Matcha Is Getting More Expensive — Here’s Why Your Favorite Green Tea Habit Might Soon Cost More
By CreditVana
Matcha — the finely milled green tea powder long associated with Japanese tea ceremonies — has become a mainstream favorite in the U.S., thanks in part to social media, wellness culture, and its Instagram-ready bright green hue.
While some dismiss it as tasting like grass, many find matcha deeply flavorful, earthy, and energizing. It’s also notoriously expensive, especially for those who’ve incorporated it into their daily routines.
I started drinking matcha in 2020 and lost track of what I’ve spent — probably for the best. Once, in a moment of weakness, I paid $11.50 for a single matcha latte in New York City. But as matcha devotees know, that’s not outlandish — and prices may climb even higher amid a global supply strain and new U.S. tariffs.
How Much Does Matcha Cost?
Matcha still represents a niche market in the U.S., says Peter Goggi, president of the Tea Association of the USA.
“The U.S. is primarily a black tea–drinking country, and more than 70% of our tea is iced,” he says. “We’re very different from other tea markets.”
By revenue, matcha makes up only about 2.8% of the U.S. tea market — and even less by volume. Still, the price of matcha ranges dramatically, depending on quality, source, and preparation style.
At Cafes:
Even national chains aren’t immune to rising prices. Here’s what Starbucks charges for a grande iced matcha latte:
$6.80 in Brooklyn, NY
$5.25 in Ann Arbor, MI
$5.89 in Tucker, GA
$5.95 in Ripon, CA
$6.01 in Seattle, WA
Some stores now even charge extra for additional scoops of matcha powder.
At Home:
Buying matcha powder directly can be a better value — but quality varies by grade, which affects both taste and price. One ounce generally yields about 14 servings.
Ceremonial Grade:
Made from first-harvest tencha leaves grown in the shade and stone-milled.
Exclusively sourced from Japan.
Prices range from $30 per ounce to $6,000 per pound for top-tier quality.
Ready-to-Drink Grade:
From second-harvest leaves, less vibrant in color.
Mid-range pricing and quality.
Culinary Grade:
Made from later harvests, often duller in color.
Priced around $10 to $25 per ounce.
Best suited for baking or smoothies rather than sipping.
Why Is There a Matcha Shortage?
Like most shortages, it’s a matter of supply vs. demand — and right now, demand is surging. Social media trends, growing interest in functional wellness, and a spike in health-conscious consumers have all helped matcha’s rise.
According to the Global Japanese Tea Association, Japan’s tea exports increased from just 1% of production in the early 2000s to nearly 10% by 2023. In 2024, half of all green tea exports from Japan were matcha.
Kyushu, one of Japan’s major tea-growing regions, saw tea exports jump 24% in 2024, driven largely by matcha’s popularity — with the U.S. as its top destination.
But Japan’s small-scale, labor-intensive tea farms are struggling to keep up.
“You can’t just flip a switch and grow more matcha,” says Goggi. “The process takes years.”
Ceremonial-grade matcha must be:
Grown in shaded fields to boost chlorophyll and L-theanine.
Hand-harvested only once per year in spring.
Steamed, dried, and stone-ground into powder — a slow process.
Moreover, Japan’s tea industry is aging, with many farms still family-run and few young people stepping in. Climate change is also hitting hard. In 2024, Japan recorded its hottest year ever, with July marking its highest temperature month on record — both factors that hurt yield and quality.
“Matcha only represents about 7-8% of total Japanese tea production,” says Goggi, “but Japan owns the market. And that market is under pressure.”
What Role Do Tariffs Play?
Former President Donald Trump’s new tariff policies are putting added strain on an already tight supply.
Though tariffs are often positioned as a way to boost domestic production, U.S. tea farms account for just 0.02% of national tea consumption — a drop in the bucket.
“There’s no way U.S. production can replace Japan’s supply,” says Goggi.
Much like bananas or coffee, tea must largely be imported to meet U.S. demand.
Tariff Breakdown:
Japan (main matcha supplier): 15% tariff
China: Currently facing a 30% tariff (with threats to increase)
India: Recently hit with a 50% tariff
According to the Tax Foundation, up to 75% of food imports could be affected by tariffs — which almost certainly means higher prices for consumers.
Unless importers or cafes decide to absorb the increased costs, you’ll likely see:
Higher prices on store shelves
Increased costs in online orders
More expensive lattes at your local café
“Ultimately, the price of tea will have to absorb these tariffs,” says Goggi. “And that happens on the shelf — where consumers feel it.”
Matcha lovers, take note: Between rising demand, strained supply, climate stress, and tariffs, your favorite green drink is about to get pricier. Whether you sip for the ritual, the health benefits, or the aesthetic — expect to pay more for that vibrant green fix.
