You may have noticed some out-of-stock matcha products at stores, on Amazon, and even on many brands' websites. Prices are going up everywhere too. So, what's going on with matcha in 2025?
The short answer? A lot. But we have a long answer for you as well.
Supply Constraints
Japan is roughly the size of Wyoming, yet it supplies most of the matcha for the entire world. That's asking a lot. But we have to pare things down even further, as not all of Japan is suitable to grow tea.
Only about 5% of Japan can grow tea plants efficiently. This 5% doesn't grow just matcha either. Some farmers dedicate themselves to other types of tea, like sencha, gyokuro, or genmaicha. Some tea farmers are abandoning fields entirely as they retire, while others are switching to strawberries, another luxury crop with high margins.
That leaves us with an area smaller than Rhode Island to fuel the matcha craze throughout the United States, Canada, and Europe. Some brands may source lower quality matcha from China or India, and aren't as affected, but Ujido does not. We limit ourselves even more by sourcing from premier central regions of Japan, like Uji, Kyoto, and Shizuoka.
Increased Demand
2024 broke all the records for Japanese matcha consumption. The world saw the beginnings of shortages then. Many major tea manufacturers put limits on purchasing amounts. Brands within Japan sold out in tea shops across the country. This reached the United States, but was less noticeable as brands like Ujido juggled what we had, prioritized what sold well, and consolidated offerings that weren't as popular.
2025 has seen demand grow beyond most brands' ability juggle, and Japanese farmers can't keep pace. It takes around five years for a tea plant to mature to the point to produce matcha, so planting more or converting other farms won't help for some time. And, by the time these are ready, demand will have outpaced them.
Tea Auctions
Japan conducts tea auctions each year around the first harvest when tea traders sell the leaves from farmers to manufacturers, like us. Due to the demand of last year, the 2025 auction turned into bidding wars with manufacturers snatching up the entire season of first harvest matcha in a matter of hours at prices never seen before.
This year's unprecedented tea auction means matcha is controlled by a smaller set of manufacturers, and the prices paid will work their way down to customers. It's just a matter of time.
Matcha Harvests
Many agricultural goods can be grown year-round with decent quality each harvest. Matcha is not one of those. The best matcha comes from the first harvest in early May. This is when the leaves are most tender and mild, before the summer sun creates bitter tannins and tougher leaves.
Only the first harvest is considered ceremonial grade. This is the matcha that sold out instantly at the tea auction. There is no more ceremonial grade matcha coming later this year for manufacturers to purchase.
While matcha is harvested several more times throughout the summer, all harvests after the first are culinary grade, and the quality goes down with each consecutive harvest. The second harvest, like our current Summer Harvest, makes a great latte, but the third and fourth are best used in pastries.
What Does This Mean for Matcha Lovers?
Unfortunately, it means you will see more out-of-stocks from your favorite matcha brands. It also means prices will go up around the world. Some brands may raise prices suddenly by a large amount. Others may slowly increase them so as to not shock consumers. But the trend will unfortunately be upward.
Ujido's Commitment to You
Although we are impacted by the shortage, we will have matcha this year. We’ve invested more to secure enough ceremonial-grade matcha to get us through this tough time. Because inventory will be tighter, we’re prioritizing production of our best-sellers—the matcha you love most. You may see some slower-moving items become limited or temporarily unavailable.
While our costs have gone up, we’re doing everything we can to not pass those increases on to stores or consumers just yet. Unfortunately, price increases will eventually be necessary to ensure Ujido can continue to thrive—something we know our fans want too.
Thank you for your loyalty. Please know we’re committed to keeping your matcha cravings met and our pricing as fair as possible during this challenging period.