Matcha prices soar, testing the world’s love of “green gold”

Global demand for powdered matcha tea has surged in recent years; in the US alone, sales have grown 86% over the past three years.

This year, however, the market faces problems such as smaller harvests in Japan, labour shortages in China and rising demand. Heavy US tariffs on imports from China (37.5%) and Japan (15%) have also added to prices. Experts say consumers should expect matcha prices to rise by 30–75%, putting the world’s enthusiasm for the product to the test.

Producing matcha is costly and time-consuming, from growing tencha leaves in the shade to stone-grinding them into powder. Besides Japan’s limited production, its ageing farm workforce is another major challenge. These conditions have created an opportunity for China to increase its share of the global market.

The quality of Chinese matcha has improved in recent years, and brands such as Starbucks use it in their products. Despite the price increases, experts believe matcha’s appeal will continue thanks to its health benefits and traditional preparation ritual, although some consumers may turn to alternative teas such as hojicha.