Is There a Matcha Shortage? Why Matcha Prices Keep Rising and What Cafés Can Do

In 2025, long-established Japanese tea shops limited matcha sales, and cafés overseas also saw their buying prices rise. In 2026 the volume has come back, but prices have not come down. Checking how much prices rose, and why, against Japanese statistics and announcements from long-established tea companies also shows what cafés can do when buying matcha.

Is there a matcha shortage?

In 2026 the first flush harvest in Japan’s main growing areas was 21% larger than the year before, but the price of the raw material for matcha rose further. Matcha has moved from a situation where there was not enough of it to one where the price does not come down.

The 2026 first flush harvest was large

According to Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF), the 2026 production of first flush tea (ichibancha, the first tea picked each year) as aracha (picked tea leaves that have been steamed and dried, before final processing) was 24,100 tonnes in the five main producing prefectures. This was 21% more than the previous year, because good weather helped the leaves grow well.

This figure is a total that does not separate matcha raw material from sencha and other teas. The 2026 production of matcha raw material alone has not yet been published.

Prices still did not come down

At the Kyoto tea market, the average trading price of first flush tencha (the tea leaf that matcha is made from) in 2026 was ¥17,797/kg (as of 19 June). That is about 26% higher than ¥14,144/kg in 2025.

Ippodo Tea, a long-established tea shop in Kyoto, explains that matcha production rose sharply in 2026, but demand was strong and trading prices were above the previous year. According to Ippodo Tea, production of gyokuro, sencha and bancha fell sharply in 2026. It was a year in which matcha volume came back but its price did not, while other teas also fell in volume.

How much have matcha prices risen?

The price of tencha at the Kyoto market rose about 3.3 times in the two years from 2024 to 2026. The increases are not limited to matcha raw material. They have spread to gyokuro, sencha and bancha.

Prices by type of tea at the Kyoto market

In September 2026, Ippodo Tea published the following average trading prices for first flush tea at the JA Zen-Noh Kyoto tea market (data from the Kyoto Prefecture Tea Industry Council).

Prices are per kg. 2026 figures are as of 19 June.

Source: Ippodo Tea, “2026年10月・11月 商品仕様の見直しと価格改定について” (Product specification changes and price revisions for October and November 2026) https://www.ippodo-tea.co.jp/blogs/news/20260901

From 2024 to 2025, tencha went from ¥5,402/kg to ¥14,144/kg, about 2.6 times, an increase of about 162%.

First flush prices rose across Japan

According to MAFF, 2026 first flush tea traded at about twice the previous year’s price in Kagoshima Prefecture and about 70% higher in Shizuoka Prefecture. The price increases are not limited to Kyoto.

Exports grew more in value than in volume

According to figures compiled by the Japan Tea Export Promotion Council, green tea exports in January–August 2026 rose 77.3% in value compared with the same period of the previous year, while volume rose only 3.2%. Most of the export growth came from higher prices.

The “powdered” category in the statistics combines matcha with other powdered teas. There are no export statistics for matcha alone.

Powdered green tea exported to Thailand and Singapore fell in volume and rose in price, as shown below.

For Thailand, volume fell to less than half of the previous year, and the price per kg more than doubled.

Why is matcha so expensive?

Matcha takes a lot of work to grow and to make, even before demand is considered. On top of that, tencha trades at a higher price than sencha, so raw material is shifting to tencha and the prices of other teas are rising too.

Shaded while growing, dried without rolling, ground in a mill

According to MAFF, tencha is made by picking leaves from tea fields that have been covered for about 2–3 weeks to block sunlight, then drying them in a tencha furnace without rolling. Matcha is this tencha ground into a fine powder with a stone mill or similar.

There is no rolling step as with sencha, but covering the fields takes work, and drying requires equipment made for tencha. In a May 2026 report, JETRO (the Japan External Trade Organization) says that tencha takes work and cost to cover, and that supply has not kept up with demand.

Tencha trades at about 4.9 times the price of sencha

According to MAFF material (survey by the National Federation of Tea Producers’ Organizations), tencha from the 2025 harvest averaged ¥8,562/kg across all harvests. That is about 4.9 times the ¥1,746/kg for sencha.

Prices are per kg.

Raw material went to matcha, and other teas rose too

Raw material for sencha and gyokuro is being diverted to matcha. In a July 2026 announcement, Yamamasa Koyamaen, a tea merchant in Kyoto, explained that in fiscal 2026 the raw material for many green teas such as gyokuro and sencha was diverted to matcha, supply fell sharply, and the price of green tea raw material also rose.

