Japan’s beloved matcha green tea is facing a steep price hike, with farmers and suppliers blaming last year’s record-breaking heatwaves for crippling this year’s harvest. In Kyoto, where nearly a quarter of Japan’s tencha (the tea leaves used to make matcha) is grown, temperatures soared to damaging levels, severely impacting crop yields.
Masahiro Yoshida, a sixth-generation tea farmer in Uji, saw his harvest drop by 25%. “Last year’s summer was so hot that it damaged the bushes, so we couldn’t pluck as many tea leaves,” he told Reuters.
The sharp supply drop comes at a time of booming international demand. Health-conscious millennials and Gen Z consumers have turned matcha into a global sensation, fueling a wave of lattes, smoothies, and desserts around the world. Social media hype in particular has intensified the craze.
Retailers are struggling to keep up. Yuki Ishii, founder of Singapore-based wholesaler Tealife, said demand jumped tenfold last year. “I’m basically always out of stock,” he said.
While Japan’s total tencha production reached over 5,300 tons in 2024—nearly triple a decade ago—industry insiders warn that this year’s output is expected to fall. “Many were hoping for a higher yield harvest this year… but it doesn’t seem like this is going to be the case,” said Marc Falzon of New Jersey-based Ooika Co., who sources directly from Uji.
The price of tencha has surged accordingly. At a recent Kyoto auction, it fetched 8,235 yen per kilo—up 170% from last year and nearly double the previous record. And with new tea fields taking up to five years to mature, experts say the shortage won’t ease anytime soon.
“I suspect we’ll see even more dramatic price increases,” Falzon warned.
