Why Is Matcha So Expensive? The Matcha Shortage Explained

If you've noticed matcha getting pricier over the past couple of years, at cafés, in shops and online, you're not imagining it. Matcha has gone through one of the sharpest price climbs of any everyday food in recent memory. Some shops in Japan have even limited how much one customer can buy.

It isn't simply hype or price-gouging. The reasons go back to how matcha is grown and made, and why that process can't speed up to meet a sudden surge in demand.

Matcha Was Always Expensive to Make

Matcha isn't just green tea ground up. It's made from a specific kind of leaf, called tencha, that's grown and processed in a particular way.

• The tea bushes are shaded for several weeks before harvest. Less sunlight pushes the plant to produce more chlorophyll and more L-theanine, which is where matcha's deep green colour and natural sweetness come from.
• After picking, the leaves are steamed, dried, and have their stems and veins removed so only the soft leaf remains.
• The leaf is then ground into powder. Traditional stone mills are slow, reportedly producing only around 40 grams an hour.

It all takes skill, labour and specialised equipment. Tencha has also only ever been a small slice of Japan's tea output, often estimated at well under a tenth of total production. We go into the process in more depth in how matcha is made.

Then Demand Exploded

Over the past few years, matcha went from a niche tea to a global café staple, helped along by social media and a broader shift away from coffee. In the US alone, retail matcha sales were reported to be up 86% over three years by 2025. Similar growth showed up across Canada, Europe and Asia.

Matcha also spread well beyond the cup, into baked goods, ice cream, snacks and even skincare. Every one of those uses draws on the same limited supply of leaf. A product that was already scarce suddenly had far more people wanting it.

Why Supply Can't Simply Catch Up

This is the part that keeps prices high. Growing more matcha isn't like opening a second factory line.

New tea plants take years

A newly planted tea bush needs roughly four to five years before it can be harvested. Farmers who started planting more tencha in response to the boom won't see a full crop for some time.

The best harvest happens once a year

The highest-quality matcha comes from the spring harvest. Later harvests are generally lower grade. So each year's supply of good matcha is largely set in a single season.

Weather and an ageing workforce

Japan's tea-growing regions have faced heat and unpredictable weather that reduced yields, and the country's farming population is ageing, with fewer younger people taking over family tea farms.

Backup stock ran out

Producers used to keep reserves of tencha to smooth over a weak year. Heavy demand drew those reserves down, which left the market relying even more on each new harvest.

What That Did to Prices

The result was a steep jump in the cost of the raw leaf. Tencha prices at auction in Kyoto were reported to have more than doubled from 2024 to 2025, with some sources putting the rise at well over 200%. Importers passed on increases at every grade, and cafés followed with higher prices on matcha lattes.

Reports from Japan in early 2026 suggested the shortage had largely persisted, with some tea shops still limiting customers to one tin each.

The Hidden Cost: Quality Shortcuts

When something gets scarce, shortcuts appear. Some sellers have responded by blending in lower-grade leaf, using faster industrial grinding, or sourcing from new regions with less matcha experience. Some of that is perfectly decent. Some isn't.

There's also been a rise in unauthorised resellers and unusually cheap "matcha" that doesn't live up to the name. A suspiciously low price is now a reason to look more closely, not a bargain.

How to Buy Matcha Wisely Right Now

• Check the colour. Good matcha is a vivid, bright green. Dull, yellowish or brownish powder usually means lower grade or old stock.
• Look for a clear origin. Know where it comes from.
• Read the ingredients. Pure matcha should list one thing: matcha. Flavoured blends should say clearly what's been added.
• Store it properly once opened. Matcha is fragile, and wasting it hurts more now. Our tips on how to store microground tea will help.
• Use it where it counts. A level serving made properly tastes better than a heaped one made carelessly.

Our Pure Matcha is 100% Japanese matcha, stone microground, with nothing else in the bag. At 33 servings in the convenience size, it still works out to well under a dollar a cup, a fraction of what a café matcha latte costs today.

Is Matcha Still Worth It?

For most matcha drinkers, yes. Even at today's prices, a serving of good matcha made at home costs far less than most café drinks, and you get the whole leaf with all its L-theanine and antioxidants. If you're new to the difference between matcha and regular green tea, our post on matcha vs green tea explains why you're getting more for your money.

And if you want to stretch your matcha further, a few approaches help:

• Make lattes. Milk carries the flavour, so a single level serving goes a long way.
• Try Vanilla Matcha, which uses the same Japanese matcha with organic vanilla for a smoother, sweeter cup.
• Rotate in other teas. A spiced chai or London Fog on some mornings keeps matcha special. Not sure which to pick? See chai vs matcha.

Matcha may never go back to the prices of a few years ago, and that's partly a good thing for the farmers who grow it. The best response is to buy good matcha, store it well and enjoy every cup. A bag of Pure Matcha is a good place to start.

Frequently Asked Questions

Why is matcha so expensive?

Matcha comes from tencha, a shade-grown leaf that's slow and labour-intensive to produce and makes up only a small share of Japan's tea. Global demand has surged faster than supply can grow, pushing raw tencha prices sharply higher since 2024.

Is there a matcha shortage?

Yes. Strong worldwide demand, weaker harvests and depleted reserves led to a shortage that was widely reported in 2025 and appeared to continue into 2026, with some shops limiting purchases.

When will matcha prices go down?

Nobody knows for certain. New tea plants take four to five years to produce a harvest, so extra supply arrives slowly. Prices may ease if demand levels off, but a return to older prices seems unlikely soon.

Is cheap matcha worth buying?

Be cautious. Very cheap matcha is often lower grade, older or blended with other leaf. Check that it's bright green, clearly labelled and from a known origin.

Is ceremonial grade matcha worth the price?

It depends how you drink it. Higher grades shine when whisked with water on their own. For lattes, a good-quality everyday matcha often tastes just as good once milk is added.

What can I drink instead of matcha?

If you want caffeine with a calm feel, black tea blends like London Fog or a spiced chai are good alternatives. For a caffeine-free option, a rooibos-based chai works well.