Why Matcha Prices Are Spiking in 2025 – Shortage, Climate, and Global Demand
Why Matcha Prices Are Spiking in 2025 — Shortage, Climate, and Global Demand
Matcha prices are rising sharply in 2025 — and it’s not just inflation.
A perfect storm of climate stress, shrinking harvests, exploding global demand, and labor shortages has pushed Japan’s matcha industry into crisis. If you’re wondering why your favorite green tea is suddenly more expensive or harder to find, here’s the real story behind the surge.
Climate Change Is Disrupting Japan’s Tea Fields
2025 has been one of the most difficult years for tea growers in Japan’s top-producing regions — especially in Kyoto Prefecture, the home of ceremonial-grade Uji matcha.
Rising temperatures and unstable weather are causing severe drops in tencha yields, the shade-grown leaf used to produce matcha:
- Uji Tencha (hand-picked) dropped from 10,216 kg in 2024 to 6,140 kg in 2025 — a 40% decrease
- Machine-harvested Tencha fell by 18%, from 529,960 kg to 434,521 kg
- On some farms, overall harvests are down by 25%, with growers harvesting only 1.5 tons instead of 2
These drops hit the highest-quality matcha the hardest, creating a shortage of premium ceremonial grades.
Global Demand Keeps Rising
While production is falling, global demand is surging.
More than 50% of Japan’s matcha production is now exported, with top markets in the U.S., Europe, Australia, and Southeast Asia. The health benefits of matcha, combined with its popularity on social media and in premium cafés, have created a spike in worldwide demand — even as supply shrinks.
Auction Prices Have Doubled — Or More
With less matcha to go around and international buyers bidding aggressively, wholesale prices have skyrocketed in Kyoto tea auctions:
| Grade | 2024 Price (¥/kg) | 2025 Price (¥/kg) | 2025 Price (€/kg) |
|---|---|---|---|
| Uji Tencha | ¥20,024 | ¥43,330 | €254 |
| First-Harvest Tencha | ¥5,402 | ¥14,541 | €85 |
| Avg. Auction Price | ¥4,862 | ¥8,235 | €48 |
Converted using an exchange rate of ¥1 = €0.00586 (July 2025)
That’s an increase of:
- +116% for Uji Tencha
- +169% for First-Harvest Tencha
- +70% for average lot
Labor Shortages & Tourism Add More Pressure
Even beyond farming, rural tea-producing towns like Uji are struggling to keep up.
According to BBC Travel, once-quiet villages have been overwhelmed by tourists seeking the “authentic matcha experience.” At the same time, traditional tea farms face a shortage of skilled labor — especially for hand-picking, which is essential for high-grade matcha.
With fewer hands to harvest and process the leaves, production slows down further.
What This Means for Matcha Lovers
If you’re seeing higher prices or fewer options at your local store or café — it’s not your imagination.
Here’s what consumers can expect:
- 🔺 Higher prices across ceremonial and premium matcha lines
- 🚫 Limited availability of top grades (Uji, first harvest)
- 🍽️ More culinary-grade matcha replacing ceremonial use in cafés and drinks
- 🎨 Greater variation in color, flavor, and texture — due to weather-affected crops
What Thess Matcha Is Doing About It
At Thess Matcha, we’re committed to offering real Japanese matcha — ethically sourced, traditionally grown, and fairly priced.
Despite the challenges in 2025, we’re staying true to our mission:
✅ Working directly with dedicated to quality producers from various regions+
✅ Supporting sustainable and long-term partnerships
✅ Maintaining high quality standards, adapting to changes.
✅ Expanding our R&D to new powder teas.
You’ll always know where your matcha comes from — and why it matters.
Final Thoughts
The 2025 matcha shortage isn’t just a story of rising prices. It’s a reminder of how climate change, global demand, and supply chain fragility affect even the most traditional foods.
But with transparency, sustainability, and care, we can still protect the culture and craft behind every cup.
New players emerge in the production of matcha, and it’s worth noticing. Be updated.