Source: Yamamasa Koyamaen, “価格改定のお知らせ” (Notice of price revision) https://www.yamamasa-koyamaen.co.jp/info/2026/post-10/

Ippodo Tea expects the switch to matcha production to continue, because matcha sells at a higher price even at the same weight, and its yield and production efficiency are high. Shops that serve menus using sencha or bancha, not only matcha, may also see their buying prices rise.

Why demand increased

The price increases were triggered by a worldwide surge in demand from around 2024. Ippodo Tea explains that interest in matcha grew worldwide from around 2024, demand surged, and for the 2025 harvest supply was short and buyers competed for it. Yamamasa Koyamaen gives the surge in overseas demand and the surge in matcha purchases by foreign visitors to Japan as the main reasons for its price increases.

Export figures also show this demand. According to MAFF, green tea exports in 2025 were worth ¥72.09 billion, about twice the previous year (up 98.2%). Export volume was 12,612 tonnes. MAFF says powdered green tea accounts for about 80% of export value.

Why supply cannot increase quickly

Increasing matcha volume takes time for both tea fields and factories. Even when prices rise, volume cannot catch up right away.

About five years from planting to harvest

Ippodo Tea explains that even when new tea fields are planted, it takes about five years before they can be harvested. A tea farm in Kakegawa, Shizuoka Prefecture, featured in a MAFF public relations magazine also says it can harvest from five years after planting the seedlings. Tea plants planted after demand rose in 2024 have not yet reached harvest.

Tea fields are shrinking, while factories have started to increase

According to MAFF, the area of tea cultivation in Japan is slowly declining. Meanwhile, tencha production is increasing. Tencha from the 2025 harvest was 6,278 tonnes, about 3.2 times the 2014 figure, and made up 8.6% of aracha production.

According to Kagoshima Prefecture, two corporations built new tencha factories in the Matsumoto area of Kagoshima City, and they started operating in April 2026. As Ippodo Tea and Yamamasa Koyamaen explain, when the shift to tencha continues while tea fields are not increasing, the raw material for gyokuro and sencha falls by that amount.

Price increases, sales limits and tariffs

Long-established Kyoto tea shops and a major tea maker have raised prices repeatedly since 2025. Some are also limiting the volume they sell.

Officially announced price increases and sales limits

On 4 September 2026, Yamamasa Koyamaen announced that it will add a seal to its 300g and 150g matcha cans that leaves an “opened” mark when peeled off (rolled out gradually from products with a best-before date of May 2027 or later). The purpose is to prevent the contents from being repacked and sold.

US tariffs do not currently apply to green tea

In 2025, US tariffs were also reported as a reason for higher matcha prices. As of October 2026, Japanese green tea (including matcha) is excluded from additional US tariffs.

• Under a November 2025 executive order, green tea was excluded from reciprocal tariffs (JETRO)
• Green tea is also on the list of excluded items under the Section 301 tariffs from 24 July 2026 (12.5% for Japan, combined with the normal tariff) (Office of the US Trade Representative notice in the Federal Register)

How the US treats these tariffs may change. US tariffs do not directly affect what shops in Thailand or Singapore pay for matcha.

How long will matcha prices stay high?

There is no public forecast of when prices will fall. Here we separate what is known from what is not.

Three things are known:

• In 2026, the first flush harvest was large, but tencha prices were above the previous year
• It takes about five years before new tea fields can be harvested
• Ippodo Tea cannot foresee whether prices will fully return to their former level, and expects the current level to continue to some extent

What is not known: Japan’s nationwide production of tencha alone for 2026 (not yet published as of October 2026), next year’s weather, and whether overseas demand will continue at this pace. If your café plans on the assumption that current prices will continue for a while, a sudden price increase is less likely to catch you off guard.

What cafés can do when buying matcha

Assuming high prices continue, review four things: grade, volume, timing and supplier.

1. Use different grades for different uses

Matcha served straight and matcha used in lattes do not need to be the same grade. For lattes, you can choose a grade that is more affordable than one for drinking straight. See Matcha grades for the differences between grades, and How to Choose Matcha for Café Lattes for choosing matcha for lattes.

2. Recalculate the cost per cup and the menu price

The matcha cost of one cup can be calculated as price per kg ÷ 1,000 × grams used per cup. If the amount of matcha per cup stays the same, doubling the buying price doubles the matcha cost per cup. Use this calculation to decide whether to pass the increase on to the menu price or to adjust the amount per cup or the grade. How the price per kg is set is covered in what decides the price of matcha.

3. Tell your supplier early how much you will use in a year

Yamamasa Koyamaen explains that the trading price of tencha in the new tea season sets the basis of matcha production costs for the following year. According to Ippodo Tea, tea trading starts in April. We, the editors, recommend telling your supplier how much you will use in a year before the new tea season in spring, and discussing how much they can secure and how the price will be set. In 2025, a Japanese-owned importer in the US told JETRO that it could not supply even its existing customers in time and was turning away new ones.

