Matcha demand surge drives up Japanese tea prices

The global popularity of matcha, driven significantly by social media trends such as ‘Matchatok’, has led to a surge in demand that is impacting the Japanese tea industry. This spike in interest has caused average prices at first-season tea auctions to rise by 60 percent compared to 2025.

Matcha is produced from the Camellia sinensis plant using a specific method where plants are grown under shade for four weeks before harvesting the youngest leaves. This process increases the concentration of L-theanine and amino acids, contributing to the tea's characteristic umami flavor and nutritional profile. The resulting tencha leaves are steamed, dried, and ground into a fine powder. While the market distinguishes between ceremonial and culinary grades, the rapid increase in global consumption has presented challenges for growers attempting to keep pace with demand.