By Dee-Ann Durbin

Copyright independent

Global matcha prices are set to increase significantly following an 86 per cent surge in US retail sales over the past three years, driven by health benefits and social media trends.

Poor weather in Japan, labour shortages in China, and existing US tariffs of up to 37.5 per cent on imports are contributing to the rising costs.

Tea buyers anticipate substantial price hikes, with some high-grade Japanese matcha expected to cost 75 per cent more, while lower grades could see a 30-50 per cent increase.

China is expanding its matcha production, with improving quality, offering an alternative to Japan, which faces an ageing workforce and reluctance from farmers to switch to tencha.

While some question the long-term social media influence, matcha’s wellness appeal is expected to sustain its popularity, though businesses are grappling with how to manage rising prices for consumers.