Global Matcha Boom Drives Japanese Tea Prices to Record Highs: What It Means for Consumers
Matcha Takes Over the World
Once confined to traditional Japanese tea ceremonies and wagashi confectionery, matcha has become a ubiquitous presence in cafés and supermarkets worldwide. Matcha lattes, matcha ice cream, matcha chocolates, and even matcha-infused skincare products—the applications have expanded remarkably.
Demand has surged particularly in the United States, Europe, China, and Southeast Asia. Japan's green tea exports have roughly tripled over the past decade, with 2024 marking a record-breaking year for export value. This momentum shows no signs of slowing in 2025.
Why Has Matcha Become a Global Phenomenon?
The Health-Conscious Movement and Superfood Trend
Amid growing global health consciousness, matcha has gained attention as a "superfood." The health-promoting compounds in matcha—catechins, L-theanine, and antioxidants—have captured the hearts of health-conscious Western consumers. It's also embraced as a healthier alternative to coffee for caffeine intake.
Social Media and "Instagrammable" Culture
Matcha's vibrant green color photographs beautifully on Instagram and TikTok, driving explosive popularity among younger generations. Overseas influencers posting matcha drinks have dramatically boosted its global recognition.
Growing Interest in Japanese Culture
The worldwide fascination with Japanese culture through anime, manga, and Japanese cuisine has provided tailwinds for matcha's popularity. More consumers seeking "authentic Japanese matcha" has led to surging demand for Japan-grown tea.
Major Chain Adoption
Global café chains like Starbucks incorporating matcha into their permanent menus has made matcha accessible to mainstream consumers everywhere.
Serious Impacts on Japan's Domestic Market
Soaring Tea Leaf Prices
With demand outpacing supply, domestic Japanese tea prices have increased substantially. The price surge is particularly pronounced for high-quality tencha (shade-grown tea leaves ground into matcha), with some varieties now costing over 1.5 times their price from just a few years ago.
Japanese Consumers Feel the Pinch
The burden of rising prices falls on Japanese domestic consumers. For Japanese people who have enjoyed tea as part of their daily lives, price increases for familiar brands hit household budgets hard. Traditional sweet shops and cafés using matcha are also struggling with soaring ingredient costs, forcing many to raise their prices.
Tea Farmers' Dilemma
While increased exports present revenue opportunities for tea farmers, many are troubled by balancing export demand with domestic supply. Concentrating production on higher-priced export markets could reduce domestic supply and trigger further price increases.
Quality Concerns
There are concerns that rapid demand growth may lead to prioritizing production efficiency over quality. Additionally, products labeled as "matcha" overseas sometimes turn out to be different green tea powders entirely, raising concerns about protecting Japan's matcha brand reputation.
Future Outlook and Countermeasures
Government agencies and industry organizations are working toward increasing production while maintaining quality standards. Initiatives under consideration include developing new tea fields, improving production efficiency, and establishing quality standards to protect "authentic matcha."
Meanwhile, some argue this situation should be viewed as an opportunity to promote Japanese tea culture globally, advocating for strengthened exports of premium, high-value-added matcha. Balancing consideration for domestic consumers with export promotion will be a major challenge going forward.
Your Turn: What About Local Foods in Your Country?
The global matcha boom has created an ironic situation for Japanese people—pride in their culture going global, but also watching their everyday tea become increasingly expensive. It perhaps symbolizes both the benefits and costs of globalization.
Has your country experienced something similar—a local specialty becoming internationally popular and driving up prices at home? What do you think about the Japanese matcha boom? We'd love to hear your thoughts in the comments!
References
Reactions in Japan
I'm happy matcha is popular worldwide, but my local wagashi shop had to raise prices and I have mixed feelings. Isn't it putting the cart before the horse if Japanese people can't casually enjoy their own culture?
My friend who's a tea farmer says exports have been good for them. Tea farms that were on the verge of closing due to lack of successors are apparently coming back to life. It's not all bad news.
It's really troublesome that even regular green tea at supermarkets is getting more expensive. I drink it every day so it hits my household budget...
