July 22, 2025

A Quick Update on Matcha

Caitlin Schiessl
Caitlin Schiessl
Senior Tea Trader, Purchase & Sales

It’s the question that everyone has been asking: What’s going on with matcha? The answer is: a lot. Global matcha supply is under pressure due to rising demand, limited milling capacity, and low harvest yields. Learn how the 2025 matcha shortage is affecting prices, imports, and availability—and how we’re responding as a direct importer.

The Matcha Shortage

Nowadays, matcha is not just an offering on a café menu. It’s quickly becoming a staple in functional beverages, skincare, supplements, and more. Global demand is outpacing the rate at which producers can mill their tencha (the raw material used for matcha). Stone-milled matcha can be produced at a rate of only 40g per hour…so, in other words, very slowly! While other methods, like bead milling, have a faster output, it’s still difficult for farmers to get ahead. This creates a bottleneck, often forcing producers to turn away new clients in order to prioritize long-standing partnerships.

In addition to high demand, the yield of tencha is lower this year than it was in 2024. Together, these factors are driving a significant price increase, which you can expect to see in the U.S. soon if you haven’t already. The Trump administration has also imposed a 25% tariff on all imports from Japan, going into effect on August 1st. All shipments arriving thereafter will be impacted.

For updates on coffee tariffs, check out our July 2025 Market Watch.

How are we navigating the matcha shortage?

As an importer, we’ve had to make some adjustments to our procurement timelines and implement reserve contracts with our producers in Japan. We’re also working on diversifying our sourcing relationships and introducing other types of matcha to our product portfolio.

The good news? We have some estimated restock dates for you on our current matcha offerings!

matcha shortage restock timeline from royal tea new york

Stay Updated

If you want the latest information on matcha, new offerings, and more, make sure you subscribe to our newsletter or follow us on Instagram! We’ll continue doing our best to keep you informed of any delays or changes should they occur.

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