Matcha costs more because demand outside Japan grew faster than tencha can be grown and milled: Kyoto's machine-picked tencha opened the 2025 season about 170% above 2024 and averaged 13,972 yen a kilo in May 2026, about 1.7 times the previous record.
Supply is slow to answer because tencha needs shaded fields, special ovens and stone mills that make only 30 to 40 grams an hour, and new tea bushes take three to five years to mature.
Matcha has become more expensive because the leaf it is made from, tencha, cannot be grown, dried and milled as fast as people outside Japan now want to drink it. The clearest measure is the price farmers get at the Kyoto tea market. Tezumi's account of the 2025 season reports that machine-picked tencha opened 170% above 2024 prices and hand-picked tencha around 220% up. The next spring went further. In May 2026, Kyoto's machine-picked tencha averaged 13,972 yen a kilo, about 1.7 times the previous record of 8,235 yen set a year before, according to the Global Japanese Tea Association's May 2026 report.
| Market and year | What happened | Source |
|---|---|---|
| Kyoto, 2025 | Machine-picked tencha opened about 170% up on 2024. Hand-picked averaged about 220% up. Machine-picked cost what hand-picked had cost the year before | Tezumi |
| Kyoto, May 2026 | Machine-picked tencha averaged 13,972 yen/kg, about 1.7 times the prior record of 8,235 yen | GJTEA |
| Kagoshima, May 2026 | Tencha averaged about 19,000 yen/kg, roughly 1.8 times the year before | GJTEA |
| Manufacturers, 2026 | Raw material costs more than double the year before. Many retailers expected to cut pack sizes or raise prices about 20% | GJTEA |
What pushed demand up
Tezumi names several causes together. Drinkers abroad moved toward better matcha, the kind meant to be drunk plain or in a good latte. A weak yen brought more visitors to Kyoto, where the old houses sell matcha by the tin. In the second half of 2024, some of Japan's largest producers stopped taking on new trade buyers and capped retail sales. The frozen stock of older tencha that producers usually lean on ran out, so the 2025 harvest had to carry everything, and a cold spring that year cut yields. Tezumi reports some Fukuoka producers saw yields fall 30% while prices doubled.
Why supply is slow
One stone mill makes only about 30 to 40 grams of matcha an hour, according to Tezumi's overview. Adding mills takes stones, skilled cutters to dress them and staff to run them. Upstream, tencha needs shaded fields and its own drying ovens. Farmers can convert sencha fields, and Kyoto's prefectural government has offered money to help, but many sencha cultivars shade poorly, and newly planted bushes take three to five years to mature. GJTEA reports tencha planting rising elsewhere too, around 70% more in Koka, Shiga, in a single season.
Where the leaf is grown now
The growth has come mostly from the south. Kagoshima produced about 2,150 tonnes of tencha in 2024, around 40% of Japan's total, and has been the top producer since 2020. Its flatter, larger, more mechanised farms can switch to tencha faster than the small hill gardens of Uji. We cover the regions in where matcha comes from.
Tariffs
For American buyers, a 15% tariff on Japanese goods from August 2025 added to the pressure, and CBS News reported US cafés and importers bracing for it. Importers including O-Cha later reported that green tea and matcha were exempted from 13 November 2025, though teaware was not. The leaf had already become more expensive in Japan, so the exemption did not bring prices back.
What it means for a tin
Some brands have kept prices by changing what goes in. Tezumi notes producers altering blends, including second-harvest tencha in lower-grade usucha blends, and limiting their ranges. That makes the details on a tin worth more than ever. A named harvest, a region or farm, a cultivar and a recent milling date tell you what you are paying for.
Questions
Is there a matcha shortage?
There has been a tight supply since 2024. Large Japanese producers limited sales to new buyers, reserve tencha ran out, and prices for raw leaf rose sharply in 2025 and again in 2026.
Why can't farmers just grow more?
Tencha needs shading, a tencha oven and stone milling. Sencha fields can be converted, but many sencha cultivars shade poorly, and new bushes take three to five years to mature.
How much have tencha prices risen?
In Kyoto, machine-picked tencha rose about 170% on the first day of the 2025 market and hand-picked about 220%. In May 2026 machine-picked tencha averaged 13,972 yen a kilo, about 1.7 times the prior record.
Are US tariffs part of it?
A 15% US tariff on Japanese goods took effect in August 2025. Importers reported that tea and matcha were exempted from November 2025, but the price of the leaf in Japan had already risen.
- Tezumi, Matcha Shortage Part 2: Current Situation and the Future
- Global Japanese Tea Association, Japanese Tea Report May 2026
- Global Japanese Tea Association, Japanese Tea Report August 2025
- Tezumi, How Matcha is Made: An Overview
- O-Cha, Tariff reduction on green tea and matcha products
- CBS News, Threat of a matcha shortage concerns U.S. businesses
