China dominates global matcha supply but can Japan protect its premium edge?

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[upbeat music] For centuries, matcha belonged to Japan.

Think tea ceremonies, the ancient city of Uji near Kyoto, craftsmanship spanning generations.

Today, it belongs to the world.

I just don't care where it come from, so yeah, because I love the product itself, so I will buy it.

Yeah.

Because the, the global, uh, shortage is, is very, uh, is very demanding now.

So, um, that's why we saw it before.

So we saw it coming.

So, uh, quite a long time ago, we, we lock in, we, we had a 12 months contract with our supplier to lock the, the m- uh, the, the volume, to lock the, the price.

So that's why our customers will not see a, a shortage.

Now, that worldwide obsession has rewritten the matcha map.

China is now the top producer on the planet, accounting for around 70% of global output.

So who owns the future of matcha? The country that turned it into an international icon, or the nation that's dominating production, and the one that actually first brought tea to Japan centuries ago.

I'm Genevieve Wu, and joining me are senior correspondent Michiyo Shida in Tokyo and correspondent Tan Sihui in Beijing.

Now, both of you ladies traveled from traditional tea houses to industrial scale factories to find out how the two neighbors are taking very different paths to satisfy the world's appetite for matcha.

Michiyo, let's start with you in Japan.