🍵 The Matcha Squeeze: Why Prices Are Rising and What It Means for Your Cup

Article Summary:

Curious about what's happening in the world of matcha? Here’s a quick look at the key points from our full article below.

• The world has gone wild for matcha! This huge surge in popularity means global demand is the highest it's ever been.

• It’s putting a squeeze on supply. Authentic matcha is an artisan craft that can't be rushed, and Japan's growers are finding it hard to keep up with the new demand.

• Prices are on the rise. This imbalance has led to industry-wide shortages and the largest price increases at Japan's tea auctions in over a decade.

• We're keeping you in the loop. We are committed to being transparent about these changes and are so grateful for your understanding as we navigate this together.

Read the full article below →

If you've been sipping matcha for years or just recently fallen in love with its vibrant green charm, you might have noticed something lately: it’s getting harder to find, and noticeably more expensive. At Wabi, we’ve always been passionate about making authentic Japanese matcha accessible here in Aotearoa. But behind the scenes, the matcha world is experiencing a dramatic shift — and it’s affecting farms, prices, and availability across the board.

So, what’s going on?

A Global Green Rush

Over the past few years, the world has developed a full-blown obsession with matcha. From cafés to skincare products, to energy drinks and fine-dining desserts — demand has exploded. And while this is wonderful for tea lovers everywhere, it’s putting immense strain on Japan’s matcha supply chain.

Unlike many other teas, matcha isn’t something that can be quickly ramped up. It comes from a very specific leaf called tencha, grown under shade, hand-picked, steamed, dried, and finally stone-milled to a fine, jade-green powder. It’s a craft, not a commodity.

Only around 6% of Japan’s total tea output becomes matcha — and of that, just a small portion meets the quality standards we look for. Add to this the reality that many Japanese tea farmers are ageing, with fewer successors, and you begin to see why the pipeline is under pressure.

Why Prices Have Jumped

Japanese matcha prices are determined by a traditional auction system. After each Spring and Summer harvest, leaves are graded and sold — and those prices set the tone for the entire supply chain.

In 2025, the Spring auction saw prices for certain leaf grades soar by 170–250%. It was a shock across the industry — the largest spike we’ve seen in over a decade. And with the Summer harvest approaching, signs suggest we’ll see continued pressure, especially for higher-quality leaves that offer the bright colour, mellow flavour, and fine grind associated with ceremonial or premium blends.

At Wabi, we work directly with producers in Japan, some of whom own their own farms. But even they can’t grow enough to meet demand, and like many, rely on access to wider market supply. These auctions are fiercely competitive — and the volume is finite.

Looking Ahead

There is hope on the horizon. The Japanese government has recently introduced incentives encouraging farmers to convert fields from sencha (common green tea) to tencha for matcha production. It’s a promising move, but these aren’t overnight crops — it may take several years before this results in real volume relief.

We continue to work closely with our long-standing partners, plan ahead with care, and stay deeply connected to Japan’s tea cycles and auction rhythms. We sample every harvest with attention to flavour, texture, and colour to ensure our quality stays exactly where it should.

What This Means for You

If you’re a long-time Wabi customer or someone newly discovering matcha, you might see changes in price — a reflection of what’s happening globally. You might also notice stock levels fluctuating more than usual.

We want you to know: this isn’t because we’re cutting corners or chasing margins. We’re here for the long haul, and we’re committed to keeping you in the loop as things evolve. That’s why we’re sharing this update — so you understand not just what’s happening, but why.

It’s also a great time to:

• Explore alternative Japanese teas such as houjicha (roasted and nutty with low caffeine) or sencha (brighter and grassy — a classic in Japan).

• Match the grade of matcha to your purpose: ceremonial matcha is wonderful for sipping as-is, but café-grade matcha is ideal for lattes, smoothies and baking. Choosing the right matcha for the right use not only saves you money — it helps ease pressure on the more limited high-quality harvests.

Love, Patience & Planning

Matcha has always been more than a drink — it’s a ritual, a pause, a moment of care. And in some ways, this global squeeze reminds us to slow down, to plan ahead, and to savour what we have.

If you’re a regular matcha drinker, we recommend keeping a bit of extra stock on hand, trying new blends when available, and trusting that we’ll always be transparent with you as we navigate this market.

From the hills of Uji to your cup here in Aotearoa — we’re with you every step of the way.