan (TFDA): Strict independent MRL
• Singapore (SFA): Ninth Schedule
• UK: Slightly different post-Brexit standards from EU

Exporting non-compliant raw materials results in:

→ Customs suspension
→ Returns
→ Disposal (100% loss)
→ Transaction termination
→ Customer credibility collapse

Particularly because matcha is powdered, pesticide residues concentrate easily, making it a highly regulation-impacted category.

④ Insufficient Continuity Negotiation (Stock-outs → Sales Suspension)

The 2024-2025 “matcha shortage“ proves unprecedentedly severe.

Supply-side structural problems:

• Farmers aging with declining numbers
• Tencha manufacturing machinery shortage prevents production increases
• Record-high demand from North America and Europe
• Intensified buyer competition

Common beginner failures:

• Contracting at stated quantities without confirming annual supply capacity
• Not establishing inventory level sharing protocols
• Slow information flow from direct producer relationships
• Relying on cheap intermediaries only to hear “can’t supply next month”

This forces e-commerce brands and cafés into “sudden sales suspension,” with cases increasing dramatically.

How Smart Buyers Select Their Sources

Companies succeeding in matcha business universally prioritize “source selection methods“. Particularly during supply shortage and price volatility phases like 2024-2025, which manufacturer partnerships determine business success or failure. Here we concretely explain four criteria valued by actually successful buyers.

① Clear Traceability of Origin and Harvest Season (New Tea/First Harvest)

Professional buyers prioritize most: “where, who, and how this matcha was produced“ being clearly identifiable.

Checkpoints:

• Origin (Uji/Shizuoka/Kagoshima/Yame, etc.)
• Harvest season (first or second harvest)
• Field management system producing tencha raw materials
• Roasting and milling process details
• Batch-specific production history

Particularly “being first harvest“ proves critical for latte applications, with color vibrancy, umami, and refined aroma differing greatly from second harvest.

Trustworthy sources can accurately present information like: “This lot is first harvest from Yame’s ○○ farm“.

② COA (Certificate of Analysis) Availability for MRL, Heavy Metals, Microorganisms

Smart buyers invariably verify COA (Certificate of Analysis) = analytical results.

Items to check:

• Pesticide residues (MRL)
• Heavy metals (lead, arsenic, etc.)
• Microorganisms (coliform bacteria, total viable count)
• Moisture content, particle size
• Radioactive substances (required by some countries)

For export-oriented purposes,
particularly EU, USA, Taiwan, Singapore have strict regulations,
so “companies not providing COA = high risk.”

Genuinely trustworthy suppliers smoothly provide:

• Batch-specific COA submission
• Standard clearance certificates
• Organic JAS/USDA Organic certifications

③ Annual Supply Volume, Stability, and Price Consistency

Because matcha experiences severe supply fluctuations,
confirming annual supply systems proves the most critical item.

Smart buyers invariably check:

• What kg to ton range can be supplied annually?
• Stock-out possibilities?
• Do prices change mid-year?
• Direct producer connections?
• Can sudden volume increases be accommodated?

Particularly for cafés and e-commerce,
stock-outs = zero sales and brand damage,
so suppliers lacking stable supply tend to be avoided.

④ Can Optimal Grades Be Recommended for Applications (Café, OEM)?

This separates beginners from professionals.

Professional buyers select not merely product-selling manufacturers
but “partners who can recommend optimal matcha for applications“.

Examples:

• Cafés → Color development, foaming, solubility-focused latte grades
• Confectionery → Heat-resistant matcha
• Premium gifts → Aroma and umami-focused ceremonial
• OEM → Grade design matching price points and cost ratios

Operators not understanding these can only offer vague “this is our recommendation” suggestions, potentially hindering business expansion.

Conversely, companies offering multiple comparative options tailored to applications represent “smart buyer-selected suppliers.”

Why Artem Is Chosen | Three Strengths Valued by Professional Buyers

Having understood matcha business “isn’t simple,” let’s examine how many cafés, OEM brands, and overseas buyers actually overcome these challenges—the answer lies in “selecting trustworthy partners“.

① Can Recommend Optimal Origins from All Over Japan (Uji, Shizuoka, Kagoshima, Yame) | First Harvest-Centered Lineup

Artem’s greatest strength: “not depending on specific origins, but recommending optimal raw materials from premium tea regions nationwide.”

▶ Origin selection by application

• Uji (Kyoto): Refined covered aroma. Ceremonial and luxury gift-oriented
• Yame (Fukuoka): Characterized by strong umami. Optimal for premium lines
• Shizuoka: Well-balanced aroma, optimal for stable café flavor profiles
• Kagoshima: High sunlight exposure yields excellent color development. Popular with establishments seeking vivid “latte green”

Receives high evaluation from overseas cafés, hotels, and confectionery brands for minimal quality variation.

→ “Color and aroma stability in lattes” represents the most valued reason overseas.

② Complete Compliance with Export Standards: EU, US FDA, Taiwan TFDA, Singapore SFA

One reason Artem is chosen:
quality management systems established for export premises.

