Why Matcha Prices Have Increased – And What We're Doing About It

One of our core values has always been to provide exceptional Japanese matcha at a fair and sustainable price. That means we never take price increases lightly. 

Today, we're communicating a necessary adjustment to our pricing, and we wanted to explain exactly why this is happening, what has changed in the global matcha market, and, most importantly, what we're doing to create more stability for our customers going forward. 

Why Has Matcha Become So Expensive?

The simple answer is demand. 

Over the last few years, global demand for authentic Japanese matcha has grown at an unprecedented rate. Consumers around the world are discovering its flavour, health benefits and versatility, while cafés, restaurants and food manufacturers are incorporating matcha into more products than ever before. 

The challenge is that Japan's supply cannot simply be switched on to meet this demand. 

Unlike many agricultural commodities, premium matcha begins with tencha. Tencha is grown by shading tea plants before harvest, and producing high-quality tencha requires specialised farms, experienced growers, significant labour and time. New production cannot be expanded overnight, and many tea-growing regions are already operating at capacity. 

On top of this, growers continue to face increasing labour costs, climate pressures and rising production expenses. 

The result is straightforward: demand has significantly outpaced supply. 

One of the most interesting outcomes of this shift is the growing recognition of exceptional matcha being produced outside Japan. Talented producers in countries such as China, Taiwan and Kenya are investing heavily in cultivation and processing techniques, creating exciting, high-quality alternatives that are earning international recognition. As consumers become more curious and open to exploring different origins, these producers are playing an increasingly important role in the future of the category. 

While Japan remains the benchmark for traditional matcha and continues to produce some of the world's finest examples, the global matcha landscape is evolving. Increased demand is encouraging innovation, expanding consumer choice and shining a spotlight on outstanding producers from around the world. 

Why Do Prices Move So Quickly?

Many people compare matcha with commodities such as coffee. 

Coffee has the C-market, a global commodity exchange that helps smooth pricing through futures contracts and speculative trading. 

Matcha doesn't. 

There is no equivalent global commodity market. 

Instead, pricing reflects the real physical availability of premium tencha. When harvests tighten or demand accelerates, prices move almost immediately because there is simply less product available. 

There is no buffer between supply and demand. 

Why Have There Been Two Increases on Our Wakaba Product in Six Months?

This has been the hardest part for us. 

Because we had not secured supply across a full twelve-month period, we experienced pricing changes across two separate harvests within the same year. 

That meant we had no option but to implement two price increases. 

We know that's frustrating. 

It's difficult for us to communicate multiple increases, and we appreciate it's equally difficult for our customers, who then need to explain those increases to their own customers. Multiple adjustments in a short period don't reflect how we want to do business. 

If there had been another option, we would have taken it. 

What We're Changing for Greater Stability

We've learned from this experience. 

Going forward, we have secured our matcha supply across an entire year from a single harvest. 

This means cafés can price menus with greater confidence, plan promotions more effectively and avoid multiple pricing updates throughout the year. While we can't predict future global markets, we've taken meaningful steps to make pricing as stable and predictable as possible. 

Stability matters just as much as price. 

Our Commitment

We don't believe in increasing prices simply because the market allows it. 

Our goal has always been to absorb increases wherever possible and only pass them on when there is genuinely no alternative. 

This increase reflects the reality of the Japanese matcha market, not a change in our philosophy. 

Despite these increases, premium matcha continues to provide excellent value for cafés and retailers. It remains a product with strong customer demand and healthy margins, allowing businesses to continue offering a premium product while maintaining profitability. 

Thank You

We're incredibly grateful for the trust our customers place in us. 

We know pricing conversations are never easy, and we don't take your continued support for granted. 

Our commitment remains unchanged: 

• Source authentic, premium Japanese matcha. 
• Build long-term relationships with trusted growers. 
• Provide stable, reliable supply. 
• Be transparent whenever market conditions change. 

Thank you for your understanding and for growing with us. We look forward to continuing to supply exceptional matcha for many years to come. 

While this article focuses specifically on the global matcha market, rising costs are affecting many ingredients and industries. If you'd like to learn more about the wider economic factors influencing food and drink businesses, read our article on Navigating Rising Costs in a Changing Global Economy.

 

Frequently Asked Questions

 

Why Has Matcha Become so Expensive?

Global demand for authentic Japanese matcha has grown significantly, while the supply of premium tencha (the shade-grown tea leaves used to produce matcha) cannot expand quickly. With increasing labour costs, climate pressures and rising production expenses, demand has outpaced supply, leading to higher prices. 

Why Have Blendsmiths Matcha Prices Increased Twice in Six Months?

We experienced pricing changes across two separate harvests within the same year. This meant we had to implement two price increases. 

Will Matcha Prices Increase Again?

While future market conditions can't be predicted, we've now secured our matcha supply across an entire year from a single harvest. Our intention is for the pricing we're introducing now to remain in place for at least the next 12 months, providing greater stability for our customers. 

Why Doesn't Matcha Have a Commodity Market Like Coffee?

Unlike coffee, matcha isn't traded on a global commodity market. Instead, pricing reflects the real availability of premium tencha. When harvests are smaller or demand increases, prices can move quickly because there is no buffer between supply and demand. 

Is Premium Japanese Matcha Still Good Value for Cafés?

Yes. Despite higher ingredient costs, premium matcha continues to provide excellent value for cafés and retailers. It remains a product with strong customer demand and healthy margins, allowing businesses to offer a premium product while maintaining profitability.