Matcha Prices Are Changing. Here's Why.
The first harvest of Japan’s 2025 tea season has come to an end. As we speak, producers are carefully processing the season’s earliest, most delicate tea leaves, the foundation of ceremonial-grade matcha.
But behind the scenes, a seismic shift is taking place. Matcha prices are rising across the board. Marukyu Koyamaen has announced increases of around 50-60 percent. Hekisuien’s prices have nearly tripled. On average, matcha from this year’s harvest is expected to cost twice as much as last year.
For those of us who have long admired the stability and precision of Japan’s tea industry, this moment feels historic. For the first time in decades, pricing has become unpredictable. We want to explain what’s going on and what it means for you.
The Auction That Changed Everything
Each spring, Japan holds its first major tea auction of the year. Tea producers bring their freshly harvested tencha, the raw material for matcha. Manufacturers then compete to buy what they need to create their signature blends.
This year, the competition was fierce. Stock from the previous year had already run low, and demand had grown. Bidding escalated quickly. Some manufacturers entered the auction with larger budgets. Others were priced out entirely. Within days, the best tencha was gone, and the going price was far higher than anyone anticipated.
This single moment has affected the entire supply chain.
Why This Isn’t Just a Price Hike
Matcha isn’t like other agricultural products. It takes years to grow, requires extremely skilled labour, and is highly dependent on climate. Even under perfect conditions, supply is limited.
For decades, many brands kept their prices stable out of respect for tradition. But that model no longer works in a globalised market. Now that matcha is in demand around the world, Japan’s manufacturers have had to adapt. Some are raising prices gradually. Others are making up for years of underpricing in one go.
The reality is that matcha has been undervalued for a long time. This year simply brought everything to a head.
What You Might Notice
Some blends may temporarily disappear. Others may not return at all. In certain cases, the cost to produce a popular matcha blend now exceeds that of a premium-grade one. This makes it impossible for manufacturers to justify selling it at its old price point.
Retail pricing in Japan is standardised. Whether you're shopping online, visiting a tea house in Kyoto, the price will be the same. There are no markups for foreign customers, and buying directly from the brand won’t be cheaper either.
Where Do We Go From Here?
We don’t expect prices to fall. It takes five years for a newly planted tea bush to become harvest-ready. Labour shortages, land scarcity, and weather also limit production. Some regions are exploring more culinary-grade matcha, but for ceremonial matcha, the supply remains fixed.
The good news is that this shift helps ensure the future of Japanese tea. Higher prices support the farmers, blenders, and artisans who dedicate their lives to the craft. It allows them to keep producing exceptional matcha without cutting corners.
We know this is a big change. We feel it too. Our mission has always been to make exceptional Japanese matcha accessible and respected. We’ll continue to manage our stock carefully, share honest updates, and celebrate the producers behind every tin. If you notice limits on certain products, it’s simply our way of ensuring fairness and access for everyone.
Thank you for being part of this journey. Matcha is evolving, and we’re proud to evolve with it.
With care,
The Serendipity Australia Team