As a small business, transparency is one of our guiding values. That’s why we want to share a few insights into the recent changes in matcha pricing. These increases are starting to roll out across the industry as the new 2025 harvest matcha is distributed. Here's a closer look at what's happening behind the scenes.
Matcha's Global Rise 🌍
Matcha has grown far beyond its traditional roots. It’s now a staple in cafés, wellness routines, and social media feeds around the world. This growing demand is exciting, but it’s also placing enormous pressure on a supply chain that simply can’t keep up, especially when it comes to organic matcha. In fact, organic matcha makes up less than 10% of all matcha produced in Japan. It’s this very rise in global demand that has contributed to the widespread matcha shortages this year.
Weather Challenges in Japan 🌧️
At the same time, Japan has been hit hard by unpredictable weather. In 2025, intense heatwaves and unstable spring temperatures affected early harvests in key regions like Uji and Kagoshima. These climate disruptions reduced yields significantly, particularly for the first harvest (Ichibancha) leaves that produce the most vibrant and flavorful matcha. Some regions have reported yield declines of up to 25% compared to the previous year.
The Matcha Auction 📈
Each year, Japan hosts a series of tencha auctions, where producers and brands bid on freshly harvested tea leaves. In 2025, with yields down and demand at record highs, competition was intense, driving prices up significantly across the board. In some cases, auction prices more than doubled over the previous year. This means securing the same level of quality now requires a far greater investment.
Labour & Production Costs 🕒
In addition to market dynamics, the cost of producing matcha continues to rise. Labour shortages, increasing energy prices, and the careful, time-intensive nature of traditional stone grinding all contribute to higher costs at every step of the process.
How We're Responding 💚
While some things are out of our control, we’re focused on what we can do, like keeping matcha accessible, exciting, and reliable. We’ll continue to offer thoughtful promotions and a low free shipping threshold, and we’re introducing a wider range of matcha products (very soon) that reflect different regions, cultivars, and price tiers — all backed by the same quality and transparency initiatives our amazing community expects from us.
Final Thoughts 🍵
We don’t take your support for granted, especially in times like these. While rising prices are never ideal, they also speak to the value of a craft that has been carefully preserved over generations. Thank you for continuing to support not just our small business, but the skilled and hard working artisans in Japan who dedicate their lives to producing this exceptional tea.
Megan & Chris
Cofounders
