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Matcha has become one of the most sought-after teas in the world, with the US now importing over 2,000 tons from Japan a year. As more Western consumers demand ceremonial-grade matcha — the highest-quality and most expensive kind — Japanese farmers are struggling to keep up.

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00:01The U.S. imports over 2,000 tons of this bright green powder from Japan a year.
00:08This specific powder is the highest quality and most expensive version of matcha, known as ceremonial grade.
00:16As the matcha frenzy reaches new heights in the U.S., more Western consumers are opting for this type of matcha over less expensive versions, or matcha grown outside Japan.
00:27But with Japanese farmers struggling to keep up with demand, matcha shortages around the world, and prices soaring to new records, picky matcha drinkers might actually be making the problem worse.
00:41We do have some crazy matcha connoisseurs that come in.
00:44But these labels may not be as definitive as we think.
00:48Anyone can label anything a ceremonial grade and use it as a marketing term.
00:53So are people in the U.S. drinking matcha all wrong?
00:57And is that the only reason why matcha is more expensive than ever?
01:02Matcha drinkers in the U.S. typically think about the tea in two quality-based categories.
01:08Culinary grade, the lower quality version, and ceremonial grade, the higher quality one.
01:14But in Japan, the traditional classifications were completely different, based on when the tea was served during a Japanese tea ceremony known as chanoyu.
01:24Koicha, or thick tea, was served at the beginning, and usucha, or thin tea, would come at the end.
01:32For koicha, like a thick soup or like melted ice cream would be a good way to describe the consistency. It's really viscous.
01:41Rebecca Corbett has been studying and practicing chanoyu for over 20 years.
01:46Because of that viscosity, and there's so much tea in there, you want it to be the highest quality blend that you can get.
01:54For usucha, practitioners whisked the matcha powder with more water, creating a lighter, frothier drink.
02:01We can think of the thin tea portion of a tea gathering as kind of the most informal and relaxed part at the end of the tea gathering.
02:10For centuries, ceremonies like these were the primary way matcha was consumed in Japan.
02:16Most people in Japan did not consume matcha very often.
02:21Its main consumption was among people in the tea practitioner community.
02:27It wasn't until the 20th century that people in Japan began consuming matcha more casually.
02:33It also became a popular flavoring in baked goods and desserts.
02:38But in the US, it was still nearly impossible to find.
02:42In the early 2000s, Japan exported just 1% of its tea.
02:48Matcha was always more expensive than other teas.
02:52Around this time, a pack of green tea bags in the US cost around $3 to $4, while a small tin of matcha could cost up to 10 times more.
03:02And the bold taste of matcha in its pure form was another barrier for Western drinkers.
03:08I've read a lot of newspaper articles and travel diaries.
03:13They're using phrases like green gruel, bitter, unpalatable.
03:18They use pea soup as a common description in a not flattering way.
03:24But 2006 marked a turning point for matcha in the US.
03:29That's when Starbucks brought matcha to the masses through its green tea latte.
03:35Unlike its traditional preparation, this drink was sweetened, served with milk, and either served hot or iced.
03:42People knew Starbucks. I mean, there's a built-in audience there.
03:48That's Rona Tison, the North America tea ambassador for the Japanese brand Ito En.
03:54The fact that they introduced matcha in a beverage that was more familiar to a lot of, you know, sweetened beverages.
04:03I would have to say that was probably the beginning that it really kind of went mainstream and widespread.
04:10In 2007, the term ceremonial-grade matcha was coined in the West.
04:15According to Canadian brand Doe Matcha, it was their founder who came up with the category.
04:21It was created to differentiate it from culinary-grade matcha, which is intended for cooking or baking, with a stronger, slightly bitter flavor.
04:30Culinary tends to be much more older plant and not of the really high-grade tea leaf.
04:37The higher-quality ceremonial-grade matcha is typically made from young tea leaves that come exclusively from the first harvest of the picking season.
04:46It's rich in the chemical L-theanine, which gives the tea a slight natural sweetness, making it better for drinking.
04:54Ceremonial-grade matcha is typically priced higher than culinary-grade matcha, costing anywhere from $20 to over $50 per ounce,
05:04while culinary-grade matcha is typically under $20 per ounce.
05:09Matcha's popularity in the U.S. continued to grow in the 2010s, with Google searches for matcha beginning to rise more steadily around 2012.
05:17Ito N, Rona Tissone's tea company, rolled out its Matcha Love line in 2015.
05:24Even Business Insider covered the craze, releasing several videos about the bright green tea powder.
05:30I'm getting hungry.
05:37The power of social media is pretty phenomenal.
05:42And it really, the outreach globally is amazing.
05:47Today, the U.S. is the biggest importer of Japanese matcha, accounting for nearly 80% of the country's powdered green tea exports in 2024.
05:57Google searches for matcha reached an all-time high in 2025.
06:02There are even cafes dedicated solely to the green tea powder.
06:06You'll find it in almost everything on the menu at the New York City Cafe Aoko Matcha.
06:12Matcha lattes, matcha soft serve, and even gelato.
