Matcha lovers around the world may have already noticed a troubling trend this year: higher prices, fewer options on shelves, and longer wait times for their favorite green tea products. This isn’t just your imagination—2025 has brought a real and impactful matcha shortage that’s affecting tea producers, retailers, and consumers all around the world.
What’s Behind the Matcha Shortage?
There are several key factors driving the current matcha shortage. First and foremost is demand. Over the past decade, matcha has grown from a niche product into a global phenomenon. No longer limited to traditional Japanese tea ceremonies, matcha is now found in lattes, desserts, energy drinks, and skincare products. This surge in demand—fueled by wellness trends, social media, and global curiosity—has dramatically outpaced supply.
Compounding the issue is the labor-intensive nature of matcha production. True matcha comes from shade-grown tencha leaves, which are carefully cultivated, hand-harvested, steamed, dried, and ground into fine powder using traditional stone mills. These meticulous steps mean that only a limited amount of high-quality matcha can be produced each year, and expanding production is not as simple as planting more tea bushes.
A Shrinking Farmer Base
Another major problem is the shrinking population of tea farmers in Japan. Many small-scale producers are aging, with fewer young people taking up farming as a career. This has led to a steady decline in domestic tea production, even as global demand increases. Despite government efforts to provide subsidies and revitalize rural farming communities, the long-term sustainability of matcha cultivation remains a concern.
Rising Prices and U.S. Tariffs
As demand rises and supply tightens, prices are naturally increasing. In 2025, many matcha producers have raised their prices—some by as much as 20%—to cope with higher labor costs, raw material scarcity, and inflation. For international customers, these price hikes are even more noticeable due to currency fluctuations and increased shipping costs.
In the United States, the situation is made worse by newly imposed tariffs on certain Japanese agricultural goods, including green tea products. These tariffs have added a significant premium to imported matcha, pushing prices even higher for American consumers. Small businesses and specialty tea retailers, like us, are feeling the strain as they try to maintain margins without losing loyal customers.
What This Means for Consumers
If you’ve noticed your favorite matcha being out of stock more often, or if you’ve been paying more than you used to, you’re not alone. Tea drinkers around the world are adjusting to this new reality. Here in Japan, some producers are reserving their best matcha for domestic use or long-standing wholesale clients, which means less high-quality product makes it overseas.
For consumers, this may mean exploring lesser-known but still high-quality matcha producers, trying lower-priced options like culinary-grade matcha for recipes, or even experimenting with other Japanese teas like genmaicha or hojicha, which are less affected by the shortage.
Will Things Improve?
The matcha shortage is unlikely to resolve itself in the immediate future. Expanding production takes time—new tea bushes need years to mature, and the skill required for matcha cultivation can’t be learned overnight. However, the increased attention on Japanese tea farming could lead to long-term investments in sustainable agriculture, better wages for farmers, and more interest among younger generations.
For now, tea enthusiasts should remain patient, support smaller tea brands that prioritize transparency and quality, and savor every bowl or cup of matcha a little more mindfully.