Matcha Pricing: 2026 Update

Over the last several years, Matcha has undergone a transformation unlike anything we have seen before.

What was once a relatively niche product, appreciated primarily within Japan and by a small number of tea enthusiasts abroad, has become a global phenomenon. When I began working professionally in Japanese tea in 2007, most customers were unfamiliar with Matcha altogether. More than once, I found myself explaining that Matcha was not Mate—the South American herbal infusion—but an entirely different tradition. Outside of a handful of tea enthusiasts, chefs, and Japanese expatriates, few people had encountered it.

Today, Matcha appears everywhere—from specialty tea shops and cafés to grocery stores, luxury hotels, cosmetics, and nutritional supplements. It has become a symbol of wellness, hospitality, craftsmanship, and increasingly, daily ritual. Demand has expanded dramatically and continues to grow.

For those of us who have spent decades working in tea, the scale and speed of this transformation would have been difficult to imagine.

At the same time, the production of exceptional Matcha — and now even more everyday grades of Matcha — remains fundamentally unchanged.

This disconnect sits at the heart of the conversation surrounding Matcha pricing in 2026.

As expected, our meetings with producers revealed a difficult picture: the landscape has changed. Prices are surging. Labor is short. International demand continues to grow. And as more Matcha drinkers begin to explore the broader world of tea, the desire for higher-quality “ceremonial” products is increasing as well.

The result is pressure at every level of the market. Teas that were once considered accessible are now being pursued globally, while the most exceptional lots have become even more limited. Matcha can be consumed quickly, but it cannot be produced quickly. That tension is now shaping the future of the category.

Unlike many agricultural products, Matcha cannot simply be scaled to meet demand. The finest Matcha begins as Tencha, a shade-grown tea that requires intensive cultivation, careful timing, and skilled labor. Tea bushes require years to mature. New fields cannot be planted and harvested overnight. The highest-quality material is harvested only once each spring. Every step, from cultivation to processing and final blending, depends upon knowledge accumulated over decades and often passed through multiple generations. Combined with Japan’s cultural tendency for slower reaction time to market volatility, the problem only seems to be becoming more complicated.

In many ways, Matcha is less comparable to a commodity and more comparable to the world’s great wines. While technical proficiency is essential, the finest examples are ultimately the result of countless decisions made by growers and producers over many years. There is no shortcut. And while there may be gains to be had with added technology, the truth is this won’t help the short-term outlook - growth will outpace supply for the foreseeable future.

When we say Matcha prices are increasing, What exactly does this look like when we dive into the numbers?

Using Kyoto first-flush machine-harvested Tencha auction averages:

Using Kyoto first-flush machine-harvested Tencha auction averages:

• 2024: ¥5,402/kg
• 2025: ¥14,541/kg (+169%)
• 2026: Opening auctions reported materially above 2025 levels; industry reporting suggests roughly another 50–60% increase in opening prices. A reasonable estimate is ~¥23,000/kg for illustrative purposes until full-season averages are published. ( https://shokuhin.net/145060/2026/05/21/inryou/inryou-inryou/)

For those of us working closely with tea producers, the current moment is not surprising. And the truth is that many of these price increases are likely justified when we consider the true cost of producing quality-focused tea. For years, many of Japan’s most talented tea farmers operated within a market that often failed to fully reflect the skill, labor, and risk required to produce exceptional tea. Aging producer populations, labor shortages, rising production costs, and increasing pressure on agricultural communities have been realities long before Matcha became fashionable abroad. While recent price increases have been substantial, they are also the result of deeper structural forces that have existed for decades.

The reality is that extraordinary Matcha has always been rare. The difference today is that far more people are competing for the same limited supply. Historically, the Japanese market provided a degree of stability. Producers operated within an established ecosystem where pricing expectations were relatively well understood and increases tended to be gradual. In many cases, the finest teas commanded respect, but not necessarily prices that reflected how difficult they were to produce.

The emergence of global demand has altered that equation. Consumers outside Japan have demonstrated a willingness to pay prices that would have seemed extraordinary only a few years ago. Viewed against historical data, today’s prices can feel shocking. Yet it is equally possible that many of yesterday’s prices were unsustainably low, supported by generations of producers who continued their work out of dedication to craft rather than economic incentive alone.

This does not mean every price increase is justified, nor that the market will continue upward indefinitely. But it does suggest that what we are witnessing is more than a temporary spike. It may be a long-overdue reassessment of the value of one of Japan’s most labor-intensive and culturally significant agricultural products.

At Kettl, we have spent nearly two decades building direct relationships with producers throughout Japan. These relationships were never built around securing the lowest possible price. They were built around mutual respect, long-term commitment, and a shared belief that exceptional tea is worth preserving.

As prices continue to rise, our responsibility remains the same. We will continue to source directly from producers whose work we admire. We will continue to support agricultural communities that are preserving some of Japan’s most remarkable traditions. And we will continue to be transparent about the realities affecting the teas we offer.

In some cases, rising costs may require price adjustments. In others, they may encourage us to explore new regions, cultivars, harvests, and production styles that offer exceptional quality while remaining accessible. There is also a reality that is not discussed often enough: there simply will not be enough first-harvest, high-quality Matcha to satisfy global demand.

The finest Matcha is produced from a limited amount of land, harvested during a narrow window each spring, and crafted by a finite number of producers. No amount of enthusiasm, investment, or demand can fundamentally change those constraints in the short term. As more consumers seek out higher-quality Matcha, competition for the best material will continue to intensify.

When these teas are available, they will likely command prices that reflect their scarcity. While this may be a difficult pill to swallow, we believe it also presents an opportunity. For too long, conversations about Matcha have been narrowly focused on a handful of regions, producers, and styles. Yet Japan remains home to an extraordinary diversity of tea-making traditions. New cultivars, overlooked growing regions, second-harvest teas, and alternative production styles all offer unique expressions of terroir and craftsmanship that deserve greater attention.

Scarcity often forces us to look beyond what is familiar. In doing so, we frequently discover something unexpected.

The future of Matcha may not simply be about producing more of the same tea. It may be about developing a deeper understanding of what quality can look like across a broader range of regions, harvests, and traditions. For us, that exploration is one of the most exciting aspects of this moment. The truth is, the future of Matcha will not be defined solely by scarcity. It will be defined by the choices we make as consumers, retailers, and producers. Whether we prioritize volume over quality, trends over tradition, or short-term demand over long-term sustainability will shape the next generation of tea production in Japan. For us, the path forward is clear.

We believe the future of Matcha depends upon healthy farms, thriving producers, and a market that recognizes the extraordinary amount of work required to create great tea.

The prices may be changing but the value has always been there.