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00:00This is a story about globalization gone wrong.
00:03Social media has opened up new markets for acai, ube, matcha, and Dubai chocolate.
00:09Markets far from their countries of origin.
00:11But when demand spikes, it can show the limits of those long supply chains.
00:15Our colleague Scarlett Foo reports on what that means for your matcha.
00:24Whether you're browsing through a social media app or going to a grocery store,
00:28matcha is everywhere, from Starbucks to Trader Joe's to budding matcha cafes.
00:34This is your sign to stop drinking coffee and start drinking matcha.
00:37It tastes so close to the original. What?
00:39As a current Harvard student, I finally understand the signs behind why matcha is so addicting.
00:45You're going to make a matcha, make a matcha. Don't be cheap with it.
00:47Matcha is just one of several food trends gone viral, thanks to social media, from acai...
00:52And do I regret buying a three-gallon bucket of acai? No.
00:55...to ube...
00:55Will you be my ube?
00:57...and Dubai chocolate.
00:57I got some Dubai chocolate. It's a light snack.
01:00Social media-driven food trends are reshaping demand faster than ever before.
01:04It's unbelievable how fast a trendsetter, an influencer,
01:08can generate huge spikes in the demand for products.
01:14Miguel Gomez is a Cornell University professor who teaches food marketing.
01:18It is a challenge for the supply chain to meet that demand at that very moment.
01:25Because if you miss a supply chain, you miss the opportunity that there is huge interest in a product such
01:33as desserts with ube.
01:36The question is, are farmers prepared to react as fast to these trends as they should to meet the demand?
01:46This is hardly the first time that food has gone global.
01:49Social media is just the latest innovation to fuel widespread demand for foods from around the world.
01:54This has actually been happening for hundreds of years.
01:57The first inspection point in the globalization of food and crops dates to 400 years ago with maize and tomatoes
02:07being produced in the Americas,
02:09has been exported to Europe and wheat and other grains being shipped from Europe to the Americas.
02:18But it was in the 1980s when the development of the containers for transportation really allowed many of the commodities
02:29to be really global.
02:31And then we have the latest trend that is driven by social media.
02:35When a trendy food takes off and goes global, walk us through what typically happens on the supply side.
02:42Is there a specific sequence that takes place?
02:44When these products become truly global because of consumer demand in high-income countries like the U.S., Europe, etc.,
02:54this poses big opportunities but big challenges to the supply chains.
02:59For example, ube, there is a huge explosion of demand for use of ube because of the beautiful color in
03:08confectionery, in desserts, in restaurants but also in the supermarkets.
03:13And ube is native from the Philippines, but this demand is really putting, demand is just exceeding what Filipino farmers
03:22are able to supply.
03:24Another thing that is happening with these products because these markets are relatively small, you know, these are very niche
03:33products, demand tends to shift dramatically.
03:37And this means lots of risk for farmers because if you look at what has happened with products like ube,
03:46matcha,
03:47is that you see that the farm price for these commodities is very volatile because demand fluctuates so much and
03:55production is trying to catch up with that demand.
03:59Matcha originated in China over a thousand years ago before migrating to Japan, which is now the world's matcha capital.
04:05The drink itself is made from green tea leaves that have been ground into a fine powder.
04:10Rising demand has led to a dramatic increase in Japanese exports of matcha, a 25 percent jump to $244 million
04:18in 2024 from the previous year.
04:21And now China has overtaken Japan, supplying 60 percent of the world's matcha.
04:27We have seen incredibly strong growth on matcha within the last like two years.
04:32And I've been doing this for 10 years.
04:34So I think the last two years there's been a real surge in the demand and awareness for matcha.
04:40Hannah Habes is a matcha pioneer in the U.S.
04:43She is CEO of Matchaful, a company she founded over a decade ago.
04:49Habes operates sales through her website and has seven storefronts in New York City.
04:52I was actually working in the processed packaged food industry right out of college.
04:58I started to notice changes in my health, consuming packaged foods every day.
05:05And around the same time, after being in this very heavily processed industry, I was introduced to matcha,
05:10which was this incredibly clean, beautiful caffeine alternative to coffee that made me feel more sustained, more focused, more calm.
05:20And it really was that lightning bulb moment for me, that epiphany of I've got to do something with this.
05:27And at the time, matcha really didn't have presence in the U.S.
05:30This was in 2012 when I kind of first took my sip of my life changing sip of matcha.
05:37In 2023, the global matcha market was worth about $4 billion.
05:42That's half of its expected value by 2030.
05:45The U.S. is an example of the surge in demand.
05:47According to research firm NIQ, sales of matcha grew 86% in the last three years.
05:53It's accelerated to a point that I think last year was almost unsustainable.
05:58We saw farmers having supply constraints and people, you know, online trying to figure out, you know, where to get
06:06their matcha
06:06and how to make sure that they're not, you know, over consuming matcha.
06:10So there was a heightened awareness of this supply chain issue around matcha.
06:15It's more than specialty matcha cafes. Dunkin Donuts offers a matcha latte.