Because matcha is powdered food, strict standards are often required by various countries during export. Therefore, trustworthy suppliers must clear the following “basic quality management”:

▼ Checkpoint Items Buyers Particularly Emphasize

• Pesticide residue (MRL) analysis (COA)
• Heavy metal (lead, arsenic, etc.) test results
• Microbiological testing (total viable count, coliform bacteria)
• Batch-specific analytical certificate (COA) issuance capability
• Responsiveness to additional testing when required for export
• Many suppliers carry products supporting organic certification (e.g., Organic JAS, USDA Organic)

Specific national standards (EU, USA, various Asian countries, etc.) differ, but for matcha raw material exports, the following “common approaches” prove important:

• Ability to present analytical data by lot
• Systems capable of responding to additional testing as needed
• Ability to consult on quality matching export destination standards

Artem responds to basic quality inspection and COA submission requested by buyers, receiving numerous inquiries from companies exporting to countries and regions with strict import regulations.

→ “Whether minimum quality requirements for export can be met” becomes a major supplier selection indicator.

③ Flexible Supply System from Commercial to Individual Use | Consultation Available from Small to Large Volumes

Artem maintains flexible consultation-ready supply systems regardless of user scale. Beyond commercial applications like cafés, restaurants, and OEM brands, small-scale starts including overseas individual buyers and D2C brands receive accommodation.

Supported supply styles:

• Small-volume test procurement and sample consideration supported
• Medium to large-scale supply possible premised on continuous sales
• Flexible adjustment for sudden volume increases or seasonal demand
• Grade recommendations for various applications: latte, confectionery, ceremonial
• OEM and original brand consultations possible (including individuals)

Actual consultation and transaction examples prove diverse:

• Overseas individual buyers
• E-commerce (D2C) brands
• Local cafés and bakeries
• Trading companies and food manufacturers

Creating systems accessible to wide user ranges without limiting business scale.

Particularly valued points:

“Can provide necessary quantities at necessary timing with stable quality“

In current unstable matcha supply conditions, suppliers offering flexible consultation regardless of lot size prove extremely valuable, earning high trust from numerous users.

Procurement Flow for Matcha Business Success [Systematized for Beginners]

While matcha business presents high entry barriers, following correct procurement flows significantly reduces risk. Here we systematize actual professional buyer procurement processes into four steps to guide even beginners without confusion.

Step 1: Organize Application (Latte/Patisserie/E-commerce) and Price Range

The first step: clarifying what the matcha will be used for.
Required taste, color, and aroma vary greatly by application.

▼Basic Organization by Application

• Latte application (cafés)
  → “Color development,” “umami not overwhelmed by milk,” “bitterness balance” most critical
• Confectionery application (baking)
  → “Heat resistance,” “color persistence,” “aroma strength” key
• E-commerce (powder retail)
  → “Brand worldview,” “package aesthetics,” “review durability (no quality variation)” important
• Commercial/individual use/OEM
  → Procurement volume, stable supply, price range priorities fluctuate

Step 2: Multi-Grade Sample Comparison

Beginners commonly make the “trying just one” mistake, but the correct approach proves opposite.
Simultaneously comparing minimum 3-5 varieties enables intuitive quality difference understanding.

▼Indicators to Observe in Sample Comparison

(1) Color freshness
Too blue → strong bitterness / yellowish → old or high second-harvest blend ratio

(2) Aroma development
Stone-ground type: Deep aroma
Machine-milled type: Light aroma

(3) Umami and astringency balance
For lattes, L-theanine richness important
For confectionery, astringency sharpness matters

(4) Foaming and solubility
Matcha solubility differs completely by particle diameter.

Step 3: Annual Supply Volume and Quality Management (MRL, COA) Verification

Matcha proves a raw material experiencing “very frequent post-procurement troubles.” Particularly during the current matcha bubble, supply shortages, stock-outs, export standard failures occur more readily.

▼Three Must-Check Items

① Annual supply volume (continuity feasibility)
→ Can monthly stability be secured?
→ Can sudden volume increases be accommodated?

② MRL (pesticide residue standard) compliance
EU, USA, Singapore, Taiwan, etc.—rules differ by country. Minimum requirement: confirm whether testing compliance exists for applicable countries.

③ Batch-specific COA (analytical certificates)
Whether basic items—pesticides, heavy metals, microorganisms—are complete. Because quality fraud and scams are common, COA submission represents “proof of trustworthiness.”

Step 4: Planning Anticipating OEM and Brand Design

Matcha business doesn’t succeed through raw material selection alone.
Particularly for e-commerce and gift demand, brand strategy and package design determine profitability.

▼OEM Elements to Cover

• Product name and worldview (traditional/minimal/modern)
• Price range (luxury route or daily use)
• Package size (30g/50g/commercial, etc.)
• Contents (matcha alone/latte base/blend)
• Label requirements (country of origin, Japanese/English display)
• Shelf life and lot management

Because OEM involves numerous intermediate processes, whether consultable suppliers exist determines success or failure.

For Those Seeking Matcha Powder

Matcha business begins with “correct selection.” Artem can propose matcha powder matching objectives and price ranges for cafés, confectionery, e-commerce brands, individual use, and more.

Depending on application:

• Commercial grades for matcha lattes and confectionery
• Small-package formats for gifts and retail brands
• Raw material recommendations for OEM and original brand development

Among other broad accommodations.

“Want to know which matcha is optimal” or “Want to consult first”
please feel free to contact us.

Summary | Build Long-Term Winning Procurement Without Being Swept by the Matcha Bubble

Matcha demand surges explosively worldwide, creating conditions truly describable as a “matcha bubble.” Behind this, however, exist numerous challenges illustrating entry difficulty: supply shortages, price volatility, export regulations, quality variation, and fraud risks. In conclusion, matcha business is decidedly “not an easily accessible sweet market.” Precisely because of this, possessing correct knowledge and appropriate partners enables building competitive advantages.