Overview

• Tencha leaf prices reached a record €44 per kilo this season as matcha powder costs jumped nearly 200% in Japan over the past year.
• Top producers like Masahiro Okutomi have stopped accepting new orders after daily inquiries overwhelmed limited output.
• Matcha production demands years of tea bush cultivation and a labor-intensive process of shading, hand-picking and stone grinding.
• Tokyo is urging farmers to scale up output, but small-scale operations warn rapid expansion risks undermining quality.
• A potential U.S. tariff hike from 10% to 24% in July threatens to push costs higher for American retailers and consumers.