When I see matcha lattes overseas, they're loaded with sugar and way too sweet. Honestly, it's complicated having that thought of as matcha. I want people to know the real taste of matcha.
This is proof that Japanese culture is being recognized worldwide, so I'm genuinely happy! Price increases are just supply and demand - can't be helped. Once production increases, things will settle down eventually.
I'm from Kyoto, and established tea shops have such long lines of foreign tourists that locals can't get in. This isn't just overtourism - it's 'matcha pollution.'
It's an interesting phenomenon how things like matcha ice cream and matcha chocolate that we've had in Japan for ages are now being 're-imported' as 'trending overseas'
My grandfather is a tea farmer, and he was happy saying 'foreigners now understand the goodness of Japanese tea.' There's a generation that values cultural spread over prices.
The problem is cheap, low-quality products being sold as 'Matcha.' Without standards to distinguish real matcha, Japan's brand will be damaged.
I'm from Shizuoka, and I've watched tea fields turn into solar panel farms. Now that demand is increasing, we don't have enough farmers left to meet supply.
Making matcha every morning was my routine, but lately it's become a weekend-only thing. It's sad watching an everyday pleasure become a luxury.
Considering how inbound tourism boosts local economies, some price increases are acceptable I think. Places like Uji, a tea-producing region, are seeing huge economic benefits apparently.
Honestly, hardly any Japanese people actually whisk and drink proper matcha anyway, right? Most are fine with bottled tea, so why the fuss?
I'm learning tea ceremony, and even practice-grade matcha prices have gone up which is troublesome. My teacher also said 'good matcha has become harder to obtain.'
It's ironic that Japan, which has benefited from globalization, is now experiencing the same thing with its own culture. But in a way, maybe it's fair.
They should separate quality and price tiers for domestic vs export markets. I want the Ministry of Agriculture to take this more seriously.
Living in the US, authentic Japanese matcha is definitely expensive. But the quality difference is clear, so I think it's worth paying for. I want Japanese farmers to receive fair compensation.
In Germany, matcha is still niche but growing rapidly in the organic market. I understand Japanese consumers' concerns, but isn't this also an opportunity for the Japanese tea industry?
In France, wine is in exactly the same situation. Chinese demand drove up Bordeaux wine prices and locals couldn't afford it anymore. I completely understand how Japanese people feel.
Honestly, I think Starbucks matcha latte is a different thing from real matcha. But maybe it serves as a gateway for more people to discover the authentic stuff.
As Chinese, I have mixed feelings. Tea culture originally came from China, but matcha is something Japan developed uniquely. I have respect for that quality.
In Mexico, avocados became globally popular and domestic prices soared too. It's a side effect of globalization. This isn't just Japan's problem.
I work at a café in Canada and matcha orders have tripled from 5 years ago. Most customers want the health benefits, but hardly anyone knows what real matcha tastes like.
Matcha is super popular in Korea too. But people are divided between those who insist on 'Made in Japan' and those who don't. Quality-conscious people choose Japanese.
At luxury restaurants in Dubai, Japanese matcha has become a status symbol. It's a strange market where higher prices actually drive more demand.
Matcha is still rare in Poland, but it's starting to spread among health-conscious young people. I didn't know Japanese people were having difficulties because of this.
In Australia there's way too much fake 'matcha.' Selling green-colored powder with food coloring at high prices is fraud. Japanese government should promote quality standards internationally.
As an Italian, I empathize with Japan's situation. We've suffered from counterfeit Parmigiano and balsamic vinegar issues too. Brand protection is really important.
At bubble tea shops in Singapore, matcha flavor is the most popular. But most use Chinese-produced powder. Shops using real Japanese matcha charge nearly double.
I wonder if something similar happened when British tea culture spread worldwide? It's a fascinating phenomenon from a historical perspective.
In Denmark, the 'Japanese-style' healthy lifestyle is trendy, and matcha is one of its symbols. People who want it will buy it regardless of price.
Vietnamese coffee farmers experienced a similar situation. When exports increase, domestic prices rise too. It's an unavoidable economic law.