Matcha has long been one of Japan’s most celebrated exports, admired for its vibrant green color, refined taste, and centuries of craftsmanship. But in 2025, something began to shift. Consumers, cafes, and importers all started noticing a steady rise in matcha prices, especially for higher-quality ceremonial powders.
As we move toward 2026, this increase is not just a temporary spike. It reflects deeper issues within Japan’s tea industry, as well as a growing global appetite for matcha that shows no sign of slowing down.
Climate Challenges Affecting Tea Production
Japan’s tea cultivation depends heavily on stable weather and balanced rainfall. In recent years, those patterns have become increasingly unpredictable. Hotter summers, shorter rainy seasons, and unexpected frost have started affecting key tea-growing regions such as Shizuoka, Kagoshima, and Kyoto.
Because matcha is made from shade-grown leaves that require delicate care, even small temperature shifts can reduce yield and quality. Some farmers are investing in better shading structures and irrigation systems, but those solutions are costly and time-consuming. As a result, less matcha is produced each year, and what is made becomes more expensive.
A Growing Global Appetite
Matcha is no longer a niche drink enjoyed by traditional tea enthusiasts. It has become a global favorite, seen in everything from lattes to pastries to skincare products. Social media trends have played a major role, with visually striking drinks and desserts going viral worldwide.
This massive increase in interest has led to a supply shortage. Matcha takes time to produce, and expanding production is not as simple as planting more tea bushes. The process of cultivating, shading, and stone-grinding leaves is slow and precise. Because of this, Japan’s supply cannot easily keep up with international demand.
The Cost of Maintaining Tradition
Making matcha is an art form that requires patience and skill. From hand-picking the youngest tea leaves to carefully grinding them with stone mills, each step of the process adds value but also limits output. One traditional mill can only produce about 30 grams of matcha per hour.
With energy costs, equipment maintenance, and labor expenses rising, the overall cost of production continues to increase. Since the goal is to preserve quality and authenticity, there are few shortcuts available. Maintaining that tradition means higher prices for producers and consumers alike.
An Aging Workforce
Many of Japan’s tea farmers are now in their 60s or 70s, and fewer young people are choosing to take over the family business. As a result, there are fewer skilled workers available, and some tea fields have been abandoned. The shortage of experienced farmers makes it harder to sustain large-scale production, adding pressure to the overall market.
Larger tea companies are beginning to introduce cooperative farming and automation, but these changes take time and significant investment. Until the next generation takes root, matcha will remain a limited, labor-intensive craft.
Tariffs, Trade Costs, and Global Shipping
International trade plays a major role in matcha pricing. In recent years, several factors have increased costs for overseas buyers. Tariffs on agricultural imports in key markets, particularly the United States, have added a direct cost to every shipment. These tariffs can range from a few percent to higher rates depending on trade agreements and regulations, meaning retailers must pass these costs along to consumers.
Shipping costs have also risen significantly. Global freight rates have fluctuated due to fuel prices, port congestion, and post-pandemic supply chain challenges. Even small increases in shipping fees can affect the final retail price because matcha is delicate and often shipped in small batches to preserve quality.
Currency fluctuations are another consideration. A weaker yen can make Japanese goods more affordable in some countries, but it also increases costs for imported farming equipment, fertilizers, and energy. Combined, tariffs, shipping, and exchange rates contribute to rising matcha prices, particularly for international markets where demand is highest.
Matcha in the Modern Market
Matcha’s versatility has fueled its expansion far beyond traditional tea ceremonies. It has become a key ingredient in wellness drinks, protein snacks, and luxury desserts. High-quality powder is in especially high demand because it provides the vivid green color and umami flavor that consumers expect.
This transformation from cultural beverage to global lifestyle product means that matcha now competes with luxury coffee, craft chocolate, and other premium goods. As companies compete for limited supplies of quality matcha, prices naturally rise.
Looking Ahead
Japan’s tea producers are adapting to these challenges with new methods focused on sustainability. Organic cultivation, improved soil management, and energy-efficient milling are becoming more common. However, these efforts require time and funding, which continue to influence market prices.
Rather than viewing the price increase as negative, many experts see it as a sign that matcha is being valued appropriately for its craftsmanship and cultural heritage. Behind every tin of powder is the work of generations of farmers who preserve one of Japan’s oldest and most respected traditions.