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Can your matcha addiction survive a shortage and tariffs?

Matcha, a finely ground green tea traditionally used in Japanese tea rituals, has experienced a notable rise in popularity across the United States in recent years.
This surge in demand, largely driven by social media trends and health-conscious consumers, strains a supply that is labor-intensive and limited by workforce shortages in Japan.
Japan, the primary source of matcha and exclusive producer of ceremonial matcha, faces a 15% U.S. tariff amid hot climate conditions that impacted production last year.
Peter Goggi, who leads the Tea Association of USA, notes that matcha accounts for about 2.8% of the U.S. tea market in terms of dollar value, but prices are likely to increase due to tariff impacts and limited availability.
These factors suggest matcha prices will likely increase in retail and cafes in the U.S., unless distributors or retailers absorb the added costs, affecting consumers' daily matcha consumption.

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