Why US Matcha Demand Strains Japanese Supply & Drives Up Prices

Matcha Classifications and US Consumption

• 🍵 In the US, matcha is typically categorized into culinary grade (lower quality) and ceremonial grade (higher quality).
• 🇯🇵 Traditionally in Japan, classifications were based on usage in tea ceremonies: koicha (thick tea) and usucha (thin tea).
• ☕ Starbucks' introduction of sweetened matcha lattes in 2006 marked a turning point, making matcha mainstream in the US.
• 💡 The term "ceremonial grade" was coined in the West in 2007 to differentiate high-quality matcha from culinary grade, which is often more bitter and made from older leaves.

The Rise of Matcha in the US

• 📈 Google searches for matcha began rising steadily around 2012, with US imports of Japanese matcha accounting for nearly 80% of Japan's exports in 2024.
• 🏙️ Cafes like Aoko Matcha in New York City specialize in matcha desserts and beverages, with demand booming.
• 📱 Online communities like #matchatok fuel the craze, with enthusiasts sharing recipes and tips.
• 💰 Ceremonial grade matcha, made from young, first-harvest leaves rich in theanine, is priced higher ($20-$50+ per ounce) than culinary grade (under $20 per ounce).

Strain on Japanese Matcha Supply

• 🌾 Japanese farmers, particularly in regions like Kyoto, are struggling to meet the surging global demand for ceremonial grade matcha.
• 🌡️ Extreme weather events, such as heat waves in 2024, have damaged tea bushes and reduced yields.
• 👴 The aging population of tea farmers, with few young growers entering the field, exacerbates labor shortages.
• ⏳ Traditional production methods, like stone grinding, are labor-intensive, with one farmer taking an hour to grind just 40g of matcha.

Price Increases and Future Outlook

• 📈 The average price of tencha (the leaf used for matcha) reached record highs in April 2025, leading to increased prices for distributors and cafes.
• 💸 New US tariffs further threaten to increase the cost of Japanese matcha for American consumers.
• 🧐 Experts like Rebecca Corbett question the unregulated "ceremonial grade" label and advise mindful consumption, comparing adding sweeteners to fine wine to making sangria.
• 🇨🇳 China has become the world's top producer of matcha, often selling at lower prices, though a blind taste test in the video favored Chinese ceremonial matcha over Japanese varieties.
• 🌱 Japan is implementing subsidies to encourage tea farmers to shift to tencha production, and more young people are entering the field, but climate events can still have long-term market impacts.