A vibrant bright green tea has picked up steam in United States media over the past few years. Matcha has been on the rise as cafes experiment with the radiant ingredient in desserts and beverages. Yet, matcha has also seen a recent influx in price. 

The growing popularity of the tea has increased the global market for matcha, with revenue expected to reach $5.5 billion by 2027, according to 2023 research from Global Edge.

Japan is the primary grower of matcha and exports more than half of its supply, according to the Japanese Ministry of Agriculture, Forestry and Fisheries and as reported by The Japan Times. In 2023, Japan produced over 4,000 tons of matcha. 

However, both environmental factors and economic policy have caused the matcha market to experience jumps in price. 

In recent years, poor weather and labor shortages have led to an imbalance in the supply and demand of matcha coming from Japan, according to an article by the Associated Press.

Along with foreign burdens, recent tariff implementations have also caused surges in matcha prices. In September, a baseline 15% tariff was placed on nearly all Japanese imports entering the U.S. as a part of the United States-Japan Agreement, according to a White House executive order. 

Despite the recent tariff agreements with Japan, the U.S. remains one of the top importers of matcha, with sales exceeding $10 billion within the last 25 years, according to Global Edge. 

But Arizona cafes and consumers have still been feeling the effects of these higher prices.

How local cafes are affected

Local cafes that source their teas internationally are dealing with the market shift, sometimes struggling to find balance between quantity and quality.

Songbird Coffee & Tea House is a local cafe in downtown Phoenix that previously sourced its matcha from the AOI Tea Company, which imports products from Japan.

Prices for AOI’s matcha have doubled due to both tariffs and increasing demand for the product, manager Frankie Hirsch said in a statement. In an effort to avoid raising prices, Songbird Coffee & Tea House is planning to switch matcha suppliers, Hirsch wrote. 

“We are pretty well known for our matcha, so we sampled quite a few brands,” Hirsch wrote. “We don’t want to skimp out on the quality of our products.” 

Tariffs have also impacted the price of the cafe’s espresso beans, Hirsch wrote. Their roaster has increased the price of the beans by 10%, leading to uncertainty for Songbird.

“As of right now we don’t quite know what that means for us,” Hirsch wrote. 

Learning about the news a week ago, Hirsch wrote that the effects of the price increase is yet to be seen at the coffee shop.  

Fillmore Coffee Co. is another Phoenix-based cafe that has seen increases in price from its matcha supplier.

“Where we would usually pay $30 to $40 for a bag of matcha, we are now paying $65 to start,” said manager Olivia Owens.

Owens noticed matcha prices rising about five months ago and for about one month, the company was dealing with backorder issues from its matcha supplier, Owens said.

Despite these changes occurring in the matcha market, the company has continued to charge customers with the same prices.

Fillmore has not had a price increase in the last four years which is something that sets it apart from other companies in the area, Owens said.

“We still are making profit because we get a lot of drinks from one (matcha) bag,” Owens said. 

Infusion Coffee & Tea is a cafe in Tempe with a “unique and informed perspective,” as they have not experienced price influxes yet, corporate trainer and web manager Devin O’Malley said in a statement.

Infusion is the daughter company of the wholesale company Infusion Distribution. The stock distribution company has not yet been affected by tariffs but anticipate possible impacts, O’Malley said. 

“Because we are a wholesaler operation, we have an excess of stock already in house,” O’Malley said.

Infusion mainly works in specialty coffee and only recently started selling ceremonial grade matcha. The coffee house recently experimented in finding a matcha alternative by grinding earl grey tea to mimic the stone grinding of matcha, she said. 

“Maybe the route will just be expanding what the matcha window is (and) what we use to do that,” she said.

Consumer impact

Matcha consumers are already starting to feel the effects of rising prices at local cafes near ASU’s campuses. 

READ MORE: Ditch that cup of coffee: Top 5 matcha cafes around ASU

Caitlin Giap, a freshman studying biological sciences, said ever since the tea became popular, prices have been increasing. 

Market shifts are changing student’s buying habits as the drink becomes more expensive. Where students used to buy matcha casually, some are now more selective about their spending. 

Matcha is now becoming something to have for special occasions, Giap said.

“It would have to be a sweet treat after I take a test or something like that,” Gabby Davis, a freshman studying biological sciences, said.

Troubles across seas and domestic surcharges are leaving the future of the matcha market unclear for companies and consumers alike. 

“Tea, in and of itself, is already facing a crisis, if you will, so it’s really just a wait and see if matcha ends up getting less popular,” O’Malley said.

Edited by Natalia Rodriguez, Senna James and Pippa Fung.

Reach the reporter at dbell39@asu.edu and follow @dhemibell on X. 

Like The State Press on Facebook and follow @statepress on X.