06:20Starbucks reported a 40% year over year increase in matcha sales for the first quarter of 2025.
06:26And Blank Street Coffee sold so much matcha that it ended up dropping coffee from its name.
06:30So I think the interesting thing with Starbucks is they have actually had matcha on their menu, a form of
06:37matcha mixed with cane sugar.
06:38But they've had it on their menu for over 10 years, even before I started Matchaful.
06:43Starbucks had what was called a green tea latte on their menu.
06:48It had matcha in it, but they didn't necessarily call it matcha because I think at that point, not many
06:54people knew what matcha was.
06:55And now they're really leaning into matcha.
06:59Japan's matcha production tripled between 2010 and 2023.
07:03But even that failed to keep pace with demand as matcha is added to desserts and smoothies.
07:08The matcha market is now cracking under the weight of all the demand.
07:12To make matters worse, last year, farmers in Kyoto, who supply a quarter of the world's tea used for matcha,
07:18struggled after hot weather led to poor harvests.
07:21It's a plant, and I think it's important to remember that.
07:24And our farmers, we did see shortages on the matcha.
07:27So naturally, we did see prices rise on matcha, and we did experience some shortages.
07:32What is happening is that the supply chain is procuring matcha that is not following the standards that the Japanese
07:42employ to produce what they call matcha.
07:45So what you see is a huge differences in the quality of matcha produced in different origins.
07:53And that can create a long-term confusion in consumers or may affect the value of matcha for the Japanese
08:02traditional growers.
08:03Right now, for example, India, South Korea, China, producing the product that we call matcha, but with different standards.
08:13So what is happening is that matcha, as we know as a Japanese ceremonial, very niche product, is becoming massified
08:23and is perhaps not of the same quality of the matcha that is produced in Japan.
08:29With matcha, quality does matter. And I think with the first harvest in Japan, it tends to be a little
08:35sweeter.
08:35It's traditionally what's coined as ceremonial matcha, really meant for drinking as a tea, in a latte.
08:42So we're seeing the demand for ceremonial grade continue to rise.
08:46But the pricing for ceremonial grade also is more expensive.
08:50And so I think with the second harvest culinary grade matcha, the pricing on that is a little more approachable.
08:58So I think there is a vast difference in quality and price point with matcha.
09:04And we're seeing matcha as a price point is rising because the demand is growing, because harvests are down.
09:12We are just seeing the price points continue to rise on ceremonial and culinary grade.
09:17And I think consumers are aware of this, but we don't necessarily see it impacting our business in any way
09:25at this point.
09:26I think people are very particular about their matcha. And I marketed this business well before we opened.
09:31So I taste tested 12 different matchas on TikTok to see what the consumer wanted.
09:37And they were very excited about the matcha that we selected.
09:40Sammy Nussdorf is the founder and CEO of Metal Lane, a gourmet food market in the Tribeca neighborhood of New
09:45York.
09:46OK, so this is something you knew coming in that you would have to offer to your clientele.
09:49For sure.
09:50And did you think in terms of you need to offer other kinds of matcha products given how much interest
09:55there is in matcha overall?
09:57I didn't think so. I wanted to make the choice easy for the consumer.
10:01I think that people are stunned by too many options and we're stuck in this paradox of choice.
10:05I think that offering one and doing a lot of diligence on a product like matcha makes it easier on
10:12the consumer.
10:13And it's like we've selected the best for them.
10:15I do think that a wealthier audience probably influences the masses into, you know, how can I treat myself?
10:24And food's being looked at as a status symbol right now.
10:26It's like these micro luxuries, like a lot of people can't afford a Birkin, but they can afford a road
10:33lip gloss.
10:34And that is like an identifier as to like what you subscribe to and what's on trend and these micro
10:41luxuries that you can afford,
10:43which is like, I guess, similar to here.
10:45Like you might not be able to afford a $300 Michelin meal, but you can afford a, you know, organic,
10:51well-made, nicely sourced $23 salad.
10:55Even though Sammy says he doesn't believe in selling trendy food products,
10:58Meadow Lane does respond to whatever food crazes his clientele is attracted to.
11:02Can a viral moment create demand faster than the supply can meet it?
11:06Yes, absolutely. I mean, as we saw with the opening, I think it was once the infatuation or eater, you
11:14know, came for press day
11:15and they tried certain menu items that we make here and they rated what their favorites were.
11:20That's what became very viral off the bat. And that shifts, you know, as with the, as the business progresses.
11:26Whether coming from Starbucks or a niche grocery store, the bottom line is it's important to understand your supply.
11:32What is the most misunderstood part about the globalization of niche foods, trendy foods, something that consumers get wrong about
11:42how supply chains work?
11:43We consumers in general know very little about how these products are produced, who produces them, where, how, and how
11:57is that product coming to our tables in our houses or in a restaurant.
12:03So I think what we need to do is to educate consumers.
12:09We have to take someç±³ Allahu-based purity of water.
12:09We've got原ặt customers.
12:10So, make sure that the music is very good, it's a-me-weak.
12:10They're upset myself and I've got to look at another line of grass here.
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