Episode summary
The Hidden Cost of Viral Food Trends
Wall Street Week
· · Guests: Miguel Gomez, Hannah Habes, Scarlet Fu
Summary
Social media is turning niche foods like matcha, ube, acai, and Dubai chocolate into global sensations faster than supply chains can adapt. Cornell professor Miguel Gomez argues that influencers can create huge demand spikes instantly, but farmers and producers often cannot respond as quickly, which raises the risk of shortages, volatile farm prices, and lower quality as suppliers rush to fill orders.
The episode focuses on matcha as the clearest example. Demand has surged in the U.S. and elsewhere, with matcha sales up 86% over three years, Starbucks reporting a 40% year-over-year increase in first-quarter 2025, and the global market expected to roughly double from about $4 billion in 2023 by 2030. But production has not kept pace: Japan’s harvests have been hurt by weather, Kyoto farmers struggled last year, and sourcing has expanded to China, India, and South Korea, often with different standards.
Matchaful founder Hannah Habes says prices and shortages have become hard to avoid, while Meadow Lane founder Sammy Nusdorf says retailers now have to treat sourcing and product selection as part of the customer experience. The bigger argument is that viral food trends are not just changing what people want; they are exposing how little consumers understand about supply chains.
Key takeaways
- Miguel Gomez says influencers can generate demand spikes faster than supply chains can react, creating missed opportunities and higher risk for farmers.
- Matcha sales grew 86% in the last 3 years, while Starbucks reported a 40% year-over-year increase in matcha sales in Q1 2025.
- Habes says last year’s matcha surge felt “almost unsustainable,” with supply constraints and rising prices becoming visible to consumers.
- Gomez says matcha quality is becoming more uneven as supply shifts to producers outside Japan with different standards.
- Nusdorf says viral moments can create demand instantly, but retailers still have to do heavy diligence on sourcing.
Notable quotes
“It's unbelievable how fast a trend setter, an influencer can generate huge spikes in the demand for products”
“The question is are farmers re prepared to react as fast to these trends as they should to to meet the demand”
“We have seen incredibly strong growth on matcha within the last like two years”
“It's accelerated to a point that I think last year was almost unsustainable”
“Can a viral moment create demand faster than the supply can meet it”
How the episode opens
This is a story about globalization gone wrong. Social media has opened up new markets for acai, ube, matcha, and Dubai chocolate. Markets far from their countries of origin. But when demand spikes, it can show the limits of those long supply chains. Our colleague Scarlett Fu reports on what that means for your matcha.
Let's go get some. Whether you're browsing through a social media app or going to a grocery store, matcha is everywhere. From Starbucks to Trader Joe's to budding matcha cafes. This is your sign to stop drinking coffee and start drinking matcha.
It tastes so close to the original. What? — As a current Harvard student, I finally understand the science behind why matcha is so addicting. — If you're going to make a matcha, make a matcha. Don't be cheap with it. — Matcha is just one of several food trends gone viral thanks to social media from acai. And do I regret buying a three- gallallon bucket of acai? No.
To ube. — Will you be my ube? — And Dubai chocolate. — I got some Dubai chocolate as a light snack. — Social mediadriven food trends are reshaping demand faster than ever before. — It's unbelievable how fast a trend setter, an influencer can generate huge spikes in the demand for products.
Miguel Gomez is a Cornell University professor who teaches food marketing. It is a challenge for the supply chain to meet that demand at that very moment because if you miss as supply chain you miss the opportunity that there is huge interest in a product such as desserts with ube. The question is are farmers re prepared to react as fast to these trends as they should to to meet the demand.
This is hardly the first time that food has gone global.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- viral food trends
- matcha demand spikes
- supply chain volatility
- food pricing pressures
- retail sourcing strategies
Companies and tickers mentioned
- Matchaful
- Meadow Lane
Watch the episode
Watch “The Hidden Cost of Viral Food Trends” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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