06:16Aoko Matcha has only been open since August 2025.
06:20Its owner, Isabella Peng, says business is booming as prices for matcha continue to climb.
06:27Customers are really happy with it.
06:29It turned out better than I thought, actually.
06:32She uses only ceremonial-grade matcha in all of her matcha desserts, which she says she sources directly from Japan.
06:39So we would come for the matcha latte specifically because they want to, like, taste all different matcha lattes in the city.
06:46We do have so crazy matcha connoisseurs that come in and it's like, this is super good or, like, this is a little bit too sweet.
06:54Aoko's menu mainly consists of desserts, with its matcha mochi parfait being one of the most popular.
07:03It starts with a base of matcha pudding and syrup.
07:06So we do make our pudding in-house.
07:08It's very light.
07:09It doesn't taste sweet at all.
07:11Then it's layered with matcha soft serve, rice crisps, more soft serve, mochi balls, and red bean paste.
07:19Our gelato is our specialty.
07:21Right now, we do have levels one through five.
07:24One being the most sweet and five being the most bitter.
07:27So, personally, I like level three because it's right in the middle.
07:30But people that love matcha go straight to level five.
07:32It's not just cafes like Aoko Matcha fueling this recent matcha craze.
07:37Communities are forming in pockets of the internet, such as Matcha Talk, where matcha enthusiasts share recipes and tips.
07:46As I've always said, matcha is very versatile.
07:49But goodness, it's been sort of applied in so many different food products and beverages.
07:55But producing enough for matcha's growing fan base is becoming increasingly challenging.
08:03We first met Jintaro Yamamoto back in 2022 on his over 180-year-old farm in Kyoto.
08:16The region is responsible for 25% of Japan's production of tencha, the tea leaf from which matcha is made.
08:25The harvest begins in the spring, when workers gather the young leaves used for ceremonial grade matcha.
08:32But it's more than just Western categories putting a strain on Japanese supply.
08:44This is Jintaro's elaborate shading system designed to protect the leaves, a step that's perhaps become more important than ever.
08:54In 2024, intense heat waves damaged tea bushes in Kyoto.
08:59The last two months, it was a change in the spring of the year after the season of the plant.
09:06So, when you are growing up in the spring when you have a lot of plants,
09:11you can change the time and you will have a little change in the spring,
09:15you will be able to create a lot of plants that you will need to grow.
09:21But even with these adjustments, he says his farm's yields took a hit.
09:35After the leaves are picked, Jintaro starts by steaming the tencha leaves.
09:40This locks in their flavor and preserves their rich green color.
09:45He cools them with a leaf spreader and places them in a nearly century-old furnace to dry.
09:50After drying, the leaves' stems are removed and then they are prepared for grinding.
10:07Jintaro grinds his tencha leaves using a handmade granite stone mill.
10:13This traditional method creates a fine powder that preserves the nutrients of the tencha.
10:18It takes Jintaro an hour to grind just 40 grams of matcha.
10:29Another issue plaguing Japan's tencha production is the shrinking number of tea farmers available to grow it.
10:35With most tea farmers in their 60s and 70s and a few young growers like Jintaro joining the field, there aren't enough new farmers to take over existing tea fields or expand production.
10:48These issues have created a shortage that's driving the price of matcha upward.
10:53The average price of tencha reached 8,235 yen or 56 dollars per kilogram in April 2025.
11:03The highest it's ever been.
11:06The amount of tea has been reduced.
11:10So, I think it's needed to make good tea.
11:14I felt that it's needed to make good tea.
11:18So, I've been able to raise the price.
11:22I've been able to raise the price.
11:23These producer price hikes trickled down to distributors like Ito N, the company Rona works for.
11:33In September, it increased its prices on some of its premium grade matcha products, as well as double the price of its ceremonial grade matcha.
11:42We've unfortunately had to, it's becoming difficult to, to get matcha these days.
11:48On top of everything, new U.S. tariffs threaten to make Japanese matcha even pricier for American consumers.
11:57Isabella is also thinking about price increases for Aoko Matcha in New York City.
12:03During August and September, we stopped a lot because we knew we were going to have a big inventory.
12:07But it definitely has impacted our goods.
12:10A lot of our pricing, it is more expensive, especially with the tariffs happening as well.
12:15Therefore, our gelatos and our lattes and our parfaits will, unfortunately, have to increase a little bit throughout time.
12:22Even with prices reaching record highs, global consumers continue to demand ceremonial grade.
12:29That's what gives us that like smooth, umami-rich taste,
12:32as well as like that bright color that you see in our gelatos and lattes.
12:36But matcha purists like Rebecca see things differently.
12:41If you're using it in a beverage that has a lot of other flavors added, or, and other sweeteners in particular,
12:49then it's okay for that matcha to be more bitter and to be a lower grade and cheaper matcha.
12:55You don't need to be buying the highest quality.
12:58To me, the analogies I would give would be buying a really expensive bottle of French red wine
13:04and adding fruit and sugar to it to make sangria.
13:07So I think especially in this period where we're seeing a matcha shortage and that the producers are
13:13struggling to keep up with demand, I think it's really important to
13:16just be mindful of that and not wasteful of a product.
