Overview

• Global matcha consumption has tripled over the past decade and UK sales jumped 202% in 2023 as social media trends and post-pandemic tourism fuel demand.
• Record heatwaves in the Kyoto region slashed tencha yields by about 25%, prompting the Japanese Tea Production Association to warn of lower matcha output in 2025.
• Average tencha prices reached 8,235 yen per kilogram in late April, a 70% increase year-on-year, as harvests fell and orders surged ahead of trade changes.
• Major producers Ippodo and Marukyu Koyamaen have imposed strict sales limits, and US importers report matcha stocks now sell out within days.
• The new 15% US tariff on Japanese tea imports under the Tokyo-Washington trade deal is expected to further inflate costs for American consumers and tighten global supply.