In recent years, matcha green tea has gone from a niche Japanese tradition to a global superfood sensation. The matcha market is booming. Cafes, wellness brands, skincare products, and even energy drinks are now incorporating matcha. But what does this rise in demand mean for consumers and businesses? Why are matcha prices soaring, and how can you ensure you're sourcing from a trusted matcha supplier?

Let’s break it all down in simple, clear language that anyone can understand, while staying rooted in facts and real science.

The Growing Global Demand for Matcha

Matcha is no longer just a tea. It’s a health trend, a lifestyle, and a powerful ingredient. According to a report by Market Research Future, the global matcha market is expected to grow at a CAGR of 8.1% from 2023 to 2030. This surge in popularity has led to high demand, especially for premium quality ceremonial grade matcha from Japan.

People often ask, "Is matcha good for health?" The answer, backed by numerous studies, is a resounding yes. Matcha is rich in antioxidants, particularly EGCG (epigallocatechin gallate), which may support weight loss, heart health, and even protect against certain cancers (source).

When a product offers beauty, wellness, and energy benefits all in one, it's no wonder demand is skyrocketing.

 

A Brief History of Matcha

Learn more about The History of Matcha.

To truly appreciate matcha, you need to understand its roots. The history of matcha goes back over 800 years. It was first introduced to Japan by Buddhist monks who discovered its ability to promote calm alertness, perfect for long meditation sessions. The Japanese tea ceremony elevated matcha into an art form, focusing on purity, tranquility, and harmony.

Today, that tradition continues. But the global scale has changed how it’s harvested, processed, and sold.

 

 

Why Matcha Prices Are Soaring?

The matcha market is booming, and with that boom comes a steep rise in prices. But why is this happening? Why does a small bag of ceremonial grade matcha from Japan cost more today than it did just a few years ago?

Below, we explore five major reasons behind the soaring prices of authentic matcha powder. These factors combine to create a perfect storm leading to both a surge in demand and tightness in supply, pushing prices higher and making it harder for businesses to find a trusted matcha supplier.

 

1. Limited Land for Cultivation

 

One of the most important reasons for rising matcha prices is the limited land available for cultivation. Matcha is not just any green tea. It is grown under very specific conditions in specialized regions of Japan, including Uji (Kyoto), Nishio (Aichi), Shizuoka, and Fukuoka.

These regions have the right combination of:

- Rich soil.
- Perfect climate.
- Generations of farming knowledge.

 

To produce high-quality, ceremonial grade matcha, tea farmers must cover the tea plants with shade cloth for about 20–30 days before harvest. This increases the chlorophyll and L-theanine content, which gives matcha its vibrant green color, umami taste, and great health benefits.

Because these growing conditions are unique and cannot be easily replicated in other countries, land availability is extremely limited. On top of that, Japan’s aging population and shrinking rural workforce have made it even harder to maintain large-scale matcha farms. Many young people are not taking over family farms, leading to reduced production capacity.

This creates a bottleneck: while demand for matcha is rising globally, the land and labor available to grow matcha are staying the same—or shrinking.

 

 

2. High Production Standards

 

Another reason why matcha prices are increasing is the labor-intensive production process. Producing true matcha involves several careful steps:

- Shading the plants for weeks before harvest

- Hand-picking only the youngest, most tender leaves

- Steaming the leaves to stop oxidation

- Drying the leaves into “tencha”

- Grinding the tencha into matcha using traditional stone mills

 

Here’s a surprising fact: it takes one full hour to grind just 30 grams of matcha powder using a traditional stone mill. This slow, careful process is necessary to preserve the flavor and nutrients without overheating the powder.

Compare this to mass-produced green tea or so-called "matcha" from other countries, and you’ll understand why authentic Japanese matcha powder is more expensive.

Also, Japan has relatively high labor costs compared to countries like China or India. That means everything—from planting to harvesting to grinding—is more expensive. The higher the quality, the stricter the standards, and the more skilled labor involved. This raises the price for the final product, especially for bulk matcha powder used by companies and tea shops.

 

3. Growing International Demand

 

Global interest in matcha health benefits is exploding. Consumers around the world are discovering that matcha is not just a tea, it’s a superfood. It’s packed with antioxidants, especially EGCG (epigallocatechin gallate), which has been linked to better heart health, metabolism, and brain function.

This has created demand in industries far beyond tea shops:

- Skincare and beauty brands now use matcha for its anti-aging and anti-inflammatory properties.

- Energy drink companies are using it as a natural source of caffeine and L-theanine.

- Cafes and bakeries are adding matcha to everything from lattes to donuts.

 

***Read more about: 
7 Reasons Why Matcha Is Perfect for Your Skin Health

Naturally, more companies are searching for a matcha supplier from Japan to meet customer expectations. This demand puts pressure on the limited supply chain, especially for high-quality, organic ceremonial grade matcha.

If you’re asking, “Where to buy matcha wholesale?”—you’re not alone. Businesses are trying to buy matcha in bulk now before prices go even higher. This is exactly why smart buyers are acting fast.

 

 

4. Climate Change and Harvest Risks

 

Weather plays a major role in tea production. Unfortunately, climate change has introduced more unpredictability to matcha farming in Japan.

Green tea crops are sensitive to:

- Excessive rainfall.
- Late spring frost.
- Strong winds.
- Sudden temperature drops.

Even a single season of poor weather can result in lower harvest volumes. And when the supply drops, basic economics tells us that prices will go up.

In recent years, Japan has experienced record rainfall and unpredictable seasons, impacting both the quality and quantity of tea leaves harvested. This makes it harder for even the best Japanese matcha suppliers to meet growing demand.

 

 

How to Choose a Trusted Matcha Supplier

 

With so many options online, how do you know where to buy matcha powder wholesale or buy matcha in bulk without getting scammed? Here are tips:

1. Check the Country of Origin

Genuine matcha comes from Japan. If it says “Made in China” or another country, it’s not true Japanese matcha.

 

2. Request a Certificate of Analysis (COA)

A reputable Japanese matcha supplier should be able to provide lab tests showing the matcha's purity, heavy metal levels, and more.

 

3. Ask About Matcha Grades

There are different matcha grades: ceremonial grade, culinary grade, and more. Make sure you know what you’re buying. Ceremonial is the highest quality, often used in tea ceremonies and for sipping.

 

4. Look at the Color and Smell

Good matcha is vibrant green with a sweet, grassy smell. If it looks dull or smells like hay, it’s probably low quality.

5. Know Your Supplier

Do they work directly with Japanese farmers? Do they store matcha in cold storage to maintain freshness? Are they transparent?

Learn more about:
How to Choose the Best Matcha for Your Health Needs

 

AKI MATCHA meets all of the above. We are a certified matcha supplier, offering organic Japanese matcha powder wholesale and retail to customers worldwide.