13:21She also worries that people may be paying premium prices for ceremonial matcha
13:26that is not actually of higher quality.
13:29Anyone can label anything a ceremonial grade and use it as a marketing term.
13:34So it basically means that it's like the wild west, it's totally unregulated.
13:41As global demand for matcha puts strain on Japan's supply, new players are also entering the market.
13:47China has surged ahead over the past two decades and is now the world's top producer.
13:53I know that they are actually inviting many of the Japanese matcha makers to
13:59really learn how to make matcha properly and learn the expertise and all this.
14:04Chinese matcha sells for less.
14:06But does a label or country of origin really determine quality?
14:12We decided to do a blind taste test with some colleagues.
14:15I have tried matcha before. The cafes I go to usually have some sort of fun
14:20flavor going on like a strawberry shortcake matcha or even recently like I had a banana bread one.
14:25I am a bit of a matcha hater. Tried to like it, but even with sugar it tastes a little swampy to me, unfortunately.
14:33I have tried matcha before. It was when the matcha craze first came to like America.
14:40So a lot of years ago I had it and I went, I'm not sure if this is for me.
14:44So I'd probably say this one looks the most appetizing to me.
14:48Looks yummy, but I bet it's not.
14:52But it looks like a yummy green juice that I would enjoy.
14:55I don't have to drink all of this, right?
14:57I'm going to...
15:01Okay, it's actually not as bad as I was expecting.
15:04Maybe it tastes more a little, a little bit like grass, but like it's very, it's very light.
15:13So that one definitely has like that bitter, earthy taste to it.
15:18And then there's like a slight like floral flavor to it, which is really nice.
15:21Oh, actually that wasn't bad at all.
15:32I mean, it tastes like tea.
15:34That tastes good.
15:35It just tastes like a very herbal tea.
15:37I guess I like it, huh?
15:38Yeah, I keep zipping it.
15:40So I guess I like it.
15:42I'm coming back for it.
15:43That one's much stronger.
15:53Okay.
15:54Yeah.
15:54That one tastes like pond scum, which I've never had, but I imagine that's what it tastes like.
16:05This one's a little bit more earthy, almost like just plant-like.
16:11And I kind of miss the floral flavor that I was getting from this one over here.
16:18See, that tastes like grass, which is what I was expecting.
16:22It's extremely bitter.
16:28It didn't immediately repulse me, so that's good.
16:35Yeah, it tastes spinachy.
16:36It tastes drinkable.
16:41It tastes like a sour taste on my tongue.
16:51It kind of feels like it left a film of an unflattering taste.
16:56Yeah, this one's not doing much at all.
16:58It's definitely the lightest tasting.
17:05It tastes like almost nothing.
17:07This is definitely the most subtle flavor of the three, and yet I dislike it the most for some reason.
17:13Definitely the lowest.
17:14This is in the middle, and this is the highest.
17:17Okay, my ranking is three, two, one.
17:21I would say this would definitely be my first choice for the matcha latte.
17:24I think with the bitterness of it, the sweetness of the latte would come through nice.
17:31The results are in, and all three participants chose the Chinese ceremonial matcha as their favorite.
17:37Two ranked Japanese ceremonial as second, with one choosing it as the worst.
17:42And two out of three ranked Japanese culinary grade in last place.
17:46Like these two, they have way more flavor with them.
17:50They're just a more pleasurable drinking experience.
17:52You can tell that they were made to be drank.
17:55This is definitely like, if you're a fan of matcha,
17:58this is what I would think of when I think of matcha, and it tastes the most matcha-y.
18:03While preferences may vary, Japan still sets the standard for ceremonial matcha.
18:09Hopefully, maybe after a year, and hopefully, matcha powder will be lowered a little bit,
18:16so it's basically more affordable for everyone.
18:19Isabella's customers also say they're willing to spend a little extra to get their matcha fix.
18:24Yeah, I would definitely still keep coming back,
18:26because I just feel like you just can't really top the quality here.
18:29Like, I just love the richness, the earthiness that comes through when I eat the level three matcha.
18:35I think even today, it is considered a bit of a luxury product.
18:40I think people would really don't mind spending the extra money to have special matcha.
18:47In Japan, officials are working to increase matcha production by encouraging tea farmers
18:52to shift their focus from other types of teas to grow matcha in order to meet the demand.
18:58The country's Ministry of Agriculture, Forestry, and Fisheries is providing subsidies to help
19:03tea farmers transition to growing tencha.
19:06And Jintaro says he's seeing more and more young people taking up tea farming.
19:10But even with these ongoing efforts, a single season of climate stress can have long-term effects on the market.
19:30Once a tencha plantation is damaged, it can take up to five years to restore it to full production
19:36and meet soaring demand. And Jintaro believes climate events like these are far from over.
19:43I would like people to kind of respect that and understand that and be mindful in their consumption.
19:52The time and effort it takes and the attention to creating that for this beautiful bowl of matcha,
19:59green tea is really something that needs to be respected and honored.
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