4. Buy from authorized suppliers and check the documents

Yamamasa Koyamaen added the seal to prevent the contents from being repacked. Buy from the maker’s authorized distributors, and check the following:

• Origin, harvest and lot number (a number that shows when the product was made)
• Pesticide residue test results and a certificate of analysis
• For cans, whether they carry the maker’s seal or similar

Under the labelling standard of the Japan Tea Central Public Interest Incorporated Association, matcha is tencha ground into a fine powder with a stone mill or similar. It is different from powdered tea, which is tea ground into powder with a grinder or similar, so also check the product name and the ingredient label.

Sources

• MAFF, “令和8年産一番茶の摘採面積、生葉収穫量及び荒茶生産量（主産県）” (2026 first flush tea: plucked area, fresh leaf harvest and aracha production in main producing prefectures, in Japanese) (18 August 2026) https://www.maff.go.jp/j/tokei/kouhyou/sakumotu/sakkyou_kome/pdf/syukaku_1tya_26.pdf
• MAFF, “茶をめぐる情勢（令和8年10月）” (The situation of tea, October 2026, in Japanese) https://www.maff.go.jp/j/seisan/tokusan/cha/attach/pdf/ocha-201.pdf
• MAFF, “2025年農林水産物・食品の輸出実績（品目別）” (2025 exports of agricultural, forestry and fishery products and food by item, in Japanese) https://www.maff.go.jp/j/shokusan/export/e_info/attach/pdf/zisseki-308.pdf
• MAFF, public relations magazine aff, April 2022 (in Japanese) https://www.maff.go.jp/j/pr/aff/2204/spe1_02.html
• Japan Tea Export Promotion Council, “緑茶の国別・形状別輸出実績 2026年1〜8月” (Green tea exports by country and form, January–August 2026, in Japanese) https://nihon-cha.or.jp/export/wordpress/wp-content/uploads/2026-08_cha_export.pdf
• Ippodo Tea, “2026年10月・11月 商品仕様の見直しと価格改定について” (Product specification changes and price revisions for October and November 2026, in Japanese) (1 September 2026) https://www.ippodo-tea.co.jp/blogs/news/20260901
• Yamamasa Koyamaen, “価格改定のお知らせ” (Notice of price revision, in Japanese) (1 July 2025) https://www.yamamasa-koyamaen.co.jp/info/2025/post-9/
• Yamamasa Koyamaen, “価格改定のお知らせ” (Notice of price revision, in Japanese) (1 July 2026) https://www.yamamasa-koyamaen.co.jp/info/2026/post-10/
• Yamamasa Koyamaen, “抹茶缶へのセキュリティシール導入について” (Introducing security seals on matcha cans, in Japanese) https://www.yamamasa-koyamaen.co.jp/info/2026/post-11/
• Ito En, “抹茶製品と緑茶リーフ製品の価格改定について” (Price revisions for matcha products and green tea leaf products, in Japanese) https://www.itoen.co.jp/news/article/76353/
• Kagoshima Prefecture, Kagoshima Regional Promotion Bureau, “農業現地情報（2026年4月）” (Local agricultural information, April 2026, in Japanese) https://www.pref.kagoshima.jp/ak09/chiiki/kagoshima/sangyo/nougyou/hukyuu/nougyougenntijouhou202604.html
• JETRO, “抹茶ブームを経て本格的な普及段階に移行するASEAN日本茶市場” (The ASEAN Japanese tea market moves from a matcha boom to full adoption, in Japanese) (18 May 2026) https://www.jetro.go.jp/biz/areareports/2026/d7cf7db2e5a71454.html
• JETRO, Business Short News (27 October 2025, in Japanese) https://www.jetro.go.jp/biznews/2025/10/a84a18a913562215.html
• JETRO, “茶の輸入規制、輸入手続き（米国）” (Tea import regulations and procedures, United States, in Japanese) https://www.jetro.go.jp/world/n_america/us/foods/exportguide/greentea.html
• Office of the US Trade Representative, “Notice of Actions in Section 301 Investigations” (Federal Register 2026-15181, 28 July 2026) https://www.federalregister.gov/documents/2026/07/28/2026-15181/notice-of-actions-in-section-301-investigations-of-acts-policies-and-practices-of-various-economies
• Japan Tea Central Public Interest Incorporated Association, “緑茶の表示基準” (Green Tea Labelling Standard, in Japanese) https://www.nihon-cha.or.jp/pdf/hyoujikijyun.pdf