Is the Tea Ceremony Becoming Out of Reach? The Soaring Price of Matcha and Its Structural Impact on the World of Tea
- Shinya Yamada
- 10 minutes ago
- 4 min read
“My usual matcha is now twice the price...” — Growing Concern Among Tea Ceremony Practitioners
Matcha that once seemed readily available is now suddenly twice as expensive — and increasingly difficult to find. Across Japan, voices of concern are rising: “At this rate, I won’t be able to continue my tea lessons or host tea gatherings.” For many involved in the traditional tea ceremony, the situation is becoming untenable.
Why Are Matcha Prices Rising So Drastically?
In the spring of 2025, the Japanese matcha industry was hit with a shock. During the annual spring tea leaf auctions, prices reached unprecedented levels. Renowned producers such as Marukyu Koyamaen reported increases of approximately 80%, while Hekisuien announced hikes of up to 150%. On the whole, this season’s freshly harvested matcha is expected to be “at least double” the price compared to previous years.
A Global Matcha Boom Is Driving Prices Up
According to Japan’s Ministry of Finance trade statistics, the export value of green tea, including matcha, to the United States grew from 4.4 billion yen in 2015 to 16.1 billion yen in 2024 — a 3.7-fold increase. Exports to the EU and UK jumped from 2 billion yen to 7.4 billion yen in the same period. Unit prices also rose: 2.2 times higher for the U.S., 1.4 times for the EU and UK. And further increases are expected in 2025.
Source: Trade Statistics of the Ministry of Finance, Japan
Behind this surge lies the global health trend and the growing perception of matcha as a “luxurious, functional food.” From matcha lattes at Starbucks to matcha ice cream at Trader Joe’s, demand for matcha-infused products is rapidly expanding across Western markets.
Record Auction Prices and a Fierce Battle for Raw Materials
In response to the sharp rise in demand in 2024, tea manufacturers scrambled to secure raw materials at this year’s auctions. The most prized first harvest leaves (ichibancha) from regions like Uji and Kagoshima were snapped up immediately, pushing prices to record-breaking levels.
This Isn’t a Temporary Spike — It’s the New Normal
What these market dynamics reveal is not a temporary inflation, but a long-term shift driven by structural supply constraints and sustained global demand.
In fact, matcha prices within Japan are tightly regulated by manufacturers — prices at physical shops in Kyoto and Uji are identical to online listings. Experts agree: prices are unlikely to return to past levels. The current range is now considered the “new normal.”
Why Can’t the Supply Be Increased?
You might wonder, “Can’t we just produce more matcha?” But matcha is an agricultural product. Developing a new tea plantation takes a minimum of five years before harvest, and cultivation is dependent on climate and geography. Moreover, Japan’s rural population is aging, and training skilled workers takes time — labor shortages remain a serious bottleneck.
Structural Challenges Facing the Tea Industry
In a November 2024 report titled The Current State and Challenges of the Tea Industry and Tea Culture, Japan’s Ministry of Agriculture, Forestry and Fisheries outlined major structural problems:
Many tea fields are small and located on steep slopes, making mechanization difficult.
Some key processes, like shading the tea leaves, are still labor-intensive and hard to automate.
Rising fuel prices are impacting tea factories.
Aging tea plants are leading to lower yields and reduced quality.
The transition toward organic and high-value tencha (the raw material for matcha) production also faces hurdles, such as pest control challenges, equipment costs, and the need to secure stable buyers.
What Is Tencha? Why Matcha Production Is So Demanding
Matcha is made from tencha, a uniquely cultivated tea grown under shade. Covering the tea fields blocks sunlight, helping retain the rich umami flavor in the leaves and creating the distinct “covered aroma” that defines quality matcha. However, this process demands substantial labor, time, and cost — it’s not suited to mass production.
How the Price Surge Is Impacting the World of Tea Ceremony
Naturally, these rising prices are impacting the world of tea. In traditional tea schools and formal tea gatherings where only premium matcha is used, higher costs are directly reflected in lesson fees and event charges.
Some popular blended matcha products have even been discontinued this season due to raw material shortages, with no availability expected until the following year.
Is Matcha Becoming Too Expensive for Younger and Overseas Enthusiasts?
As matcha becomes associated with luxury, it is increasingly seen as inaccessible — especially by younger generations and new international fans. This poses a long-term threat to the sustainability of tea culture itself.
A Time to Rethink the Value of Matcha and Our Relationship With It
It is undoubtedly encouraging that matcha — a product of Japanese tradition and craftsmanship — is being reappraised on the world stage. However, ensuring this richness endures into the future requires a reexamination of how we produce, distribute, and consume matcha sustainably.
Experience the Real Story of Matcha in Kagurazaka
At EDO KAGURA Corporation, we offer immersive cultural experiences in Kagurazaka and Okubo, including tea ceremony and wagashi-making class. Many international guests have commented, “This matcha tastes completely different from what I’ve had before.”
Learn Directly From Experts in Kagurazaka’s Historic Geisha District
The geisha culture of Kagurazaka is home to long-established tea shops such as Rakuzan and artisan ceramics stores like Maruoka Toen and Toushien. Speaking directly with their owners and staff can open up deeper insights into the history, preparation, and latest developments in matcha culture.
The Real Taste of Matcha — No Sugar Needed
Rakuzan’s sugar-free matcha ice cream, made purely from matcha’s natural sweetness, is a revelation for many foreign visitors. “It’s hard to believe something this good doesn’t use sugar,” they often say. If you want to experience the true essence of matcha, join our guided Kagurazaka walking tour and taste it for yourself.
In Conclusion: Beyond the Price — Toward the Future of Tea Culture
Matcha is not only delicious and healthy — it is a symbol of Japanese culture. Understanding the structural and cultural background behind the current price increases deepens your appreciation for this remarkable tradition. We invite you to take your first step into that world with us, right here in Kagurazaka.
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How to Access Kagurazaka
The Kagurazaka area is conveniently located within 30 minutes from any major station in Tokyo. This is because Kagurazaka is situated in the heart of Tokyo, at the center of the Yamanote Line. Please come and visit this convenient and charming Kagurazaka.
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