Matcha Prices Surge as Demand Outpaces Supply, Shifting Sourcing to China
NEW JERSEY – The price of matcha, the vibrant โคgreen tea powder popular in lattes and wellness routines, is experiencing a important increase due to soaring global demand and capacity limitations in customary growing regions. While Japan has long been considered the gold standard โfor matcha, rising costs are prompting major brands and smaller businesses alike to explore choice sources, particularly china.
According toโ Walker, Marketing Director of FIRSD TEA, the American subsidiary of Zhejiang Tea Group – China’s largest tea exporter – interest inโ Chinese matcha is growing alongside theโค price hikes. “Before ther was an idea that it should be Japanese Matcha or nothing. But we โฃalso have a good product,” Walker stated, noting a shift in โconsumer perception.
The impact is already being felt acrossโ the industry. Starbucks utilizes matcha sourced from both China and South Korea for its popularโ lattes. While Dunkin’ and Dutch Bros. declined to comment on their sourcing, other businesses are actively reassessing their supply โchains.
Josh Mordecai,โฃ director of London-based โGood & Proper Tea, reports being โขcontacted “almost daily” by Chinese matcha suppliers. Despite โcurrently sourcing exclusively from japan,โ Mordecai โขrevealed โacquisitionโข costs have โrisen by 40%, forcing him to consider price increases for consumers. He also expressedโ concern about long-term affordability, questioning whether consumers might switch to alternativesโ like hojicha, a Japaneseโ toasted green tea, โขif prices continue to climb. “We willโ see if this โคis a bubble or not,” Mordecai said. “Nothing remains on social networks so long.”
Market โresearch from Mintel suggests social media interest in matcha may be waning, but analyst Julia Mills โฃbelieves the tea will remainโฃ a menu staple for the foreseeable future. Mills highlighted matcha’s appeal to health-conscious consumers, citing โคitsโ antioxidant content, the presence of โthe calming amino โฃacid L-theanine,โ and โits โlower caffeine levels compared โto coffee. Millennials and Generation Z are the demographics most likely โto have tried matcha, she added.
The traditional โpreparation of matchaโค – whisking the powder wiht hot water – alsoโค contributes to its appeal, offering a mindful and purposeful experiance, according to Mills.โ
This sentiment is echoed by melissa Lindsay of San โFrancisco, a daily โmatcha drinker who has โnoticedโ price increases on โher preferred high-end brands but remains committed to the ritual.”It’s not simply aโ tea bag in water,” Lindsay explained. “It’s an experience to prepare it to your liking.”
Businesses are navigating the price increases with varying strategies. David lau, owner of Asha Tea House โคin San Francisco, has increased the price of his matcha latteโ by 50 cents after the cost of his โJapanese matcha more than doubled.He โis now actively โseeking alternative suppliersโค in China and other countries, aiming to balance affordability with quality.
“We are in the affordable luxury businessโฆ We want people to come every day, and once you reachโข a certain level of prices you start excluding people,” Lau said. “We want to beโข very aware and careful not to do that.”
The surge in matcha prices reflects a broader trendโ of supply chain disruptions and increasing demand for specialty food and beverage products.Whether the market will stabilize, or consumers will seek alternatives, remains to be seen.