Matcha Prices Surge as Heatwaves Hit Japan’s Tea Harvest
Tsara Tea – If you’re a daily matcha drinker, prepare for a steeper price tag. A combination of extreme weather, surging global demand, and trade challenges is pushing matcha prices to unprecedented highs — and experts say the trend could continue.
Heatwaves Take a Toll on Tea Bushes
In the summer of 2024, Japan endured its second-hottest year on record, with temperatures in the Kyoto region reaching scorching levels. For tea farmers, this wasn’t just uncomfortable — it was devastating.
Prolonged heat stressed the tea bushes used to produce tencha — the carefully cultivated, stemless tea leaves that are later stone-ground into the fine powder known as matcha. With leaves scorched and growth slowed, farmers were left with far fewer leaves to harvest than expected.
“Last year’s summer was so hot it damaged the bushes,” explained one sixth-generation Kyoto tea farmer. “We simply couldn’t pluck as many leaves as usual.”
Demand Keeps Climbing
While production has struggled, the appetite for matcha has exploded worldwide. Influencers, nutritionists, and wellness brands have promoted matcha’s antioxidant-rich, calming-yet-energizing qualities, framing it as both a health drink and a lifestyle statement.
The global market for matcha reached USD $3.3 billion in 2023 and is projected to nearly double to $6.2 billion by 2032. From cafés in New York to smoothie bars in Singapore, matcha has moved far beyond Japan’s tea houses — and demand shows no sign of slowing.
Production Can’t Keep Up
Japan produced over 5,300 tons of tencha in 2024 — nearly triple the amount harvested a decade ago. Yet even this impressive increase hasn’t been enough to keep shelves stocked.
Some specialty tea shops, facing limited supply and soaring costs, have resorted to temporarily closing or reducing their matcha offerings. Others are forced to ration orders, with some cafés receiving only a fraction of what they request from suppliers.
In Singapore, one tea importer reported demand from customers skyrocketing tenfold in 2024 alone, saying, “I’m basically always out of stock.”
Prices Hit Record Highs
With supply tight and demand red-hot, Kyoto tea auctions have seen tencha prices surge 170% in just one year (Kyoto Tea Auction data). That cost increase is now filtering through the supply chain — meaning consumers can expect to see more expensive matcha in grocery stores, cafés, and online shops.
For small businesses that rely on matcha-based products, the higher wholesale prices can be especially painful, forcing them to choose between raising prices for customers or absorbing the hit themselves.
Trade Challenges Add Pressure
On top of weather and market dynamics, tariffs in certain markets — including the U.S. — are adding to the strain. These trade barriers can make Japanese matcha less competitive in some regions, even as its popularity continues to grow (Office of the U.S. Trade Representative).
Why This Matters Beyond Tea Lovers
For devoted drinkers, higher matcha prices can feel like a direct blow to their daily ritual. But the effects ripple out further. Matcha is part of a centuries-old cultural tradition in Japan (Japanese Tea Ceremony History), and tea farming supports rural economies in regions like Kyoto. Prolonged weather disruptions and unstable market conditions could put long-term pressure on both livelihoods and cultural heritage.
What’s Next for Matcha Drinkers?
If you love matcha, here are a few ways to adapt:
- Buy in bulk when prices are reasonable to secure your supply.
- Explore blends that combine matcha with other teas to stretch usage.
- Support sustainable producers investing in climate adaptation methods, such as shade-grown cultivation and soil moisture management (Sustainable Tea Alliance).
The bottom line? Your morning matcha latte isn’t disappearing, but it may come with a higher price tag — and a reminder that climate change, global trade, and consumer trends are deeply intertwined, even in the simple act of whisking a cup of tea.
