Matcha Lovers, Prepare: It's Going to Cost You

The world's fondness for matcha is about to be tested by steep price increases. Global demand for the powdered tea has skyrocketed around the world, fueled by consumer interest in its health benefits and by the bright green matcha lattes bubbling up on social media. In the US, retail sales of matcha are up 86% from three years ago, according to NIQ, a market research firm. But the matcha market is troubled. In Japan, one of the biggest matcha producers, poor weather reduced this year's harvest, reports the AP. Matcha is still plentiful in China, another major producer, but labor shortages and high demand have also raised prices there.

For Americans, there's the added impact of tariffs. Imports from China are currently subject to a 37.5% tariff, while the US has a 15% tariff on imports from Japan. It's not clear if tea will be exempted from tariffs because it's a natural product that's not grown in significant quantities in the US—an accommodation that the Trump administration has made for cork from the EU. Aaron Vick, a senior tea buyer with California-based importer GS Haly, says he paid 75% more for the highest-grade 2025 crop of Japanese matcha, which will arrive in the US this fall. He expects lower grades of matcha to cost 30% to 50% more. "It's going to be a bit of a tough ride for matcha devotees," Vick said. "They will have to show the depth of their commitment at the cash register."

Making matcha is precise and labor intensive. Farmers grow tencha—a green tea leaf—in the shade. In the spring, the leaves are harvested, steamed, de-stemmed, and de-veined and then stone ground into a fine powder. Julia Mills, a food and drink analyst, said matcha appeals to customers interested in wellness, since it contains antioxidants and l-theanine, an amino acid known for calming effects, and it's less caffeinated than coffee.

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The traditional way of preparing matcha, whisking the powder together with hot water in a small bowl, also appeals to drinkers who want to slow down and be more intentional, Mills said. That's true for Melissa Lindsay of San Francisco, who whisks up matcha every morning. Lindsay has noticed prices rising, but it's a habit she'd find hard to quit. "It's not just a tea bag in water," Lindsay said. "It's a whole experience of making it to your liking."