The world’s Love for matcha It is about to be tested by a sudden price increase.
Global demand for powdered tea is rising all over the world, spurring its consumer interest Health benefits and, Bright green matcha latte Bubbles on social media. In the US, market research firm NIQ says retail sales of matcha have increased by 86% over three years.
However, the matcha market is facing problems. He is one of the largest matcha producers in Japan bad weather We reduced the harvest this year. Another major producer, China, still has a wealth of matcha, but labor shortages and high demand also raise prices.
There is an additional tariff impact on Americans. Imports from China are now Subject to 37.5% customs dutiesthe US has a 15% tariff Imports from Japan. It is not clear whether tea will be exempt from customs duties. Because it is a natural product that is not cultivated in a significant amount in the US, it is a lodging facility carried out by the Trump administration. cork From the European Union. The Commerce Department and US trade representatives did not respond to messages left by the Associated Press.
Aaron Vic, a senior tea buyer at California-based tea importer GS Harry, says he paid more than 75% for the finest 2025 Japanese matcha that will arrive in the US this fall. He expects lower grades of matcha to increase by 30% to 50%. Chinese matcha is generally cheaper than Japanese matcha, but it is more expensive due to high demand, he said.
“People should expect a significant increase in matcha prices this year,” Vic said. “It’s going to be a bit tougher ride for matcha fans. They have to show the depth of their commitment at the register.”
Even before this year’s harvest, the growing demand was straining the supply of matcha. Making matcha is accurate and labor intensive. Farmers grow green tea leaves – green tea leaves in the shade. In spring, the leaves are harvested, steamed, the stems are dephyratized, and the demorphism is removed, and the stone ground is then turned into fine powder. Tencha can be harvested again in summer and autumn, but later harvests are generally of poor quality.
There are ways to cut corners, such as using a jet factory that crushes leaves with high pressure air. However, Japan has other issues, such as the rapidly aging labor force and limited production of tencha. And Japan’s Ministry of Agriculture is reluctant to do so, fearing that the matcha boom will decline, despite tea growers trying to guide tea to switch from regular green tea to tencha.
It gives China an opening. Matcha was born there, but it was no longer popular in the 14th century. China’s matcha production has been increasing in recent years to meet both domestic and international demand.
Chinese matcha is historically considered to be inferior to Japanese matcha, and rather than drinking tea, it has been used as a flavoring for things like matcha-flavored Kit Kat bars. However, quality is improving, according to Jason Walker, marketing director at FIRSD Tea, a US subsidiary of Zhijiang Tea Group, China’s largest tea exporter.
“We believe that we are increasingly interested in Chinese matcha due to the issues of capacity and changes in perception,” Walker said. “Previously, it was the idea that it had to be Japanese matcha or anything else, but we also have a good product.”
Starbucks is one of the companies that uses Chinese matcha for its lattes. The company said it also sources matcha from Japan and South Korea. Dunkin and the Dutch Brothers did not respond when asked where they sourced their matcha.
Josh Mordecai, director of Good & Appropriate Tea Supply Chain, London-based tea suppliers, said he is approached almost every day by matcha suppliers in China. For now, he only buys matcha from Japan, but the cost to get it has risen by 40%, so he said the price needs to be increased.
Mordecai said there has been an increase in demand for matcha last year than in the last nine years. As matcha prices continue to rise, I wonder if consumers will switch to other tea varieties like Hojicha, a roasted Japanese green tea.
“We’ll see if this is a bubble. There’s nothing on social media that will stay for a long time,” Mordecai said.
Julia Mills, food and drink analyst at market research firm Mintel, expects social media interest in matcha to die. However, she believes that matcha will remain on the menu for a while.
Mills said that it appeals to wellness customers, as it contains antioxidants and L-thianine, which is known for its calming effects, and is less caffeinated than coffee, so matcha appeals to wellness-interested customers. Millennials and Gen Z customers are more likely than others to try matcha, Mills said.
The traditional way of preparing it is to whisk the flour together with hot water in a small bowl, appealing to drinkers who want to slow down and become more intentional, Mills said.
That’s true for Melissa Lindsay of San Francisco. Lindsay noticed that high-end matcha prices are rising, but that’s a habit she finds difficult to quit.
“It’s not just underwater tea bags,” Lindsay said. “It’s the overall experience tailored to your taste.”
David Lau, owner of Asha Tea House in San Francisco, hopes to keep customers drinking matcha by limiting price increases. Lau has increased his matcha latte price by 50 cents after the matcha he buys from Japan has more than doubled. He is also considering alternative suppliers from China and elsewhere.
“We’re in an affordable luxury business, just like any other specialty cafe. We want to make sure people can come every day. Once we reach a certain price level, we start pricing people,” he said. “We really want to recognize and realize that we don’t do that.
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AP video journalist Haven Daley contributed from San Francisco.